What a year so far!

With three successful years of exploration behind us, we have shown that the Lac 50 Trend hosts one of the highest-grade, undeveloped uranium deposits in the world. We’ve identified 12 new uranium-mineralized zones, drilled 87,000+ metres to date (454 diamond drill core and 126 reverse circulation “RC” holes), and increased our property holdings to 340,000+ acres.

Increase in Uranium Resource & Discoveries

Drilling along the Lac 50 Trend in 2012 resulted in a 60% increase in the NI 43-101 inferred resource estimate, now totalling 43.3 million pounds U3O8 grading 0.69%. This improves on the previous resource estimate of 27.1 million pounds, and is a 200% increase over our maiden resource estimate announced in early 2011. In addition, Kivalliq’s aggressive RC exploration drilling campaign identified numerous new zones, several of which will be further tested by diamond drilling in 2013. Results from geophysical surveys this season also continue to expand and enhance Kivalliq’s inventory of exploration targets.

Metallurgical Results: High Uranium Extraction, Low Impurity Yellowcake

Not only have we continued to increase our inferred resource base, we have also demonstrated the potential to extract an attractive final yellowcake product from the deposits within the Lac 50 Trend. Preliminary metallurgical test results received to date indicate that 94.1% of uranium can be extracted in 48 hours and 95.9% of uranium extracted in 72 hours from conventional alkaline leaching. The uranium value attained from the leach solution was 71.9% (U) for a final yellowcake product. This was a low impurity product and certainly a very positive outcome at this early stage.

Financing: $4.5 Million Non-Brokered Deal Closed

To date, Kivalliq has raised approximately $64M in the public markets. In April of 2013, despite very volatile market conditions, Kivalliq closed a private placement financing totalling $4.5 million which will fund the first phase of this year’s work program that will include high priority drilling and geophysical surveys in key areas that must be completed before ice break-up sometime in June. Pending results and market conditions, Kivalliq will continue with a second phase of exploration at Angilak in the third quarter of 2013. Despite our remote northern location, we have maintained industry beating discovery costs of $1.32 per lb. U3O8.

A Look Ahead: Exploration & Expansion in 2013

Our technical team continues to deliver exceptional exploration results with low finding costs, as we work toward extending known resources and testing new targets. The season has started on an extremely positive note, with drill confirmation that a prospective new zone exists between the Eastern Extension and J4, two zones that form part of the current Lac 50 Trend inferred resource.

Numerous property wide targets, the rate of new discoveries and three consecutive years of substantial uranium resource growth clearly demonstrate the “District Scale” potential of the Angilak Property. As part of our fully-funded phase one work program which includes drilling 3,000m, we have already released news on five holes this year, all of which have hit radioactive zones.

We expect that this year will continue to provide opportunities for substantial advancement of the Angilak Property.

Communication

Kivalliq is committed to maintaining open communication with stakeholders. We encourage you to visit our website to review our latest presentation and sign up to receive Kivalliq news releases at www.kivalliqenergy.com.

We also invite you to contact us directly to keep up-to-date on all the latest advancements as they unfold at 604-646-4527.

The entire Kivalliq team would like to thank you for your continued support.

All the best,

Jim Paterson, CEO

Kivalliq Energy Corporation
1020 - 800 W Pender Street Vancouver, BC V6C 2V6
Tel:  (604) 646-4527; TF:  1 888 331-2269
Fax: (604) 646-4526
Email: info@kivalliqenergy.com

This appointment comes with the departure of Ms. Blair Lockhart as Corporate Secretary. Kivalliq wishes to thank Ms. Lockhart for her significant contributions and wishes her every success in her future endeavors.

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 info@kivalliqenergy.com

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.

“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 info@kivalliqenergy.com

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.

Not For Distribution to United States Newswire Services or For Dissemination in the United States

Vancouver, B.C. – Kivalliq Energy Corporation ("KIV: TSX-V" “Kivalliq”) today announced the closing of the non-brokered private placement financing previously announced on April 2, 2013. Kivalliq has raised gross proceeds of CDN $4,544,800.

Net proceeds of the private placement financing will be used to fund the first phase of Kivalliq’s 2013 Exploration Program at the Angilak Property in Nunavut, Canada and for general working capital purposes. The budget for phase one was adjusted to $4 million (see news release dated February 5, 2013) and includes high priority drilling and geophysical activities in key areas that must be completed before ice break-up sometime in June. Pending results and market conditions, Kivalliq will continue the second phase of the proposed 2013 Exploration Program at Angilak, with additional core drilling and geophysical, geological, geochemical and engineering surveys in the field.

Kivalliq raised the funds by issuing approximately 15 million units (“Units”) at the price of CAD$0.30 per Unit (the "Offering"). Each Unit consists of one common share and one whole warrant. Each whole warrant will allow the holder to acquire an additional common share of Kivalliq at a price of $0.50 per share for a period of two years following the date of closing.

The securities issued by Kivalliq in connection with the Offering are subject to a four month "hold period" as prescribed by the TSX Venture Exchange and applicable securities laws. In aggregate, the Offering was subject to the following finders' fees: $165,270 cash commission, and 550,900 finders warrants with a strike price of $0.50.

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 info@kivalliqenergy.com

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.

Not For Distribution to United States Newswire Services or For Dissemination in the United States

Vancouver, B.C. – Kivalliq Energy Corporation ("KIV: TSX-V" Kivalliq") today announced a non-brokered private placement financing to raise gross proceeds of CDN $ $4,500,000.

The financing will consist of approximately 15 million units (“Units”), at a price of $0.30 per Unit (the "Offering").  Each Unit consists of one common share and one whole warrant. Each whole warrant will allow the holder to acquire an additional common share of Kivalliq at a price of $0.50 per share for a period of two years following the date of closing.

Kivalliq intends to use the net proceeds of the Offering to fully fund the first phase of its 2013 Exploration Program at the Angilak Property in Nunavut, Canada and for general working capital purposes. The budget for phase one has been adjusted to $4 million from $8 million (see news release dated February 5, 2013) and includes high priority drilling and geophysical activities in key areas that must be completed before break-up sometime in June. Pending results and market conditions, Kivalliq will continue the second phase of the proposed 2013 Exploration Program at Angilak, with additional core drilling and geophysical, geological, geochemical and engineering surveys in the field.

The completion of the Offering is subject to TSX Venture Exchange approval.  The securities issued by Kivalliq in connection with the Offering will be subject to a four month "hold period" as prescribed by the TSX Venture Exchange and applicable securities laws.  A portion of the Offering may be subject to finders' fees. 

The Offering is being made pursuant to prospectus exemptions in all provinces of Canada and in other jurisdictions as may be determined by Kivalliq. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 info@kivalliqenergy.com

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 completion of the Offering and 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.

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

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 info@kivalliqenergy.com .

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 management's conclusions regarding the Inferred Resource Estimate for the Lac 50 Trend Deposit and the district scale potential 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 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.

Commencing in June 2012, the Saskatchewan Research Council (“SRC”) metallurgical testing program on core from Kivalliq’s Lac 50 Trend was designed to investigate uranium alkaline leaching optimization and perform a preliminary evaluation of the purity levels of the final yellowcake product. Objectives of the tests were to:

• Maximize uranium extraction through optimizing the alkaline leaching process
• Maximize the recovery of sulphides through flotation
• Compare preliminary yellowcake product impurity levels to ASTM C967-13 uranium ore concentrate specifications

A 60 kilogram (“kg”) composite was derived from split drill core pulp rejects submitted to SRC for analysis. Samples were selected from 51 holes drilled along 3.2 kilometres of strike length at the Lac 50 Trend Main Zone, Western Extension and Eastern Extension.  Previous work indicated carbonate content above 13% and therefore alkaline leaching was considered the most effective extraction process for the Lac 50 Trend uranium deposits.  Results from alkaline leaching tests to date are highly encouraging.

Optimized results(shown in Figure 1) indicate that a – 74 µm (-200mesh) feed at 70°C, atmospheric pressure, 50% pulp density, sufficient oxidation, and a reagent addition rate of 70 kg/tonne (50 kg Na₂CO₃ and 20 kg NaHCO₃), extracts 94.1% of uranium in 48 hours and extracts 95.9% of uranium  in 72 hours.

FIGURE 1. Optimized Leach Kinetics of Uranium

Alkaline leaching is a selective process that can result in a pregnant leaching solution with relatively low impurity levels. The use of an alkaline leach circuit at the Lac 50 Trend could have additional benefits:

• Simple purification processes to produce yellowcake
• Environmentally sensitive recirculated processing solution circuit resulting in reduced reagent use and uncomplicated effluent treatment
• Simplified tailings handling with the possibility to utilize tailings for backfill during mining

A preliminary yellowcake precipitation was performed with the leach solution from the composite.  Uranium in the pregnant solution was readily precipitated as sodium diuranate. The optimized uranium value attained was 71.9% for a final yellowcake product. In addition to U, the final yellowcake sample was analysed for several major impurities, the results for which are shown compared with Impurity Maximum Concentration Limits from ASTM C967-13 Standard Specifications for Uranium Ore Concentrate in Table 1.

TABLE 1. Impurity of the Preliminary Kivalliq Yellowcake Product

Assayed impurities are below the Maximum Concentration Limit Without Penalty standard specifications for uranium ore concentrate. Low impurity levels achieved in preliminary yellowcake tests are very encouraging at this early stage of testing.    

The SRC metallurgical program was designed to build on first phase metallurgical testing initiated in 2010 by SGS Mineral Services (“SGS”). SRC aggregated a master composite sample weighing approximately 60 kg, by  blending and homogenizing 166 quarter split and half split pulp reject samples from drill core submitted to SRC Geoanalytical Lab for  analysis as part of Kivalliq's 2010 and 2011 diamond drilling programs.  A head grade sample from the 2012 composite analyzed by SRC’s ICP 1 total digestion method assayed 0.737%U, 0.217%Mo, 0.667%Cu, 0.221%Zn, 0.231%Pb, and 26.7 g/tonne Ag. 

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 analyzed by SRC's ICP-OES multi-element ICP1 method.  ICP1 results for are reported in parts per million (ppm).  1 ppm = 1g/tonne, 10,000 ppm = 1%. ICP results U>1,000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U₃O₈ Assay method.  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, 2012.

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. 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 info@kivalliqenergy.com.

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 conclusions regarding the metallurgical results from the Lac 50 Trend 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.

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 info@kivalliqenergy.com .

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.

“Since announcing our initial inferred resource for Lac 50 Trend in early 2011, Kivalliq’s exploration programs have increased the contained U₃O₈ in resources by more than 200% and we have one of the largest undeveloped and highest-grade uranium resources in Canada, outside of the Athabasca Basin,” stated Kivalliq CEO Jim Paterson.  “Our low finding costs, the rate of new discoveries and the third consecutive year of substantial uranium resource growth clearly demonstrate the “District Scale” potential of the Angilak Property.”

Table 1: Updated Inferred Mineral Resources Estimate for Lac 50 Trend (0.2% U₃O₈ cut-off)

Notes:
- At Lac Cinquante, high U₃O₈ grades were cut to 5% and grade limiting was applied to those grades above 3%. At J4/Ray high U₃O₈ grades were cut to 4%
- Mineral Resources are not Mineral Reserves. Mineral Resources do not have demonstrated economic viability, and may never be converted into Mineral Reserves.

Mineral Resource Estimate

The updated Mineral Resource estimate for the Lac 50 Trend was prepared under the direction of Robert Sim, P.Geo. of SIM Geological Inc.  Resource models were generated using drill core sample assay results and interpretation of a geological model relating to spatial distribution of uranium deposits within the Lac 50 Trend, i.e. Lac Cinquante (Main, Eastern and Western Extension Zones), J4 and Ray deposits.  All assay and geological information was derived from work conducted by Kivalliq as part of exploration programs between 2009 and 2012 and available at December 31, 2012. At a base case cut-off grade of 0.2% U₃O₈, an Inferred Mineral Resource is estimated at 2,831,000 tonnes grading 0.69% U₃O₈, containing 43.3 million lbs. U₃O₈.  For evaluation purposes, three additional metals: silver (Ag g/t), molybdenum (Mo %) and copper (Cu %) have also been estimated within the resource model.

The increase in the Inferred Mineral Resource from the previous 2012 estimate is primarily attributed to the addition of the newly-discovered J4 and Ray deposits, situated near surface and 1.8 kilometres along strike from the eastern margin of the Lac Cinquante Eastern Extension zone.  The sensitivity of mineral resources contained within the Lac 50 Trend is presented at a series of U₃O₈ cut-off thresholds for comparison purposes in Table 2 and the base case cut-off grade of 0.2% U₃O₈ is highlighted.  Kivalliq believes that the base case used is conservative but appropriate at this stage of the project’s development.

Table 2:  Sensitivity of Inferred Mineral Resources within Lac 50 Trend

Note:
-Base case cut-off limit of 0.2% U₃O₈ is highlighted in the table

The distribution of Inferred Mineral Resources in the different zones within the Lac 50 Trend is listed below in Table 3.

Table 3:  Inferred Mineral Resource Estimate for Lac 50 Trend by Zone (0.2% U₃O₈ cut-off)

Note:
- Contained metal values may not add due to rounding.

Kivalliq has drilled 449 core holes totalling 75,782 metres on the Angilak Property over the past four years. Sixteen were completed in 2009, 107 holes in 2010, 153 holes in 2011, and 173 during the 2012 field season.  Of these, 335 NQ-size holes totalling 59,716 metres were dedicated to delineating the Lac Cinquante (Main, East and Western Extension Zones), J4 and Ray deposits, which have been used in the generation of the mineral resource estimate.
The distribution of the inferred resource above the 0.2% U₃O₈ cut-off at Lac Cinquante, J4 and Ray is shown in images at http://kivalliqenergy.com/projects/angilak/program_images/.

The resource models are constrained within 3-dimensional domains representing the mineralized portion of the host mafic tuff and shear zones.  Drill hole samples are composited to the full width of the zone and true thicknesses are determined for each drill hole intercept.  At Lac Cinquante, blocks in the model measure 5x5x5 metres in size whereas at J4 and Ray, blocks in the model are 5x3x3 metres. Only the portion of those model blocks within the mineralized domain is included in the final resource estimate.  The method used for the estimation of U₃O₈ grade is ordinary kriging using length-weighted composited drill hole intervals. Estimates for Ag, Mo and Cu utilize the inverse distance weighting (ID2) interpolation method.

Resource tonnages are calculated using a bulk density database containing 1,579 samples that were collected during the 2010, 2011 and 2012 drilling programs.  Samples were composited to the full width of the mineralized domain and bulk densities at Lac Cinquante range from 2.35 t/m3 to 3.77 t/m3 with a mean of 2.85 t/m3.  Bulk densities at J4 and Ray range from 2.52 t/m3 to 3.52 t/m3 with a mean of 2.84 t/m3. Estimates of bulk density were made using the inverse distance weighting (ID2) interpolation method. All mineral resources are classified in the inferred category. Model blocks are included in the inferred category if they form relatively continuous zones of mineralization within a maximum distance of 50 metres from a drill hole intercept.

During the past several years, the Lac 50 Trend deposits have been evaluated through a series of exploration and delineation drilling programs, and at this relatively early stage, little is known about their potential mineability or metallurgical characteristics.  When subjected to estimated technical and economic operating parameters, the base case mineral resource, at a 0.2% U₃O₈ cut-off, forms a relatively continuous zone with thicknesses and grades that exhibit reasonable prospects for the economic extraction using a combination of open pit and underground mining scenarios. Note that these are generalized evaluations on mineral resources, not mineral reserves, as the true economic viability has not been demonstrated.  

A technical report will be filed on SEDAR within 45 days of the date of this news release.

Comparison with the Previous Mineral Resource Estimate

The previous Mineral Resource Estimate for Lac Cinquante (Main, East and Western Extension Zones) was presented in a technical report dated March 1, 2012 and was based on drill results available up to the end of the 2011 field season.  The majority of the increase in Lac 50 Trend resources is attributable to the J4 and Ray deposits that were discovered in 2012. Overall, the contained pounds of U₃O₈ within the Lac 50 Trend have increased 60%, from approximately 27.1 to 43.3 million lbs. U₃O₈.

Geology Model of Lac Cinquante, J4 and Ray
 
The geologic characteristics for the Lac Cinquante, J4 and Ray deposits are very similar.  Separated by only 1,800 metres and exhibiting the same general trends, it is likely that these three deposits represent the same, or related mineralized structures. Deposits in the Lac 50 Trend are basement hosted, vein-hydrothermal type.  The emplacement of uranium is structurally controlled, often associated with a graphite-chlorite tuffaceous metasediment interlayered in Archean metavolcanics.  Mineralization consists of disseminated and patchy pitchblende with sulphides within fracture controlled, brecciated, hematite-quartz-carbonate veins that can occur in either the host shear or tuff unit. Potential also exists for unconformity-style uranium deposits to occur on the Angilak Property

The Lac Cinquante deposit is comprised of three distinct mineralized sections occurring over 3.8 kilometres of strike length and interpreted to be off-set by faults.  The central “Main” Lac Cinquante zone is the largest, measuring 1.4 kilometres in drilled strike length, at an azimuth of 115 degrees and dipping to the SSW at roughly -65 degrees.  The “Western Extension” is a 120 metre, left-lateral displacement of the Main zone that has a drilled strike length of approximately 650 metres, is oriented at 125 degrees azimuth and dips to the SSW at -70 degrees.  The “Eastern Extension” is interpreted as a 250 metre, left-lateral displacement of the Main zone with a strike of 122 degrees azimuth, a -78 degree SSW dip and an overall drilled strike length of approximately 600 metres.  The true thickness of the mineralized domain varies from 0.05 to a maximum of 13.5 metres with an average of 2.2 metres.

At the J4 and Ray deposits, mineralization is comprised of several sub-parallel zones. At J4, an Upper and Lower zone are variably separated by five to 35 metres (average about 20 metres).  The J4 Upper zone has a drilled strike length of 800 metres and remains “open” along strike and at depth.  The true thickness of the J4 Upper zone ranges from 0.2 to 11 metres and averages about two metres.  The J4 Lower zone has a strike length of about 500 metres and the along-strike extents appear to be closed by drilling but the zone remains open at depth.  The true thickness of the J4 Lower zone ranges from 0.1 to 4 metres and averages 1.5 metres.  Ray occurs as a separate mineralized zone about 250 metres SW and in the hanging wall of J4.  The Ray zone currently has a drilled strike length of about 300 metres and remains open along strike and at depth.  The true thickness at Ray ranges from 0.2 to 1.7 metres and average 0.8 metres. All zones trend at an azimuth of about 120 degrees and dip at -60 degrees to the SSW. 

Continuing Resource Expansion

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.

The Lac 50 Trend hosts five deposits which comprise the current NI 43-101 Inferred Resource Estimate, two of which were discovered, drilled and converted into resources in 2012.  The Lac 50 Trend is also host to six additional uranium occurrences discovered by Kivalliq since 2010 and numerous high priority targets not yet tested.

On September 24, 2012, Kivalliq announced the completion of its aggressive 2012 exploration program including 38,856 metres of core and reverse circulation (“RC”) drilling, which focused on adding inferred resources and testing new targets within the Lac 50 Trend.  Kivalliq has demonstrated expansion potential within the Lac 50 Trend by increasing the contained U₃O₈ in the maiden inferred resource by more than 300% in the past two years. In addition, Kivalliq’s exploration programs have consistently identified new mineralized zones, validating the “District Scale” potential of the Angilak Property.

QA/QC

The information in this release related to the mineral resource estimate has been approved by Robert Sim, P.Geo of SIM Geological Inc., who is an independent Qualified Person as defined under National Instrument 43‐101. Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person, has reviewed and approved the scientific and technical information contained in this release.

About Kivalliq Energy

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. 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

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 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.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Kivalliq Energy Corporation, Jim Paterson CEO 604.646.4527 or Toll Free:
1.888.331.2269 info@kivalliqenergy.com  www.kivalliqenergy.com

Key Point Summary

• The Nine Iron Trend is outlined by a distinct, nine kilometre long magnetic geophysical anomaly extending below the contact or “unconformity” with the Angikuni Basin
   
• Drilling in 2012 at the east end of Nine Iron Trend intersected anomalous uranium in five holes over a strike length of 100 metres, and to a vertical depth of 154 metres
   
• Significant uranium mineralization was intersected in  three of five diamond drill holes:
  • 0.45% U₃O₈ over core interval of 0.9 metres in hole 12-BIF-001
     
  • 0.28% U₃O₈ over core interval of 1.3 metres in hole 12-BIF-002
     
  • 0.24% U₃O₈ over core interval of 2.1 metres in hole 12-BIF-003
     
• Prospecting samples taken in 2011 along three kilometres of the Nine Iron Trend returned high-grade uranium assays
   
• 87,438 acres in 38 strategic claims staked in 2012 increase Angilak Property to 340,268 total acres

“The Nine Iron Trend is located five kilometres from any previously known mineralization and is a completely new target area within the Angilak Property. This trend combines significant uranium in drill core with highly mineralized surface samples, along a sizable geophysical signature that strikes beneath the Angikuni Basin unconformity,” stated Kivalliq’s President Jeff Ward. “We consider Nine Iron to be more evidence of the District Scale potential of the Angilak Property, and a high priority unconformity-related target for 2013.”

Nine Iron Trend

The Nine Iron Trend was initially recognized during the 2011 prospecting program while investigating historic reports of mineralized showings in the area. Discontinuous high-grade U-Cu-Mo-Ag mineralization was identified in samples taken from multiple veins (1 to 3 cm wide) occurring in outcrop and sub-crop over three kilometres of strike length. Assay results from prospecting include 13 of 25 grab samples exceeding 1% U₃O₈ and 5 samples with over 15% U₃O₈ (see news release dated January 12, 2012 - formerly BIF Zone).  These results prompted ground geophysical surveying and geological mapping which revealed a southwest-trending magnetic anomaly that coincided with both prospecting results and a 10 kilometre by one kilometre belt of Archean aged metasedimentary rocks. The magnetic trend and host rocks sit on the southeastern flank of the Yathkyed Greenstone Belt and trend westward below an unconformable contact with the Proterozoic age Angikuni Basin.

Based on the 2011 ground geophysics and mapping, a number of targets were tested by reverse circulation exploratory drilling (RC) and subsequent diamond drilling in 2012. In total, 841 metres in five core holes were drilled from three sites at the northeast end of the Nine Iron Trend. Holes were spaced 50 metres apart along 100 metres of strike length, and drilled to the north at azimuths of 330 degrees and inclinations ranging from -45 degrees to -65 degrees. Uranium mineralization was intersected in all five holes at vertical depths between 17 and 154 metres. Weighted assay results from down hole core intervals in five diamond drill holes at Nine Iron are presented in the table below:

*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 0.0001179.
**Down-hole core interval. True widths cannot be estimated at this time

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/    

Nine Iron Geology

Uranium mineralization along the Nine Iron Trend is structurally controlled, occurring in narrow, discontinuous high-grade breccia veins, low-grade fracture fillings associated with hematite alteration, and at contacts between metasedimentary layers in the hanging wall of banded iron formation (BIF). Emplacement of mineralization is strongly controlled by rock-layer competency contrasts, such as sediment contacts, or the margins of semi-conformable granitic and trachytic dykes. The metasedimentary package is composed largely of sandy pelite and tuffaceous turbidites, and contains a 20 to30 metre-thick horizon dominated by quartz-magnetite banded iron formation, the unit responsible for the Nine Iron magnetic response.

Staking
Throughout the 2012 exploration season, an additional 38 claims totaling 87,438 acres were staked to protect several strategic areas near the Angilak Property boundaries. Of these, a block of 23 claims were staked south of the Lac 50 Trend, covering the western half of the Nine Iron magnetic trend, where it extends below the Angikuni Basin unconformity.  Upon final approval of new claims by the Nunavut Mining Recorder, the Angilak Property will total 340,268 acres.

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 340,268 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 info@kivalliqenergy.com.

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.

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 info@kivalliqenergy.com.

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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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

*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 info@kivalliqenergy.com  .

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.

Kivalliq Energy Corporation (“Kivalliq”, TSX-V: KIV) today announced that Jim Malone has joined Kivalliq’s board of directors. Mr. Malone’s knowledge of the nuclear fuel markets, and relationships with global nuclear companies and industry participants, will provide critical expertise and insight as Kivalliq advances the Angilak Property in Nunavut Territory, Canada.

“We are proud to welcome an individual with Mr. Malone’s industry experience and his track record of corporate leadership. In addition, the integral part Mr. Malone played in the growth of Hathor Exploration Ltd., culminating in Hathor’s recent transaction with Rio Tinto, will be of great benefit to our company as Kivalliq grows,” stated Jim Paterson, CEO. “As we demonstrate the increasing value of our Angilak Property, Kivalliq continues to attract and retain extremely high-caliber team members."

New Board Addition

Jim Malone served as co-editor of the World Nuclear Association’s (“WNA”) ”The Global Nuclear Fuel Market Report Supply and Demand 2007 – 2030.”  He is currently Chairman of the WNA’s Fuel Technology Working Group and is working on a high power density metallic fuel technology development with Lightbridge Corporation, and a high thermal conductivity oxide fuel with IBC Advanced Alloys Corp. He was Chairman of the Board of Hathor Exploration Ltd., which, in January 2012, became a wholly-owned subsidiary of Rio Tinto as part of a CAD$650 million acquisition. Jim is widely recognized as a nuclear industry and nuclear fuel expert, with more than 40 years of experience in the downstream business, most recently as vice-president, nuclear fuels, Exelon Generation Co. LLC, the largest generator of nuclear power in North America.

In 1968, Jim began his career in nuclear power as an engineer in the utility reactor core analysis section of the nuclear engineering department of United Nuclear Corporation (UNC) after receiving a B.S. in chemical engineering (nuclear) at Manhattan College, Bronx, New York in 1968. In 1972, Jim completed an MBA at Iona College, New Rochelle, New York where he was awarded the Graduate School of Business Award for Academic Excellence. He is a member of the American Nuclear Society and a Past Chairman of the ANS Fuel Cycle Waste Management Division.

Stock Options Grant

Stock options have been granted to directors and officers, in accordance with the terms and conditions of Kivalliq’s stock option plan, entitling them to purchase 2,625,000 shares at the price of $0.45 per common share.

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, totalling 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

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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Kivalliq Energy Corporation, Jim Paterson CEO, 604.646.4527 Toll Free: 1.888.331.2269 info@kivalliqenergy.com   www.kivalliqenergy.com

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 info@kivalliqenergy.com  www.kivalliqenergy.com

Kivalliq Energy Corporation (“Kivalliq”, TSX-V: KIV) today announced initial 2012 assay results from J4 Zone drilling, and the extension of this zone to 600 metres of strike length. Drilling at Kivalliq’s 252,830 acre Angilak Property in Nunavut Territory is now focused on resource delineation drilling at the recently discovered, high grade J4 and Ray discoveries; both located within three kilometres of the Lac Cinquante Deposit. This news release summarizes the 2012 drill program to date, and also includes assay results from drilling within the 10 kilometre long “Lac Cinquante Trend”, comprised of the Lac Cinquante Deposit and the Ray, Flare, J2, Southwest, Pulse Zones.

Key Point Summary:

• Highlight assay results from the first three holes at the J4 Zone include:
  • 1.91% U₃O₈, 0.55% Mo, 79.8 g/t Ag over 1.1 metres in Hole 12-J4-003
  • 3.76% U₃O₈, 0.32% Mo, 22.5 g/t Ag over 0.3 metres in Hole 12-J4-003
• Drilling at the J4 Zone has now intersected significant radiation in 39 of 46 holes, extending the drilled strike length of mineralization to 600 metres
• Deepest radioactive interval on the Angilak Property to-date intersected at 371 vertical metres at J4 Zone
• Three diamond drills and a reverse circulation (“RC”) rig are now focused on J4 and Ray Zones

“Aggressive drilling since July 1, 2012 at J4 Zone has rapidly outlined a significant zone of continuous uranium mineralization located within 2.3 kilometres of the Lac Cinquante Deposit. This clearly demonstrates the potential to convert targets within the Lac Cinquante Trend into significant discoveries in a single season,” stated CEO Jim Paterson.

2012 Angilak Property Exploration Program

Drilling on the 252,830 acre Angilak Property as part of the 2012 exploration program now totals 27,350 metres in 129 diamond drill holes, plus an additional 4,990 metres in 36 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. Kivalliq is now primarily focussed on resource delineation drilling at the recently discovered J4 and Ray zones.

In addition to exploration and resource development drilling, prospecting, mapping and ground geophysical surveying are ongoing and will continue to advance targets near Lac Cinquante and property wide.

J4 Zone

Significant uranium mineralization or radioactivity has been intersected in 39 of 46 holes drilled from 18 sites along 600 metres of strike length at the J4 Zone. Assay results are presented in the table below. J4 Zone is outlined by an EM conductor located roughly 2.3 kilometres east of the Lac Cinquante Deposit and about 300 metres north of the Ray Zone.

J4 uranium mineralization is hosted by one or two sub-parallel mineralized horizons, 10 to 45 metres apart, referred to as the J4 Upper Zone and the J4 Lower Zone. The J4 has been intersected at depths between 35 and 371 vertical metres. Radioactivity occurs in quartz-carbonate veins hosted by sheared sulphidic, graphitic tuff within a larger sequence of basalt.  Radioactive readings between 170 and a peak of 60,200 counts per second (“cps”) were measured over drill core lengths between 0.3 to 6.1 metres.

J4 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.

For J4 Zone cross sections with assays and drill plan maps, visit http://www.corebox.net/properties/angilak/ or http://www.kivalliqenergy.com/projects/angilak/program_images

Lac Cinquante Trend

Assay results from five zones, within the Lac Cinquante Trend and located less than three kilometres from the Lac Cinquante Deposit, are presented in the table below. For descriptions of these zones, (Southwest, Pulse, Flare, Ray, J2, in addition to the Lac Cinquante Deposit) please reference Kivalliq news releases from June 25, July 11, and July 25, 2012.

Lac Cinquante Trend Assay Results

All 2012 assay results have now been reported from the Lac Cinquante Deposit and the Southwest, Pulse, Flare, and J2 Zones.

To view the table, please see the following link:
http://www.kivalliqenergy.com/_resources/pdfs/nr_2012_08_27_table.pdf

Ten drill holes; 12-J2E-003, 12-LC-009, 12-LC-012, 12-LCSW-003, 12-PL-009, 12-PL-024, 12-PL-025, 12-PL-026, 12-OHM-001 & 12-OHM-002 intersected no significant mineralization. Drill holes 12-774-005, 12-PL-012, 12-LCM-001 were not completed due to poor drilling conditions.

All holes were drilled to the northeast with azimuths bearing 26 or 35 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.

Half-spilt NQ core samples from Angilak Property drill holes, having anomalous radioactivity levels above 200 cps have been sent to 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 uranium 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$40 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 80,000 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. With 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 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 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 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  info@kivalliqenergy.com www.kivalliqenergy.com

• 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 
info@kivalliqenergy.com
www.kivalliqenergy.com

Key Point Summary

• The newly discovered J4 Zone is 300 metres to the north of, and runs parallel to the recently discovered Ray Zone.  J4 Zone is associated with a one kilometre long EM conductor located 2.3 kilometres east of the Lac Cinquante resource area.
• J4 Zone diamond drilling has intersected significant radioactivity in six of six holes over a strike length of 50 metres, with the deepest intercept at 183 vertical metres. The J4 Zone remains open along strike and to depth.
• Five of six new core holes at the Ray Zone have intersected radioactivity associated with a subtle EM conductor; eight of nine holes at Ray have intersected radioactivity over 310 metres strike length. Ray is situated two kilometres along strike and southeast of the Lac Cinquante resource area.

“This marks the fourth new zone discovered within 2.5 kilometres of the Lac Cinquante deposit so far this season,” stated Jeff Ward, President. “Our targeting techniques continue to demonstrate the tremendous mineral potential of the Angilak Property, and specifically the area surrounding the high-grade Lac Cinquante resource.”

Ongoing exploration drilling in 2012 will continue to investigate multiple uranium targets generated on previous programs. Kivalliq expects to drill 26,000 metres of NQ core on advanced targets using three diamond drill rigs and 9,000 metres of reverse circulation drilling (“RC”) designed to prioritise exploration targets. Extensive ground based geophysical surveying, prospecting and soil sampling campaigns are also planned for 2012.

Exploration progress in 2012 to date includes:

• 92 diamond drill holes totalling 17,043 metres focussed on linear geophysical targets, radioactive zones identified by RC drilling, and deep drilling at Lac Cinquante
• 24 RC holes totalling 3,807 metres prioritising areas for follow-up diamond drilling
• 445 line kilometres of ground geophysical surveying

J4 Zone Discovery

Highly radioactive mineralization has been intersected in six holes drilled from two drill sites along 50 metres of strike length at the J4 Zone. J4 is a one kilometre long EM conductor located roughly 2.3 kilometres east of Lac Cinquante mineralization and about 300 metres north of the Ray Zone (see June 25, 2012 news release).

J4 hosts two sub-parallel mineralized horizons, 20 metres to 25 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 at J4 is hosted in narrow carbonate veins in sheared sulphidic graphitic tuff within a larger sequence of basalt and gabbro. Radioactive readings between 170 and a peak of 31,500 counts per second (“cps”) were measured over down hole intervals up 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

Ray Zone

Five additional radioactive intervals have been drilled at Ray since the news release of June 25, 2012. The Ray Zone is a subtle EM conductor two kilometres along strike and southeast of Lac Cinquante’s Eastern Extension. Radioactive mineralization has been intersected in eight of nine holes from three drill sites along 310 metres of strike length. One hole was lost while collaring. Anomalous radioactivity has been intersected between vertical depths of 41 metres and 146 metres. Radioactivity ranges from 200 to 8460 cps in down hole core intervals of up to 1.5 metres.  Mineralization at Ray Zone occurs in a narrow sulphidic, graphitic tuff horizon, similar to mineralization at Lac Cinquante.

All holes in target areas were drilled northeast with azimuths of 26 degrees at inclinations between -45 and -90 degrees. For maps and drill plan images, please visit www.kivalliqenergy.com/projects/angilak/program_images.

QA/QC

Half-spilt core samples from holes drilled at the Angilak Property, with anomalous radioactivity levels between 170 and 31,500 cps measured to date, have been 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 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.

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 deposit, along with multiple highly-mineralized target areas. With 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 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  info@kivalliqenergy.com www.kivalliqenergy.com

Kivalliq Energy Corporation (“Kivalliq”) (TSX-V: KIV) today provided an update on the $20 million exploration program at the 252,830 acre Angilak Property in Nunavut Territory, Canada. Kivalliq reports anomalous radioactivity from additional drilling at the Western Extension, Pulse, and three new zones identified this season. Thus far, diamond drilling in 2012 has focused on evaluating linear electromagnetic (“EM”) conductors occurring within 2.5 kilometres of the high grade Lac Cinquante uranium deposit. Assay results will be released when available.

Key Point Summary

• Western Extension Zone at Lac Cinquante was extended to 365 vertical metres by hole 12-LC-007. This is the deepest known radioactive intercept reported on the Angilak Property to date.
• The new Southwest Zone has been discovered 300 metres to the southwest of, and running parallel to, the Western Extension.
• Pulse Zone diamond drilling intersected radioactivity in 14 of 27 holes that tested the Pulse geophysical anomaly over 1.3 kilometres of strike length.
• A second new radioactive zone, Flare, is associated with a 1.5 kilometre long EM conductor located 1.7 kilometres west of the Lac Cinquante resource area.
• Three core holes at the new Ray Zone have intersected radioactivity associated with a subtle EM conductor. Ray is situated two kilometres along strike and southeast of the Lac Cinquante resource area.

“Initial results from diamond drilling at numerous conductors close to Lac Cinquante are very encouraging” stated Jeff Ward, President. “This first round of drilling confirmed that targeting geological and geophysical analogues to Lac Cinquante can discover similar radioactive zones nearby with appreciable strike length.”

Ongoing aggressive exploration in 2012 will investigate multiple uranium targets discovered or advanced by the 2010 and 2011 prospecting and geophysical programs. In addition, the company intends to build on the current inferred resource of 27.13 million pounds U3O8 at Lac Cinquante.  Kivalliq expects to drill 26,000 metres of NQ core on advanced targets using three diamond drill rigs and 9,000 metres of reverse circulation drilling (“RC”) designed to prioritise exploration targets. Extensive ground based geophysical surveying, prospecting and soil sampling campaigns are also planned for 2012.

Exploration progress in 2012 to date includes:

• 64 diamond drill holes totalling 11,650 metres focussed on linear geophysical targets  and radioactive zones from RC drilling
• 17 RC holes totalling 3,048 metres designed to prioritise areas for follow up diamond drilling
• 445 line kilometres of ground geophysical surveying

Western Extension
New drilling at the Western Extension has started testing below the current Lac Cinquante resource area. Thirteen diamond drill holes from seven sites intersected the host shear zone using 100 metre hole spacing. Of these, seven intersected anomalous radioactivity, outlining southwest plunging mineralization, including the deepest radioactive intercept on the property to date at 365 metres (hole 12-LC-007). Anomalous gamma values range from 200 to a peak of 17,000 counts per second (cps), with down hole intercepts of 0.3 to 2.6 metres wide. Continued deep drilling is warranted at the Western Extension.

Southwest Zone
Radioactive mineralization was identified along 200 metres of an EM conductor located roughly 300 metres southwest of, and parallel to, the Western Extension. Eight of 11 holes drilled from four sites intersected anomalous radioactivity between 65 to 148 metres vertical depth, in host geology similar to Lac Cinquante. Radioactive readings between 200 and a peak of 28,350 cps were measured over 0.3 to 2.8 metres width down hole.

Pulse Zone
Diamond drilling along 1.3 kilometres of the three kilometre long Pulse EM conductor encountered anomalous radioactivity in 14 of 27 holes drilled in 2012 to date. Pulse is located roughly 700 metres north and parallel to Lac Cinquante; and was confirmed to host uranium through RC and diamond drilling last year (see January 10, 2012 news release). Intermittent radioactivity at Pulse 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 down hole intercepts up to 1.1 metres wide.

Flare Zone
The Flare Zone is characterized by a 1.5 kilometre long northwest trending EM conductor located 1.7 kilometres southwest of the Lac Cinquante Western Extension. Six holes drilled from three sites tested the target at 50 metre centres, along 100 metres of a strike length and down to 112 metres. Three holes encountered weak radioactivity ranging from 200 to 7510 cps in down hole widths up to 1.0 metre wide.    

Ray Zone
The Ray Zone is a subtle EM conductor two kilometres along strike and southeast of Lac Cinquante’s Eastern Extension. Three holes from a single site have intersected anomalous radioactivity with values ranging from 200 to 6450 cps in down hole widths up to 1.0 metre wide.  Mineralization at Ray occurs in a narrow sulphidic, graphitic tuff horizon, similar to the same unit hosting mineralization at Lac Cinquante.

All holes in target areas were drilled northeast with azimuths between 26 and 35 degrees at inclinations between -45 and -90 degrees. For maps and drill plan images, please visit:
www.kivalliqenergy.com/projects/angilak/program_image

QA/QC

Half-spilt core samples from holes drilled at the Angilak Property, with anomalous radioactivity levels between 200 and 28,350 CPS measured to date, have been 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 (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.

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 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 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, 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  info@kivalliqenergy.com www.kivalliqenergy.com

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 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, 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 
info@kivalliqenergy.com
www.kivalliqenergy.com

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 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 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, 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 
info@kivalliqenergy.com
www.kivalliqenergy.com

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia

Kivalliq Energy Corporation (the “Company”) (TSX VENTURE:KIV) is pleased to announce that it has entered into an agreement with Dundee Securities Ltd. (the “Lead Underwriter”) on behalf of a syndicate of Underwriters including Versant Partners Inc., Canaccord Genuity Corp. and National Bank Financial Inc. (the “Underwriters”) under which the Underwriters have agreed to purchase, on a bought deal private placement basis, 13,000,000 flow-through common shares (the “Flow-Through Shares”) at a price per Flow-Through Share of $0.50 and 7,780,000 common shares (the “Common Shares”) at a price per Common Share of $0.45 (together, the “Offered Securities”) for total gross proceeds of $10,001,000 (the “Offering”). The Underwriters have been granted the option (the “Option”) to purchase up to an additional $2,000,000 of the Offering in any combination of Flow-Through Shares and/or Common Shares, exercisable in whole or in part at any time up to 48 hours before the closing of the Offering (the “Closing Date”). 

In connection with the Offering, the Underwriters will receive a cash commission equal to 7.0% of the gross proceeds raised under the Offering (inclusive of the Option) and that number of non-transferable broker warrants (“Broker Warrants”) as is equal to 7.0% of the number of Offered Securities sold (inclusive of the Option).  Notwithstanding the foregoing, for certain subscribers introduced by the Company (the "President's List"), the Underwriters will receive a cash commission equal to 1.0% of the gross proceeds raised and that number of Broker Warrants equal to 1.0% of the Common Shares sold pursuant to the President's List.  The Company may pay finder's fees in connection with the President's List.  Each Broker Warrant will be exercisable into one Common Share of the Company, for a period of 24 months from the Closing Date at a price of $0.45 per Common Share.

Closing of the Offering is scheduled for on or about May 29, 2012.  All securities issued will be subject to a statutory four month hold period. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

The gross proceeds from the Flow-Through Shares will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)), related to the Issuer’s exploration projects. The Company has agreed to renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2012. The net proceeds from the sale of the Common Shares will be used for general corporate purposes.

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 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 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 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, 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  info@kivalliqenergy.com www.kivalliqenergy.com

Kivalliq intends to drill 26,000 metres of NQ core on advanced targets with three diamond drill rigs and 9,000 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.

“After nearly doubling the Lac Cinquante mineral resource in 2011, we are excited to return to Angilak to execute our 2012 exploration goals,” stated Jeff Ward, Kivalliq’s President. “Drilling is intended to expand Lac Cinquante along strike and to depth; test targets on parallel conductors; and demonstrate potential for multiple uranium deposits elsewhere on the Angilak Property.”

The first phase of 2012 exploration commenced with the mobilization of crews and equipment to the Nutaaq camp in mid-March, with one diamond drill rig now operating. Kivalliq is fully funded to drill from March to June with two diamond drill rigs and one RC rig starting in May, and to carry out ground geophysical surveys until break-up in June. The second phase of the proposed exploration program at Angilak will begin in July, pending results and market conditions, and will include a third diamond drill rig, continued RC drilling and geophysical, geological and geochemical surveys in the field.

The following summarizes both the first and second phase of the proposed 2012 exploration campaign:

• 26,000 metres of core drilling focused on expanding the Lac Cinquante resource and testing new zones discovered in the immediate vicinity of this deposit
• 9,000 metres of RC drilling to test multiple target areas property-wide and untested conductors within close proximity of the Lac Cinquante deposit
• Ground geophysical surveys consisting of gravity, magnetics and electro-magnetics
• Continued prospecting to advance high-priority target areas defined by the 2011 program and identify new targets on a property wide scale
• Ongoing modeling, geological, metallurgical, environmental and archeological studies
• Continued emphasis on community consultation
• Engineering studies focused on expanding infrastructure to support future programs
• Update to the current Lac Cinquante Inferred Resource by Q2 2013

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 Cinquante uranium deposit, please refer to Kivalliq news release of January 17, 2012.

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 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

"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 info@kivalliqenergy.com .

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.

“The Kivalliq team continues to adhere to the highest environmental and safety standards in our exploration activities at the Angilak Property,” stated Kivalliq’s COO, Andrew Berry. “We are honoured to receive this award as public recognition of our efforts by the KIA for the past two years.”

The award was presented to both John Robins, Chairman and Jim Paterson, CEO of Kivalliq Energy Corporation at the 2012 Prospectors and Developers of Canada Association (PDAC) Conference in Toronto, Canada.

From Left: Luis Manzo, Director of Lands, KIA, Jim Paterson, CEO, Kivalliq Energy Corporation, and
Raymond Ningeocheak, Vice President, KIA, at the 2012 PDAC Conference in Toronto, Canada

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 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,

"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 info@kivalliqenergy.com .

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.

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.

• 26,000 metres of core drilling focused on expanding the Lac Cinquante resource and testing new zones discovered in the immediate vicinity of this deposit
• 9,000 metres of RC drilling to test multiple target areas property-wide and untested conductors within close proximity of the Lac Cinquante deposit
• Ground geophysical surveys consisting of gravity, magnetics and electro-magnetics
• Continued prospecting to advance high-priority target areas defined by the 2011 program and identify new targets on a property wide scale
• Ongoing modeling, geological, metallurgical, environmental and archeological studies;
• Continued emphasis on community consultation
• Engineering studies focused on expanding infrastructure to support future programs
• Update to the current Lac Cinquante Inferred Resource by Q2 2013.

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 Cinquante uranium deposit, please refer to Kivalliq news release of January 17, 2012.

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 227,000 acre Angilak Property hosts the high-grade Lac Cinquante 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

"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 info@kivalliqenergy.com .

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.

Vancouver, British Columbia - Kivalliq Energy Corporation (TSXV:KIV) (the "Company" or "Kivalliq") today announced the closing of the non-brokered private placement financing previously announced on January 30, 2012. The Company has raised gross proceeds of CDN $9,472,350.

The Company raised the funds by issuing 19,972,444 common shares (the "Offering"), including 13,047,444 common shares at the price of CAD$0.45 per share and 6,925,000 common shares on a "flow-through" basis, pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares"), at a price of CAD$0.52 per Flow-Through Share.

Net proceeds of the Offering will be used to explore Kivalliq's high-grade Lac Cinquante uranium deposit, located within the Angilak Property in Nunavut Territory, Canada, and for general working capital purposes. 

The securities issued by Kivalliq in connection with the Offering are subject to a four month "hold period" as prescribed by the TSX Venture Exchange and applicable securities laws. Insiders of the Company purchased 4,600,000 shares in the Offering. In aggregate, the Offering was subject to the following finders' fees: $ 303,254 cash commission, 167,983 finders warrants with a strike price of $0.50, and 133,470 finders warrants with a strike price of $0.55.

The Offering is being made pursuant to prospectus exemptions in all provinces of Canada and in other jurisdictions as may be determined by the Company. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Kivalliq Energy Corporation

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

Kivalliq's 227,000 acre Angilak Property in Nunavut hosts the high-grade Lac Cinquante 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 meters of RC and diamond drilling.

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 info@kivalliqenergy.com.

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 listings of securities, use of proceeds, future exploration programs and the completion of the 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.

Vancouver, British Columbia - Kivalliq Energy Corporation (TSXV:KIV) (the "Company" or "Kivalliq") today announced a non-brokered private placement financing to raise gross proceeds of CDN$7,410,000.

The Company intends to raise the funds by issuing up to 16,000,000 common shares (the "Offering"), including 13,000,000 common shares at the price of CAD$0.45 per share and 3,000,000 common shares on a "flow-through" basis, pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares"), at a price of CAD$0.52 per Flow-Through Share.

The Company intends to use the net proceeds of the Offering to explore and develop Kivalliq's high-grade Lac Cinquante uranium deposit, located within the Angilak Property within Nunavut, Canada, and for general working capital purposes. 

Closing of the Offering is anticipated to occur on or about February 16, 2012 and is subject to receipt of applicable regulatory approvals, including the TSX Venture Exchange.  The securities issued by Kivalliq in connection with the Offering are subject to a four month "hold period" as prescribed by the TSX Venture Exchange and applicable securities laws. Insiders of the Company may participate in the Offering and a portion of the Offering may be subject to finders' fees.

The Offering is being made pursuant to prospectus exemptions in all provinces of Canada and in other jurisdictions as may be determined by the Company. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 225,000 acre Angilak Property in Nunavut hosts the high-grade Lac Cinquante 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

"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 info@kivalliqenergy.com.

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.

“Kivalliq’s board is constantly seeking ways to enhance shareholder value through exploration, team building and corporate development opportunities. We are excited to have added such depth to our team with these appointments, and we see these individuals playing a very big role in Kivalliq’s future success,” stated Jim Paterson, CEO. “Dale has many decades of experience in mineral exploration, most recently in the uranium sector as a key player in the success of Hathor Exploration. Andrew and Bill both have considerable expertise in the management of large scale exploration and logistical projects in Canada’s north.”

New Board Addition

Dale Wallster is a geologist and a prospector with over 30 years experience in North American mineral deposit exploration, with a focus on the targeting and discovery of unconformity-related uranium deposits since 2002. He was president and founder of Roughrider Uranium Corp., a company acquired by Hathor Exploration Limited in 2006 for its 1,000,000 acres of strategically located uranium properties in the Athabasca Basin. Dale and his team are widely credited in the mineral exploration sector for the discovery of the Hathor’s Roughrider deposit. In January 2012, Hathor became a wholly-owned subsidiary of Rio Tinto as part of a CAD$650 million acquisition. Kivalliq will benefit greatly from Dale’s guidance at a board level.

Stronger Operational Team

Andrew Berry joined Kivalliq Energy Corp. in April 2009 as Project Manager and most recently held the position of VP, Operations where he was responsible for overseeing, on budget, Kivalliq’s $17M exploration program at Angilak. He holds a technical diploma in exploration geology from Sir Sandford Fleming College in Ontario. He has more than 25 years of global experience in all aspects of mineral exploration and development; including surface and underground precious metal, base metal and diamond deposits. He was an integral member of Flanagan McAdam Ltd. and the Muscocho Group, developing mining projects in Ontario, British Columbia and the Yukon. As Project Manager with Ashton Mining of Canada Inc. and Stornoway Diamond Corp., he gained more than 15 years of logistical experience exploring and operating in Canadian Arctic environments. Andrew is well suited for his expanded role as Chief Operating Officer.

Bill Cronk, P.Geo., has over 23 years of experience as a geologist and manager of exploration programs for precious metals, base metals, and uranium deposits. Bill has worked in Africa, Europe, North and South America; with more than 9 years of combined exploration experience in Alaska and the Canadian Arctic. Bill’s level of expertise ranges from grass roots reconnaissance right up to advanced stage and pre-feasibility work. While working for companies such as Dundee Precious Metals, Placer Dome, BHP and Noranda Inc., Bill’s gained management experience with business development, project generation, program design, budget implementation, project management, and corporate and government compliance. In a previous role as an exploration manager for Homeland Uranium, Bill’s primary goals centered on uranium exploration in Niger’s “Tim Mersoi Basin”, and project development of rhyolite hosted uranium in Peru’s “Macusani Plateau”.

Stock Options Grant

Stock options have been granted to directors and officers of Kivalliq, in accordance with the terms and conditions of the stock option plan of the Company, entitling them to purchase 3,350,000 shares at the price of $0.50 per common share expiring January 19, 2017

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.

Kivalliq’s 225,000 acre Angilak Property in Nunavut hosts the high-grade Lac Cinquante 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 meters of RC and diamond drilling.

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 info@kivalliqenergy.com.

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.

Table 1 - Updated Inferred Mineral Resource Estimate for the Lac Cinquante Deposit (January 2012)

Notes
- Base case cut-off of 0.2%U₃O₈ is highlighted in the table.
- High U₃O₈ grades were cut to 5% and grade limiting was applied to those grades above 3%.
- Mineral Resources are not Mineral Reserves. Mineral Resources do not have demonstrated economic viability, and may never be converted into Reserves.
- Contained metal values may not add due to rounding.

Table 2 - Inferred Mineral Resource Estimate for the Lac Cinquante Deposit by Zone - 0.2% U₃O₈ Cut-off (January 2012)

Kivalliq has drilled 275 core holes totalling 42,109 metres on the Angilak Property over the past three years: 16 in 2009, 106 holes in 2010 and another 153 holes were completed during the 2011 field season.  Of these, 240 NQ holes totalling 37,394 metres were dedicated to delineating the Lac Cinquante deposit (Main, East and Western Extension Zones) which have been used in the generation of the mineral resource estimate.  The distribution of U₃O₈% in drill holes is shown in an image at http://kivalliqenergy.com/projects/angilak/program_images/.

The resource model is constrained within a 3-dimensional domain representing the mineralized portion of the host mafic tuff and shear zone.  Drill hole samples are composited to the full width of the zone and true thicknesses are determined for each drill hole intercept.  Blocks in the model measure 5x5x5 metres in size. Only the portion of those model blocks within the mineralized domain are included in the final resource estimate.  The method used for the estimation of U₃O₈ grade is ordinary kriging using length-weighted composited drill hole intervals.  Estimates for Ag, Mo and Cu utilize the inverse distance weighting interpolation method. Resource tonnages are calculated using bulk density data that originates from individual drill hole samples.  Composited to the full width of the mineralized domain, bulk densities range from 2.35t/m3 to 3.77 t/m3 with a mean of 2.85 t/m3.  All resources are considered inferred which is based on an analysis of continuity and confidence. Model blocks are included in the inferred category if they form relatively continuous zones of mineralization within a maximum distance of 50 metres from a drill hole intercept.

The Lac Cinquante deposit is considered to be an early stage therefore little is known about its potential minebility or metallurgical characteristics. When subjected to estimated technical and economic operating parameters, the base case mineral resource at 0.2% U₃O₈ cut-off forms a relatively continuous zone exhibiting thicknesses and grades that exhibit reasonable prospects for the economic extraction for this deposit through a combination of open pit and underground mining scenarios. 

A technical report will be filed on SEDAR within 45 days.

Comparison with Previous Resource Estimate

The previous mineral resource was presented in a technical report dated March 24, 2011 and was based on drilling results available up to the end of the 2010 field season.  The majority of the increase in the Lac Cinquante resource is attributable to the discovery of additional zones. Specifically, the 2011 drilling added the Western Extension and the Eastern Extension zones which have been the most significant contributor to the increase in resources.  Overall, the contained pounds of U₃O₈ have almost doubled from approximately 14 to 27 million lbs as a result of drilling completed in 2011.

Geology Model of Lac Cinquante

Lac Cinquante is a basement hosted, vein-hydrothermal type, unconformity associated uranium deposit. The emplacement of uranium is structurally controlled, often associated with a graphite-chlorite tuffaceous metasediment interlayered in Archean metavolcanics.  Mineralization consists of disseminated and patchy pitchblende with sulphides within fracture controlled, brecciated, hematite-quartz-carbonate veins that can occur in either the host shear or tuff unit. The deposit is comprised of three distinct mineralized sections occurring over 3.8 kilometres of strike length and interpreted to be off-set by faults.  The central “Main” Lac Cinquante zone is the largest, measuring 1.4 kilometres in drilled length, striking at an azimuth of 115 degrees and dips to the SSW at roughly -65 degrees. The “Western Extension” is a 120 metre left-lateral displacement of the Main zone.  The Western Extension has a drilled strike length of approximately 550 metre, is oriented at 125 degrees azimuth and dips to the SSW at -70 degrees.  The “Eastern Extension” is interpreted as a 250 metre left-lateral displacement of the Main zone with a strike of 122 degrees azimuth, a -78 degree SSW dip and an overall drilled strike length of approximately 550 metre.  The true thickness of the mineralized domain varies from 5 centimetres to a maximum of 13.5 metres with an average thickness of 2.2 metres.   

Continuing Resource Expansion

Lac Cinquante remains open along strike to the east, west and at depth, demonstrating potential to increase the size of the resource of this deposit. In 2010, step-out drill hole 10-LC-013 intersected 0.21% U₃O₈ over 1.96 metres, approximately 500 metres west of the resource drilling. This hole was later determined to be part of the Western Extension zone, and now forms part of this updated resource estimate for Lac Cinquante. Drill hole intercepts from 30 to 327 metres vertically at the Western Extension were incorporated into the resource estimate. Potential exists to add resources with drilling in the projected zone below the existing resource area.

In Kivalliq’s news release dated January 10, 2012, the Company provided assay results from 1,732 metres of diamond drilling in 14 holes conducted in 2011 at the Blaze/Spark, Pulse and Joule Zones. These zones, discovered during the 2010 and 2011 drilling campaigns, are all located within a 5.0 kilometre radius of the Lac Cinquante uranium deposit.

Two of these diamond drill holes tested the Pulse zone, part of a 3.0 kilometre long VLF EM conductive trend situated 650 metres northeast and parallel to the Lac Cinquante uranium deposit. The holes were drilled to follow up on a mineralized zone identified by anomalous radioactivity in 9 out of 10 reverse circulation (“RC”) test holes along 600 metres of strike length in 2011. Preliminary interpretations suggest that mineralization occurs within structurally controlled sheared basalt similar to that found at the Lac Cinquante Western Extension and as pitchblende bearing brecciated quartz carbonate veins. Due to its close proximity to Lac Cinquante and the geological similarities noted, “Pulse” represents a high priority drill target for the upcoming 2012 exploration campaign.

The 2011 drill results on exploration targets demonstrate the potential to identify additional mineralized zones near the resource area, and verify the success of the Company’s targeting techniques on previously untested conductive trends parallel to the Lac Cinquante.

QA/QC

The information in this release related to the mineral resource estimate has been approved by Robert Sim, P.Geo of SIM Geological Inc., who is an independent Qualified Person as defined under National Instrument 43‐101. Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for the Company, has reviewed and approved the information contained in this 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 with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

With an NI 43-101 Inferred Mineral Resource of 1,779,000 tonnes grading 0.69% U₃O₈, totalling 27.13 million lbs U₃O₈, (15.2 lbs 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. Kivalliq’s flagship project, the 225,000 acre Angilak Property in Nunavut, hosts the high-grade Lac Cinquante deposit, along with nine additional high priority target areas.

Since acquiring the Angilak Property in 2008, the Company has invested approximately $30 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 48,000 meters of RC and diamond drilling.

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 info@kivalliqenergy.com.

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

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• 273 rock samples collected, with 10% (27 samples) exceeding 1% U3O8, along with multiple samples containing significantly anomalous  silver (Ag), copper (Cu), and (Pb) lead values
• “BIF” Zone - High-grade U-Cu-Mo-Ag veins sampled along a 3 km shear zone and geophysical trend
• “AG” Showing - 21,600 g/t Ag (626.4 oz/ton) assay from a native silver occurrence discovered in subcrop
• “Taluaq” – New claims staked to secure a prominent 2 km by 10 km ovoid magnetic feature with initial samples showing polymetallic potential
• VGR mineralized geophysical trend was extended to 4 km in strike length

Highlights from Assays

• 20.00% U3O8, 107.0 g/t Ag, 12.70% Cu, 5.02% Pb - (Sample 1828) Force
• 23.80% U3O8, 114.0 g/t Ag, 0.81% Cu, 5.90% Pb, 0.58% Mo - (Sample 1839) BIF Zone
• 16.00% U3O8, 321.0 g/t Ag, 5.38% Pb, 0.76% Mo - (Sample 1860) BIF Zone
• 30.30% U3O8, 163.0 g/t Ag, 5.16% Cu, 22.90% Pb - (Sample 1983) BIF Zone
• 21,600 g/t Ag; 301.0 g/t Ag, 1.16% Cu - (Samples 1801 and 1802) AG Showing

For maps of priority areas from Kivalliq’s prospecting programs and a table of key results, please visit http://kivalliqenergy.com/projects/angilak/   

2011 Prospecting Program

A prospecting crew was active for 3 months between June and September, mapping and collecting grab samples from outcrop, subcrop and glacial float across the Angilak property. This work was able to advance existing high priority areas and identify several new mineralized zones on the property. Of the 273 grab samples collected, 163 are considered to represent in-situ bedrock sources, with the remaining 110 samples taken from cobbles and boulders found in glacial till. In addition, 10% (27 samples) returned assays in excess of 1% U3O8, with many having significant silver, copper, molybdenum, lead and zinc values.

BIF Zone

High-grade U-Cu-Mo-Ag assays in samples from multiple veins (1 to 3 cm wide) and boulders were identified at the new “BIF” zone, located approximately 10 km from Lac Cinquante. Results include 13 of 25 grab samples exceeding 1% U3O8 and 5 samples with over 15% U3O8 taken along the strike length of a geophysical anomaly and related mineralized structure. The BIF uranium occurrence is associated with a 3 km long reactivated shear zone on the margin of the Yathkyed Greenstone Belt, and within a package of mylonitized iron formation and tuffaceous volcano-sedimentary rock.  A ground VLF and magnetic survey carried out in the area of highly anomalous samples will be the focus of future work and drilling in 2012. A map of the BIF zone is available at http://kivalliqenergy.com/projects/angilak/
Highlight samples from the BIF Zone:

• 30.30% U3O8, 163.0 g/t Ag, 5.16% Cu, Cu,  22.90% Pb - (Sample 1983) outcrop
• 23.80% U3O8, 114.0 g/t Ag, 0.81% Cu, 5.90% Pb, 0.58% Mo - (Sample 1839) outcrop
• 17.90% U3O8, 38.3 g/t Ag, 0.15% Cu, 6.00% Pb, 0.45% Mo - (Sample 1833) outcrop
• 16.60% U3O8, 51.3 g/t Ag, 0.05% Cu, 3.67% Pb, 0.95% Mo - (Sample 1836) float
• 16.00% U3O8, 321.0 g/t Ag, 5.38% Pb, 0.76% Mo - (Sample 1860) outcrop

AG Showing

Of note is a new native silver occurrence discovered approximately 7.5 km east of the Lac Cinquante uranium deposit. Carbonate and quartz veins in a sheared tuff unit contain significant Ag values ranging from 10 to 301 g/t in 14 of 21 grab samples, with 21,600 g/t in one grab. The veins appear to be barren of uranium, but can contain significant concentrations of Cu, Pb, and Zn. Mineralization and veins are exposed over 65 m strike length, with a width of approximately one metre. To date, only one discontinuous high-grade Ag vein has been identified, but it is situated at the end of a 1 km long VLF-EM conductor which could host additional Ag and polymetallic veins. A single 80 m long inclined drill hole (11-AG-001) tested the western end of the VLF-EM conductor with no significant results.

Force

The Force area, located in the central part of the Angilak property, straddles a major northeast trending fault zone which cuts through Archean basement gneisses and Proterozoic ultrapotassic intrusions. Prospecting in 2010 and 2011 has identified U-Cu-Pb-Ag veins in outcrop and subcrop at two main zones 200 m apart along this fault zone. Three additional grab samples collected in 2011 confirm high grades identified in 2010, with the best assaying 20.00% U3O8, 12.70% Cu and 107.0 g/t Ag. Due to difficult ground conditions, only two of four RC test holes were completed to depth. No significant radioactivity was intersected in either hole, however favourable geophysics, geology, high grade boulders and significant Quaternary cover suggest further work is warranted.

Taluaq

In late summer, prospectors investigated a prominent 2 km by 10 km magnetic geophysical feature just north of the Angilak property boundary. Ten claims were staked over this ovoid signature which could represent a large, high-level subvolcanic intrusion with associated mineralization. Follow-up work resulted in the discovery of disseminated and stockwork base metal mineralization in syenitic boulders and outcrop, now named the “Taluaq” zone. Assay results from 4 grab samples have elevated concentrations of Cu (0.06%-0.69%), Pb (0.14%- 4.95%), Zn (0.04%-3.3%), and Ag (1.2-110 g/t). Although no uranium was encountered, only a fraction of the magnetic anomaly has been investigated and future work will focus on assessing the uranium and REE potential, as well as polymetallic mineralization in the syenitic intrusion.

VGR

Several significant showings discovered along the VGR trend in 2010 were revisited in 2011, including the highly prospective VGR fault system itself. The VGR trend hosts a 3 to 7 m wide, steeply‐dipping carbonate/hematite veins and fractures containing uranium and sulphide mineralization in trachyandesite. Prospecting to the southwest along strike of the main VGR showing identified additional areas of alteration and uranium mineralization with values up to 3.75% U3O8, extending the known mineralized trend to 4 km strike length. Four RC test holes on the main VGR showing returned promising results, with elevated radioactivity (5000 to15000 cps on a Mt. Sopris downhole radiometric probe) in the upper 65 m of one hole. The area remains very prospective for unconformity-style uranium mineralization and is a high priority drill target for 2012.

QA/QC

Samples collected as part of the 2011 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 metals analyzed by ICP were reported in ppm and subsequently converted to % or grams/tonne. Other metals will be verified by additional assays. 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 Kivalliq’s President, Jeff Ward, P.Geo. Mr. Ward 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 based in Vancouver, Canada and the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada.

With a NI 43-101 Inferred Resource of 14.15 million pounds at 0.79% U3O8, the Lac Cinquante Deposit is Canada's highest grade uranium deposit outside of the Athabasca Basin.  Kivalliq's flagship project, the 225,000 acre Angilak Property in Nunavut, hosts the high-grade Lac Cinquante deposit, along with multiple, highly mineralized target areas.

Since acquiring the Angilak Property in 2008, the Company has invested approximately $30 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and 48,000 meters of drilling.

Kivalliq's team of northern exploration specialists has forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. ("NTI") to advance the Angilak Property. The Company is focused on building shareholder value while adhering to a high level of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

“Jim Paterson”
James 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 at 1.888.331.2269 toll free, directly at 604.646.4527 or by email at info@kivalliqenergy.com.

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to 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. 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.