Exploration & Drilling

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced assay results from the 2010 summer prospecting program at the 225,000 acre Angilak Property in Nunavut, Canada. Nine priority areas were identified based upon results, including assays from 290 grab samples collected from in-situ rock sources and glacial float material, over an eight week period from July through September 2010. Of the samples collected, 17% returned values in excess of 1% U308. In addition, several samples returned high grade values in silver, molybdenum, copper and gold.

“The 2010 prospecting program continued to demonstrate the potential of the Angilak Property,” stated Kivalliq’s President, Jeff Ward, P. Geo. “This year’s prospecting program has already led to the discovery of Lac Ciquante style mineralization in drill hole 10-NE001 and will provide us with the basis for an aggressive 2011 exploration program.”

Prospecting Program Highlights

• 9 new priority areas identified
• 51 samples assayed over 1% U308
• High grade silver, molybdenum, copper and gold mineralization identified in several showings

High-Grade Sample Highlights

 Sample ID # – Grades by Metal

• Sample 14968 – 47.8% U3O8, 1.58% Mo, 1.74% Cu, 16.5% Pb, and 740 g/t Ag
   
• Sample 14639 – 42.1% U3O8, 0.431% Cu, 11.8% Pb and 197 g/t Ag 
   
• Sample 14568 – 35.4% U3O8 and 683 g/t Ag
   
• Sample 14876 – 30.7% U308 and 690 g/t Ag
   
• Sample 14771 – 30.1% U308 and 341 g/t Ag

For geological maps identifying key samples and areas from Kivalliq’s 2010 prospecting program and a table of key results , please visit www.kivalliqenergy.com/projects/index.php?&content_id=79#section120

Background

The 225,000 acre Angilak Property hosts more than 150 historic mineralized showings discovered in the late 1970’s and early 1980’s by several companies formerly active in the region, including Pan Ocean Oil, Noranda Resources Inc. and Urangesellschaft of Canada Ltd. For the 2010 prospecting campaign, historic occurrences were ranked and prioritized based on geological setting and past results. Of these, 38 areas were selected for follow-up. These areas were then used as focal points for initial follow-up, expanding exploration to cover favourable trends and geology.

2010 Prospecting Program

A helicopter supported four man prospecting crew explored the Angilak property for approximately eight weeks during July, August and September.  In addition to expanding historic areas of interest identified by previous operators, several new radioactive showings were identified in 2010.

Prospecting and mapping identified 9 high priority areas based upon results from a total of 290 grab samples.  Of these samples, 151 are considered to represent insitu source rocks, including samples collected from historic trenches, mineralized outcrops and subcropping exposures. The remaining 139 samples represent glacial float material, such as cobbles and boulders, frost heaved clasts and glacial till.

A high proportion of these samples collected during the program returned high grade uranium, copper, molybdenum, lead , silver and gold values. Results to date have identified at least 9 areas that display significant potential for uranium and other mineralization in bedrock. These are considered high priority areas, with 51 samples returning U3O8 results in excess of 1%, as shown on the prospecting map that accompanies this release and also summarized below.

Joule Trend

The Joule trend is a 1.75 kilometre long, southeast striking area scoured by glacial outwash, hosting  sheared and faulted volcanics, with vein controlled mineralization. The trend coincides with a 4.5 kilometre long geophysical conductor, analogous to the Lac Cinquante Main Zone which is located five kilometres west. Historic work includes the discovery of a 12 pound pitchblende boulder four short drill holes within the trend. Most of the 2010 work encountered narrow widths of very radioactive mineralization (<50 cm), however mineralization styles and grades show similarities to Lac Cinquante. The trend is also situated just 2.5 kilometres west of Kivalliq’s main “Nutaaq  Camp” site.

Highlight samples from the Joule Trend:

• Sample 14968 – 47.8% U3O8, 1.58% Mo, 1.74% Cu, 16.5% Pb, and 740 g/t Ag from float material collected near the western extent of the anomalous trend
   
• Sample 14795 – 22.6% U3O8, 0.45% Mo, 0.616% Cu, 7.90% Pb and 314 g/t Ag from a strongly altered hematitic brittle fracture set in a gabbro outcrop, 140m along strike to the southeast from 14968
   
• Sample # 14771 – 35.4% U3O8 and 683 g/t Ag; Sample # 14773 – 30.1% U308 and 341 g/t Ag; Sample #14568 – 25.3% U308 and 280 g/t Ag from cobbles collected centrally within the Joule trend 
   
• Sample 14639 – 42.1% U3O8, 0.431% Cu, 11.8% Pb and 197 g/t Ag  from a narrow 5 cm wide pitchblende/limonite vein,  1.4 kilometres southeast  of the high counts returned by sample 14968 and 14795 on the eastern end of the Joule trend
   
• Sample 14561 – 6.65% U3O8, 1.23% Mo, 3.2% Pb and 315 g/t Ag from an outcrop on a parallel southeast trending linear, located 800m north

Numerous additional outcrop and float samples within the Joule trend returned strongly anomalous values that corroborate high grade values shown above and demonstrate the prevalence of uranium along the entire trend. The Company has identified multiple high-priority targets to test in this area during the 2011 exploration program. 

Blaze Zone

The area referred to as Blaze returned several strongly anomalous values from float material, surrounding a sequence of south east trending conductors similar to the geophysical response seen at Lac Cinquante. A radioactive sulphide‐bearing vein and angular float was uncovered east of the conductors, indicating uranium mineralization may be present along these conductive sources. One conductor was successfully drill tested by DDH 10-NE-001 which returned two high grade U3O8 intersections of 0.83% U3O8 over 1.4 metres and 0.66% U3O8 over 2.4 metres (released Dec. 13, 2010) 

Highlight samples from the Blaze Zone:

• Sample 14876 – 30.7% U3O8, 0.24% Cu, and 690 g/t Ag from pitchblende rich chlorite/ carbonate float collected approximately 300m southeast from drill hole 10-NE-001 along strike of the VLF conductor tested
   
• Sample 14951 – 26.3% U3O8, 1.29% Cu, and 240 g/t Ag from pitchblende rich float material collected approximately 225m northeast from drill hole 10-NE-001
   
• Sample 14589 – 10.5%U3O8, and 39 g/t Ag from pitchblende float material collected adjacentl to a an untested VLF conductor approximately 550m northeast from drill hole 10-NE-001

Forte

The Forte trend lies 3 kilometres west of the Blaze area near old trenches in radioactive conglomerate. However, the area to the north was not well explored  and hosts a 500 m fault crosscutting a regional conductor with tuff, basalt, mineralized sandstone float on surface and a new radioactive boulder train not previously reported. Sample # 14553 returned assay values of 3.07% U3O8, 0.94% Cu and 102 g/t Ag.

PWR

The PWR area is located 7.3 kilometres due north of Lac Cinquante in mixed gneissic rocks. Two old trenches expose high grade  pitchblende‐Cu sulphide veins at the contact between mafic and granodioritic gneiss. A zone of highly radioactive veinlets 1 to 5 cm in wide host are surrounded by hematite alteration. Magnetics suggest PWR may be related to regional deformation along a structure. Sample # 14593 returned assay values of 14.4% U3O8, 1.29% Mo and 135 g/t Ag.

Force

The Force trend is underlain by gneissic rock and mafic schist situated central to the property. Mineralization is found as very radioactive mudboils and subcrop which likely represent structurally controlled, uranium bearing hematite breccias and veins just below surface. Sample # 14984 returned assay values of 21.40% U3O8, 1.12% Cu and 1980 g/t Ag.

Lucky Break

The Lucky Break area is a new showing discovered in 2010. The area is situated 11.3 kilometres NW of Lac Cinquante. Outcrop exposure is minimal in the immediate area, but several highly radioactive polymetallic sulphide and pitchblende in quartz-carbonate breccia veins were recovered from subcrop beneath 30‐60 cm of till cover. Sample # 14978 returned assay values of 4.53% U3O8, 2.62% Cu and 78 g/t Ag.

Bog

The Bog trend is located in sheared and faulted basement gneiss intruded by trachytic dykes of the Christopher Island Formation, 14.5 kilometres northwest of Lac Cinquante. Previous operators delineated a SW‐trending crustal break, which was not drill tested. Radioactive outcrop, subcrop, and frost heaved boulders are found along a 3 kilometres of strike length, in an area largely covered by till. Uranium and sulphide seems to be controlled by shear/fracture structures and alteration related to dykes intruding granodioritic gneiss. Sample # 14830 returned assay values of 1.42% U3O8, 2.12% Cu and 70 g/t Ag.

VGR

The VGR trend is located approximately 25 kilometres northwest of Lac Cinquante, just inside the Yathykyed sub-basin. Previous operators performed geological, geophysical, and geochemical work between 1977 and 1981, but did not drill test this target. The trend hosts a 3 to 7 metre‐wide, steeply‐dipping  carbonate/hematite vein and fracture system hosting radioactivity and sulphide mineralization. Radioactive boulders and structure can be traced for over 3000 metres, making the VGR trend an excellent target for unconformity-type mineralization. Sample # 14766 returned assay values of 3.64% U3O8 and 2040 g/t Ag.

YAT

The Yat area is located 15.6 kilometres SW of Lac Cinquante near the northern margin of the Angikuni subasin. The trend comprises a 100 m long string of sulphide‐bearing and radioactive subcrops in clastic rock. A grab sample collected in 2007 returned 39 grams Au, 100 ppm Ag, 1.18% Cu, and 0.24% U3O8 from brecciated quartz –carbonate veined float and trenches. Samples collected in 2010 confirmed and improved on these values, including sample # 14787 with 1.44% U3O8, 1140 g/t Ag, and 12.90 g/t Au.

Overview of 2010 Exploration Program at Angilak

The 2010 Program at Angilak operated from April to October and consisted of new camp construction, property-wide prospecting, environmental baseline studies, and a total of 16,600 metres of resource definition and exploratory drilling in 107 holes. All results have now been reported from both the 2010 drill program and prospecting campaign.

The remainder of the year will be dedicated to technical and resource modeling analysis with the goal of establishing a NI 43-101 mineral resource by Q1 2011.

QA/QC

Samples collected as part of the 2010 prospecting program were comprised  of grab samples generally less than 2.5 kilograms in size . All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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. ICP results U>1000 parts per million (ppm) are analyzed using SRC’s ISO/IEC 17025:2005-accredited U3O8 Assay method. Other metal s analyzed by ICP were reported in ppm and subsequently converted to % or grams/tonne. Other metals will be verified by additional assays. Gold was analyzed using the Au1 and Au3 fire assay methods. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility.

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo. (President, Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

The Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin.   Kivalliq’s core asset, the 225,000 acre Angilak Property hosts the historic Lac Cinquante uranium deposit, and over 150 other uranium occurrences. Since acquiring the project in 2008 the Company has invested approximately $11.9 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

On behalf of the Board of Directors

“Jim Paterson”

Jim 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 Discovery Group of companies, for more information on the group visit www.discoveryexp.com (m.discoveryexp.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.

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced assay results from the final 27 holes drilled at the 225,000 acre Angilak Property in Nunavut, Canada. Assays reported from the eastern end of the Main Zone represent some of the highest grades reported to date on the property, including 6.86% U3O8 over 0.58 metres. The area of known mineralization at Lac Cinquante deposit has now been extended to over 1.35 km and drilling confirms the deposit remains open along strike and to depth.

“These drill intervals reinforce the high-grade nature of the deposit and demonstrate the potential to continue to expand the Main Zone along trend,” stated Kivalliq’s President Jeff Ward, P. Geo. “The receipt of these final assays allows commencement of the modelling work needed to deliver the project’s first NI 43-101 mineral resource by the first quarter of 2011.”

New Assay Highlights

Drill Hole ID  – %U3O8 – True Width (estimate)
10-LC-089 – 6.86% over 0.58 metres
10-LC-090 – 2.25% over 1.05 metres
10-LC-091 – 1.02% over 2.04 metres
10-LC-099 – 3.56% over 0.86 metres
10-LC-101 – 2.77% over 1.62 metres

All holes reported herein were inclined to the northeast with an azimuth of 26 degrees, intersecting the Lac Cinquante Main Zone between 27 and 265 metres depth. See the table of results below, and visit www.kivalliqenergy.com for an updated drill plan map, drill sections and drill collar information.

Table 1: 2010 Phase 2 Assay Results – Lac Cinquante Drill Program

2010 Phase 2 Lac Cinquante Drilling Program – Final Assay Results*
Drill Hole	From (m)	To (m)	Interval (m)	Est True Width**	U3O8 %	Description
10-LC-072	165.9	167.6	1.7	0.95	0.39	Main Zone
10-LC-073	265.0	266.8	1.8	0.33	0.43	Main Zone
10-LC-075	67.5	68.2	0.7	0.32	0.20	Main Zone
10-LC-076	44.5	45.2	0.7	0.49	0.36	Main Zone
10-LC-078	229.0	230.4	1.3	1.17	0.87	Main Zone
10-LC-079	261.2	262.0	0.8	0.62	0.12	Main Zone
10-LC-080	295.8	296.2	0.4	0.26	0.14	Main Zone
10-LC-089	143.7	144.8	1.1	0.58	6.86	Main Zone – East
10-LC-090	53.8	54.9	1.1	1.05	2.25	Main Zone
10-LC-091	90.8	94.6	3.8	2.04	1.02	Main Zone
10-LC-092	135.9	136.6	0.7	0.53	1.49	Main Zone
10-LC-095	38.5	40.9	2.5	na	1.03	Qtz Carb Vein
10-LC-096	238.1	239.0	0.9	0.81	2.17	Main Zone
10-LC-098	274.8	276.8	2.0	1.58	0.10	Main Zone
10-LC-099	170.1	171.2	1.0	0.86	3.56	Main Zone – East
10-LC-101	153.6	155.3	1.7	1.62	2.77	Main Zone – East
10-LC-102	185.3	185.7	0.4	0.27	0.13	Main Zone – East
10-LC-110	212.5	213.0	0.5	0.41	0.02	Main Zone
10-LC-111	280.8	282.3	1.6	0.73	0.15	Main Zone
10-LC-112	141.0	141.3	0.3	0.24	0.27	Main Zone
*All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm Uranium subject to SRC U3O8 Assay
Full mineralized intervals may include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.01179%
**  Estimates for true widths of mineralized zones based on measured core angles and attitude of Main Zone geology

For seven drill holes not reported above: holes 10-LC-094 and 097 were abandoned due to bad ground; 10-LC-074, 077, 093 and 100 intersected the altered tuff host unit with no uranium mineralization; and exploratory hole 10-LC2-001 was collared in 18.5 metres of broken basalt while testing a geophysical target one kilometre east. No anomalous radiation was noted in core at 10-LC2-001 but further work is warranted.

Overview of 2010 Exploration Program at Angilak

The 2010 Program at Angilak operated from April to October and consisted of new camp construction, property-wide prospecting, environmental baseline studies, and a total of 16,600 metres of resource definition and exploratory drilling in 107 holes. All U3O8 assays from the 2010 drill program have now been reported.

The prime objective in 2010 was to generate data necessary to deliver the first NI 43-101 mineral resource at Lac Cinquante. New drilling has confirmed mineralization at the Main Zone, down to a depth of 275 metres, and expanded mineralization to 1.35 km of strike length.  Lac Cinquante remains open in both directions and at depth based on the current drilling. The remainder of the year will be dedicated to technical and resource modeling analysis with the goal of establishing a NI 43-101 mineral resource by early 2011.

As part of the 2010 program, two exploratory holes encountered significant uranium mineralization 500 metres and 1.8 kilometres west of Lac Cinquante. These holes clearly demonstrate the potential to expand the Lac Cinquante Main Zone along trend and make new discoveries elsewhere on the Angilak Property. 

Assay results from a property wide prospecting and sampling program will be released prior to the end of the year.

QA/QC

Samples from the 2010 Phase 2 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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. 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 QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo. (President, Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

The Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin.   Kivalliq’s core asset, the 225,000 acre Angilak Property hosts the historic Lac Cinquante uranium deposit, and over 150 other uranium occurrences. Since acquiring the project in 2008 the Company has invested approximately $11.9 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

On behalf of the Board of Directors

“Jim Paterson”

Jim 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 Discovery Group of companies, for more information on the group visit www.discoveryexp.com (m.discoveryexp.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.

VANCOUVER, BRITISH COLUMBIA – Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Company" or "Kivalliq") today announced high grade  assays results from drill hole 10-NE-001. This new zone is located 1.8 kilometres west of the Lac Cinquante Main Zone, and within the 225,000 acre Angilak Property in Nunavut, Canada.

The assay results from drill hole 10-NE-001 at the new zone yielded two distinct intervals of significant U3O8 mineralization:

• 0.83% U3O8 over 1.4 metres, in altered sulphidic tuff, starting at 33.9 metres
• 0.66% U3O8 over 2.4 metres, in brecciated basalt, starting at 72.3 metres

(Intervals reported are down-hole)

"The drill hole announced today reinforces our belief in the potential for discovering additional uranium deposits elsewhere on the Angilak Property," stated Jeff Ward, P. Geo., Kivalliq's President. "As part of the 2011 exploration program, we plan to drill this new zone along strike, with a goal of significantly expanding the known zone of mineralization.”

Exploratory Drilling Increases Project Potential

An important component of the 2010 exploration program was to identify possible deposit analogues through exploratory drilling and prospecting. As announced on October 26th, 10-NE-001 was one of the last holes of the season, testing a separate geophysical conductor 1.8 kilometres west of Lac Cinquante. This target was drill tested with one hole based on Kivalliq's increased understanding of the mineralization at the Lac Cinquante Main Zone and results from the 2010 summer prospecting program. Hole 10-NE-001 was inclined at -45 degrees and drilled to the northeast with an azimuth of 35 degrees. The hole intersected two radioactive zones at 25 and 50 metres vertical depth. The shallowest zone includes altered, sulphidic tuff hosting Lac Cinquante-style uranium mineralization; the deeper zone is an interval of altered basalt and breccia, with pitchblende-quartz-carbonate veining.

Since 2009, a total of four exploratory holes have been drilled outside of the Lac Cinquante Main Zone. Two of these (10-NE-001 and 10-LC-013) intersected potentially ore grade intercepts within the favourable Lac Cinquante stratigraphy. Drill hole 10-LC-013intersected 0.21% U308 over 1.96 metres approximately 500 metres west of the Lac Cinquante Main Zone (released June 24, 2010). These results confirm the potential for extensions to the main zone, or separate analogous mineralized zones.

To view a drill plan map noting updated drill hole locations, and accompanying drill section, of the 2010 drill program, please visit www.kivalliqenergy.com .

News is still pending for assay results from the final 26 holes drilled at the Lac Cinquante Main Zone and 290 samples collected during the Company’s 2010 prospecting program at the Angilak Property.

QA/QC

Samples from the 2010 Phase 2 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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. 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 QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo., who is the Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

The Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin.   Kivalliq’s core asset, the 225,000 acre Angilak Property hosts the historic Lac Cinquante uranium deposit, and over 150 other uranium occurrences. Since acquiring the project in 2008 the Company has invested approximately $11.9 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

On behalf of the Board of Directors

“Jim Paterson”

Jim 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 Discovery Group of companies, for more information on the group visit www.discoveryexp.com (m.discoveryexp.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.

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced the successful completion of the 2010 drill program, totalling 16,600 metres in 107 holes, along the Lac Cinquante Trend, located within the 225,000 acre Angilak Property in Nunavut, Canada.   Additionally, a new zone has been drilled, which yielded three distinct intervals of significant CPS counts, 1.8 kilometres west of the Lac Cinquante Main Zone but in the same geological setting.

“The drill hole announced today adds great value to the project and underscores the very real potential for discovering additional uranium ore bodies elsewhere on the prolific Angilak Property,” stated Jeff Ward     , P. Geo., Kivalliq’s President. “Drilling at the Lac Cinquante Main Zone was fundamental to delivering the project’s first NI 43-101 mineral resource by Q1 2011, while the exploratory holes have given this project real growth potential.” 

Key Point Summary: 2010 Drill Program

• Significant CPS levels, up to 13,000, in exploratory hole (10-NE-001) 1.8 kilometres from Main Zone confirm discovery potential within the Lac Cinquante trend and elsewhere on the  property
• 16,600 metres drilled in 107 holes during Phase 1 & 2 of 2010 program
• New assays pending from  57 additional holes; results received for only 45 holes to date
• Extension of uranium mineralization 100 metres east and 500 metre step out west (10-LC-013, see KIV release May 27, 2010) demonstrate potential to expand the Lac Cinquante Main Zone along strike

Exploratory and Step-Out Drilling Increase Project Potential

An important component of drilling in 2010 was to identify deposit analogues through exploratory drilling and demonstrate the potential to expand Lac Cinquante. One of the last holes of the season tested a geophysical conductor 1.8 kilometres west of Lac Cinquante. This target was drilled based on Kivalliq’s increased understanding of the mineralization at the Lac Cinquante Main Zone and results from the 2010 summer prospecting program; augmented by a review of historic data. Hole 10-NE-001 intersected multiple radioactive zones down to 60 metres depth that include breccia, altered basalt, quartz carbonate veining and a 1.1 metre wide sulphidic tuff hosting Lac Cinquante-style uranium mineralization. CPS counts varied throughout the downhole interval, with a maximum value of 13,000 CPS in the sulphidic tuff zone.  Also, eight holes drilled to the east and outside of the modelled historic resource have extended the known mineralization 100 metres eastward and down to a depth of 125 metres.

Main Zone Drilling Forms Base for NI 43-101 Resource

The prime objective of drilling at the Lac Cinquante Main Zone was to generate data necessary for completing a mineral resource calculation. Drilling tested the Main Zone down to a depth of 275 metres, and along 1,350 metres of east –west strike length for this historic deposit.  Lac Cinquante remains open in both directions and at depth based on the current drilling. To date, Kivalliq has released assay results from 45 holes. Assay results from 57 additional holes will be released, pending receipt and review, prior to the end of the year.

Phases 1 & 2 of the 2010 program consisted of new camp construction, property-wide prospecting, environmental baseline studies, and resource definition and exploratory drilling. The fourth quarter of 2010 will be dedicated to technical and resource modeling analysis with the goal of establishing a NI 43-101 mineral resource by early 2011.

To view a drill plan map noting updated drill hole locations of the 2010 drill program, please visit www.kivalliqenergy.com .

QA/QC

Core samples have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. SRC 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. 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 (CPS) using a hand-held Radiation Solutions Inc. RS-121 scintillometer. The Company cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward     , P.Geo (President, Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

The Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin.   Kivalliq’s core asset, the 225,000 acre Angilak Property hosts the historic Lac Cinquante uranium deposit, and over 150 other uranium occurrences. Since acquiring the project in 2008 the Company has invested approximately $11.7 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com .

On behalf of the Board of Directors

“Jim Paterson”

Jim Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.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 Discovery Group of companies, for more information on the group visit www.discoveryexp.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.

** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources.  It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration  carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.  

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced the first batch of results for its 2010 Phase 2 drill program at the Lac Cinquante Uranium Deposit located in Nunavut, Canada. Ten of 13 holes intersected significant uranium mineralization across 700 metres of strike length and down to 160 metres depth. The 2010 program is designed to infill known areas of mineralization with in excess of 10,000 metres of drilling, at a density sufficient for establishing a compliant mineral resource at Lac Cinquante.

Phase 2 Drilling Highlights*

• Drill Hole 10-LC-024 –  2.2 metres grading 0.83% U₃O₈   
  Drill Hole 10-LC-018 –  1.8 metres grading 1.60% U₃O₈
• Drill Hole 10-LC-022 –  1.8 metres grading 0.43% U₃O₈
• Drill Hole 10-LC-015 –  1.0 metres grading 2.87% U₃O₈
• Drill Hole 10-LC-016 –  0.5 metres grading 2.59% U₃O₈
  *Estimated true widths

“With two rigs now on site, we’ve completed 9,000 metres of drilling to date in 2010 and the program is on budget and on track to exceed the planned 10,000 metres of drilling by October.” stated John Robins, President & CEO. “The results continue to affirm our sentiment that Lac Cinquante is one of the most exciting and promising uranium exploration projects in Canada.”

Phase 2 Overview

The Lac Cinquante “main zone” is a vein-breccia type uranium deposit occurring within a near vertical alteration/structural zone, over a strike length of one kilometre and extending from surface to a depth of 250 metres, open along strike and to depth. All Phase 2 holes were inclined to the northeast with an azimuth of 26 degrees, intersecting the Lac Cinquante main zone between 40 and 175 metres depth. Phase 2 is focused on determining continuity of mineralization and geological controls at Lac Cinquante through infill drilling on 25 to 50 metre centres.

Assay results for 10 of the 13 Phase 2 drill holes are presented in the Table 1 below. These are best reviewed with the accompanying drill collar information, plan map and drill sections posted at: www.kivalliqenergy.com

Table 1: 2010 Phase 2 Assay Results – Lac Cinquante Drill Program

2010 Phase 2 Lac Cinquante Drilling Program – Assay Results*
Drill Hole	From (m)	To (m)	Interval (m)	Est True Width**	U3O8	Description
10-LC-015	95.4	96.4	1.1	1.0	2.87	Main Zone
10-LC-016	138.3	139.1	0.8	0.5	2.59	Main Zone
10-LC-018	79.1	82.7	3.6	1.8	1.60	Main Zone
10-LC-019	103.8	105.7	1.9	0.8	0.24	Main Zone
10-LC-020	139.5	143.0	3.5	3.4	0.24	Upper Main Zone
	149.5	153.0	3.5	3.4	0.27	Lower Main Zone
10-LC-021	56.9	57.7	0.8	0.6	0.47	Qtz/cb bx vein
	175.7	176.8	1.1	0.8	0.10	Upper Main Zone
	183.0	184.7	1.7	1.3	0.06	Lower Main Zone
10-LC-022	185.0	186.8	1.8	1.8	0.43	Main Zone
10-LC-023	116.0	117.1	1.1	1.0	0.75	Qtz/cb bx vein
10-LC-024	181.9	184.5	2.6	2.2	0.83	Main Zone
10-LC-027	116.1	116.4	0.3	0.2	0.57	Main Zone
*All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm Uranium subject to SRC U3O8 Assay    Full mineralized intervals may include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.01179% **  Estimates for true widths of mineralized zones based on  the attitude of Main Zone geology and the angle of hole intercepts

Hole 10-LC-026 was lost due to bad ground. Holes 10-LC-017, 10-LC-021, 10-LC-023 and 10-LC-025 intersected the Lac Cinquante altered tuff host unit with weak or no uranium mineralization. Holes 10-LC-021 and 10-LC-023 did intersect significant uranium in quartz-carbonate veining adjacent to the main zone, but their relationship to the deposit is not known at this time. Hole 10-LC-014 was drilled 500 metres west of Lac Cinquante from the same set up as 10-LC-013 reported earlier. The hole intersected Lac Cinquante-style host geology 25 metres down dip of hole 10-LC-013 and was weakly mineralized (0.10% U₃O₈ over 0.4 metres). More drilling is warranted and will be carried out in this new step-out area.

QA/QC 

Samples from the 2010 Phase 2 drilling program comprised half split NQ drill core. All samples were analyzed for U₃O₈ and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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 QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo (Vice President Exploration of Kivalliq) who is Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada.

Kivalliq’s core asset, the 225,000 acre Angilak Project, is comprised of the historic Lac Cinquante uranium deposit (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008, the Company has spent approximately $6.7 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping and drilling.

On behalf of the Board of Directors

“John Robins”

John Robins, P.Geo
President and CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at [email protected]. 

Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.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.

** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources.  It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration  carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.  

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) announced today the mobilization of a second drill rig as part of Phase 2 of the ongoing 10,000 metre 2010 diamond drill program on the high-grade historic Lac Cinquante Uranium Deposit. Phase 2 follows on the highly successful 2,375m Phase 1 spring drill program, and will focus on establishing a NI 43-101 compliant uranium resource.  Lac Cinquante is situated within the 225,000 acre Angilak Property in Nunavut Territory, Canada.

Phase 2 of the program will consist of drilling, prospecting, sampling and field baseline studies, with the fourth quarter of 2010 dedicated to technical and resource modeling analysis and the goal of establishing a NI 43-101 compliant mineral resource by early 2011.

The Phase 1 spring drill program consisted of 2,375 metres in 13 holes (see release dated June 24, 2010). This included a step-out hole that intersected uranium mineralization (0.21% over 1.96 metres) 500 metres along trend and west of the historic uranium deposit.  In addition, the Company continues to receive assay results from core found in re-logged historic drill holes. Assays from historic re-logged core are being used as a guide for the current drill program, and to help identify new areas for follow-up.

QA/QC

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo., Kivalliq’s Vice President Exploration, the Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

The Lac Cinquante Deposit is Canada’s highest grade uranium deposit outside of the Athabasca Basin.   Kivalliq’s core asset, the 225,000 acre Angilak Project is comprised of  the historic Lac Cinquante uranium deposit, reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008 the company has spent approximately $6.7 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping /sampling and 4,120 meters of drilling since 2009.

 

On behalf of the Board of Directors

“John Robins”

John Robins, P.Geo
President and CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at [email protected] .  Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.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.

** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources.  It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration  carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.

Certain disclosures in this release, including management’s assessment of plans and projects and intentions with respect to listings of securities, use of proceeds 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 the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. 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, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced final assays for its 2010 Phase 1 drill program, totalling 2,375 metres in 13 holes, at the Lac Cinquante Uranium Deposit located in Nunavut, Canada. Ten of the 13 holes intersected significant uranium mineralization. Hole 10-LC-003 had the widest and highest grade drill intercept to date, assaying 0.70% U3O8 over 13.98 metres (estimated true width of 7.69 metres), including 1.22 metres at 4.68% U3O8. In addition, step out hole 10-LC-013 identified a new zone 500 metres west of the deposit, assaying 0.21% U3O8 over 1.96 metres.

Phase 1 Drilling Highlights*

• Drill Hole 10-LC-003 –  13.98 metres grading 0.70% U3O8

                   including  –  1.22 metres grading 4.68% U3O8

• Drill Hole 10-LC-005 –  2.11 metres grading 2.06% U3O8
• Drill Hole 10-LC-011 –  2.78 metres grading 0.84% U3O8
• Drill Hole 10-LC-007 –  1.02 metres grading 2.68% U3O8
• Drill Hole 10-LC-006 –  0.50 metres grading 2.90% U3O8

            *Down-hole intercepts

“Since Kivalliq’s first drill program in 2009, we have an impressive drilling success rate of over 85%.” stated John Robins, President & CEO. “Our team has  dramatically increased the potential at Lac Cinquante by intersecting uranium mineralization at a new zone 500 metres west along trend from the historic deposit, and by drilling the highest grades and widest intercepts to date within the historic resource area.”

Phase 1 Overview

The Lac Cinquante “main zone” is described as a vein-type uranium deposit occurring within a near vertical alteration/structural zone, over a strike length of one kilometre and extending from surface to a depth of 250 metres. All Phase 1 holes were inclined to the northeast and intersected the Lac Cinquante main zone between 65 and 230 metres depth. To determine geological controls, holes 10-LC-001 through 10-LC-009 focused on 25 metre infill drilling within the eastern portion of the historic resource area. Holes 10-LC-010 through 10-LC-012 were drilled at the western end of the historic resource, along a fence 50 metres west and down plunge of uranium mineralization encountered in holes 09-LC-012 and 09-LC-013 drilled last year.

Step-out hole 10-LC-013 was collared 650 metres west of 10-LC-012. This hole tested a geophysical response along trend and has identified a new zone of Lac Cinquante-style mineralization, approximately 500 metres west of the known historic resource area.

Assay results for 10 of the 13 Phase 1 drill holes, totalling 2,375 metres, are presented in the Table 1 below. These are best reviewed with the accompanying drill collar information, plan map and drill sections posted at: www.kivalliqenergy.com

Table 1: 2010 Assay Results – Lac Cinquante Drill Program

2010 Phase 1 Lac Cinquante Drilling Program – Final Results*
Drill Hole	From (m)	To (m)	Interval (m)**	U3O8 %	Description
10-LC-002	118.26	118.56	0.30	0.21	East LC Main Zone
10-LC_003	134.52	148.50	13.98	0.70	East LC Main Zone
including	139.78	141.00	1.22	4.68	East LC Main Zone
10-LC-004	164.83	165.20	0.37	0.44	East LC Main Zone
	180.22	180.52	0.30	0.16	East LC Main Zone
10-LC-005	180.27	182.38	2.11	2.06	East LC Main Zone
10-LC-006	207.72	208.22	0.50	2.90	East LC Main Zone
10-LC-007	169.66	170.68	1.02	2.68	East LC Main Zone
10-LC-009	242.30	242.60	0.30	0.42	East LC Main Zone
10-LC-011	170.35	173.23	2.88	0.82	West LC Main Zone
10-LC-012	153.00	153.37	0.37	0.90	West LC Main Zone
10-LC-013	104.94	106.90	1.96	0.21	Step out 500m West LC
* All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm uranium subject to SRC U3O8 Assay
Full intervals include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.01179%
** Drilled interval – true widths are not known. Estimated true widths for the mineralized zones are approximately 76% of the drilled interval widths reported, with the exception of  hole 10-LC-003 which is estimated at 55% drilled interval

For the three holes not reported herein: 10-LC-001, 10-LC-008 and 10-LC-010 intersected the Lac Cinquante altered tuff host unit, but with no elevated uranium.

QA/QC 

Samples from the 2010 Phase 1 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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 QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo (Vice President Exploration of Kivalliq) who is Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada.

Kivalliq’s core asset, the 225,000 acre Angilak Project, is comprised of the historic Lac Cinquante uranium deposit (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008, the Company has spent approximately $6.7 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping and drilling.

On behalf of the Board of Directors

“John Robins”

John Robins, P.Geo
President and CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at [email protected].  Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.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.

** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources.  It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration  carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.  

Certain disclosures in this release, including management’s assessment of plans and projects and intentions with respect to listings of securities, use of proceeds 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 the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. 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, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced the successful completion of Phase 1 drilling at the Angilak Project in Nunavut, Canada, totalling 2,375 metres in 13 holes. The last four holes are now complete, including a step-out hole that intersected radioactivity 500 metres west of the historic Lac Cinquante Uranium Deposit. The Phase 2 drill program is anticipated to commence in the third week of June.

• All 13 holes drilled during Phase 1 intersected altered tuff, the host geology at the Lac Cinquante main zone
• Eleven of 13 holes drilled during Phase 1 (85%) intersected anomalous radioactivity, down hole widths ranging from 0.3 to 14.8 metres
• Step-out hole 10-LC-013 intersected a 2.0 metre wide radioactive zone, 500 metres west and along trend from the historic Lac Cinquante Uranium Deposit  
• All four final drill holes intersected anomalous radioactivity within the host tuff unit, down hole widths ranging from 0.3 to 2.6 metres

“We are extremely encouraged by the Phase 1 drilling,” stated John Robins, P.Geo, President and CEO. “Intersecting Lac Cinquante–style mineralization more than half a kilometre to the west, clearly demonstrates the potential to expand this historic resource and make new discoveries at Angilak.”

To determine geological controls, the first nine holes focused on 25 metre infill drilling within the eastern portion of the historic resource area. Holes 10-LC-010 through 10-LC-012 were drilled at the western end of the historic resource, along a fence 50 metres west and down plunge of uranium mineralization encountered in holes 09-LC-012 and 09-LC-013 drilled last year. Radioactive widths ranged from 0.3 to 2.6 metres, between 110 and 175 metres vertical depth.

Of significance, is step-out hole 10-LC-013, collared 650 metres west of 10-LC-012. This hole tested a geophysical response along trend and similar to Lac Cinquante, approximately 500 metres west of the known historic resource area. Hole 10-LC-0013 intersected Lac Cinquante-style mineralization with counts up to 10,000 CPS, over 2.0 meters width and at a vertical depth of 95 metres. (See drill plan).

Split core samples from the last four holes, with maximum radioactivity levels up to 30,000 CPS, have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. This brings the total number of new drill holes sent for uranium analysis to eleven. SRC 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. 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 (CPS) using a hand-held Radiation Solutions Inc. RS-121 scintillometer. The Company cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material. Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo (Vice President Exploration of Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101.

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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada.

Kivalliq’s core asset, the 225,000 acre Angilak Project, is comprised of the historic Lac Cinquante uranium deposit (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008, the Company has spent approximately $4.2 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping and drilling.

On behalf of the Board of Directors

“John Robins”

John Robins, P.Geo
President and CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at [email protected].  Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.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.

** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources.  It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration  carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.  

Certain disclosures in this release, including management’s assessment of plans and projects and intentions with respect to listings of securities, use of proceeds 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 the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. 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.