Yes the general market for exploration stocks is at a bottom low.

There are many reasons, one is that we have had many high profile negative stories(Bre-X, Southwestern, Crystallex, ARU) for fraud and political issues, then Gallore Creek for cost issues etc. A lot of people have lost lots of money.

Another reason is that we do not know who to trust any longer, athletes cheat and top executives try to skim the cat. Although I would have liked to be an exploration geologist and I have very high regards for these people and the important work they do, the fact is they by definition are super optimists and not necessarily the best economists. So we always have to read between the lines and do our own due dilligence.

Possibly even more important is the sub-prime issue and the drop in housing values. It is very hard to get financing for large 'speculative' projects. Many projects are on the hold waiting for financing.

Lots of people who otherwise would invest in exploration stocks may right now be more concervative with their money since they may need the cash right now for pressing issues. Many people do not feel as rich right now as they felt last year.

Both capital and operating costs have gone up significantly, and with the developments in China etc there is no let up in the price of oil and other commodities. This togheter with the sub-prime issue have made financing projects more risky and difficulty.

So why do I keep my investment in Kodiak? It is pretty simple, I think it is the stock that over the next 3 years or so can give me the best return on my investment. I would not invest in a project that is a) risky, plus b) need high initial capital costs and c) requires a long time line to operation. Any project with high up front capital cost combined with a 10 to 15 year development time, will only go ahead if it is exceptionally promising in terms of return on investment. Kodiak, although risky I would say about 50% probability of success, can come on stream quickly and at a low capital cost. To me that is good enough.

Do I care about the slump right now, yes but I know that I should't since in the long run it does not matter. People who need to money right now or who have taken out large mortages to invest etc, are of course in a very different situations.

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