VANCOUVER, BC -- (MARKET WIRE) -- 01/20/2006 -- Kodiak Exploration Limited (TSX-V: KXL) is very pleased to provide an update of results from the VTEM airborne geophysical survey currently being flown over its copper-nickel-PGE prospect near Caribou Lake, 90 kilometres southeast of Yellowknife, Northwest Territories.

The VTEM survey, which is just over 50% complete, has already identified 12 large EM conductors indicating the presence of massive sulphide bodies with a collective strike length of 3.3 kilometers contained within a copper nickel mineralized horizon striking for over 9 kilometers in the Caribou Lake Gabbro. These bodies average 300 metres in length. Kodiak's independent geologists are confident that these conductors indicate copper-nickel-bearing sulphide bodies since there is no evidence of pyrite or graphite in the intrusion. These bodies represent high priority drill targets for Kodiak's winter drill program, which is scheduled to mobilize on January 25th. Bill Chornobay, President of Kodiak Exploration Limited, said, "We are very pleased with results to date. The Caribou Lake prospect has many of the early indicators of a new world class discovery."

Nickel-copper sulphides identified on surface, with grades of up to 19.7% copper and 38% nickel, are closely associated with the EM anomalies and lie within a mineralized layer in the gabbro containing magmatic net-textured and semi-massive copper-nickel sulphides. That mineralized layer is exposed across an outcrop width of 266 metres from which grab samples of up to 0.97% copper, 0.62% nickel, 198 ppb platinum and 94 ppb palladium have been obtained. It has been traced for more than 9 kilometres on surface and remains open to the northeast. It is a minimum of 70 m thick and remains open at depth.

In the southern part of the gabbro, between Great Slave Lake and Caribou Lake, the VTEM survey has detected six large EM anomalies over a strike length of 4 kilometres. Flight line spacing of 60 metres has been achieved over this area, resulting in higher resolution of previously reported EM anomalies (news Release December 12, 2005). Cross-cutting high grade niccolite infill fractures, which returned assays of up to 38% nickel, are closely associated with two of the EM conductors.

The VTEM survey has also detected a series of five large EM anomalies indicating the presence of massive sulphides three kilometers along strike to the northeast of the southern trend described above. These are associated with a zone of gabbro containing anomalous nickel, copper, platinum and palladium values, including a grab sample that assayed 19.7% copper.

Kodiak's prospectors discovered seven mineralized showings last year by blast pitting along strike. Grab samples taken from those pits returned values up to 19.7% copper, 0.62% nickel, 0.07% cobalt, 266 ppb gold, 198 ppb platinum and 94 ppb palladium in the gabbro layer. Niccolite veins cross-cutting the mineralized layer produced grab samples containing up to 38% nickel and up to 3.8% cobalt. One pit blasted in the southern zone near the base of the mineralized layer exposed semi-massive sulphides, but did not reach the base of the sulphide layer, which remains open at depth. Grab samples from this pit returned values of up to 0.97% copper and 0.62% nickel. The location of this discovery coincides with the first anomaly, a large, thick EM anomaly measuring 410 metres long that will support several high priority drill targets. A niccolite infill fracture that assayed 23% nickel is associated with this anomaly.

Kodiak is extremely encouraged that the results received to date have provided multiple high priority drill targets and looks forward to the results of the remainder of the survey and the upcoming drill program. Detailed interpretation of the data is ongoing, and will be used to optimize drill collar locations for the much anticipated drill program.

Kodiak will release further news as results become available.

Kodiak is a mineral exploration company with two properties located in Canada. Maps, photographs, geological details and additional information may be reviewed on its website at www.kodiakexp.com. The qualified persons under the definitions established by National Instrument 43-101, are Gary Vivian, P. Geo. and Trevor Bremner, P. Geo.

On behalf of the Board of Directors
KODIAK EXPLORATION LIMITED
William S. Chornobay, Director, President

This release has been prepared by management -- TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

For further information contact:
William S. Chornobay
Director, President
(604)688-9006
or by email at info@kodiakexp.com