2012

Assays from Nine Iron Trend Confirm Another New Uranium Discovery;
Kivalliq Acquires 87,438 Acres Through Staking at Angilak

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December 3, 2012

Kivalliq Energy Corporation (“Kivalliq”, TSX-V:KIV) today announced results from five diamond drill holes at the Nine Iron Trend. The Nine Iron Trend (a portion of which was formerly referred to as the “BIF Zone”) is located approximately 10 kilometres southeast of the Lac Cinquante Uranium Deposit and  five kilometres southwest of Kivalliq’s Nutaaq camp. Nine Iron is one of six mineralized zones discovered this year within the 340,268 acre Angilak Property in Nunavut, Canada.

Key Point Summary

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

Nine Iron Trend

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

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

2012 Nine Iron Trend Diamond Drill Hole Weighted Assay Results*
DDH
From
(m)
To
(m)
Interval
** (m)
U3O8
(%)
Cu
(%)
Mo
(%)
Ag
(g/t)
Description
12-BIF-001
23.9
24.3
0.4
0.13
0.01
0.08
3.7
Nine Iron
12-BIF-001
33.4
34.3
0.9
0.45
0.01
0.01
0.9
Nine Iron
12-BIF-001
41.4
41.7
0.3
0.13
0.01
0.05
2.4
Nine Iron
12-BIF-001
44.6
45.6
1.0
0.31
0.01
0.01
1.8
Nine Iron
12-BIF-001
59.4
62.1
2.7
0.08
0.01
0.01
1.4
Nine Iron
12-BIF-001
97.5
97.8
0.3
0.28
0.02
0.02
4.0
Nine Iron
12-BIF-002
21.6
22.5
0.9
0.19
0.01
0.08
3.4
Nine Iron
12-BIF-002
30.9
32.2
1.3
0.28
0.01
0.01
0.6
Nine Iron
12-BIF-002
43.0
43.3
0.3
0.09
0.01
0.04
4.1
Nine Iron
12-BIF-002
62.1
62.4
0.3
0.10
0.00
0.18
1.6
Nine Iron
12-BIF-002
83.4
84.1
0.7
0.22
0.02
0.03
3.8
Nine Iron
12-BIF-003
109.8
111.9
2.1
0.24
0.01
0.02
3.6
Nine Iron
12-BIF-003
197.7
198.7
1.0
0.04
0.02
0.00
0.1
Nine Iron
12-BIF-003
212.5
212.8
0.3
0.13
0.04
0.02
3.7
Nine Iron
12-BIF-004
36.5
36.9
0.4
0.10
0.01
0.00
1.2
Nine Iron
12-BIF-004
38.8
39.3
0.5
0.40
0.05
0.00
4.0
Nine Iron
12-BIF-004
40.7
41.0
0.3
0.10
0.02
0.01
0.8
Nine Iron
12-BIF-004
93.2
93.6
0.4
0.40
0.08
0.03
7.3
Nine Iron
12-BIF-004
104.7
105.3
0.6
0.29
0.01
0.05
7.0
Nine Iron
12-BIF-005
105.3
105.6
0.3
0.26
0.03
0.00
4.0
Nine Iron
12-BIF-005
147.5
148.1
0.6
0.07
0.01
0.11
10.2
Nine Iron

*All samples are subjected to ICP1 Analysis by Saskatchewan Research Council Geoanalytical Laboratories “SRC” in Saskatoon, Canada. ICP1 results >1,000 ppm U are subjected to SRC U3O8 Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm).  1 ppm = 1gm/t, 10,000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%.  Conversion to U3O8% = ppm x 0.0001179.
**Down-hole core interval. True widths cannot be estimated at this time

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

Nine Iron Geology

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

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

QA/QC
Half-spilt NQ core samples from Angilak Property drill holes having anomalous radioactivity levels above 200 cps were sent to the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) for analysis. All samples were analyzed for U3O8 and a multi-element suite. The SRC facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multi-element Uranium exploration ICP1 method. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results U>1,000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 Assay method. Laboratory quality control (QC) includes a repeat analysis on every 20th sample. Repeat samples had good reproducibility. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.
Jeff Ward, P.Geo. and President of Kivalliq is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release.

About Kivalliq Energy Corporation
 
Kivalliq Energy Corporation (TSXV: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest grade uranium deposit outside of Saskatchewan’s Athabasca Basin.  The Company’s flagship project, the 340,268 acre Angilak Property in Nunavut Territory, is host to the Lac Cinquante Deposit with a NI 43-101 Inferred Resource of 1,779,000 tonnes grading 0.69% U3O8, totaling 27.13 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac Cinquante Deposit and demonstrate the “District Scale” potential of the Angilak Property.

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

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

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

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

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