Kodiak and Golden Goose Combine to Form Well-Financed Gold Company with Near … – MarketWatch (press release)

VANCOUVER, BRITISH COLUMBIA AND MONTREAL, QUEBEC, Aug 31, 2010 (MARKETWIRE via COMTEX) –
Kodiak Exploration Limited
/quotes/comstock/11v!kxl
(CA:KXL
0.21,
+0.02,
+10.53%)
(FRANKFURT: KX3)
(“Kodiak”) and Golden Goose Resources Inc.
/quotes/comstock/11v!ggr
(CA:GGR
0.27,
0.00,
0.00%)

(“Golden Goose”) are pleased to announce that they have entered into
a definitive merger agreement and plan of arrangement dated August
30, 2010 wherein Kodiak will acquire all of the issued and
outstanding shares of Golden Goose. The principal asset of Golden
Goose is the Magino Mine project located 40 kilometres northeast of
the town of Wawa, Ontario. The Magino Mine, a past producing
underground gold mine credited with production of over 105,000 ounces
of gold, has a 43-101 compliant Measured and Indicated gold resources
of 453,190 ounces (2,092,000 metric tonnes grading 6.74 grams/tonne
gold) and Inferred gold resources of 1,178,120 ounces gold (5,829,000
metric tonnes grading 6.29 grams/tonne gold) at a cut-off grade of
3.0 grams/tonne (Technical Report and Mineral Resource Estimate for
the Magino Mine, prepared by InnovExplo, 28 May, 2009). Kodiak is
excited to acquire this large gold deposit that compliments its
existing gold resources in the Beardmore-Geraldton gold belt and
further transitions Kodiak from a pure gold explorer to a growing
gold company with multiple projects and near-term production
potential. Kodiak believes there is substantial upside potential to
the Magino Mine property that will benefit both existing Kodiak
shareholders and Golden Goose shareholders.

- Kodiak will aggressively explore and develop a surface mineable
gold deposit at Magino

Kodiak believes that the Magino Mine property has the potential to
host a significant surface bulk-minable gold deposit. Five
independent third party resource estimates completed between 1996 and
2001 (non NI 43-101 compliant) document the potential for a large
surface bulk-minable gold deposit at Magino. These studies suggest
that the known high grade gold mineralization at Magino is enveloped
by large volumes of lower grade, potentially bulk-minable, gold
mineralization. Kodiak’s initial review of diamond drill hole data
modeling of the Magino Mine property has been very encouraging and
suggests there is strong potential to expand the size of this gold
deposit. Preliminary metallurgical testing (Kappes Cassiday and
Lakefield) indicate that gold mineralization at Magino has excellent
recovery (95%) in a conventional mill circuit. Based on our data
review, Kodiak plans a 20,000 metre diamond drilling program to
expand gold resources on the property and initiate a Preliminary
Economic Assessment of the open pit gold mining potential of the
project.

- Kodiak to have Measured and Indicated gold resources of greater
than 560,000 ounces and Inferred gold resources of greater than
1,270,000 ounces

The proposed acquisition of Golden Goose will leave Kodiak with
companywide (Magino plus Hercules) Measured and Indicated gold
resources of 564,640 ounces and Inferred gold resources of 1,279,170
ounces (Hercules: 231,800 metric tonnes grading 14.95 grams/tonne
gold Indicated resource and 761,300 tonnes grading 4.13 grams/tonne
gold Inferred; uncapped using a 1.0 grams/tonne gold cut-off). The
potential to expand these gold resources is excellent with
exploration ongoing at multiple projects and further resource
expansion drilling tentatively planned for Magino.

- Kodiak exploration pipeline offers significant opportunity

Exploration by Kodiak at its Milestone project in the
Beardmore-Geraldton gold camp has the potential to add significantly
to the combined company’s gold resource base, vaulting Kodiak to a
new higher valuation threshold. Continued exploration elsewhere in
the Beardmore-Geraldton area and at the Mines Point project in
Manitoba has the potential to add additional resource ounces,
continuing our rapid resource growth strategy.

- Kodiak has solid financial base to advance projects

Kodiak had $20.4M in cash on hand at the end of the second quarter of
2010; a robust treasury that will allow the company to further
explore and develop the Magino Mine property while continuing
aggressive exploration of the Milestone Project in the
Beardmore-Geraldton gold camp and initiate the exploration of its
Mines Point Gold project in Manitoba.

- Golden Goose shareholders gain significant upside and improved
share structure

Current Golden Goose shareholders will benefit from a greatly
enlarged project portfolio, access to capital to develop all the
newly combined company’s projects, conversion of existing Golden
Goose shares to a highly liquid trading platform and deployment of
Kodiak’s technical team to Magino to accelerate its exploration and
development.

The proposed merger with Golden Goose and acquisition of the Magino
Mine property is yet another milestone for Kodiak as the company
continues to consistently execute its strategic plan for rapid
growth: Exploration, Development and Acquisition. Kodiak plans to
have the Magino Mine project at the Preliminary Economic Assessment
(Scoping Study) stage by year end 2010, Measured and Indicated gold
resources of greater than 560,000 ounces and Inferred gold resources
of greater than 1,270,000 ounces and accelerated ongoing exploration
at multiple projects in the Beardmore-Geraldton gold camp that will
bring these projects to the resource delineation stage. When combined
with the recent changes to Kodiak management, the recent appointment
of new members to the Kodiak Board of Directors and the successful
$13.8M financing in December 2009, both old and new Kodiak
shareholders will enjoy a period of rapid growth and increased
shareholder value in the months and years ahead.

The geological information in this press release has been reviewed
and approved by Darren Lindsay, Kodiak’s Vice President-Exploration,
who is a qualified person under the definitions established by
National Instrument 43-101. Please visit the Kodiak website for
updated information about the Magino mine property, a new corporate
presentation and a video clip outlining the Golden Goose transaction:
www.kodiakexp.com.

On behalf of the Boards of Directors:

Brian J. Maher, President and Chief Executive Officer, Kodiak
Exploration Limited

Francois Perron, President and Chief Executive Officer, Golden Goose
Resources Inc.

This release may contain forward-looking statements or statements
that relate to programs that involve a number of risks and
uncertainties. Actual events or results could differ materially from
the Company’s expectations and projections.

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.

Contacts:
Kodiak Exploration Limited
Brian J. Maher
President and CEO
1-604-688-9006
1-604-688-9029 (FAX)
ir@kodiakexp.com
www.kodiakexp.com
Renmark Financial Communications Inc.
Jason Roy
(514) 939-3989 or (416) 644-2020
jroy@renmarkfinancial.com

Renmark Financial Communications Inc.
Arash Shahi
(514) 939-3989 or (416) 644-2020
ashahi@renmarkfinancial.com

Renmark Financial Communications Inc. - Media
Guy Hurd
(514) 939-3989 or (416) 644-2020
ghurd@renmarkfinancial.com
www.renmarkfinancial.com
Golden Goose Resources Inc.
Francois Perron
President and CEO
1-888-928-4667
1-888-494-5371 (FAX)
perron@goldengooseres.com
www.goldengooseres.com

SOURCE: Kodiak Exploration Limited and Golden Goose Resources Inc.

mailto:ir@kodiakexp.com

http://www.kodiakexp.commailto:jroy@renmarkfinancial.com

mailto:ashahi@renmarkfinancial.com
mailto:ghurd@renmarkfinancial.com

http://www.renmarkfinancial.commailto:perron@goldengooseres.com

http://www.goldengooseres.com

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