Hi Fellow longs, here's just a reminder of what agreat play KXL is. It's quite old but captures a lot of what is making this Junior such a great play. During these times, IMHO, of shares being put on sale, there is a great opportunity to accumulate. See you again in October when we are at $ 8,- minimum. That is my prediction fwiw.

Discovery Background

Many of you already own shares of Kodiak since we tipped the company January 4th2006, we tipped (at a price of C$0.32), based on an airborne survey of its Caribou Lake prospect and after grab samples of 19% copper and 38% nickel were found in the area. The Caribou Lake prospect showed many of the early indicators of a new world class discovery. Shares soon shot up over 1000%. But proving that the goods were actually in the ground, was more time consuming than initially expected, leading impatient investors to sell off most of their shares. These could be bought for 30 cents again, only recently. On Monday, however, the company released some amazing information on their Hercules gold project, which has also been on our radar for quite some time. Shares shot up and closed at 99 cent, up 209% since our first call.

Kodiak Exploration informed investors about their 2007 exploration program on its Hercules project in the Beardmore-Geraldton gold camp, where over five kilometers of newly discovered, gold-bearing structures have now been exposed on surface. At the Golden Mile, excavation of overburden has exposed a previously unknown gold-bearing structure which has been traced along strike for over 2 km. Every drill hole completed to date at the 100% controlled Hercules project has intersected gold mineralization, while visible gold was encountered at many places. The results incuded 1.6m grading 38.47 gpt gold and Kodiak did cut a 11.6m long channel, near surface, grading 32.96 gpt gold

Channel samples are being more valuable than drill core samples. It will most often give a lot more information on the structure of a zone, such as continuity of the vein then a drill core. A channel sample is cut right into the exposed vein surface with a concrete saw. As such the sampled interval is representative of the vein. This is a completely different process from grab sampling where typically higher grade rocks will be collected and do not necessarily present a good indicator of what the rock body will yield.

Executive comments

Mr. Bill Chornobay, President of Kodiak commented: "New gold discoveries of this magnitude are extremely rare. In spite of the tremendous amount of work done this summer, we have barely scratched the surface. We may only be seeing the tip of the iceberg. The Beardmore-Geraldton gold camp has already produced an estimated 4.1 million ounces of gold, is highly prospective and has seen very little exploration over the past several decades. These are very early days, yet we are seeing high-grade gold in almost every structure we uncover. The frequency with which we get samples containing high gold grade from grabs, channels and drill core bodes well for this project. The team is extremely optimistic and we look forward to the future with much anticipation"
Mr. Brian J. Maher, Kodiak Vice President - Exploration added: "The discovery of new gold-bearing structures of this scale and geometry, in a proven Archean gold camp with great access and infrastructure, is an extremely rare opportunity. This gold system clearly ranks as one of the most impressive the geological team has seen in their careers. The early drill results and sampling have confirmed the magnitude of the Golden Mile, Marino, Penelton and Yellow Brick Road zones. These structures have now been exposed along strike for over 5 km in the aggregate within a three square kilometre area that remains open. Because shallow exploration drilling has been completed on less than 10% of the structures, the vast majority of the strike length remains untested and open. This truly expands the magnitude of the entire Hercules project. The Golden Mile, Yellow Brick Road, Marino and other new vein systems at Hercules exhibit numerous geological similarities to the multi-million ounce Red Lake and Kirkland Lake gold districts, where mineralization typically extends to depths well in excess of 1.5km. We intend to explore the Hercules structures to much greater depth in order to further test the high grade potential of the project. The drilling program has been expanded and will continue at an even faster pace with the two additional drill rigs. Given the scale and geometry of the vein systems discovered to date, and the evidence of additional untapped parallel gold bearing structures between the Golden Mile and the Yellow Brick Road systems, we believe the Hercules project has strong potential to host a significant new gold resource."

Press Release

Here some of the most interesting parts of the extensive press release which should be read carefully to understand the importance of this near-surface gold discovery, in an area which has a well developed infrastructure and is well known for their large goldmines (a proven Archean gold camp);

These intersections and the gold grades obtained are considered to be very significant. The Golden Mile in particular is a strongly mineralized structure with pyrite, base metal sulfides and frequent visible gold occurring on surface and in drill core. High grades (greater than 30gpt gold) are common in channel and grab samples. Continuous gold mineralization has been traced over a strike length of 365 m, with channel samples averaging 20.20 gpt gold over an average width of 3.8 m. Forty-one percent of grab samples collected along the Golden Mile contain in excess of 10 gpt gold. This structure remains open in all directions and will be the focus of the expanded drilling program described below.

Highlights of the first results from Kodiak's 2007 program include drill holes from both the Marino zone and the Golden Mile. Hole HR07-16 intersected 1.6m grading 38.47 gpt gold on the Marino vein. On the Golden Mile, a channel sample (AMX-01) cut 11.6m grading 32.96 gpt gold. Drill hole HR07-09, drilled below that channel sample, intersected 0.8m grading 20.55 gpt gold. Drill hole HR07-10, drilled still deeper in the same section, intersected 4.0m grading 6.89 gpt gold, showing that gold mineralization is continuous from the surface to a depth of at least 40 meters and remains open. Highlights from other channel samples collected over a 365m segment of the Golden Mile include AMX-04 which cut 9.55m grading 27.04 gpt gold, channel AMX-07 which cut 4.8m grading 24.91 gpt gold and channel AMX-16 which cut 2.3m grading 28.64 gpt gold. These channels samples confirm continuous gold mineralization over a strike length of 365m with an average sample grade of 20.20 gpt gold and an average width of 3.8m. Additional channel samples and drill hole intercepts containing strong gold mineralization indicated by visible gold have been submitted for rush analysis and will guide further drilling on the Golden Mile. These drill and channel results confirm the strong upside potential of the Hercules project and the potential magnitude of the gold bearing system. All drill hole and channel assays are uncut.
Numerous other quartz vein structures have been uncovered in the one km interval between the original Wilkinson Lake/Yellow Brick Road zones and the recently discovered Golden Mile, all running parallel to each other within an area of approximately 2 kilometres by 1.5 kilometres. Many of these structures remain open and additional surface showings which may represent additional quartz vein structures in that area have yet to be explored. The significance of Kodiak's findings to date lies in the nature of the mineralization in the local geological environment. In the Red Lake, Kirkland Lake and Beardmore-Geraldton gold camps, quartz vein structures similar on surface in width and grade to those identified to date at Hercules, but with much smaller surface expressions, have been found to extend to depths of 1 to 2 km and to contain economic mineral resources. Initial results from Kodiak's wide spaced shallow drilling at the Golden Mile in particular confirm that the high grade gold mineralization that has been exposed on surface remains open at depth as well as along strike. Kodiak is mobilizing two additional drill rigs to more quickly test the Golden Mile structure along strike and, ultimately, at greater depths.

Project background

The Golden Mile is a plus 2,000 metre long gold mineralized structure that remains open in both directions along strike. Gold bearing quartz veining within the structure averages 2 to 3 metres in thickness and can locally exceed ten metres. Continuous quartz veining 1-3 metres thick occurs over intervals of greater than 1,000 meters and is accompanied by pyrite, base metal sulfides and frequent visible gold. Gold occurs as blebs in quartz, along fractures, and intimately associated with pyrite and base metal sulfides. Channel samples, routinely collected on systematic 20m intervals, have confirmed the gold mineralization identified by grab samples. Parallel to the Golden Mile are the Marino, 7 to 9, Yellow Brick Road, and Penelton zones. These are large gold-bearing vein systems that also contain base metal sulfides. These veins, including the original Wilkinson Lake discovery, have been exposed over a cumulative strike length in excess of 5 kilometres. Prospecting has identified several additional gold bearing vein outcrops in the one kilometre interval between the Golden Mile and the Yellow Brick Road-Marino-Penelton area, confirming the potential to discover additional gold mineralized veins.
In-fill drilling in the Wilkinson Lake zone, located 900m northeast of Marino and the site of the original gold discovery at Hercules (9.7m grading 15.9 gpt gold true width, HR06-03, previously reported), intersected multiple zones of gold mineralization: 2.6m grading 5.8 gpt gold (HR07-04) and 0.4m grading 62.89 gpt gold (HR07-04). The Yellow Brick Road, Marino and Wilkinson Lake vein systems are part of a parallel series of gold mineralized structures which extend for at least 1,200m along strike in a zone approximately 400m wide. All the structures remain open along strike and at depth. The interval between these veins remains largely unexplored to date, and will be the subject of ongoing prospecting and removal of overburden from outcrops.

Caribou project update

The 2007 drill program at Caribou Lake has concluded with very encouraging results, with some significant intersections of sulphides containing Ni and Cu. However, this 17 hole drill program did not intercept wide intersections of high-grade Ni-Cu mineralization. Drill holes CL07-05 and CL07-14 both intercepted significant sulphide mineralization and confirm the continuity of sulphide mineralization between the drill holes. Drill hole assays results from this program grade up to 0.31% Cu and 0.22% Ni over 1.11metres from hole CL07-05 (previously announced). Additional drill highlights include hole CL07-03 which intersected 587 metres of 1 to 10% sulphides with anomalous Ni and Cu. These results continue to demonstrate that a large Ni and Cu bearing sulphide system is present in the Caribou Lake mafic complex which has the potential to host a significant Ni and Cu ore body. Geologic and drill hole data is being compiled and interpreted in preparation for the next phase of exploration at Caribou.

Company Info

Kodiak is a mineral exploration company with significant projects in three different sectors of the mining resource industry. Through regional, grass-roots generative exploration and new geological models the Company has built a portfolio of 100% controlled projects focused on gold, base metals (nickel/copper), and uranium in three different areas of Canada.