Milestone

The Milestone Project is located approximately 344 km northeast of Thunder Bay, and 40 km east of the town of Long Lac, NW Ontario. The structural belt east of the Geraldton Camp (3.1 million ounces of gold) and Long Lac has always been thought to be the extension of the same productive belt, but has only seen limited exploration due to glacial cover. The Milestone Project consists of 11 free-hold patented mining claims in 205 hectares under option from Milestone Exploration Ltd. It is road accessible and within 2 km of the Trans-Canada Highway 11.

The Klob Lake Shear Zone, a +200 meter wide regional structure with an interpreted length of 20 km, transects the property and is host to the Pag North and Pag South mineralized zones. Kodiak’s initial programs included the evaluation of historical surface work and diamond drilling has confirmed the gold-bearing nature of the Klob Lake Shear over a strike length of approximately 1,500 meters. Kodiak’s evaluation of historical drilling recognized the potential for bulk tonnage resources (0.61 g/t Au over 60.65 meters) and bonanza grades (40.50 g/t Au over 1.45 meters). Gold mineralization is open in all directions. Geological models for the Milestone Project include Brett Resources Inc., Hammond Reef Gold Project in NW Ontario (259,400,000 tonnes @ 0.80 g/t Au) and Kinross Gold Corp., Fort Knox Mine in Alaska (252,770,000 tonnes @ 0.47 g/t Au).

Pag North and Pag South Zones
Both of these gold-bearing structures consist of multiple quartz-(carbonate) stockwork and vein systems enveloped in a highly altered and sheared granodiorite of the Paglamin Lake Intrusive. Drill intercepts of broad gold mineralization up to 42 meters wide over a strike length of 400 meters define the prospective corridor. Both zones are open along strike and at depth. Gold-bearing mineralization is associated with weak to moderate sulphide mineralization in highly sheared and locally fractured, biotite-chlorite altered granodiorite. The 2009 drill program intersected wide, continuous gold-bearing shears that returned 41.8 meters of 0.98 g/t Au in MS09-02, 38.4 meters of 0.64 g/t Au in MS09-03, and 25 meters of 0.90 g/t Au in MS09-04.

The Company initially undertook a regional airborne survey covering the Milestone Option and part of the Klotz Lake Property in March, 2008. The airborne VLF-EM and magnetic airborne survey consisted of 1,140 kilometers at 100 meter spacing; a prospecting program followed-up on VLF-EM and magnetic anomalies. Field mapping and prospecting was initiated in May 2008; the purpose of the program was to set up a survey grid (42.8 km of line) aligned to the historical Canamax grid. The main focus of field work did confirm historical gold mineralization in the main zone on Paglamin Lake with gold values up to 16.2 g/t gold in grab samples. Prospecting extended the gold-bearing zone eastward for an additional 1,100 meters with the discovery of new gold-bearing mineralization (up to 1.1 g/t gold from grab samples).

Table 1 - Historical Drill Highlights from Canamax Resources

In 2009, a limited four drill hole program was implemented to confirm the presence of both high grade and broad gold mineralization within the shear over a 400 meter strike length (Table 2). A total of 1,023 meters of drilling was completed. Drilling cored wide intersections of variable altered, fractured/sheared, and mineralized porphyritic granodiorite. The predominant alteration ranged from weak to intense biotite and chlorite with varying amounts of sericite, silicification, and hematite alteration. There are localized quartz-(carbonate) veins and stockwork zones up to 3.1 meters thick. Pyrite is the dominant sulphide in the altered shear, with local chalcopyrite and molybdenite mineralization.

Table 2 - Highlights of Kodiak’s 2009 Drilling Program

Additional drilling at Milestone will establish the geometrical framework to the broad nature of gold mineralization along the regional Klob Lake Shear Zone and determine controls on higher grade zones. As the target zone corresponds to a 4 km long airborne VLF-EM anomaly, a ground based IP/magnetic geophysical survey will further refine the target zone of interest and provide guidance for aggressive expansion of gold mineralization within the larger Klob Lake Shear Zone.