2012

Assays Confirm Tenth Uranium Discovery in the Lac 50 Trend; Three Metres of 0.85% U3O8 Drilled at New Hot Zone

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November 6, 2012

Vancouver, British Columbia

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

Hot Zone Highlights

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

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

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

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

Hot Zone Assay Results

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

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

Hole 12-HOT-001 did not intersect significant mineralization

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

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

QA/QC

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

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

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

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

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

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

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

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