Taken from KXL Annual Report

The highlight of the year was undoubtedly the

discovery of the Golden Mile, a major new

gold mineralized system on Kodiak’s Hercules

Gold property near Thunder Bay, Ontario. The

property is very well located, with ready access

to rail, highways, power and a local work force,

and is situated in the historic Beardmore-

Geraldton Gold Camp (4.1 million ounces

total production). With many similarities to Red

Lake and Kirkland Lake, this discovery fits the

model for the classic Archean gold deposits

that produce two-thirds of Canada’s gold

– approximately 200 million ounces to date –

and 15% of global gold production, and are

typically mined to depths of 1-2 kilometres.

The Golden Mile is a large quartz vein system with visible gold and sulphides exposed on surface

along a two kilometre strike that remains open. Continuous gold mineralization has been traced

on surface for more than 400 metres, and channel samples taken every 20 metres along this zone

have averaged 20.2 g/t Au over an average width of 3.8 metres. Drill holes testing this zone have

intersected grades as high as 515.98 g/t Au (15.05 ounces per ton) over 2.5 metres. Wide step outs

1,340 metres apart along the Golden Mile also intersected high grade gold (54.1 g/t Au over 2 m

and 12.64 g/t Au over 1.4 m respectively). The first two deep drill holes on the Golden Mile have

confirmed continuity of gold mineralization to a downhole depth of almost 300 metres, and the vein

remains open below that. Every hole to date has encountered gold mineralization – an outstanding

hit ratio for any Archean gold system, indicating the strong potential for a large resource