Kodiak Exploration Ltd. JANUARY 10 www. bus- ex. com 45 will add to our treasury and push our cash position to over $ 25 million in the bank." Kodiak has tried to emulate the structures of other successful mining companies, mid- size to large scale. They have been building an exploration property pipeline, with several projects, all at different stages- evaluate them, and if worthy, drill them, and if the results are positive, move them toward resource delineation. " We try to always have projects to replace the ones we've evaluated and dropped, because not everything you drill will become a mine, and you have to realize that and plan for it." Maher thinks acquisitions will be part of Kodiak's business strategy. " The key is, if you can find undervalued assets, acquire them at reasonable prices and demonstrate the true value of the assets, you then have the ability to ' leapfrog' your company's valuation. The traditional way of growing value is still very viable- drilling, exploration and discovery- but we try to take advantage of all possible opportunities." worked in various countries and cultures with different native groups, and we're fortunate that the local First Nations people, especially in western Ontario, are as proactive as the government in supporting our efforts in mining. They recognize the importance of having a viable economy where jobs are created, and they're also conscious of protecting their culture and values, and their lands. They want us to be their partners, and at the same time they want us to be aware of their issues. For example, we have a camp in the town of Jellico, with a core processing facility nearby, and during the heart of the field season we'll hire up to 30 temporary employees locally to assist in our exploration effort. We make a special effort to try to bring band members in to work for us." There are countless junior exploration mining companies in the Canadian industry, Maher notes, but the reality is, there needs to be some concentration of capital. " We're in the process of closing on an $ 8 million financing deal, with a $ 2 million over- allotment, which

46 www. bus- ex. com JANUARY 10 Treasure Sierra Madre of Mexico's with gold. the key producer to be