Kodiak Exploration Limited

Kodiak Exploration Limited

July 08, 2010 14:01 ET

Kodiak Reports Up to 292 gpt Gold at Shields, 37.6 gpt Gold at Castlewood Lake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce assay results from its regional exploration program in the Beardmore-Geraldton gold camp in western Ontario.

Geologic mapping and systematic geochemical sampling have identified six gold mineralized veins on Kodiak's Shields property located directly east of Premier Gold's Hardrock project. The principal quartz-tourmaline-gold vein structure at Shields has a strike length of up to 500 metres and has returned values between 2.09 and 67.12 gpt gold in grab samples. Five additional gold mineralized vein systems have been identified at Shields with assays from grab samples ranging between 2.35 and 292.0 gpt gold (see map below). Each of these veins are excellent targets for significant new gold resources. Outcrop stripping and detailed channel sampling is underway to refine targets for drilling later this summer. The veins are hosted by Archean mafic volcanic and intrusive rocks that are cut by a series of structures related to the Barton Bay Deformation Zone, a regional structure which extends from the three million ounce main Geraldton gold district.

To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/0708KXL.doc

Kodiak has also been aggressively exploring the Castlewood Lake project area, located 15 kilometres northwest of the Hercules Project in the central part of the Beardmore-Geraldton gold camp. Geologic mapping and trenching, coupled with grab and channel sampling, has identified two parallel gold mineralized zones hosted by interbeded mafic volcanic rocks and interflow sediments in an area of strong deformation adjacent to the Humboldt Bay Deformation Zone. The shear zones are up to 30 metres wide and have been traced in outcrop for over 250 metres. Individual grab samples returned values ranging from less than 0.005 gpt up to 37.6 gpt gold, channel sampling is in progress. Our work to date has identified discrete high grade gold exploration targets as well as broad zones of lower grade gold mineralization that are targets for potentially bulk minable gold deposits. Drilling is planned for Castlewood Lake later this summer.

Kodiak's comprehensive and systematic Beardmore-Geraldton regional exploration program is on-going, focused on generating new targets and advancing known targets through the drill evaluation stage of our project pipeline. As part of the program, Kodiak field crews will be completing geological compilations prospecting, mapping, geophysical surveys, trenching, and drilling to systematically review our project areas for quality targets that have potential for discovery. These target areas include but are not limited to Kaby Lake, Wildgoose, and Sturgeon Bridge projects. At the company's Milestone project, diamond drilling continues while trenching, sampling and mapping are in progress at Hercules. Kodiak will provide updates on all of our exploration programs as results are received.

Kodiak's management team is committed to growing shareholder value through the systematic development of a project pipeline, aggressively evaluating high potential targets, and pursuing strategic opportunities which meet corporate goals for expansion and growth.

The geological information for the Beardmore-Geraldton regional exploration project has been reviewed and approved by Darren Lindsay, Kodiak's Vice President-Exploration, who is a qualified person under the definitions established by National Instrument 43-101.

Kodiak QA/QC procedures are as follows: Kodiak channel samples are 5 cm wide cut perpendicular to the strike of the vein and/or shear zone from mapped alteration in the footwall continuously through the vein and/or shear zone and into mapped alteration in the hanging wall. Channels are cut with a motorized circular saw to a depth of 10 cm and removed with a hammer. Channel sample spacing is nominally every 20m along strike, dependent on outcrop size and geometry. Sample intervals are selected according to geologic contacts and visible mineralization, placed into a sample bag, and shipped to the assay lab for quantitative analysis of select elements. Kodiak drill cores are split down the center with a typical table feed circular rock saw. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Kodiak logging and sample preparation facilities by Kodiak personnel. Kodiak angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Kodiak samples are currently being assayed by Activation Laboratories Ltd., Ancaster, ON L9G 4V5 and Accurassay Laboratories Inc., Thunder Bay, ON, P7B 5X5. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Screened metallic assays are routinely run on all anomalous gold results as a check on nugget effects. Samples are routinely sent to other labs for additional checks.

On behalf of the Board of Directors

Brian J. Maher, President and Chief Operating Officer

This release may contain forward-looking statements or statements that relate to programs that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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