Kodiak Announces Closing of Bought Deal Financing and Exercise of Over Allotment Option by Casimir Capital L.P. and National Bank Financial to Raise $13,800,000

Vancouver, British Columbia, December 17, 2009. Kodiak Exploration Limited (the "Company") is pleased to announce that it has increased its previously announced financing.  Due to strong demand, the size of the previously announced "bought deal" private placement of flow-through shares has been increased to $11,807,153.10 and the Agents' over-allotment option of $2,000,000 has been exercised, bringing the total financing to $13,807,153.10.  The financing closed on December 16, 2009.

Casimir Capital L.P. and National Bank Financial Inc. (the "Agents") have placed 21,241,774 flow-through shares at a price of $0.65 per flow-through share.  As consideration for their services, the Agents will be paid a cash commission of $828,429.19, equal to 6% of the gross proceeds of the financing, and will be issued Agent's warrants exercisable to purchase that number of Company shares which is equal to 6% of the total number of shares issued by the Company pursuant to this financing.  The Agent's warrants have a strike price of $0.80 and will be exercisable for a period of one year from Closing, subject to the previously announced acceleration provisions.

No "control persons" (as defined in Policy 4.1 of the TSX Venture Exchange) or new insiders will be created as a result of the private placement. All shares issued by the Company will be subject to a hold period of four months from the Closing date.

The proceeds from the private placement will be used to fund the Company's ongoing exploration and development of its Hercules gold project, including initiating an initial resource estimate and scoping for possible underground exploration of the Golden Mile, and to explore its extensive land holdings in the Beardmore-Geraldton gold camp in western Ontario.

On behalf of the Board of Directors

Brian J. Maher

President and Chief Operating Officer

This news release is not for distribution to U.S. news wire services or dissemination in the United States.

Neither the 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 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.

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