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Kodiak Announces 4,000 Metre Drill Program at Milestone in the Beardmore-Geraldton Gold Camp

Vancouver, British Columbia, January 15, 2010.

Kodiak Exploration Limited is pleased to announce that it will commence a 4,000 metre diamond drilling program at its Milestone Property in the Beardmore-Geraldton Gold Camp of western Ontario. Drilling is expected to begin late next week and continue through March. The drilling program is designed to follow-up on a very successful first pass drilling program that identified a large, potentially bulk-minable gold deposit on the Milestone claims. Previously announced drilling by Kodiak intercepted 41.2 metres grading 0.98 gpt Au and 30.2 metres grading 0.29 gpt gold in diamond drill hole MS09-02, 38.4 metres grading 0.64 gpt gold in diamond drill hole MS09-03 and 25.0 metres grading 0.90 gpt gold in diamond drill hole MS09-04 (NR 26 November, 2009). All three drill intercepts occur in the “Pag” shear zone where historic drill hole M17-84 intercepted 60.7 metres grading 0.61 gpt gold. Gold mineralization has been intercepted to depths greater than 150 metres (see cross section below) and geophysical data, including magnetics and VLF, define a target length of over 4 kilometers (see map below); together these indicate the potential for Milestone to host a significant gold system.

Cross Section 4540E, Milestone Project. Note that the historic drill holes shown in the section lack complete assay data and therefore only show a portion of the gold mineralized system.

Milestone VLF data, interpreted structure and drill hole locations.
Pole-dipole and ground magnetic surveys are also planned for Milestone to further define drill targets along strike. Mineralization occurs in sheared Archean intrusive rock and is geologically similar to the Hammond Reef (6.7M oz Au, 259Mt grading 1.1 gpt Au) and Fort Knox gold deposits (3.8 M oz Au, 253 Mt grading 0.47 gpt).
Details for upcoming drilling at West Geraldton, Hercules, Kaby Lake and Sturgeon Bridge will be announced soon. The geological information for the Beardmore-Geraldton regional exploration project has been reviewed and approved by Darren Lindsay, P. Geo., 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 20 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 TSL Laboratories Inc., Saskatoon, SK S7K6A4. 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

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. 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.