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Kodiak Drilling Expands the Milestone Project: 38.2 Metres Grading 1.02 gpt Gold

Kodiak Drilling Expands the Milestone Project: 38.2 Metres Grading 1.02 gpt Gold

Vancouver, British Columbia CANADA, August 18, 2010 /FSC/ - KodiakExploration Limited (KXL - TSX Venture, KXLAF - OTCBB_Pink_Sheets, KX3 -FWB), is pleased to announce assay results for fifteen diamond drillholes from its planned 10,000 metre Phase Two exploration program at theMilestone Gold Project in the Beardmore-Geraldton gold camp in northernOntario. The new drill holes confirm the continuity and grade of theMilestone gold system and expand the deposit to the east. The Milestonegold system has been drilled over a minimum 2,700 metre strike length,remains open at depth and has over 20 kilometres of prospectivestructure remaining to be tested. Highlights include:

* MS10-27 cut 38.2 metres grading 1.02 gpt gold including 20.0metres grading1.82 gpt gold. This drill hole intercept also has a highgrade section: 1.0 metre grading 24.60 gpt gold associated with visiblegold in the core. The drill hole is located on the eastern edge of thedrill pattern; the system is untested to the east and is open (pleasesee map below).

* MS10-30 cut 54.0 metres grading 0.56 gpt gold including 16.5 metres grading 1.02 gpt gold.

* MS10-32 cut 32.3 metres grading 0.88 gpt gold including 23.0 metres grading 1.14 gpt gold.

* MS10-33 cut 25.0 metres grading 0.72 gpt gold.

* MS10-34 cut 25.5 metres grading 0.75 gpt gold.

Drill holes MS10-20 through MS10-27 are wide spaced explorationdrill holes testing the eastern extent of the Milestone goldsystem. Drill holes MS10-28 through MS10-34 are in-fill drill holesthat confirm gold grade continuity and provide data needed to begin theresource estimation process. These drill holes also verify thepresence of higher grade gold zones within the Milestone system that mayhave a significant impact on potential project economics: Areas thatcould be exploited early in mine life, enhancing capitalpayback. Additional drilling is currently underway, assays are pendingfor an additional 13 holes. A complete drill results table is shownbelow.

To view graphic copy and paste the link below into your browser:

http://www.usetdas.com/maps/kodiak/kodiak08182010.pdf

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Drill Hole From (m) To (m) Length (m) Gold (gpt) Zone
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MS10-20 439.0 467.0 28.0 0.14 Pag N
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MS10-20 495.0 506.0 11.0 0.23 Pag S
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MS10-21 107.0 108.5 1.5 1.08 ?
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MS10-21 192.8 202.3 9.5 1.00 Pag N
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includes 194.9 199.6 4.7 1.08
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MS10-22 166.0 177.9 11.9 0.29 ?
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MS10-22 215.0 222.8 7.8 2.02 Pag N
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MS10-22 239.0 250.0 11.0 0.68 ?
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includes 239.0 243.0 4.0 1.17
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MS10-23 167.0 180.0 13.0 1.07 Pag N
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includes 167.0 175.0 8.0 1.42
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MS10-24 236.0 238.0 2.0 0.78 Pag N
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MS10-25 228.0 232.9 4.9 0.74 Pag N
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MS10-25 253.0 254.0 1.0 5.11
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MS10-26 123.0 152.0 29.0 0.24 Pag N
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includes 123.0 134.5 11.5 0.38
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MS10-27 246.8 274.0 38.2 1.02 Pag N
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includes 253.8 254.8 1.0 24.60
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includes 260.8 266.0 5.2 1.49
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MS10-28 Abandoned
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MS10-29 60.0 87.0 27.0 0.54 Pag N
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includes 71.0 77.0 6.0 0.92
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MS10-29 171.0 181.0 10.0 0.44 ?
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includes 177.0 179.0 2.0 1.11
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MS10-30 95.5.0 150.0 54.5 0.56 Pag N
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includes 120.5 137.0 16.5 1.02
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MS10-31 77.0 119.2 42.2 0.46 Pag N
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includes 86.0 93.0 7.0 1.26
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includes 110.0 112.4 2.4 1.04
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MS10-32 134.0 166.3 32.3 0.88 Pag N
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includes 142.0 165.0 23.0 1.14
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and 263.0 264.5 1.5 1.77
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MS10-33 136.0 161.0 25.0 0.72 Pag N
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includes 144.0 155.0 11.0 1.01
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MS10-34 89.0 116.0 25.5 0.75 Pag N
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includes 93.5 104.0 10.5 0.97
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The geological information for the Beardmore-Geraldton regionalexploration project has been reviewed and approved by Darren Lindsay,Kodiak's Vice President-Exploration, who is a qualified person under thedefinitions established by National Instrument 43-101. Additionalinformation about the Milestone gold project can be found on our website: www.kodiakexp.com

Kodiak's QA/QC procedures are as follows: Kodiak channel samplesare 5 cm wide cut perpendicular to the strike of the vein and/or shearzone from mapped alteration in the footwall continuously through thevein and/or shear zone and into mapped alteration in the hangingwall. Channels are cut with a motorized circular saw to a depth of 20cm and removed with a hammer. Channel sample spacing is nominallyevery 20m along strike, dependent on outcrop size and geometry. Sampleintervals are selected according to geologic contacts and visiblemineralization, placed into a sample bag, and shipped to the assay labfor quantitative analysis of select elements. Kodiak drill cores aresplit down the center with a typical table feed circular rocksaw. Sample intervals are selected according to geologic contacts,visible mineralization, and alteration, placed into sample bags andshipped to the assay lab where they are quantitatively analyzed forselect elements. Drill cores are boxed, covered, and sealed at thedrill rig and moved to the Kodiak logging and sample preparationfacilities by Kodiak personnel. Kodiak angle core holes are directedperpendicular to the mapped dip of the vein therefore reported drillhole intercepts approximate true thickness of the vein. All Kodiaksamples are currently being assayed by Activation Laboratories Ltd.,Ancaster, ON L9G 4V5 and Accurassay Laboratories Inc., Thunder Bay, ON,P7B 5X5. Blank and standard samples are routinely submitted with allsample batches sent to the lab for assay. Screened metallic assays areroutinely run on all anomalous gold results as a check on nuggeteffects. Samples are routinely sent to other labs for additionalchecks.

On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive 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 thatrelate to programs that involve a number of risks anduncertainties. Actual events or results could differ materially fromthe Company's expectations and projections.

Suite 1205 - 700 West Pender Street, Vancouver, B.C., V6C1G8 Canada. Tel: (604) 688 9006 Fax: (604) 688 9029ir@kodiakexp.com www.kodiakexp.com

Source: Kodiak Exploration Limited (TSX-V: KXL) http://www.kodiakexp.com
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