To answer the big "Overall Picture" question, what do we know about Kodiak?

Kodiak is an exploration company. They have no mandate to develop any of their discoveries. They (we - it is our company) need to prove up what we've found and sell it.

Fortunately, in the case of Hercules, it would appear that we have enough money to cover this for two years. So we must prove up what we have there in two years (do-able) or go back to the market for more money or call it a day.

So what is Kodiak (not just Hercules) worth. At the close of Friday Kodiak stock was trading at $2.88/share for a market cap of $198m. As a stock holder of some time, we (the market) valued the company at between 50 to 71 cents just 8 months ago (we have 71cents a share in cash now). So we know that the news of the last 6 months at Hercules is worth $2.38 per share ($2.88 -$0.50) or $173m ($173m = $2.38 x 73 m shares). As discussed on this forum before, when we sell the resource (that is what we're in the business of doing) we can expect about $125 per ounce (give or take $25). This means the market currently believes that Hercules has 1.38m ounces of gold ($173m / $125 an ounce).

That is my factual contribution. As for my free analysis. Just two weeks ago using the same calculations, the market was telling us we had 2.33m ounces (at $4.50 per share). So what happened to 1,000,000 ounces of gold in two weeks! Did coach grabed some on his visit. Highly unlikely, it is 1,000,000 ounces and he hasn't been there since October. I think the following is more likely:

We know there is gold at Hercules. We don't know how much. So some possibilities are:

1) After a huge run up like we've had it is easier to take profits in the new tax year,

2) in a contracting market we don't want to get caught in the I'm jumping off the resources band wagon,

3) where there is an huge gape in knowledge, short sellers can stampede sentament one way or another with momentum,

4)The N/R just firmed up what we knew (good by me) but didn't shock so some traders moved on as the next NR could be some time away.

If your a Kodiak stock holder grab the gravol - the company is committed to this for 2 years!

Free advise from the mail room. This is a junior exploration company (though well financed I must say) so there is risk and we should never bet the farm. If you are not a trader, you are buying or selling on how much gold the property and evidence indicates. I think most of us believe it is a lot more than 1.38m ounces. Not long ago we had a bought deal at $0.92 per share more than the current price and you figure they paln to make money - alot of money. So if you can let the market palpitate you've got an outstanding property, in a safe country close to the necessary skills and infrastructure.

Cheers