Kodiak Exploration Ltd. was pleased to announce that it entered into an option agreement with Kirrin Resources Inc. (TSX Venture: KYM) ("Kirrin") allowing Kirrin to earn up to a 70% interest in Kodiak’s Otish Basin uranium prospects located in Québec, Canada. Kirrin could earn an initial 51% interest in the Otish Basin portfolio by spending $2.8 million on exploration by December 31, 2012, and earn a further 19% interest by spending a further $1.5 million by December 31, 2015, making an aggregate commitment for a 70% interest of $4.3 million. Kirrin would be the operator of the project. Upon Kirrin fulfilling its earn-in obligations, the parties would form a 70:30 joint venture.

Agree that their optioning of 70% if Kirrin spend 4.3 million was disappointing but they would still retain 30% if that amount was spent; and if Kirrin spent that much they would most likely be onto something. Strateco's continued progress in the area is a good sign even though they may only end up with 30% seeing that Kodiak would not have spent anything. There is also a probability that the property is returned if Kirrin doesn't spend 2.8 m over the next 3 years.

Also agree that Kodiak has rightfully redirected their energy focus in Athabasca Basin which would seem to reflect that they think it was the more probable property for discovery.