for what its worth

Kodiak exploration limited - kxl (TSX.v) Cdn$1.88

Exploration Update

We met with Kodiak at their Bush Lake camp on August 26, 2008 for a quick update on their exploration activities in the Geraldton-Beardmore area. They remain active on the Hercules project and several other properties in the region. Highlights are as follows:

Hercules Project

· Four drill rigs are active and they have now completed 240 holes (approximately 45,000 metres drilled). Results have been released for about 32,000 metres of the drilling.

· The goal is to expand the Golden Mile and test new structures.

· Holes are now testing the Golden Mile system to a depth of 600 metres.

· A new mineralized zone appears to be shaping up on the south east end of the Golden Mile system.

· Given the subtle nature of the low grade zone encountered in Hole HR08-137 (1.2 g/t over 41 metres), the company is reviewing holes drilled on the Lucky Strike vein to check for additional zones of low grade mineralization.

Solomon's Pillar

· Mineralization appears to be hosted in sulphidized banded iron formation (BIF). Sulphidization occurs where the BIF is cut by a low angle shear zone.

· Historical work by Inco (33 drill holes) outlined a mineralized zone that was 2-15 metres wide (averaged 7-8 metres in width), and graded 6.0 to 7.0 g/t gold. The work also suggested the presence of a high-grade core.

· Kodiak has completed 18 holes (about 3,000 metres) with the deepest penetration to a depth of 300 metres. Drilling has tested about 500 metres of strike length, and an additional 6 holes are planned to test another 100 to 150 metres of strike. Assays are pending.

· Management says that their drilling appears to correlate with the historic Inco results.

· Kodiak says that they have at least six other similar BIF targets on their regional land package.

West Geraldton

· 20 holes have been completed with an additional 30 holes planned. Assays are pending.

· The target is a shear zone in altered mafic metavolcanic rocks.

· Alteration consists of iron carbonate, silica, fuchsite, pyrite, and arsenopyrite.

· Historic grab samples have yielded values up to 130 g/t gold and a historic drill hole cut 328 g/t over 2.04 metres.

Sturgeon Bridge

· A drill program will be carried out this fall to test a mineralized shear zone.

· Grab samples by Kodiak have yielded values up to 13.97 g/t gold.

The company remains quite active on their Hercules project and several other properties in the region and should provide a steady stream of news in the coming months. We currently rate Kodiak with an Outperform rating and Cdn$5.50 target price.