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.

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.

• 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.

Exploration Drilling Highlights*:

• 0.62% U3O8,  1.6  g/t Ag, 0.01% Cu, over 0.7 metres in 11-523-001 (Pulse)
• 0.44% U3O8, 12.8 g/t Ag, 0.59% Cu, over 2.3 metres in 11-523-002 (Pulse)
• 0.21% U3O8,  7.5  g/t Ag, 0.03% Cu, over 3.4 metres in 11-523-002 (Pulse)
• 0.43% U3O8, 16.3 g/t Ag, 0.27% Cu, over 7.6 meters in 11-BZ-020 (Blaze)
• 0.90% U3O8, 17.0 g/t Ag, 0.25% Cu, over 2.1 meters in 11-BZ-021 (Blaze)
• 0.49% U3O8, 12.3 g/t Ag, 0.03% Cu, over 1.5 meters in 11-BZ3-001 (Spark)

      *Down hole intercepts

“These results demonstrate our success at identifying a growing number of mineralized targets near the resource area,” stated President Jeff Ward. “The encouraging values from exploration drilling have verified our targeting techniques on previously untested conductive trends parallel to Lac Cinquante main zone.”

Pulse
Two 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. 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.

Blaze
Four holes at Blaze were drilled to test the down dip continuity of the mineralized cross cutting quartz carbonate vein intersected by DDH 11-BZ-010 (announced June 20, 2011) and to investigate the structural controls for mineralization at Blaze. Results suggest the 11-BZ-010 vein has an estimated true width of 1.5 metres to 3.8 metres to a vertical depth of at least 85 metres and that other similarly oriented crosscutting mineralized veins are present.

Spark
A single diamond drill hole tested the Spark zone, a northwest trending linear VLF EM conductor located approximately 500 metres west of Blaze. Mineralization is hosted in altered basalt on the upper contact of a narrow laminated tuff unit. 11-BZ3-001 was drilled to follow up on anomalous radioactivity indicated by 4 out of 8 RC test holes targeting the center of the BZ3 anomaly. 

Joule (JML anomaly)
Four holes confirmed U3O8 values along 25 metres of strike length at the JML anomaly, an east-west trending VLF-EM conductor in the Joule Valley, located 7.0 kilometres southeast of Lac Cinquante. The holes tested anomalous radioactivity identified by 8 RC test holes along 250 metres of strike length.

Also in the Joule area, two core holes tested the J9 anomaly 4.5 kilometres southeast of Lac Cinquante. Drill hole 11-J9-001 intersected a narrow quartz carbonate vein in basalt with anomalous U3O8 values.

For a summary of the 2011 exploration program at Angilak, please see the news release from October 18, 2011. To view updated drill plan maps and tables please visit:  http://kivalliqenergy.com/projects/angilak/program_images/

*All samples subject to ICP 1 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%. Intervals reported are down-hole and true widths are not known at this time. Two exploratory diamond drill holes 11-J9-002 and 11-AG-001 did not intersect mineralization.

QA/QC 

Samples from the 2011 drilling program comprised half split NQ drill core, assayed in 0.25 to 1.5 metre intervals and weighted for results in table. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks and standards into the sample inventory at the project site prior to shipment in sealed containers. All QC results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo. 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 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.

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 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.

• 6.01% U3O8, 8.2 g/t Ag, 0.22% Cu, 0.14% Mo over 0.3 metres in 11-LC-099
• 2.69% U3O8, 34.8 g/t Ag, 2.04% Cu, 0.27% Mo over 0.6 metres in 11-LC-102
• 1.39% U3O8, 10.8 g/t Ag, 0.03% Cu, 0.18% Mo over 0.9 metres in 11-LC-078
• All 44 holes drilled at Eastern Extension have now been reported
• Eastern Extension results to be incorporated in updated resource estimate for Lac Cinquante; expected Q1, 2012
  (Estimated true widths - see assay results table below)

“Including the Eastern Extension could add considerable value as we move towards revising the resource estimate for Lac Cinquante by the end of Q1, 2012,” stated President Jeff Ward.

Eastern Extension

The discovery of the Eastern Extension was initially made by testing a northwest trending linear VLF EM conductor similar to Lac Cinquante, using six reverse circulation (RC) holes drilled from three set-ups. Two diamond drills were then deployed to delineate the Eastern Extension, with 6,143 metres in 44 holes drilled from 13 set-ups spaced on 50 metre drill sections.

The results reported herein comprise the second set of assay results from 20 core holes drilled at the Eastern Extension. The Eastern Extension has a drilled strike length of 550 metres and starts approximately 400 metres to the east, and along strike, of the Lac Cinquante main zone resource area.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees.  37 of 44 holes intersected uranium mineralization between 34 and 257 metres vertical depth. Both RC and diamond drilling have confirmed the continuation of the Lac Cinquante structure eastward with uranium mineralization occurring in a zone dipping roughly 72 degrees to the southwest. All assays from the Eastern Extension have now been released.

Mineralization is very similar to that found at Lac Cinquante, primarily hosted in the same hematite-carbonate-chlorite-graphite altered tuff unit. Uranium is associated with quartz-carbonate veining, breccia and sulphides within the sheared host rock.

For a summary of the 2011 exploration program at Angilak, please see news release from October 18, 2011. To view related cross sections and drill plan maps, please visit http://kivalliqenergy.com/projects/angilak/program_images/    

Eastern Extension Assay Results

Holes 11-LC-0100, 108 and 114 did not intersect mineralization.

*All samples subject to ICP 1 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%. Estimate for true width of mineralization is based on the angle of surveyed drill hole and the apparent orientation of the zone at the intercept.

QA/QC

Samples from the 2011 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks and standards into the sample inventory at the project site prior to shipment in sealed containers. All QC results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo. 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totalling 14.15 million lbs U3O8 (17.5 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 metres of RC and diamond drilling.

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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

• 2.02% U3O8, 19.7 g/t Ag, 1.42% Cu, over 0.8 meters in 11-LC-109
• 1.21% U3O8, 190.4 g/t Ag, 0.87% Cu, over 0.8 metres in 11-LC-120
• 0.98% U3O8, 14.3 g/t Ag, 0.29% Cu, over 1.1 meters in 11-LC-115
• 0.83% U3O8, 37.3 g/t Ag, 0.44% Cu, over 1.5 meters in 11-LC-119
• Western Extension zone strike length is 550 metres
• All assays now reported from drill holes at Western Extension
  (Estimated true widths - see assay results table below)

“The high grade values from these intervals, including the deepest intersected on the property to date, clearly demonstrate the growth potential at depth,” stated President Jeff Ward, P.Geo. “The assays will be incorporated into future resource estimates.”

Western Extension

This third, and final, set of results is comprised of 7 core holes drilled at the Western Extension. The Western Extension has a drilled strike length of 550 metres and starts 450 metres to the west, and along strike, of the Lac Cinquante main zone resource area.

9,468 metres in 54 diamond drill holes tested a northwest trending VLF EM conductor which exhibited a response similar to that of the Lac Cinquante deposit. Drilling from 17 set-ups spaced on 50 metre drill sections intersected radioactive intervals down to depths of 250 metres vertically. Two additional set-ups, spaced 100 metres apart, targeted below the original fences and intersected mineralization down to 327 metres. Final assays from these two drill hole set-ups are disclosed in this news release.

Mineralization is similar to that found at Lac Cinquante, but is structurally hosted in altered basalt rather than a tuffaceous unit.  Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common in this zone.

All core holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. 43 of 54 holes drilled at the Western Extension have now intersected uranium mineralization between 30 and 327 metres vertical depth, in a zone dipping roughly 65 degrees to the southwest. Kivalliq has now fully disclosed assays from all diamond drill holes at the Western Extension.

For a summary of the 2011 exploration program at Angilak, please see the news release from October 18, 2011. To view related cross sections and drill plan maps, please visit http://kivalliqenergy.com/projects/angilak/program_images/

Western Extension Assay Results

*All samples subject to ICP 1 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%. Estimate for true width of mineralization is based on the angle of surveyed drill hole and the apparent orientation of the zone at the intercept.

QA/QC 

Samples from the 2011 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks and standards into the sample inventory at the project site prior to shipment in sealed containers. All QC results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo. 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Good morning

Please find below three links to news items related to Kivalliq and the nuclear energy sector.

1.) Kivalliq’s CEO Jim Paterson was interviewed by Brian Truscott of www.uraniumblog.com about our recent progress at the Angilak Property:
http://www.uraniumblog.com/2011/11/kivalliqs-energized-lac-cinquante-u3o8-project-.html#more

2.) A summary of a Nuclear Energy Institute (“NEI”)survey confirming ongoing support by the general American public for nuclear power, 6 months after the earthquake in Japan:
http://www.nei.org/newsandevents/newsreleases/americans-support-for-nuclear-energy-holds-at-majority-level-6-months-after-japan-accident/

3.) A white paper by NEI called “Global Nuclear Power Development: Major Expansion Continues”:
http://www.nei.org/resourcesandstats/documentlibrary/newplants/whitepaper/white-paper---global-nuclear-power-development/

All the best

Shannon Coutts, Corporate Communications

• 2.65% U₃O₈, 134.63 g/t Ag, 0.06% Cu,1.67% Mo over 0.5 metres in 11-LC-094
• 2.33% U₃O₈, 61.40 g/t Ag, 0.16% Cu, 0.57% Mo over 0.4 metres in 11-LC-092
• 1.84% U₃O₈, 16.63 g/t Ag, 0.55% Cu, 0.07% Mo over 1.0 metres in 11-LC-096
• 1.00% U₃O₈, 27.75 g/t Ag, 0.09% Cu, 0.39% Mo over 1.0 metres in 11-LC-093
• 0.75% U₃O₈, 31.23 g/t Ag, 0.07% Cu, 0.46% Mo over 1.4 metres in 11-LC-084
• Eastern Extension strike length is 550 metres; future drilling will test along strike and to depth
• Assays pending from an additional 20 drill holes at Eastern Extension
  (Estimated true widths - see assay results table below)

"The discovery of the Eastern Extension was the direct result of our RC drilling strategy,” stated President Jeff Ward. "These assays underpin the growing importance of the Lac Cinquante trend, and like the Western Extension, will go towards revising the resource estimate for Lac Cinquante by the end of Q1, 2012.”

Eastern Extension

The discovery of the Eastern Extension was initially made by testing a northwest trending linear VLF EM conductor similar to Lac Cinquante, using six reverse circulation (RC) holes drilled from three set-ups. Two diamond drills were then deployed to delineate the Eastern Extension, with 6,143 metres in 44 holes drilled from 13 set-ups spaced on 50 metre drill sections.

The results reported herein comprise the first set of assay results from 24 holes drilled at the Eastern Extension. The Eastern Extension has a drilled strike length of 550 metres and starts approximately 400 metres to the east, and along strike, of the Lac Cinquante main zone resource area.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees.  39 of 44 holes intersected anomalous radioactivity between 34 and 257 metres vertical depth. Both RC and diamond drilling have confirmed the continuation of the Lac Cinquante structure eastward with uranium mineralization occurring in a zone dipping roughly 72 degrees to the southwest. Additional assays from the Eastern Extension will be released upon receipt and review.

Mineralization is very similar to that found at Lac Cinquante, primarily hosted in the same hematite-carbonate-chlorite-graphite altered tuff unit. Uranium is associated with quartz-carbonate veining, breccia and sulphides within the sheared host rock.

For a summary of the 2011 exploration program at Angilak, please see news release from October 18, 2011. To view related cross sections and drill plan maps, please visit:
http://kivalliqenergy.com/projects/angilak/program_images/    

Eastern Extension Assay Results

*All samples subject to ICP 1 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%. Estimate for true width of mineralization is based on the angle of surveyed drill hole and the apparent orientation of the zone at the intercept.

QA/QC

Samples from the 2011 drilling program comprised half split NQ drill core. All samples were analyzed for U₃O₈ and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U₃O₈ Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks and standards into the sample inventory at the project site prior to shipment in sealed containers. All QC results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo. 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U₃O₈, totaling 14.15 million lbs U₃O₈ (17.5 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 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Highlights disclosed herein include:

• 2.02% U3O8, 26.9 g/t Ag, 0.65% Cu, over 2.0 metres in 11-LC-060
• 1.89% U3O8, 19.5 g/t Ag, 0.35% Cu, over 1.7 metres in 11-LC-057
• 1.87% U3O8, 39.9 g/t Ag, 0.80% Cu, over 1.2 metres in 11-LC-043
• 1.53% U3O8, 70.3 g/t Ag, 1.62% Cu, 0.17% Mo over 1.2 metres in 11-LC-083
• 1.10% U3O8, 72.0 g/t Ag, 1.22% Cu, 0.30% Mo over 1.2 metres in 11-LC-054
• Western Extension strike length is 550 metres; future drilling will test along strike and to depth
• Assays pending from an additional 7 deep drill holes at Western Extension
  (Estimated true widths - see assay results table below)

"High grade uranium and polymetallic assay results from the Western Extension continue to add significant value to the Lac Cinquante trend," stated Kivalliq President Jeff Ward. "It is exciting to have moved the Western Extension from initial discovery to resource drilling in such a short time frame.”

Western Extension

This second set of results is comprised of 30 holes drilled at the Western Extension, with a total of 47 holes reported to date from this zone. The Western Extension has a drilled strike length of 550 metres and starts 450 metres to the west, and along strike, of the Lac Cinquante main zone resource area.

9,468 metres in 54 diamond drill holes tested a northwest trending VLF EM conductor which exhibited a response similar to that of the Lac Cinquante deposit. Drilling from 17 set-ups spaced on 50 metre drill sections intersected radioactive intervals down to depths of 250 metres vertically. Two additional set-ups, spaced 100 metres apart, targeted below the original fences and intersected mineralization down to 327 metres (See Kivalliq news release October 5, 2011). Final assays from deep drill holes at the Western Extension are pending.

Mineralization is similar to that found at Lac Cinquante, but is structurally hosted in altered basalt rather than a tuffaceous unit.  Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common in this zone.

All core holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. 43 of 54 holes drilled at the Western Extension have now intersected anomalous radioactivity between 30 and 327 metres vertical depth, in a zone dipping roughly 65 degrees to the southwest. Kivalliq announced initial assays from 17 diamond drill holes at the Western Extension on August 25, 2011.

For a summary of the 2011 exploration program at Angilak, please see the news release from October 18, 2011. To view related cross sections and drill plan maps, please visit http://kivalliqenergy.com/projects/angilak/program_images/

Western Extension Assay Results

Hole 11-LC-065 intersected the Western Extension shear zone but was not mineralized.

*All samples subject to ICP 1 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%. Estimate for true width of mineralization is based on the angle of surveyed drill hole and the apparent orientation of the zone at the intercept.

QA/QC 

Samples from the 2011 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks and standards into the sample inventory at the project site prior to shipment in sealed containers. All QC results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo. 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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

2011 Exploration Program: Field component summary

• 23,849 metres of diamond drilling in 153 holes focused on expanding the Lac Cinquante resource and testing new mineralized target areas
• 6,411 metres in reverse circulation (“RC”) drilling in 88 holes, testing 25 target areas and identifying new areas for follow-up in 2012
• 5,470 line kilometres of airborne  magnetic, electromagnetic and radiometric surveying
• 1,640 line kilometres of ground magnetic, VLF electromagnetic and gravity  surveys
• Prospecting, mapping and soil geochemical surveys to advance known and new target areas
• Ongoing modelling, geological and environmental studies

“Kivalliq was able to conduct a significant and material exploration program in 2011. We commend our technical team for their dedication and execution, and thank our shareholders for their support during a volatile year in our sector,” stated CEO Jim Paterson. “Our belief in the exploration potential of the Angilak Property, including our ability to expand the Lac Cinquante uranium deposit, remains unwavering. We are confident that the pending results from drilling, prospecting and geophysical targeting will add significant value to this project.”

To view all cross sections, figures and maps from the 2011 exploration program please visit http://kivalliqenergy.com/projects/angilak/program_images/   

A Highly Productive Season

On February 15, 2011, Kivalliq announced a comprehensive $17 million exploration program. The program was a great success, exceeding all targets for proposed activities with the exception of the number of RC metres drilled.

The 2011 diamond drilling program, utilizing two core rigs from mid-April to October, totalled 23,849 metres in 153 holes. Drilling in 2011 increased the known extent of mineralization along the Lac Cinquante Trend from 1.3 kilometres to an aggregate of 2.3 kilometres through the discovery of the Western Extension and Eastern Extension zones. At the Western Extension, mineralization was intercepted at a vertical depth of 327 metres; the deepest intercept on the Angilak Property to-date. (See 2011 news releases of August 17 and October 5)

To date, Kivalliq has released assay results from 58 holes with assay results from 95 additional holes to be released, pending receipt and review, prior to the end of the year. The Company expects to incorporate results from new drilling along trend of Lac Cinquante into an updated 43-101 resource estimate by the end of Q1 2012.

The 2011 RC drill program at Angilak totalled 6,411 metres in 88 exploratory holes. Of the 88 RC holes drilled this year, 45 holes generated anomalous radioactivity greater than 500 counts per second (“cps”). Three discoveries made with the RC rig, i.e. Eastern Extension, Pulse, and Spark, were corroborated by diamond drill core holes, with additional targets set for diamond drilling as part of the 2012 drilling campaign. (See news release October 3, 2011)

The Company also undertook an aggressive targeting campaign this season, with results and interpretation pending from: 5,470 line kilometres of DIGHEM airborne magnetic, electromagnetic and radiometric surveying; 1,640 line kilometres of ground magnetic, VLF electromagnetic and gravity surveys; and a prospecting program which entailed the collection of 274 rock grab samples and 342 soil geochemical samples.

The fourth quarter of 2011 will be dedicated to technical analysis and resource modeling with the goal of identifying new target areas and updating a NI 43-101 mineral resource by the end of Q1, 2012.

QA/QC 

Split drill core samples have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. SRC operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories, and is accredited by the Standards Council of Canada. 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 and RC chips was measured in counts per second (CPS) using a hand-held Radiation Solutions Inc. RS-121 gamma ray scintillometer. Readings are considered anomalous above the 250 cps background recorded in adjacent rocks. The Company cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Mr. Singh is a member of the Association of Certified General Accountants of BC and Canada and has over 17 years of experience in the various areas of tax, financial reporting, internal audit and treasury, for both publicly traded resource companies and public practice accounting firms.  Previously, Mr. Singh held various financial roles in the mineral resource industry, including serving as corporate controller for Magma Energy Corp. (a predecessor to Alterra Power Corp. AXY:TSX) and Silver Standard Resources Inc. (SSO:TSX), as well as working in the tax group for KPMG.   Mr. Singh holds a Bachelor of Accounting Science degree from the University of Calgary.

Effective immediately, Mr. Singh will replace Mr. Chris Twells as Kivalliq's CFO. The Company wishes Mr. Twells great success in his future endeavours.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $25 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 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

“These holes have the deepest known radioactive intervals to-date on the Angilak Property,” stated President Jeff Ward, P.Geo. “Since drilling began in 2009, we have consistently intersected uranium mineralization at relatively shallow depths over 2.3 kilometres of combined strike along the Lac Cinquante trend. These new deep intervals clearly demonstrate the potential to expand significant uranium mineralization to much greater depths.”

The Western Extension has a known strike length of 550 metres and starts 450 metres to the west, and along strike, of the Lac Cinquante main zone resource area. 9,468 metres in 54 diamond drill holes tested a northwest trending VLF EM conductor which exhibited a response similar to that of the Lac Cinquante deposit. Drilling from 17 set-ups spaced on 50 metre drill sections intersected radioactive intervals down to depths of 250 metres vertically. The two recent set-ups were spaced 100 metres apart and collared further back in order to target the Western Extension at depth below the original fences.

Mineralization is similar to that found at Lac Cinquante, but is structurally hosted in altered basalt rather than a tuffaceous unit.  Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common in this zone.

All core holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 55 and 75 degrees. Six of seven deep holes (11-LC-109, 115 to 120) confirmed the down dip extension of a highly radioactive shear zone, with gamma values ranging from 250 to 34,000 counts per second (CPS), over intervals up to 2.2 metres estimated true width.  

43 of 54 holes drilled at the Western Extension have now intersected anomalous radioactivity between 30 and 327 metres vertical depth, in a zone dipping roughly 65 degrees to the southwest. Kivalliq announced initial assays from 17 diamond drill holes at the Western Extension on August 25, 2011. Final assays from Western Extension are pending.

To view a drill plan map related to this news release and all cross sections and maps from the 2011 exploration program please visit http://kivalliqenergy.com/projects/angilak/program_images/   

QA/QC

Half-spilt core samples from holes drilled at the Western Extension 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. The Company cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $25 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and approximately 48,000 meters of drilling.

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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

• Three zones discovered by RC drilling within three kilometres of the Lac Cinquante resource area were  corroborated by diamond drilling: Eastern Extension; Pulse Zone; and Spark Zone
• Two priority targets tested warrant diamond drilling in 2012, based on similarities to the geological and geophysical signatures of "unconformity related" targets: YAT Zone and VGR Zone
• Over 22 targets were tested by RC drilling property-wide in 2011, with 45 of 88 RC holes drilled generating anomalous radioactivity greater than 500 cps
• Assays from diamond drill core samples are pending from Eastern Extension, Pulse, and Spark zones

"This year’s RC drilling exploration strategy has been very productive; enabling us to rapidly test multiple drill targets at a greatly reduced cost in advance of diamond drilling," stated CEO Jim Paterson. "The confirmation of two "Athabasca-style" targets, YAT and VGR, underscores the exploration potential of the broader Angilak Property. RC drilling has also demonstrated that multiple zones proximal to Lac Cinquante are highly prospective for growing the Company’s mineral resource base in future seasons."

To view a drill plan map related to this news release and all cross sections and maps from the 2011 exploration program please visit http://kivalliqenergy.com/projects/angilak/program_images/   

Eastern Extension, Pulse, and Spark

Three zones discovered by 2011 RC drilling, within three kilometres of Lac Cinquante resource area, have been corroborated by core drilling. Assays from this diamond drilling at the Eastern Extension, Pulse and Spark zones are pending. These results are significant as they demonstrate the very real potential of identifying multiple mineral deposits within a concentrated area around Lac Cinquante. The Company hopes to incorporate diamond drill intercepts from the Eastern Extension into an updated resource calculation for the Lac Cinquante deposit by end Q1 2012.

The initial discovery of the Eastern Extension was previously reported by Kivalliq on August 17, 2011. Six RC holes were drilled from three setups located along the Lac Cinquante structural trend. All six holes intersected anomalous radioactivity, and 44 core holes from 13 setups were subsequently drilled at the Eastern Extension. The Eastern Extension displays similar geology to the Lac Cinquante Main Zone, with uranium mineralization developed in narrow, sheared and brecciated tuff layers adjacent to a sulfide-bearing tuff horizon.

The Pulse and Spark zones were identified as linear geophysical targets, located 0.8 kilometres north and 3 kilometres west respectively from the Lac Cinquante resource area. At the Pulse zone, anomalous radioactivity was intersected in nine of ten RC holes. Two core holes drilled as subsequent follow-up intersected radioactivity at 47 and 80 metres vertical depth.  At the Spark zone, six of seven RC and a single diamond drill hole intersected anomalous radioactivity at variable depths down to 65 metres vertically. The Spark zone is located approximately 500 metres west of the high-grade Blaze zone.

The Pulse zone is comprised of one to two metre wide carbonate-quartz-pitchblende veins in sheared and altered basalt, which correspond to a weak to moderate conductive trend identified by ground VLF-EM surveys. The Spark zone appears similar to the Blaze zone in that mineralization is hosted in one to two metre wide fracture controlled veins associated with a VLF-EM conductor. The geometry of the mineralized veining remains undetermined at this early stage.

YAT and VGR

Two priority targets that were tested by RC drilling in 2011 warrant follow up next year. The YAT zone is located 16 kilometres southwest of Lac Cinquante and central to the Angilak property. The VGR zone is situated on the west side of the property approximately 25 kilometres northwest of the resource area. Both zones are of great interest due to similarities with "unconformity related" targets.

 YAT is a zone of significant polymetallic carbonate veining on surface, containing Cu, U, Pb, Au, Ag, (See Kaminak Gold Corporation news release November 5, 2007), developed above a strong magnetic low, and interpreted basement faults. A 2011 gravity survey indicates a broad zone of weak low gravity with at least one significant "bullseye" gravity low. Two of four RC drill holes tested the bullseye gravity low, suggesting that it is caused by strong clay alteration of underlying lithologies down to at least 50 metres vertical depth.

The VGR zone is a 5 kilometre long conductive trend along a reactivated basement fault, displaying elevated radioactivity and favourable clay-silica alteration along its length. A gravity survey completed in 2011 shows the presence of at least one significant gravity low along the structure, possibly associated with clay alteration of underlying lithologies. One RC drill hole, inclined at minus 60 degrees under a historic trench across the conductor, contained elevated radioactivity (1000-4800 cps) in the upper 65 metres. Three additional holes were abandoned due to poor ground conditions related to clay alteration at down hole depths from 24 to 65 metres.

Based on the encouraging results of RC drilling, the YAT and VGR showings warrant follow-up with diamond drilling in 2012. In both areas, low gravity signatures correspond to areas of strong clay and silica alteration, possibly associated with reactivated basement structures. Mineralized surface showings at YAT and VGR are found in clastic and volcanic rocks of the Kazan and Christopher Island Formations, which overlie Archean basement in an unconformable relationship. The geology and mineral occurrences observed in these areas are comparable to high level alteration associated with unconformity-type mineralization in the Athabasca Basin of Saskatchewan. As such, both are considered highly prospective for uranium mineralization near the basement-cover interface. None of the RC holes completed in 2011 intersected the unconformity contact below these showings, thus these zones warrant further drill-testing in 2012.

Property-wide Success

The 2011 RC drill program at Angilak is now complete, totalling 6,411 metres in 88 exploratory holes. Of the 88 RC holes drilled this year, 45 holes generated anomalous radioactivity greater than 500 cps.
Three discoveries made with the RC rig were corroborated by diamond drill core holes, with additional targets set for diamond drilling as part of the 2012 drilling campaign. In all cases, RC hole locations were determined and prioritized after review of data from Kivalliq’s previous geophysical surveys and prospecting results.

QA/QC 

Split drill core samples from 47 holes at the Eastern Extension, Pulse, and Spark zones have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. SRC operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories, and is accredited by the Standards Council of Canada. 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 and RC chips was measured in counts per second (CPS) using a hand-held Radiation Solutions Inc. RS-121 gamma ray scintillometer. Readings are considered anomalous above the 250 cps background recorded in adjacent rocks. The Company cautions that scintillometer readings are not directly related to uranium grade and are only used to indicate zones of radioactive material.

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $25 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 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

• High grade assays from Lac Cinquante deposit, include
  • 1.19% U3O8, 3.39% Cu, 0.56% Mo, 46.5 g/t Ag over 1.3 metres in hole 11-LC-001
  • 5.69% U3O8 over 0.2 metres at 241.6 metres down hole in 11-LC-008
• 10 of initial 17 holes at Western Extension Zone intersected grades >0.25%, including
  • 2.25% U3O8 over 2.3 metres in hole 11-LC-036
  • 0.73% U3O8 over 1.7 metres in hole 11-LC-033
• Western Extension strike length is 550 metres; zone remains open to depth
• Assays are pending from both Western Extension and Eastern Extension

 "We continue to concentrate our efforts on resource expansion drilling along the Lac Cinquante structural trend," stated CEO Jim Paterson. "Continued high grade assays, from deep holes and new zones along strike, bolster our confidence in being able to expand the deposit."

2011 Angilak Property Exploration Program

The ongoing 2011 drill program at Angilak now totals 17,425 metres in 115 diamond drill holes and an additional 5,146 metres in 70 exploratory holes using a reverse circulation (RC) drill rig. Diamond drilling to date has largely focused on resource expansion east and west of the high grade Lac Cinquante deposit and exploratory drilling at the Blaze Zone. The Kivalliq team considers both the Western Extension and Eastern Extension zones to be part of the same northwest-southeast trending geological structure which hosts the high grade Lac Cinquante uranium resource.

Airborne and ground geophysical crews, as well as a prospecting crew, are currently working on the project to advance target areas defined by the 2010 program and generate new targets across the Angilak Property.

For cross sections and drill plan maps, please visit http://www.corebox.net/properties/angilak/

Lac Cinquante Main Zone

20 holes drilled to date during 2011 at the Lac Cinquante Main Zone are disclosed in this news release, with follow up drilling at depth deemed a priority. All holes reported herein were inclined to the northeast with an azimuth of 26 degrees, at inclinations between minus 45 and 90 degrees, intersecting the Lac Cinquante Main Zone between 82.9 and 261.7 metres depth. For full disclosure regarding the Lac Cinquante Main Zone, please see Kivalliq’s NI 43-101 Technical Report on the Lac Cinquante Deposit from March 24, 2011. Please see assay results in table below.

Western Extension

The first 17 of 45 holes drilled to date at the Western Extension Zone are disclosed in this news release. 6,705 metres in 45 diamond drill holes have now tested this zone, along 15 fences spaced at 50 metres and to depths of up to 250 metres. The known strike of the Western Extension is 550 metres, starting 450 metres to the west and along strike of the Lac Cinquante Main Zone.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. This work has identified a mineralized shear zone between 0.3 and 2.7 metres estimated true width, and dipping roughly 65 degrees to the southwest. 37 of 45 holes have intersected anomalous radioactivity between 30 and 250 metres vertical depth. Further assays from Western Extension are pending.

Lac Cinquante Assay Results

At the Lac Cinquante Main Zone, nine (9) drill holes; 11-LC-006, 011, 015, 016, 017, 018, 027, 028, 050 intersected no significant mineralization. These holes helped delineate high-grade ore shoots at depth and the margins of the Lac Cinquante Main Zone. 11-LC-004 was lost in overburden due to ground conditions.

Western Extension Assay Results

At the Western Extension Zone, two (2) holes; 11-LC-022 and 024 intersected no mineralization but helped delineate high-grade ore shoots within the zone.

*All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay; ICP1 results for Ag, Mo and Cu, 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%.

QA/QC 

Samples from the 2011 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $20 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and 35,000 meters of drilling.

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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

• Western Extension strike length extended to 550 metres; zone remains open to depth
• Two diamond drill rigs currently testing newly discovered Eastern Extension
• Assays are pending from Lac Cinquante, Western Extension and Eastern Extension zones

“The discovery of both the Western and Eastern Extension zones underscores the growing significance of the Lac Cinquante structural trend,” stated CEO Jim Paterson. “We are also very pleased that recent targeting by the RC rig led to the discovery of the Eastern Extension zone, demonstrating that a combined RC and diamond drilling program is highly effective when exploring the Angilak Property.”

2011 Angilak Property Exploration Program

The ongoing 2011 drill program at Angilak now totals 15,820 metres in 106 diamond drill holes and an additional 4,775 metres in 65 exploratory holes using the reverse circulation (RC) drill rig. Diamond drilling to date has largely focused on resource expansion east and west of the high grade Lac Cinquante deposit and exploratory drilling at the Blaze Zone. The Kivalliq team considers both the Western Extension and Eastern Extension zones to be part of the same northwest–southeast trending geological structure which hosts the high grade Lac Cinquante uranium resource.

Airborne and ground geophysical crews, as well as a prospecting crew, are currently working on the project to advance target areas defined by the 2010 program and generate new targets across the Angilak Property.

For maps and drill plan images, please visit www.kivalliqenergy.com

Western Extension

Drilling at the Western Extension targeted a northwest trending VLF EM conductor which exhibited a response similar to that of the Lac Cinquante deposit. 6,705 metres in 45 diamond drill holes have now tested this zone, along 15 fences spaced at 50 metres and to depths of up to 250 metres. Recent drilling has significantly increased the known strike of the Western Extension to 550 metres, so that it now encompasses anomalous hole 10 LC-013 drilled last year (See June 24, 2010 news release). Based on recent drilling, the zone of radioactivity that makes up the Western Extension now starts 450 metres to the west and along strike of the Lac Cinquante main zone.

Mineralization is similar to that found at Lac Cinquante, but is structurally hosted in altered basalt rather than a tuffaceous unit.  Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common in this zone.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. This work has identified a highly radioactive shear zone between 0.3 and  2.7 metres estimated true width, and dipping roughly 65 degrees to the southwest. 37 of 46 holes have intersected anomalous radioactivity between 30 and 250 metres vertical depth. Radiation in excess of 10,000 counts per second (CPS) was measured in the deepest intervals on 6 drill set-ups, demonstrating the zone is open at depth and warrants further drilling. Assays from Western Extension are pending.

Eastern Extension

The discovery of the Eastern Extension zone was initially made by testing a northwest trending linear VLF EM conductor similar to Lac Cinquante, using six reverse circulation (RC) holes drilled from three set-ups. Currently, two diamond drills are delineating the Eastern Extension, which starts approximately 450 metres east of the Lac Cinquante inferred resource area. 

Mineralization is very similar to that found at Lac Cinquante, primarily hosted in the same hematite-carbonate-chlorite-graphite altered tuff unit. Radioactivity is associated with quartz-carbonate veining, breccia and sulphides within the sheared host rock.

1,525 metres in 11 diamond drill holes have now tested the Eastern Extension zone from three set-ups spaced 50 and 350 metres apart respectively. All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 89 degrees.  Eight holes have intersected anomalous radioactivity along 400 metres strike length, and between 35 and 255 metres vertical depth. The RC and core holes have confirmed the continuation of the Lac Cinquante structure eastward with highly radioactive intercepts up to 2.0 metres wide in a zone dipping 70 degrees to the southwest. Drilling will continue at the Eastern Extension and assays will be released upon receipt and review.

QA/QC

Half-spilt core samples from holes drilled at the Western Extension and Eastern Extension zones, with anomalous radioactivity levels between 250 and  56,000 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. Chemical assay results from this drill program will be reported by Kivalliq upon receipt.

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

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $17 million conducting systematic exploration.

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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Vancouver, B.C. - Kivalliq Energy Corporation (KIV: TSX-V(the “Company” or “Kivalliq”) today provided an update on exploratory diamond drilling at the Blaze Zone, located approximately two kilometres west of the high grade Lac Cinquante uranium deposit, within Kivalliq's 225,000 acre Angilak Property in Nunavut, Canada.

• Assays from holes 11- BZ-011 through 019 returned significant U-Cu-Ag-Mo mineralization
• Holes 11-BZ-016, 017 and 019 intersected, 0.63% U3O8 over 5.6 metres, 0.45% U3O8 over 8.4 metres, and 0.60% U3O8 over 6.3 metres respectively.
• Blaze Zone drilled over 100 metres strike length with mineralization intersected down to 126 metres
• Zone remains open along strike and to depth

“The Blaze zone discovery clearly demonstrates the exploration potential at the Angilak Property, especially within close proximity of the high grade Lac Cinquante deposit,” stated CEO Jim Paterson. “Continued drilling at Blaze will be needed to better delineate this occurrence, and for possible inclusion in future resource calculations.” 

Assay results reported in Table 1 of this release are from holes 11-BZ-011 through 019 of 19 diamond drill holes that have tested the Blaze Zone in 2011. The intervals reported herein build on the success of hole 10-NE-001 drilled at the Blaze Zone at the end of the 2010 season. Updated 2011 drill plans, sections and tables can be found on the Company's website at www.kivalliqenergy.com.

Table 1: 2011 Phase 2 Assay Results from Blaze Zone

All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay 
ICP1 results for Ag, Mo and Cu, 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%
Intervals reported down-hole and true width of zones or intervals are not known at this time

Blaze Zone Summary

The Blaze Zone is located approximately 2.0 kilometers west of the Lac Cinquante uranium deposit. Mineralization occurs as pitchblende with occasional disseminated and patches of sulphide in quartz-carbonate veins and breccia, often with moderate hematite alteration, primarily around fractures. There appear to be  two separate zones (upper and lower), occurring as clusters of semi-stockworked quartz-carbonate stringers and veins in brecciated carbonate-hematite altered host rock, crosscutting the southwest dipping sequence of  metabasalt, metagabbro and metatuff. In holes 11-BZ-011 through 019, these upper and lower zones of varying mineralized widths are separated by 27 to 40 metres of unaltered metavolcanics.

Most notable is hole11-BZ-016, which intersected 0.63% U3O8, 1.31% Cu, 74.3 grams/tonne Ag and 0.35% Mo over 5.6 metres. This hole crosscuts hole 11-BZ-010 assaying 1.01% U3O8 over 25.4 metres (reported June 20), and suggests the true width of this intercept to be roughly 4 metres.  In addition, hole 11-BZ-017  intersected 0.45% U3O8, 0.30% Cu, 73.3 grams/tonne Ag and 0.31% Mo over 8.4 metres; and hole 11-BZ-019 returned 0.60% U3O8 over 6.3 metres. The relationship of these holes to other high grade intercepts in unknown at this time.

The Blaze Zone has been drilled across a strike length of 100 meters, with significant mineralization intersected between 30 and 126 metres depth below surface. A total of 2,694 metres of NQ drill core from 19 drill holes have investigated mineralization at Blaze, with assays from all of the 19 holes drilled to-date now reported. Holes 11-BZ-001 through to 11-BZ-015 were drilled at azimuth 035 degrees from five locations at 25 metre drill section intervals across the 100 metre strike length targeted. Core logging suggests initial setups may have drilled sub-parallel to some of the mineralized trends. Therefore, two additional setups drilling azimuth 180 degrees for holes 11-BZ-016 and 11-BZ-017, and at azimuth 130 degrees for holes 11-BZ-018 and 11-BZ-019 respectively were drilled oblique and perpendicular to earlier holes in order to determine structural controls and estimate true widths of mineralization.

2011 Angilak Property Exploration Program

As announced on February 15, Kivalliq’s board of directors approved a two-phased, $17 million exploration program at Angilak. This commenced in March 2011 with the mobilization of crews and equipment to the existing Nutaaq camp. The following points summarize elements of the proposed 2011 exploration campaign:

• Up to 35,000 metres of drilling, with two diamond drill core rigs and one reverse circulation (“RC”) rig, focused on expanding the high grade Lac Cinquante resource and testing new target areas across the property
• Combination of airborne (5,400 line kilometres) and ground geophysical surveys (1250 line kilometres)
• Prospecting and mapping
• Ongoing modeling, geological and environmental studies
• Continued emphasis on community consultation
• Infrastructure expansion for improved logistics and to handle additional staff and equipment
• Revision and update of current inferred NI 43-101 resource by Q2 2012

The continuing 2011 drill program at Angilak now totals 14,795 metres in 99 diamond drill holes and an additional 4,422 metres in 62 exploratory holes with the RC rig. Diamond drilling to date has largely focused on the Blaze Zone and resource expansion along strike to the east and west of the high grade Lac Cinquante deposit. Additional assays are pending from the results of this diamond drilling, including from the recently discovered Western Extension zone announced by Kivalliq on July 21, 2011.

Airborne and ground geophysical crews, as well as a prospecting crew, have been mobilized to the project to advance target areas defined by the 2010 program and generate new targets across the Angilak Property.

QA/QC 

Samples from the 2011 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $17 million conducting systematic exploration.

On behalf of the Board of Directors

“James 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today provided an update on diamond drilling at the 225,000 acre Angilak Property in Nunavut, Canada. Recent drilling has identified a highly radioactive zone, the “Lac Cinquante Western Extension”, located 850 metres to the west and along strike from the Lac Cinquante Uranium Deposit. Drilling to date of 2707 metres in 17 drill holes has begun to delineate this previously untested area, which remains open along strike and to depth.

• Two core rigs are currently drilling at Lac Cinquante Western Extension
• 16 of 17 holes drilled at Lac Cinquante Western Extension have intersected highly radioactive shear zone
• Zone drilled over 200 metres strike length and down to 250 metres
• Target remains open along strike and to depth
• Assays are pending

Lac Cinquante Western Extension

To date, 2707 metres of drilling in 17 diamond drill core holes have tested the Lac Cinquante Western Extension Zone. The Kivalliq team considers the Lac Cinquante Western Extension to be part of the same geological structure which hosts the high grade Lac Cinquante uranium resource. Drilling is targeting a northwest trending VLF EM conductor, similar to the Lac Cinquante, along fences spaced at 50 metres and to depths of up to 250 metres. All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 88 degrees. This work has identified a highly radioactive shear zone up to 4.7 metres wide and dipping 65 degrees to the southwest.

The mineralized zone is similar to that found at Lac Cinquante, but in altered basalt rather than tuff host rock. Radioactive intervals are associated with sheared, chlorite-carbonate altered basalt with minor brecciation and sulphides. Hematized quartz-carbonate veining is common.

Sixteen of 17 holes drilled at the Lac Cinquante western extension have intersected this radiaoactive zone between 28 and 250 metres vertical depth and over a strike length of 200 metres. (See drill plan www.kivalliqenergy.com ) Assays are pending.

2011 Angilak Property Exploration Program

As announced on February 15, Kivalliq’s board of directors approved a two-phased, $17 million exploration program at Angilak. This commenced in March 2011 with the mobilization of crews and equipment to the existing Nutaaq camp.

The following points summarize both the first and second phase of the proposed 2011 exploration campaign:

• Up to 35,000 metres, with two diamond drill core rigs and one reverse circulation (“RC”) rig, focused on expanding the high grade Lac Cinquante resource and testing new target areas across the property
• Combination of airborne (4,000 line kilometres) and ground geophysical surveys (1250 line kilometres)
• Continued prospecting
• Ongoing modeling, geological and environmental studies
• Continued emphasis on community consultation
• Infrastructure expansion for improved logistics and to handle additional staff and equipment
• Revision and upgrade of current inferred NI 43-101 resource by Q2 2012

The continuing 2011 drill program at Angilak now totals approximately 10,885 metres in 72 diamond drill core holes and an additional 3,323 metres in 46 exploratory holes with the RC rig. The diamond drilling has been largely focused on drilling at the Blaze Zone (See news release dated June 20, 2011) and resource expansion drilling along strike to the east and west of the high grade Lac Cinquante deposit. Additional assays are pending from the results of this diamond drilling.

Airborne and ground geophysical crews, as well as a prospecting crew, have been mobilized to the project to advance target areas defined by the 2010 program and generate new targets across the Angilak Property.

QA/QC 

Core samples from 11 holes at the Lac Cinquante Western Extension, with maximum radioactivity levels up to 44,000 CPS, have been sent to Saskatchewan Research Council Geoanalytical Laboratories (SRC) for analysis. SRC operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories, and is accredited by the Standards Council of Canada. Chemical assay results from this drill program will be reported by Kivalliq upon receipt.

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

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

• Early exploratory drilling at Blaze has outlined a mineralized system that warrants further drilling, demonstrating the potential for additional uranium discoveries on Kivalliq's 225,000 acre Angilak Property
• Assays from the first ten of 19 holes drilled at Blaze have identified significant U-Cu-Ag-Mo mineralization over 100 metres strike length and down to a depth 160 metres, remaining open along strike and to depth
• Hole 11 BZ-010, with 1.01% U3O8 over 25.4 metres, is a significant interval that includes impressive Cu, Ag and Mo values. Subsequent holes (assays pending) suggest true width of this interval to be roughly 4 metres
• Blaze is defined by several fracture zones with veining, breccia and associated hematite alteration that crosscuts metavolcanic host rock
• Assays are pending from the nine remaining holes drilled at Blaze Zone

"The initial results from our exploratory drilling at the Blaze Zone have been highly encouraging," stated CEO Jim Paterson. "We are fully funded to continue with our planned 35,000 metres of resource building at Lac Cinquante and discovery drilling at targets like Blaze."

Assay results reported in Table 1 of this release are from the first ten of 19 diamond drill holes that have tested the Blaze Zone in 2011. The intervals reported herein build on the success of hole 10-NE-001 drilled at the Blaze Zone at the end of the 2010 season. Updated 2011 drill plans, sections and tables can be found on the Company's website at www.kivalliqenergy.com .

Table 1: 2011 Phase 1 Assay Results from Blaze Zone

All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay 
ICP1 results for Ag, Mo and Cu, 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%
Intervals reported down-hole and true width of zones or intervals are not known at this time

*Hole 10-NE-011 was drilled as part of the 2010 exploration program and previously reported on December 13, 2010

Blaze Zone Summary

"Multiple intervals of anomalous uranium in a number of holes at the Blaze Zone have already added considerable excitement to this year's program," Jeff Ward, Kivalliq's President, stated. "We will return to drill the Blaze Zone upon receipt of further assay results."

The Blaze Zone is located approximately 2.0 kilometers west of the Lac Cinquante uranium deposit. Mineralization occurs as pitchblende rich, quartz-carbonate veins and breccia, occasionally with disseminated and patches of sulphide. It is commonly two separate zones (upper and lower), occurring as clusters of veins or fracturing, crosscutting the southwest dipping sequence of host metabasalt, metagabbro and metatuff units. In holes 11-BZ-001 through 010, upper and lower zones of varying widths are separated by 24 to 64 metres of unaltered metavolcanics. Mineralization is also associated with moderate to strong, hematite alteration within the host units, primarily around fractures and breccia.

Most notable is hole 11-BZ-010, which intersected 1.01% U3O8, 1.48% Cu, 83 grams/tonne Ag and 0.28% Mo over 25.4 metres. The intercept is a series of semi-stockworked quartz-carbonate stringers and veinlets in brecciated carbonate-hematite altered host basalt. Based on subsequent drilling, this particular intercept has an estimated true width of 4.0 meters, although the actual geometry is still unclear at this time.

The Blaze Zone has been drilled across a strike length of 100 meters to a depth of 160 meters below surface. A total of 2,692 meters of NQ drill core from 19 drill holes have investigated mineralization at Blaze, with assays from the first ten reported herein. Holes 11-BZ-001 through to 11-BZ-015 were drilled at azimuth 035 degrees from five locations at 25 meter drill section intervals across the 100 meter strike length targeted. Core logging suggests initial setups may have drilled sub-parallel to some of the mineralized trends. Therefore, two additional setups drilling azimuth 180 degrees for holes 11-BZ-016 and 11-BZ-017, and at azimuth 130 degrees for holes 11-BZ-018 and 11-BZ-019 respectively were drilled oblique and perpendicular to earlier holes in order to determine structural controls and estimate true widths of mineralization. Results for holes 11-BZ-011 through 11-BZ-019 are pending.

QA/QC 

Samples from the 2011 Phase 1 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq's QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by 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, 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

On behalf of the Board of Directors

"James Paterson"

Jim Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.comor contact Investor Relations at 1.888.331.2269 toll free, directly at 604.646.4527 or by email at info@kivalliqenergy.com.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

Kivalliq would also like to congratulate Allison Rippin Armstrong, the Company’s permitting and environmental consultant, who was jointly awarded the Mike Hine Award, in recognition of an individual who has made significant contribution to the mining industry in Nunavut.

“The Kivalliq team is dedicated to adhering to high environmental and safety standards,” stated Kivalliq CEO, Jim Paterson. “It is a great honour to receive this award as public recognition by the KIA. We will remain focused on environmental stewardship in our exploration efforts at the Angilak Property.”

The awards were presented to both Jeff Ward, President of Kivalliq Energy Corporation and Allison Rippin Armstrong at the 2011 Nunavut Mining Symposium from April 5 -7, 2011 in Iqaluit, Nunavut.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

On behalf of the Board of Directors

“James 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

“Drilling during the 2009 and 2010 exploration seasons led to Kivalliq’s recently announced inferred resource of 810,000 tonnes grading 0.79% U3O8, totalling 14.15 million pounds at Lac Cinquante, as well as identifying the Blaze zone as an exciting new target area at which to build additional uranium resources,” stated Kivalliq’s CEO Jim Paterson. “Kivalliq is fully funded to execute the exploration program at Angilak as announced on February 15, 2011 and we are excited that the 2011 campaign is now underway.”

The following points summarize the proposed 2011 exploration program:

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo. (President, Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101. For disclosure related to the inferred resource for the Lac Cinquante uranium deposit, please refer to Kivalliq news release of February 7, 2011.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

On behalf of the Board of Directors

“James 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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) (“Kivalliq” or the “Company”) today announced that it has closed the final tranche of the private placement financing announced March 7, 2011 pursuant to the amended terms described in the Company’s news release dated March 23, 2011 (the “Non-Brokered Private Placement ”). The final tranche consisted of 1,750,000 additional shares for gross proceeds of $875,000. Pursuant to the Non-Brokered Private Placement, the Company has now issued an aggregate of 10,300,000 common shares at a price of $0.50 per share for gross proceeds of $5,150,000.

Insiders of the Company participated in the Non-Brokered Private Placement and a portion of the Non-Brokered Private Placement was subject to finders’ fees (including all of the final tranche). On applicable gross proceeds, certain finders received a cash commission of 6% and warrants equal to 3%. Each warrant shall be exercisable to acquire one common share of the Company at an exercise price of $0.50 for a period of 24 months from closing. Securities issued under the final tranche of the Non-Brokered Private Placement are subject to a hold period which will expire four months and a day from the date of closing, being August 6, 2011.

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.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors

“James 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

March 31, 2011 Vancouver, British Columbia – Kivalliq Energy Corporation (TSXV:KIV) (“Kivalliq” or the “Company”) today announced that it has closed the first tranche of the private placement financing announced March 7, 2011 pursuant to the amended terms described in the Company’s news release dated March 23, 2011 (the “Non-Brokered Private Placement ”). The Company has issued an aggregate of 8,550,000 common shares at a price of $0.50 per share for gross proceeds of $4,275,000.

The Company expects to close the second and final tranche of this financing, 1,750,000 additional shares for gross proceeds of $875,000, on or about Tuesday April 5, 2011

Insiders of the Company participated in the Non-Brokered Private Placement and a portion of the Non-Brokered Private Placement was subject to finders’ fees. On applicable gross proceeds, certain finders received a cash commission of 6% and warrants equal to 3%. Each warrant shall be exercisable to acquire one common share of the Company at an exercise price of $0.50 for a period of 24 months from closing. Securities issued under the Private Placement are subject to a hold period which will expire four months and a day from the date of closing, being August 1, 2011.

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.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors

“James 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

OR FOR DISSEMINATION IN THE UNITED STATES

March 30, 2011 Vancouver, British Columbia – Kivalliq Energy Corporation (TSXV:KIV) (“Kivalliq” or the “Company”)is pleased to announce that it has today closed the bought deal private placement financing announced March 7, 2011 pursuant to the amended terms described in the Company’s news release dated March 23, 2011 (the “Offering”). The Company has issued an aggregate of 12,333,600 flow-through common shares (the “Shares”) at a price of $0.60 per Share for gross proceeds of $7,400,160.

The Offering was led by Canaccord Genuity Corp. and included Raymond James Ltd., Dundee Securities Corp., Haywood Securities Inc. and Versant Partners Inc. (the “Underwriters”). The Underwriters received a cash commission of 6% of the gross proceeds raised through the Offering and warrants (“Broker Warrants”) equal to 3% of the Shares issued through the Offering. Each Broker Warrant shall be exercisable to acquire one common share of the Company at an exercise price of $0.90 for a period of 24 months from closing. Securities issued under the Offering are subject to a hold period which will expire four months and a day from the date of closing, being July 31, 2011.

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.

The Company expects to close tomorrow the non-brokered private placement also announced in the Company’s news releases issued March 7 and March 23, 2011.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors

“James 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.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

 The independent Technical Report was prepared by Apex Geoscience Ltd. with the Mineral Resource estimate for the Lac Cinquante Deposit contained therein prepared under the direction of SIM Geological Inc., following the guidelines of the Canadian Securities Administrators National Instrument 43-101 and Form 43-101F1. 

The report titled “Technical Report on the Angilak Project, Kivalliq Region, Nunavut” will be filed on SEDAR and can be viewed on the SEDAR website, www.sedar.com, the Kivalliq website, www.kivalliqenergy.com, or by following this link:

http://kivalliqenergy.com/_resources/LacCinquante_NI-43101.pdf

The information in this release related to the independent  Technical Report and the Mineral Resource estimate has been approved by Michael Dufresne, P.Geol and Robert Sim, P.Geo. of SIM Geological Inc., who are independent Qualified Persons 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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

 On behalf of the Board of Directors

“James 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.  

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

March 23, 2011 Vancouver, British Columbia – Kivalliq Energy Corporation (TSXV:KIV) (“Kivalliq” or the “Company”) today announced that it has revised the terms of the financing previously announced on March 7, 2011. A syndicate of underwriters, led by Canaccord Genuity Corp. and including Raymond James Ltd., Dundee Securities Corp., Haywood Securities Inc. and Versant Partners Inc. (the “Underwriters”), are now proposing to sell 11,120,000 common shares of the Company issuable on a “flow-through” basis pursuant to the Income Tax Act (Canada) (the “Flow-Through Shares”) at a price of CAD$0.60 per Flow-Through Share to raise CAD$6,672,000, on a bought deal private placement basis (the “Underwritten Offering”). The Company has granted the Underwriters an over-allotment option, exercisable prior to the closing of the Underwritten Offering, to purchase up to 2,780,000 additional Flow-Through Shares at the issue price of the Offering, for additional proceeds of up to CAD$1,668,000 (the “Over-Allotment Option”, and together with the Underwritten Offering, the “Offering”).

In addition, the Company now plans to undertake a non-brokered private placement financing for up to 10,000,000 common shares at a price of CAD$0.50 per share (the “Non-Brokered Private Placement”) for gross proceeds of CAD$5,000,000. Insiders of the Company may participate in the Non-Brokered Private Placement and a portion of the Non-Brokered Private Placement may be subject to finders’ fees.

The Underwriters will receive a cash commission on the sale of the Flow-Through Shares equal to 6% of the gross proceeds raised and broker warrants (“Broker Warrants”) equal to 3% of the Offering. Each Broker Warrant shall be exercisable for one common share of the Company at a price of CAD$0.90 at any time up to 24 months after closing.

The Company intends to use the net proceeds of the Offering and the Non-Brokered Private Placement 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.

The date of Closing of the Underwritten Offering and the Non-Brokered Private Placement, have also been extended, and are now each anticipated to occur on or about March 30, 2011, subject to receipt of applicable regulatory approvals. The securities issued by Kivalliq in connection with the Offering and the Non-Brokered Private Placement are subject to a four month “hold period” as prescribed by the TSX Venture Exchange and applicable securities laws.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors

“James 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.  

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

March 7, 2011 Vancouver, British Columbia – Kivalliq Energy Corporation (TSXV:KIV) (“Kivalliq” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including Raymond James Ltd., Dundee Securities Corp., Haywood Securities Inc. and Versant Partners Inc. (the “Underwriters”) to sell 11,120,000 common shares of the Company issuable on a “flow-through” basis pursuant to the Income Tax Act (Canada) (the “Flow-Through Shares”) at a price of CAD$0.90 per Flow-Through Share to raise CAD$10,008,000, on a bought deal private placement basis (the “Underwritten Offering”).  The Company has granted the Underwriters an over-allotment option, exercisable prior to the closing of the Underwritten Offering, to purchase up to 2,780,000 additional Flow-Through Shares at the issue price of the Offering, for additional proceeds of up to CAD$2,502,000 (the “Over-Allotment Option”, and together with the Underwritten Offering, the “Offering”).

In addition, the Company plans to undertake a non-brokered private placement financing for up to 10,000,000 common shares at $0.78 per share (the “Non-Brokered Private Placement”).  Insiders of the Company may participate in the Non-Brokered Private Placement and a portion of the Non-Brokered Private Placement may be subject to finders’ fees.

The Underwriters will receive a cash commission on the sale of the Flow-Through Shares equal to 6% of the gross proceeds raised and broker warrants (“Broker Warrants”) equal to 3% of the Offering. Each Broker Warrant shall be exercisable for one common share of the Company at a price of CAD$0.90 at any time up to 24 months after closing.

The Company intends to use the net proceeds of the Offering and the Non-Brokered Private Placement 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 and the Non-Brokered Private Placement are each anticipated to occur on or about March 24, 2011 and are subject to receipt of applicable regulatory approvals.  The securities issued by Kivalliq in connection with the Offering and the Non-Brokered Private Placement are subject to a four month “hold period” as prescribed by the TSX Venture Exchange and applicable securities laws.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totaling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors

“James 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.  

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

“Building on the recently announced inferred resource of 810,000 tonnes grading 0.79% U3O8, totalling 14.15 million pounds at Lac Cinquante, Kivalliq’s board of directors has approved an aggressive exploration program at the Angilak Property in 2011,” stated Jim Paterson, Kivalliq’s CEO. “Our 2011 exploration goals are clearly defined as follows: expand the Lac Cinquante mineral resource along strike and to depth; drill targets on parallel conductors; and demonstrate potential for multiple uranium deposits elsewhere on the Angilak Property.”

Kivalliq’s board of directors has approved a two-phased, $17 million exploration program at Angilak for the 2011 season. The first phase commences in March 2011 with the mobilization of crews and equipment to the existing Nutaaq camp. The Company is fully funded to drill from April to June, with two diamond drill rigs and one RC rig, and conduct ground geophysical surveys until break-up sometime in June. The Company will commence the second phase of the proposed exploration program at Angilak in July.

The following points summarize both the first and second phase of the proposed 2011 exploration campaign:

• 20,000 metres of diamond drill core, with up to 100 holes focused on expanding and potentially upgrading the Lac Cinquante resource
• 15,000 metres of RC drilling to test in excess of 30 target areas with up to 150 holes
• Combination of airborne (4,000 line kilometres) and ground geophysical surveys (1250 line kilometres)
• Continued prospecting to advance target areas defined by the 2010 program and investigate new targets identified by 2011 geophysical surveying.
• Ongoing modelling, geological and environmental studies; continued emphasis on community consultation
• Infrastructure expansion for improved logistics and to handle additional staff and equipment
• Revision and upgrade of current inferred NI 43-101 resource by Q2 2012

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo. (President, Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101. For disclosure related to the inferred resource for the Lac Cinquante uranium deposit, please refer to Kivalliq news release of February 7, 2011.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totalling 14.15 million lbs U3O8 (17.5 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 $12 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

On behalf of the Board of Directors

“Jim Paterson”

Jim Paterson, CEO
Kivalliq Energy Corporation

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

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

“The release of the first 43-101 compliant mineral resource estimate for the Lac Cinquante uranium deposit is a major milestone for the Company.  It provides Kivalliq with a strong base from which to build additional uranium resources in 2011, through further drilling at Lac Cinquante and at other high-priority target zones within the Angilak Property,” stated Kivalliq CEO Jim Paterson. “With a grade of 0.79% U₃O₈, Lac Cinquante is the highest grade compliant uranium resource in Canada, outside of the Athabasca Basin. In addition to uranium, Lac Cinquante contains significant quantities of silver, molybdenum and copper as outlined in the resource estimate. These additional metals, and a uranium spot price now exceeding US$70 per pound, are contributing factors to the potential economics of this project.”

Mineral Resource Estimate

The Mineral Resource estimate for Lac Cinquante was prepared under the direction of Robert Sim P.Geo., of SIM Geological Inc.  A resource model was generated using drill sample assay results from Kivalliq’s 2009 and 2010 field seasons (up to October 31, 2010), and interpretation of a geological model relating to spatial distribution of uranium. At a base case cut-off grade of 0.2% U₃O₈, an Inferred Mineral Resource is estimated at 810,000 tonnes averaging 0.79% U₃O₈, containing 14.15 million pounds U₃O₈.  For evaluation purposes, three additional metals:  silver (g/t), molybdenum (%) and copper (%) have also been estimated within the resource model.

The Mineral Resources contained within the Lac Cinquante uranium deposit is presented with a series of U₃O₈ cut-off thresholds for comparison purposes in Table 1 below; the base case cut-off grade of 0.2%U₃O₈ is highlighted in this table.  Kivalliq feels that this is a conservative but appropriate approach at this stage of the project’s development.

Conference Call

Kivalliq Energy Corp. will host a web- based conference at 1:15 pm PST on Monday, February 7, 2011. Please use the following link: http://www.investorcalendar.com/IC/CEPage.asp?ID=163374 .

Participant dial-in number(s):   416-340-2216 / 866-226-1792 Please mention “Kivalliq”
Instant replay dial-in number(s):    905-694-9451 / 800-408-3053 Pass code:   5840426

Table 1 – Inferred Mineral Resource Estimate for the Lac Cinquante Deposit (February 2011)

Notes
*Base case cut-off of 0.2%U₃O₈ is highlighted in the table.
-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.

The resource model was generated using a total of 122 diamond core holes, totaling 18,260 metres drilled by Kivalliq on the Angilak Property since 2009. This drilling is comprised of 16 NQ core holes totaling 1,748 metres in 2009, and 106 NQ core holes totaling 16,512 metres in 2010.  The resource model is constrained within a 3-dimensional domain representing the mineralized portion of the host mafic tuff.  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.  Block grade estimates are made through ordinary kriging using length-weighted composited drill hole intervals.  Only the portion of those model blocks within the mineralized tuff domain are included in the final mineral resource estimate.  Tonnages are calculated using a constant bulk density of 2.8t/m3.  Model blocks are included in the inferred category if they form reasonably continuous zones of mineralization within a maximum distance of 50 metres from a drill hole intercept.

The Lac Cinquante is considered to be an early stage project, therefore little is known about its potential mining or metallurgical characteristics. However, the resource is considered to exhibit reasonable prospects for economic extraction, and the base case cut-off threshold of 0.2% U₃O₈ is considered appropriate based on its location and other assumptions derived from deposits of similar type and scale. A technical report will be filed on SEDAR within 45 days.

Potential for Resource Expansion

Lac Cinquante remains open along strike to the east, west and at depth, demonstrating excellent potential to increase the size of the resource at this deposit. In addition, two holes drilled in 2010 encountered significant uranium, but were not included in this initial estimate due to their distance from the resource drilling. Step-out drill hole 10-LC-013, intersected 0.21% U₃O₈ over 1.96 metres, approximately 500 metres west of the resource drilling. Hole 10-NE-001 tested a target within the “Blaze Zone” 1.8 kilometres west of Lac Cinquante,  yielding two distinct intervals of 0.83 % U₃O₈ over 1.4 metres and  0.66 % U₃O₈ over 2.4 metres. Both holes clearly indicate that additional uranium resources may be found outside the current Lac Cinquante deposit area.

Geology of the Lac Cinquante Uranium Deposit

The Lac Cinquante uranium deposit is structurally and stratigraphically controlled within a graphite-chlorite tuffaceous metasediment interlayered in Archean basement metavolcanics.  Mineralization consists of disseminated pitchblende with sulphides and as fracture controlled, brecciated, hematite- pitchblende-quartz -carbonate veins within the tuff. Uranium and sulphides occur in widths up to 7.9 metres within a host unit up to 11.4 metres wide.  The deposit strikes southeast at 110 to 120 degrees and dips south, variably between -45  and -80 degrees. Mineralization occurs as southwest plunging  shoots within the plane of the tuff unit, which has been traced by drilling to a vertical depth of approximately 270 metres and along a strike length of 1300 metres .  Lac Cinquante is described as a basement hosted, vein-hydrothermal type, unconformity associated uranium deposit.

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 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U₃O₈ , totalling 14.15 million lbs U₃O₈ (17.5 lbs U₃O₈/tonne) at a 0.2% U₃O₈ cut-off grade, the Lac Cinquante Deposit is Canada’s highest grade compliant 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 $12 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

On behalf of the Board of Directors

“Jim Paterson”

Jim Paterson, CEO
Kivalliq Energy Corporation

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

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The financing consisted of 7.1 million common shares, at a price of $0.70 per share.  Commissions of $120,000 were payable on portions of the Placement.  All securities issued as part of the Placement will be subject to a four month resale restriction ending on April 18, 2011.

The proceeds from this financing will be used 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.  

About Kivalliq Energy Corporation

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

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

On behalf of the Board of Directors

“Jim Paterson”

Jim Paterson, CEO
Kivalliq Energy Corporation

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

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.