Kodiak Purchases Uranium Properties In Otish Basin, Expanding Its Controlled Land Holdings

Kodiak Exploration (TSX VENTURE: KXL) is pleased to announce the acquisition of additional ground in Quebec’s Otish Basin. Kodiak has expanded its 100% controlled land holdings from 22,350 to 58,278 acres. An additional 53,587 acres have been staked and confirmed by online notification from the Ministere des Ressources Naturelles et de la Faune du Quebec. Once these latest claims are confirmed in writing, Kodiak’s position will total 111,865 acres in the highly prospective Otish Basin where the exploration for unconformity-type uranium deposits is currently underway. Kodiak plans to commence its exploration of these uranium properties with an airborne radiometric, gradiometer magnetic and EM survey in the spring of 2007, to be followed up by surface exploration and drilling to test the economic potential of these prospects.

The Otish Basin is geologically similar and frequently compared to the Athabasca Basin in Saskatchewan, which accounts for approximately one third of global uranium production and 15% of global uranium reserves. Exploration in the Otish Basin during the 1970s by Uranerz, SOQUEM, Phelps Dodge, PanContinental-Cominco, Atlantic Richfield, Shell, Cogema and others resulted in the discovery of uranium deposits, numerous showings and large areas of anomalous geochemistry that were never followed up as exploration in the area ceased after uranium prices collapsed in the early 1980s.

The Otish Basin attracted attention again recently when Strateco reported a series of drill results from the original Uranerz Matoush uranium discovery, where high-grade uranium is concentrated in a fault zone cutting Proterozoic-age sandstone. The uranium-mineralized fault zone is marked by altered gabbro dyke remnants and is traceable by geophysics. Strateco intersected 2.13% U3O8 over 15.2 metres, including 3.20% U3O8 over 8.4 metres. Two other drill holes intersected better than 1% U3O8 over lengths of 14.1 metres and 10.5 metres. The mineralization at Matoush lies well above the Archean unconformity and resembles the “perched bodies” found above the McArthur River and Cigar Lake uranium deposits of the Athabasca Basin. The Matoush area also has potential for unconformity-related mineralization at depth. As a result of Strateco’s discovery, many companies are now active in the area, including Cameco and Areva.

Kodiak’s UR and 308 prospects cover high-grade radioactive float, areas of anomalous geochemistry, and uranium-bearing veins near the basin margins. On the UR property, a wedge-shaped radioactive boulder train measuring 3 kilometres long by 2 kilometres wide points up-ice to a fault in Archean bedrock, which is inferred to be the source. More than 100 angular granite boulders assayed by Uranerz contained over 0.1% U, with six ranging from 1.13 to 3.50% U. Similar indicators led Uranerz to the Matoush discovery. This prospect has not been drill-tested.