Exploration & Drilling

Vancouver, British Columbia

Kivalliq Energy Corporation (“Kivalliq”, TSX-V: KIV) today announced  assay results from drilling at the newly discovered ML and J1 zones within the Lac 50 Trend located at Kivalliq’s 340,268 acre Angilak Property in Nunavut Territory. This news release summarizes the drilling component of the 2013 exploration program.

Key Point Summary:

• The ML and J1 discoveries this season bring the count to 12 new zones drilled within the highly prospective Lac 50 Trend since 2010.
• ML Zone highlight assay results:
  • 1.42% U3O8, 0.40% Mo, 139 g/t Ag and 0.64% Cu over 1.2 metres in 13-ML-001
• J1 Zone highlight assay results:
  • 0.56% U3O8,  0.28% Mo, 15.5 g/t Ag over  0.6 metres in 13-J1-003
  • 1.06% U3O8   over 0.3 metres in 13-J1-002

“Exploratory drilling within the Lac 50 Trend this season has been extremely successful, with the discovery of the ML and J1 zones,” stated Kivalliq’s President, Jeff Ward. “The geological similarity and proximity of the ML and J1 zones to the current Lac 50 Trend mineral deposits confirm our belief that we can continue to grow our inferred resource base through drilling. Exploration work in July will be focussed on increasing our confidence level of specific high-priority zones to be tested with future drill programs.”

ML Zone

Four core holes tested the 1.5 kilometre long ML Zone electromagnetic (“EM”) conductor from two sites 1.1 kilometres apart. At 60 metres vertical depth, hole 13-ML-001 intersected 1.2 metres of uranium mineralization within a 4.3 metre wide zone of sheared, hematized, sulphidic graphitic tuff and carbonate veining. Hole 13-ML-002 intersected the same altered tuff unit 36 metres down dip, but with weak mineralization. Holes 13-ML-003 and 004 tested the ML conductor 1.1 kilometres along strike to the east, intersecting a similar sheared tuffaceous host rock with no radioactivity.

J1 Zone

The J1 Zone is a one kilometre long EM conductor located between the J4 and Eastern Extension zones. Six holes drilled from two drill sites along 150 metres of strike length intersected varying amounts of uranium at depths between 28 and 180 vertical metres. Mineralization at J1 occurs as narrow carbonate veins in sheared, hematized, sulphidic graphitic tuff within a larger sequence of basalt and gabbro, similar to the lithological units hosting mineralization at the Lac 50 Trend resource.

All holes were drilled northeast at an azimuth of 26 degrees and with inclinations between -45 and -67 degrees. Assay results for the ML and J1 Zones are presented in the table below. For cross sections with assays and drill plan maps, please visit:

http://www.corebox.net/properties/angilak/ or www.kivalliqenergy.com/projects/angilak/program_images

ML Zone Assay Results

2013 ML Zone – Diamond Drill Hole Weighted Assay Results*
DDH	From (m)	To (m)	Interval (m)	Est. True Width (m)	U308 (%)	Cu (%)	Mo (%)	Ag (g/t)	Description
13-ML-001	90.2	94.5	4.3	4.3	0.46	0.48	0.15	53.6	ML Zone
Includes	90.2	91.4	1.2	1.2	1.42	0.64	0.40	139.0	ML Zone
13-ML-002	101.1	103.8	2.7	2.4	0.01	0.30	0.00	6.7	ML Zone

J1 Zone Assay Results

*All samples are subjected to ICP1 Analysis by Saskatchewan Research Council Geoanalytical Laboratories “SRC” in Saskatoon, Canada. ICP1 results >1,000 ppm U are subjected to SRC U3O8 Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm).  1 ppm = 1gm/t, 10,000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.01179.

Five drill holes; 13-ML-003 and 004, 13-J1-007, 13-J4W-001 and 13-VGR-001 intersected no significant mineralization. Drill hole 13-VGR-001a was not completed due to poor drilling conditions.

QA/QC

Half-spilt NQ core samples from Angilak Property drill holes were sent to the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC’s ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1,000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.

Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest-grade uranium resource outside of Saskatchewan’s Athabasca Basin. Its flagship project, the 340,268 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected]

Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies, for more information please visit www.auroraresource.com.

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.

Certain disclosures in this release, including the budget and exploration program proposed for the Angilak Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Cautionary Note concerning estimates of Inferred Resources:

This news release uses the term “inferred resources”. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (“Kivalliq”) today announced the discovery of uranium mineralization associated with a geophysical conductor located 650 metres north east of the J4 Zone at the 340,268 acre Angilak Property in Nunavut Territory, Canada.

“The ML Zone is Kivalliq’s second drilling discovery this season; and the 12th such discovery within the highly prospective Lac 50 Trend since 2010. Our exploration targeting techniques continue to generate positive and meaningful results,” stated Jim Paterson, Kivalliq’s CEO. “As in the past two years, work in Phase 1 has identified zones for follow up. We will now focus on activities with the potential to impact a preliminary economic assessment (“PEA”) of the Lac 50 Trend.”

Exploration highlights in 2013 to date include:

• Two new uranium discoveries from drilling of the Lac 50 Trend – ML Zone and J1 Zone
• ML Zone – Hole 13-ML-001 intersected anomalous radioactivity up to 30,000 counts per second (“cps”) over 1.3 metres true width, 300 metres west of an anomalous reverse circulation (“RC”) hole drilled in 2012
• J1 Zone – Six of six holes drilled intersected anomalous radioactivity 800 metres west of the J4 zone
• 995 line kilometres of geophysical surveying prioritized targets within the Lac 50 Trend and property-wide

ML Zone Discovery

The ML Zone conductor was identified as a priority target in 2012 when a single RC hole at the end of the season intersected host rocks and mineralization similar to that in the Lac 50 Trend, with anomalous radioactivity between 200 and 1600 cps over 1.5 metres.  In April 2013, four core holes totaling 632 metres tested this 1.5 kilometre long conductor from two sites 1.1 kilometres apart.

Holes 13-ML-001 and 002 tested the ML Zone conductor 300 metres west of the 2012 RC hole. 13-ML-001 intersected anomalous radioactivity with values between 200 and 30,000 cps over a true width of 1.3 metres at 60 metres vertical depth. Mineralization occurs within a 4.3 metre wide zone of sheared, hematized, sulphidic graphitic tuff and carbonate veining. Hole 13-ML-002 intersected the same altered tuff unit 36 metres down dip, but with no radioactivity. Holes 13-ML-003 and 004 tested the ML conductor 1.1 kilometres along strike to the east, intersecting a similar sheared tuffaceous host rock with no radioactivity. Closer spaced drilling is warranted on this mineralized structure.

All holes in target areas were drilled northeast with azimuths 26 degrees at inclinations between -45 and -67 degrees. For maps and drill plan images, please visit: www.kivalliqenergy.com/projects/angilak/program_images/

Phase 1 Exploration Program

As part of the Phase 1 program, Kivalliq drilled 2,100 metres of NQ core in 14 holes using one drill rig. Three priority targets were tested within the Lac 50 Trend, two new zones discovered (J1 and ML) and a single hole was drilled at the VGR1 anomaly on the west side of the Angilak Property.

In addition to five holes reported for the J1 Zone (news release dated April 17, 2013) a sixth hole testing this anomaly encountered weak radioactivity (1400 cps) over 0.2 metres. Two holes drilled on ice, 13-J1-007 and 13-J4W-001, investigated lake based targets located approximately 500 metres west of J1. These holes intersected fault breccia with no radioactivity.

A single vertical hole tested the VGR1 geophysical anomaly approximately 25 kilometres west of the Lac 50 Trend.  Drilling was completed to a depth of 412 metres without reaching the target unconformity between Proterozoic basin and Archean basement rocks, and an initial hole was lost due to poor drilling conditions. No elevated radioactivity was noted in the sequence of carbonate veined trachyte and maroon-red sandstone before the hole ended in horizontal bedded sandstone. Geophysical anomalies at VGR1 and on lakes in the Lac 50 Trend were not explained by drilling and further work is warranted.

Pending assay results and subject to capital market conditions, Kivalliq will continue the second phase of the proposed 2013 Exploration Program at Angilak, announced February 5 and revised on April 2, 2013.

QA/QC

Half-spilt core samples from holes drilled at the Angilak Property, with anomalous radioactivity levels between 130 and 30,000 cps measured to date, will be sent to Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. Chemical assay results from this drill program will be reported by Kivalliq upon receipt.

Natural gamma radiation in drill core was measured in counts per second using a hand-held Radiation Solutions Inc. RS-121 scintillometer or RS-230 spectrometer. Kivalliq cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest-grade uranium resource outside of Saskatchewan’s Athabasca Basin. Its flagship project, the 340,268 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U₃O₈, totaling 43.3 million pounds U₃O₈. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected]

Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies, for more information please visit www.auroraresource.com.

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.

Certain disclosures in this release, including the budget and exploration program proposed for the Angilak Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Cautionary Note concerning estimates of Inferred Resources:

This news release uses the term “inferred resources”. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (“Kivalliq”) today announced, as part of Phase 1 of the 2013 exploration program, the discovery of radioactive mineralization associated with a geophysical conductor located between, and along strike from, the Eastern Extension and J4/Ray Zones at the 340,268 acre Angilak Property in Nunavut Territory, Canada.

“The season has started on an extremely positive note, with the confirmation that a prospective new zone exists between the Eastern Extension and J4 zones that form part of the current Lac 50 Trend inferred resource,” stated Jim Paterson, Kivalliq’s CEO. “Our technical team continues to deliver exceptional exploration results, as we work towards extending known resources and testing new targets property wide.”

Exploration progress in 2013 to date includes:

• Five diamond drill holes totaling 584 metres focused on linear geophysical targets between Eastern Extension and J4-Ray resource areas of the Lac 50 Trend
• Five of five holes from two sites have intersected anomalous radioactivity
• 573 line kilometres of ground resistivity electromagnetic (“EM”) surveying to prioritize targets in Lac 50 Trend

J1 Zone Discovery

Radioactive mineralization has been intersected in five of five holes drilled from two drill sites along 150 metres of strike length approximately 800 metres west of the J4 and Ray zones. The new J1 Zone is a one kilometre long EM conductor located along strike of, and midway between, the Eastern Extension and J4 resource areas.

The J1 Zone has been intersected at depths between 27.5 and 77.5 vertical metres. Five of five holes from two sites have intersected anomalous radioactivity with values ranging from 130 to 12,000 counts per second (“cps”) in down hole widths of 0.2 to 0.5 metres. Mineralization at J1 occurs as narrow carbonate veins in sheared, hematized, sulphidic graphitic tuff within a larger sequence of basalt and gabbro, similar to the lithological units hosting mineralization at J4, Ray and Lac Cinquante.

All holes in target areas were drilled northeast with azimuths 26 degrees at inclinations between -45 and -89 degrees. For maps and drill plan images, please visit:
http://kivalliqenergy.com/projects/angilak/program_images/

The first phase of 2013 exploration commenced with the mobilization of crews and equipment to the Nutaaq camp in March, with one diamond drill rig now operating. Kivalliq is fully funded to drill high priority targets from March to June and perform geophysical activities in key areas that must be completed before ice break-up. As part of the Phase 1 program, Kivalliq intends to drill approximately 3000 metres of NQ core, with one diamond drill rig, on advanced targets within the Lac 50 Trend and new targets such as Dipole and VGR located on the western side of the Angilak Property. Pending results and subject to capital market conditions, Kivalliq will continue the second phase of the proposed 2013 Exploration Program at Angilak, announced February 5 and revised on April 2, 2013.

QA/QC

Half-spilt core samples from holes drilled at the Angilak Property, with anomalous radioactivity levels between 130 and 12,000 cps measured to date, will be sent to Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. Chemical assay results from this drill program will be reported by Kivalliq upon receipt.

Natural gamma radiation in drill core was measured in counts per second using a hand-held Radiation Solutions Inc. RS-121 scintillometer or RS-230 spectrometer. Kivalliq cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest-grade uranium resource outside of Saskatchewan’s Athabasca Basin. Its flagship project, the 340,268 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected]

Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies, for more information please visit www.auroraresource.com.

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.

Certain disclosures in this release, including the budget and exploration program proposed for the Angilak Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Cautionary Note concerning estimates of Inferred Resources:

This news release uses the term “inferred resources”. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced a two phase 2013 exploration program at the 340,000 acre Angilak Property in Nunavut Territory, Canada. The plan for 2013 will build upon the Lac 50 Trend inferred resource, currently at 2,831,000 tonnes grading 0.69% U₃O₈ and totalling  43.3Mlbs U₃O₈*.

Drilling will expand the current resource, advance additional high-priority uranium targets within the Lac 50 Trend, and test select property-wide targets. Kivalliq intends to drill 25,000 metres of NQ core with three diamond drill rigs and 3,000 metres of reverse circulation (“RC”) drilling on exploration targets with a light-weight RC fly rig. Extensive ground based geophysical surveying, prospecting, and soil sampling campaigns are also planned. 
The following summarizes both the first and second phases of the proposed 2013 exploration campaign:

• 25,000 metres of diamond drill core focused on expanding the Lac 50 Trend resource, testing new zones along strike and parallel to the resource and investigating the high priority Dipole and VGR targets.
• 3,000 metres of RC drilling to advance  multiple untested conductors along strike and parallel to the Lac 50 Trend resource
• Ground geophysical surveys consisting of magnetics, electromagnetics, radiometrics and gravity
• Continued mapping and prospecting to advance priority target areas defined by the 2012 program and identify new targets on a property wide scale
• Ongoing geological modeling, metallurgical testing,  and environmental studies
• Continued emphasis on community consultation
• Engineering studies focused on camp and infrastructure expansion to optimize project logistics.
• Update the current Lac 50 Trend Inferred Resource Estimate by the end of Q1 2014.
• Initiate a Preliminary Economic Assessment scheduled to be completed in 2014

“Based on the positive momentum from the 2012 season, and a 300% increase to the Lac 50 Trend resource over the past two seasons, Kivalliq’s board of directors has approved an aggressive exploration strategy at the Angilak Property in 2013,” stated Jim Paterson, Kivalliq’s CEO. “While maintaining our high standards of environmental stewardship and cost effective exploration, our 2013 exploration goals are clearly defined as follows: increase the inferred resource base in the Lac 50 Trend by drilling high priority and untested conductors near the current inferred resource; demonstrate Angilak’s district scale potential by testing unconformity style targets elsewhere on the property; and initiate a Preliminary Economic Assessment scheduled for completion in 2014.”

Kivalliq’s board of directors has approved a two-phased, $15.5 million exploration program at Angilak for the 2013 season. The first phase, budgeted at $8 million, will commence on February 21, 2013 with the mobilization of crews and equipment to the existing Nutaaq camp. The Company plans to drill from April to June using two diamond drill rigs and one RC rig.  Ground geophysical surveying will run concurrently with the drill program until break-up sometime in June. Pending results and market conditions, the Company will commence the second phase of the proposed exploration program at Angilak in June, with continued core and RC drilling and geophysical, geological, geochemical and engineering surveys in the field.

Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for the Company, has reviewed and approved the information contained in this release.

*For disclosure related to the inferred resource for the Lac 50 Trend, please refer to Kivalliq news release of January 15, 2013.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSXV: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest grade uranium deposit outside of Saskatchewan’s Athabasca Basin.  Its flagship project, the 340,268 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U₃O₈, totaling 43.3 million pounds U₃O₈, at a 0.2% cut-off grade. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property.  Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected] .

Kivalliq Energy Corporation is a member of the Aurora Resource Group of companies, for more information please visit www.auroraresource.com .

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.

Certain disclosures in this release, including management’s assessment of plans and projects and intentions with respect to use of proceeds, future exploration programs and the completion of financings, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Cautionary Note concerning estimates of Inferred Resources:

This news release uses the term “inferred resources”. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

Kivalliq Energy Corporation (“Kivalliq”, TSX-V:KIV) today announced results from 80 diamond drill holes from within the Lac 50 Trend, including high-grade uranium assays from the J4 Zone. Discovered on July 1, 2012, the J4 Zone is located approximately two kilometres southeast of the Lac Cinquante Uranium Deposit and is one of five mineralized zones discovered this year within the 252,830 acre Angilak Property in Nunavut, Canada. Final results have now been reported from drilling within the Lac 50 Trend in 2012. Tables of assay results are available at http://kivalliqenergy.com/projects/angilak/program_images/

Highlight Assay Results

• 2.42% U₃O₈, 0.25% Cu, and 137.4 g/t Ag over 3.8 metres* in hole 12-J4-029
• 2.86% U₃O₈ and 29.2 g/t Ag over 1.5 metres* in hole 12-J4-038
• 3.91% U₃O₈ and 18.3 g/t Ag over 0.9 metres* in hole 12-J4-028
• 2.85% U₃O₈, 0.66% Cu and 20.6 g/t Ag over 1.1 metres* in hole 12-J4-062
• 0.30% U₃O₈ and 10.1 g/t Ag over 24.1 metres* in hole 12-J4-050
• Drilling at J4 intersected uranium over a strike length of 800 metres and; to a vertical depth of 383 metres, the deepest uranium intercept on the Angilak Property to date

  *estimated true widths

“This year’s drilling at J4 Zone has returned assay results with both high grades, and now with Hole J4-12-050, broad intervals of uranium mineralization,” stated Kivalliq’s President Jeff Ward. “We look forward to incorporating results from this significant 2012 discovery into a revised resource estimate, scheduled for early 2013.”

J4 Zone

The J4 Zone is defined by an electromagnetic (“EM”) conductor located 1.8 kilometres southeast of the Lac Cinquante’s Eastern Extension and about 300 metres north of the Ray Zone. Significant uranium mineralization has now been intersected along 800 metres of strike length in 49 of 63 holes drilled from 24 sites at the J4 Zone. A total of 12,756 metres were drilled at J4 Zone in 2012. Assay results from 60 holes are presented in tables at: http://kivalliqenergy.com/projects/angilak/program_images/#section2-b

Uranium mineralization at J4 is hosted by two sub-parallel mineralized horizons, 10 to 45 metres apart, referred to as the J4 Upper Zone and the J4 Lower Zone. These zones have been intersected at vertical depths of between 35 and 383 metres, the deepest uranium interval drilled on the Angilak Property to date. Mineralization occurs in quartz-carbonate veins, having estimated true widths between 0.2 and 24.1 metres, hosted by a sheared sulphidic, graphitic tuff within a larger sequence of basalt.

Ray Zone

The Ray Zone is expressed as a subtle EM conductor, parallel to J4 and located two kilometres along strike and southeast of Lac Cinquante’s Eastern Extension.

In 2012, a total of 2,796 metres were drilled at the Ray Zone from five sites along 310 metres of strike length and uranium mineralization was intersected in 10 of the 16 holes drilled at vertical depths between 25 and 129 metres. This mineralization occurs in a narrow sulphidic, graphitic tuff horizon similar to mineralization at Lac Cinquante. The estimated true width of the zone varies between 0.4 and 1.8 metres, with the best result to date being 0.66% U₃O₈ over an interval of 1.2 metres.  Assay results from the final seven holes are presented in the tables at:
http://kivalliqenergy.com/projects/angilak/program_images/#section2-a-01

All holes at the J4 and Ray zones were drilled northeast with azimuths of 026° at inclinations ranging from -45° and -90°.

Lac Cinquante Main Zone and Eastern Extension

Assay results from the last nine holes drilled at the Main Zone and four holes drilled at the Eastern Extension in 2012 are presented in tables at:
http://kivalliqenergy.com/projects/angilak/program_images/#section2-bbb
http://kivalliqenergy.com/projects/angilak/program_images/#section2-aaa

Drilling at the Main Zone tested for mineralization below the current resource using 14 wide spaced holes, whereas drilling at the Eastern Extension tested the gap between the Eastern Extension and the Main Zone with four holes.
 
Limited drilling at the Main Zone below the current resource along 1.3 kilometres of strike intersected weak uranium mineralization in four holes, with the best result being 0.43% U₃O₈ over 0.3 metres estimated true width at 300 metres vertical depth (hole 12-LCM-006). At the Eastern Extension, two of four holes extended known mineralization by 50 metres westward, with the best result being 0.44% U₃O₈ over 0.8 metres estimated true width at 82 metres vertical depth (hole 12-LCE-001). All holes were drilled to the northeast with azimuths of 026°, at inclinations ranging from -45° and -79°.

For descriptions of the 2012 drilling and these zones please reference Kivalliq news releases July 25 and August 27, 2012.

To view cross sections, assays and drill plan maps from the 2012 exploration program, please visit: http://www.corebox.net/properties/angilak/ or www.kivalliqenergy.com/projects/angilak/program_images/    

The fourth quarter of 2012 will be dedicated to initial metallurgical and engineering studies, technical analysis and resource modeling with the goal of identifying new target areas and updating the NI 43-101 mineral resource before the end of the first quarter of 2013.

The Highly Prospective Lac 50 Trend

On September 24, 2012, Kivalliq announced the completion of an aggressive exploration program, which included 38,856 metres of core and reverse circulation (“RC”) drilling focused on adding inferred resources and testing new mineralized target areas within the Lac 50 Trend. The Lac 50 Trend is a three kilometre wide by 15 kilometre long southeast striking structural trend within Archean volcanic rocks adjacent to an unconformity with Proterozoic sediments of the Angikuni sub-basin.

In addition to the Lac Cinquante Uranium Deposit, the Lac 50 Trend is host to ten significant uranium occurrences discovered by Kivalliq since 2010, including five new uranium discoveries drilled this season. Our exploration work and the identification of new mineralized zones continue to validate the “District Scale” potential of the Angilak Property. 

QA/QC

Half-spilt NQ core samples from Angilak Property drill holes having anomalous radioactivity levels above 200 counts per second (“cps”) were sent to the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. All samples were analyzed for U₃O₈ and a multi-element suite. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC’s ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements, reported in parts per million (“ppm”); where 1 ppm = 1gm/t, 10,000 ppm = 1% . Intervals include ICP U analysis in ppm converted to U₃O₈% (conversion to U₃O₈% = ppm x 0.0001179). ICP results U>1,000 ppm are analyzed using SRC’s ISO/IEC 17025:2005-accredited U₃O₈ Assay method.

Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.

Jeff Ward, P.Geo. and President of Kivalliq is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release.

About Kivalliq Energy Corporation
 
Kivalliq Energy Corporation (TSXV: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest grade uranium deposit outside of Saskatchewan’s Athabasca Basin.  The Company’s flagship project, the 252,830 acre Angilak Property in Nunavut Territory, is host to the Lac Cinquante Deposit with a NI 43-101 Inferred Resource of 1,779,000 tonnes grading 0.69% U₃O₈, totaling 27.13 million pounds U₃O₈. Kivalliq’s comprehensive exploration programs continue to advance the Lac Cinquante Deposit and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors
 
James R. Paterson, CEO

Kivalliq Energy Corporation
 
Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies.

For further information about Kivalliq Energy Corporation or this news release, please visit our websites at www.kivalliqenergy.com  and www.auroraresource.com or contact James R. Paterson CEO 604.646.4527 or Toll Free: 1.888.331.2269 [email protected].

Certain disclosures in this release, including the growth and value of the Angilak Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to market price of Kivalliq’s securities and the market for securities of resource exploration companies in general; commodity prices and, in particular, the price of uranium and the completion of Kivalliq’s plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

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Vancouver, British Columbia

Kivalliq Energy Corporation (“Kivalliq”, TSX-V:KIV) today announced significant assay results from six of seven diamond drill holes at the newly-discovered “Hot Zone”. The Hot Zone is located on a two kilometre long geophysical target within the Lac 50 Trend, drilled late in the season as part of the 2012 exploration program at the 252,830 acre Angilak Property in Nunavut, Canada.

Hot Zone Highlights

• Highlight assay results from the Hot Zone include:
  • 0.6 metres of 0.37% U₃O₈, 0.70% Mo and 88.4 g/t Ag  in HOT-12-003
  • 3.0 metres of 0.85% U₃O₈, 0.53% Mo and 56.2 g/t Ag  in HOT-12-004
  • 0.6 metres of 0.53% U₃O₈, 0.21% Mo and 87.9 g/t Ag  in HOT -12-005
• 1,292 metres of core drilling in seven holes intersected significant uranium over 150 metres of strike length
• The two kilometre long Hot electromagnetic (“EM”) geophysical anomaly is located within the Lac 50 Trend, parallel to, and 1.8 kilometres northeast of the Lac Cinquante Deposit
• Hot Zone remains open along strike in both directions and at depth

Hot Zone: Fifth Mineralized Zone Discovered in 2012 within Prospective Lac 50 Trend

“Discoveries such as the Hot Zone continue to add momentum to our exploration efforts at the Angilak Property. This is the tenth discovery since 2010 and the fifth uranium zone discovered by drilling this season, within the Lac 50 Trend.” stated Kivalliq’s President Jeff Ward. “We look forward to assay results from the remaining 86 holes prior to year end, including 67 holes from the J4 and Ray zones.”

On September 24, 2012, Kivalliq announced the completion of an aggressive exploration program, which included 38,856 metres of core and reverse circulation (“RC”) drilling focused on adding inferred resources and testing new mineralized target areas within the Lac 50 Trend. The Lac 50 Trend is a three kilometre wide by 15 kilometre long southeast striking structural trend within Archean volcanic rocks adjacent to an unconformity with Proterozoic sediments of the Angikuni sub-basin. In addition to the Lac Cinquante Uranium Deposit, the Lac 50 Trend is host to ten significant uranium occurrences discovered by Kivalliq since 2010. The Hot Zone is the most recent of these, and one of five new uranium discoveries drilled this season. Our exploration work and the identification of new mineralized zones like the Hot Zone continue to validate the “District Scale” potential of the Angilak Property. 

Seven core holes totaling 1,292 metres were drilled along a 150 metre segment of the two kilometre long Hot EM conductor.  Drilling, from three sites spaced 50 and 100 metres apart, was at an azimuth of 026° (NNE) and inclinations ranging from -45° to -88°. Anomalous mineralization was intersected in six of the seven holes, over down-hole core interval between 0.3 and 3.0 metres, and at depths between 30 and 170 vertical metres. Uranium mineralization is associated with quartz-carbonate alteration and veining containing 1-2% disseminated sulphides in sheared basalt and a quartz feldspar porphyry.

Hot Zone Assay Results

2012 Hot Zone Diamond Drill Hole Weighted Assay Results*
DDH	From (m)	To (m)	Interval (m)	U308 (%)	Cu (%)	Mo (%)	Ag (g/t)	Description
12-HOT-002	119.9	120.3	0.4	0.40	0.03	0.40	49.3	Qtz Carb Vein
12-HOT-003	42.8	43.1	0.3	0.18	0.01	0.12	3.3	Qtz Carb Vein
12-HOT-003	64.1	64.7	0.6	0.37	0.27	0.70	88.4	Qtz Carb Vein
12-HOT-003	66.6	67.5	0.9	0.07	0.02	0.20	19.4	Qtz Carb Vein
12-HOT-003	71.9	73.1	1.2	0.11	0.13	0.14	17.9	Qtz Carb Vein
12-HOT-003	82.8	84.0	1.2	0.07	0.00	0.09	1.4	Qtz Carb Vein
12-HOT-004	84.1	87.1	3.0	0.85	0.07	0.53	56.2	Qtz Carb Vein
12-HOT-004	112.0	113.8	1.8	0.31	0.08	0.44	71.8	Qtz Carb Vein
12-HOT-004	119.2	119.6	0.4	0.25	0.01	0.04	4.7	Qtz Carb Vein
12-HOT-004	138.2	138.5	0.3	0.31	0.03	0.11	11.3	Qtz Carb Vein
12-HOT-004	143.6	144.3	0.7	0.38	0.01	0.14	5.0	Qtz Carb Vein
12-HOT-004	191.0	191.3	0.3	0.18	0.02	0.06	4.8	Qtz Carb Vein
12-HOT-005	112.0	112.4	0.4	0.27	0.05	0.08	12.7	Qtz Carb Vein
12-HOT-005	114.7	115.3	0.6	0.48	0.05	0.16	27.6	Qtz Carb Vein
12-HOT-005	132.8	133.4	0.6	0.53	0.18	0.21	87.9	Qtz Carb Vein
12-HOT-006	57.6	58.1	0.5	0.02	0.08	0.35	37.4	Qtz Carb Vein
12-HOT-006	113.5	113.8	0.3	0.29	0.01	0.12	4.2	Qtz Carb Vein
12-HOT-007	78.0	79.5	1.5	0.06	0.03	0.11	11.5	Qtz Carb Vein
12-HOT-007	85.0	86.0	1.0	0.09	0.01	0.05	3.8	Qtz Carb Vein
12-HOT-007	141.4	141.8	0.4	0.11	0.03	0.09	2.1	Qtz Carb Vein

*All samples are subjected to ICP1 Analysis by Saskatchewan Research Council Geoanalytical Laboratories“SRC” in Saskatoon, Canada. ICP1 results >1,000 ppm U are subjected to SRC U₃O₈ Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm).  1 ppm = 1gm/t, 10,000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U₃O₈%.  Conversion to U₃O₈% = ppm x 0.01179.
**Down-hole core interval. True widths cannot be estimated at this time

Hole 12-HOT-001 did not intersect significant mineralization

To view cross sections, assays and drill plan maps from the 2012 exploration program and the Hot Zone please visit:
http://www.corebox.net/properties/angilak/ or www.kivalliqenergy.com/projects/angilak/program_images

The fourth quarter of 2012 will be dedicated to initial metallurgical and engineering studies, technical analysis and resource modeling with the goal of identifying new target areas and updating the NI 43-101 mineral resource by the end of Q1, 2013.

QA/QC

Half-spilt NQ core samples from Angilak Property drill holes having anomalous radioactivity levels above 200 cps were sent to the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. All samples were analyzed for U₃O₈ and a multi-element suite. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC’s ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1,000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U₃O₈ Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.

Jeff Ward, P.Geo. and President of Kivalliq is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release.

About Kivalliq Energy Corporation
 
Kivalliq Energy Corporation (TSXV: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest grade uranium deposit outside of Saskatchewan’s Athabasca Basin.  The Company’s flagship project, the 252,830 acre Angilak Property in Nunavut Territory, is host to the Lac Cinquante Deposit with a NI 43-101 Inferred Resource of 1,779,000 tonnes grading 0.69% U₃O₈, totaling 27.13 million pounds U₃O₈. Kivalliq’s comprehensive exploration programs continue to advance the Lac Cinquante Deposit and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors
 
James R. Paterson, CEO

Kivalliq Energy Corporation
 
Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies.

For further information about Kivalliq Energy Corporation or this news release, please visit our websites at www.kivalliqenergy.com  and www.auroraresource.com or contact James R. Paterson CEO 604.646.4527 or Toll Free: 1.888.331.2269 [email protected]  .

Certain disclosures in this release, including the growth and value of the Angilak Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to market price of Kivalliq’s securities and the market for securities of resource exploration companies in general; commodity prices and, in particular, the price of uranium and the completion of Kivalliq’s plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Vancouver, British Columbia

Kivalliq Energy Corporation (“Kivalliq”, TSX-V:KIV) today announced the successful completion of the field component of the 2012 exploration program at the 252,830 acre Angilak Property in Nunavut, Canada.

2012 Exploration Program: Field Component Highlights

• Discovery of the J4,  Ray,  Flare and Southwest  Zones
• 38,856 metres of core and reverse circulation (“RC”) drilling focused on adding inferred resources and testing new mineralized target areas within the Lac 50 Trend
• 930 line kilometres of ground magnetic, VLF electromagnetic, gravity and seismic surveys
• Prospecting, mapping and RC drilling to test new target areas property-wide
• Ongoing geological, metallurgical, environmental and archeological studies
• Emphasis on community consultation including property visits by community leaders

“2012 was another year of discovery on the Angilak Property, particularly within the Lac 50 Trend, at zones like J4 and Ray. Kivalliq’s exploration team demonstrated great perseverance and skill to execute another successful program on budget,” stated CEO Jim Paterson. “We are confident that our pending drill results will add significant value to this project.”

To view cross sections, figures and maps from the 2012 exploration program please visit: http://kivalliqenergy.com/projects/angilak/program_images/  

A Season of Discovery
On February 22, 2012, Kivalliq announced an aggressive $20 million exploration program, which proposed 35,000 metres of diamond and RC drilling. The completed program exceeded total metres proposed by 11% and succeeded at converting targets into significant discoveries within the Lac 50 Trend.

The Lac 50 Trend is a three kilometre wide by 15 kilometre long southeast striking structural trend within Archean volcanic rocks adjacent to an unconformity with Proterozoic sediments of the Angikuni sub-basin. In addition to the Lac Cinquante Uranium Deposit, the Lac 50 Trend is host to nine significant uranium occurrences discovered by Kivalliq since 2010. 

From April 13 to September 15, 2012, Kivalliq drilled 33,583 metres of NQ core in 173 holes with three diamond drill rigs. Drilling in 2012 tested the extent of uranium mineralization at the Lac Cinquante Deposit down-dip and along the Lac 50 Trend.  On July 1, 2012, Kivalliq discovered the J4 Zone, approximately 2.5 kilometres east of the Lac Cinquante Deposit, and since then, drilling has extended the strike length of the J4 zone to 800 metres. Mineralization at J4 was intersected at a vertical depth of 383 metres, the deepest intercept on the Angilak Property to-date.  At season’s end, the J4 Zone still remains open along strike and at depth.

To date in 2012, Kivalliq has released assay results from 80 holes, including three holes from drilling at the J4 Zone (See news release August 27, 2012). Assay results from an additional 93 drill holes will be released, pending receipt and review, prior to the end of the year. Kivalliq aims to incorporate results from this new drilling within the Lac 50 Trend, specifically the J4 and Ray zones, into a 43-101 inferred resource estimate by the end of Q1, 2013.

Kivalliq also undertook an aggressive RC drilling campaign this season, completing  5,273 metres in 38 exploratory holes. 22 of these RC holes generated samples having anomalous radioactivity greater than 500 counts per second (“cps”). These holes served to prioritize target areas for subsequent diamond drilling and resulted in the discovery of the Flare zone.  Additional targets advanced by the RC rig will be tested by diamond drilling in 2013.

Results and interpretation are also pending from 930 line kilometres of ground magnetic, VLF electromagnetic, gravity and seismic geophysical surveys combined with prospecting and mapping programs.

The fourth quarter of 2012 will be dedicated to initial metallurgical and engineering studies, technical analysis and resource modeling with the goal of identifying new target areas and updating the NI 43-101 mineral resource by the end of Q1, 2013.

QA/QC

Natural gamma radiation in drill core and RC chips was measured in cps using a hand-held Radiation Solutions Inc. RS-121 scintillometer or RS-230 spectrometer. Kivalliq cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Half-spilt NQ core samples from Angilak Property drill holes, having anomalous radioactivity levels above 200 cps were sent to the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. All samples were analyzed for U3O8 and a multi-element suite. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC’s ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1,000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.

Jeff Ward, P.Geo. and President of Kivalliq is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation is the first exploration and development company in Canada to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut.

Since acquiring the 252,830 acre Angilak Property in 2008, Kivalliq has invested approximately CDN$50 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 87,500 metres of RC and diamond drilling. This aggressive exploration has resulted in the expansion of the high-grade Lac Cinquante Deposit, along with the discovery of multiple highly-prospective target areas. Having a NI 43-101 Inferred Mineral Resource of 1,779,000 tonnes grading 0.69% U₃O₈, totalling 27.13 million pounds U₃O₈, (15.2 pounds U₃O₈ /tonne) at a 0.2% U₃O₈ cut-off grade, the Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of Saskatchewan’s Athabasca Basin.

On behalf of the Board of Directors

James R. Paterson, CEO

Kivalliq Energy Corporation

Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies. For further information about Kivalliq Energy Corporation or this news release, please visit our websites at www.kivalliqenergy.com and www.auroraresource.com

Certain disclosures in this release, including the timing of assay results and an updated NI 43-101 resource estimate, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to market price of Kivalliq’s securities and the market for securities of resource exploration companies in general; commodity prices and, in particular, the price of uranium and the completion of Kivalliq’s plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

FOR FURTHER INFORMATION PLEASE CONTACT:

Kivalliq Energy Corporation, James R. Paterson CEO 604.646.4527 or Toll Free:

1.888.331.2269 [email protected]  www.kivalliqenergy.com

Kivalliq Energy Corporation (“Kivalliq”) (TSX-V: KIV) today announced extending the strike length of the highly radioactive J4 Zone, initial 2012 drill results from testing below the Lac Cinquante Uranium Deposit, and new drilling at the Pulse Zone. Drilling is now focused on shallow  targets within three kilometres of the Lac Cinquante Deposit that include the radioactive J4 and Ray Zones discovered earlier in the 2012 exploration campaign. This release summarizes the drill program to date, and includes assays from the Western Extension Zone of the Lac Cinquante Deposit and the Pulse Zone.

Key Point Summary:

• Drilling at the  one kilometre long J4 electromagnetic (“EM”) conductor intersected significant radiation in 15 of 15 holes, extending the drilled  strike length of mineralization to 200 metres
• Hole 12-LC-007 at the Western Extension intersected 0.33% U3O8 over 3.1 metres width, at 365 metres vertical depth. This is the deepest known uranium intercept reported on the Angilak Property to date.
• Two diamond drills will focus on  new discoveries and priority targets within three kilometres of the Lac Cinquante Deposit
• A third diamond drill and a reverse circulation (“RC”) rig will test additional  targets across the Angilak Property

2012 Angilak Property Exploration Program

Drilling on the 252,830 acre Angilak Property as part of the 2012 exploration program now totals 19,457 metres in 106 diamond drill holes, plus an additional 4,645 metres in 31 exploratory holes using an RC drill rig. Drilling to date has focused on evaluating linear EM conductors occurring within three kilometres of the Lac Cinquante Deposit and testing below the current resource. With the recent discovery of the J4 zone, Kivalliq has made four new discoveries  in 2012 thus far.

Prospecting, mapping and ground geophysical surveying are ongoing and will continue to advance targets near Lac Cinquante and property wide.

J4 Zone

Significant radioactivity has now been intersected in 15 of 15 holes drilled from five sites along 200 metres of strike length at the J4 Zone. J4 is a one kilometre long EM conductor located roughly 2.3 kilometres east of the Lac Cinquante Deposit and about 300 metres north of the Ray Zone (see June 25, 2012 news release).

J4 commonly hosts up to two sub-parallel mineralized horizons, 20 metres to 30 metres apart, referred to as the J4 Upper Zone and the J4 Lower Zone. The J4 Upper Zone has been intersected at depths between 49 and 123 vertical metres. The J4 Lower Zone has been intersected between 63 metres and 183 metres vertical depth. Radioactivity is hosted in narrow quartz-carbonate veins in sheared sulphidic, graphitic tuff within a larger sequence of basalt. Radioactive readings between 170 and a peak of 39,000 counts per second (“cps”) were measured over down hole intervals 0.3 to 1.5 metres in the J4 Upper Zone. Radioactive readings between 170 and a peak of 27,000 cps were measured over 0.3 metre intervals in the J4 Lower Zone. Drilling continues at the J4 Zone.

Western Extension

The first nine of 13 holes drilled at the Western Extension in 2012 are disclosed in this news release.  4,213 metres in 13 diamond drill holes from seven sites intersected the deposit’s host shear zone using 100 metre hole spacing. Of these, seven intersected uranium or anomalous radioactivity, including the deepest intercept on the property to date at 365 metres (hole 12-LC-007 with 0.33% U3O8 of 3.1 metres estimated true width). The 2012 drilling confirmed an intermittent mineralized shear zone and quartz-carbonate veining between 0.3 and 5.2 metres estimated true width, below the current resource. Further assays from the Western Extension are pending.

Western Extension Assay Results

*All samples subject to ICP1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm).  1 ppm = 1gm/t, 10000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.01179.

Two drill holes; 12-LC-003 and 011 intersected no significant mineralization.

Lac Cinquante Main Zone

New drilling targeted below the Lac Cinquante Main Zone in an attempt to trace plunging uranium mineralization below the current resource. 4,053 metres in 14 holes from nine sites were drilled over 1.3 kilometres of strike, using a minimum of 100 metres hole spacing. Of these, six intersected weakly anomalous radioactivity between 228 metres and 350 metres vertical depth. Anomalous gamma values range from 200 to a peak of 5,200 cps, with down hole intercepts of 0.3 to 1.5 metres wide. Assay results will be released when available.


Eastern Extension

Drilling  also tested the gap between the Eastern Extension and the Lac Cinquante Main Zone.  Four holes were drilled from two sites spaced 50 metres apart at the west side of the Eastern Extension. Of these, one hole (12-LC-001) intersected a radioactive mineralized, brecciated tuff at 82 metres vertical depth, having a peak of 7000 cps over 0.4 metres. This hole extends known mineralization at the Eastern Extension by 50 metres westward. Assay results will be released when available.

For full descriptions and disclosure regarding the Western Extension, Main Zone, and Eastern Extension of the Lac Cinquante Uranium Deposit, please see Kivalliq’s NI 43-101 Technical Report from March 1, 2012.

Pulse Zone

Pulse is a three kilometre long EM conductor located roughly 700 metres north of the Lac Cinquante Deposit. 3,829 metres in 27 holes drilled in 2012 tested 1.3 kilometres of this three kilometre long EM trend. Anomalous radioactivity was encountered in 14 of 27 core holes and assay results for the first seven of these are reported herein. Intermittent uranium mineralization, that includes significant copper, molybdenum and silver values, is hosted in narrow carbonate-quartz-hematite veins in steeply dipping sheared basalt or sulphidic tuff. Drilling was from nine sites with varying spacing along strike and to a maximum depth of 170 metres. Radioactivity ranged from 200 to a high of 10,000 cps with downhole intercepts up to 1.1 metres wide. Initial assay results from 2012 drilling at Pulse are detailed in the table below.

Pulse Zone Assay Results

*All samples subject to ICP1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm).  1 ppm = 1gm/t, 10000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.01179%.

Two drill holes; 12-PL-003 and 006 intersected no significant mineralization.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. For cross sections with assays and drill plan maps, please visit
http://www.corebox.net/properties/angilak/ or www.kivalliqenergy.com/projects/angilak/program_images

QA/QC

Natural gamma radiation in drill core was measured in cps using a hand-held Radiation Solutions Inc. RS-121 scintillometer or RS-230 spectrometer. Kivalliq cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

“SRC”) for analysis. All samples were analyzed for U3O8 and a multi-element suite. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration Laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC’s ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.

Jeff Ward, P.Geo. and President of Kivalliq has reviewed and approved the scientific and technical information contained in this news release and is the Qualified Person as defined under National Instrument 43-101 for this news release.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation is a uranium exploration and development company and the first company in Canada to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut.
Kivalliq’s 252,830 acre Angilak Property hosts the high-grade Lac Cinquante Uranium Deposit, along with multiple highly-mineralized target areas. With an NI 43-101 Inferred Mineral Resource of 1,779,000 tonnes grading 0.69% U3O8, totalling 27.13 million pounds U3O8, (15.2 pounds U3O8/tonne) at a 0.2% U3O8 cut-off grade, the Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin.
Since acquiring the Angilak Property in 2008, Kivalliq has invested approximately $30 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 48,000 metres of RC and diamond drilling.

On behalf of the Board of Directors

James R. Paterson, CEO

Kivalliq Energy Corporation

For further information about Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com.

Kivalliq Energy Corporation is a member of the Aurora Resource Group of companies. For more information please visit www.auroraresource.com.

Certain disclosures in this release, including management’s, intentions with respect to use of proceeds, the 2012 Angilak exploration program and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq’s operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to market price of the Company’s securities and the market for securities of resource exploration companies in general; commodity prices and, in particular, the price of uranium and the completion of the Company’s plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

FOR FURTHER INFORMATION PLEASE CONTACT:

Kivalliq Energy Corporation
James R. Paterson CEO
604.646.4527 or Toll Free:

1.888.331.2269 
[email protected]
www.kivalliqenergy.com