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Kivalliq Announces Results from 2014 Exploration at Angilak; Dipole Emerges as Top Priority Drill Target

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November 12, 2014

Vancouver, BC – Kivalliq Energy Corporation (Kivalliq - KIV:TSX-V) today announced results received from the 2014 exploration program at Kivalliq’s 275,469 acre Angilak Property located in Nunavut Territory, Canada.

2014 Angilak Property Exploration Highlights:

  • Geochemical results from 1,514 Enzyme Leach (EL) soil samples have significantly upgraded key drill targets at Dipole, Hot and KU
  • 1,335 line kilometres of Versatile Time Domain Electromagnetic (VTEM) airborne geophysics was flown in two grids over several target areas
  • The Dipole target is a distinct, two kilometre long geophysical anomaly having a coincident boulder assay of 2.24% U3O8, now confirmed by anomalous uranium-in-soil (U) trend over 3.4 kilometres of strike length
  • The RIB target area, where historic drilling encountered uranium mineralization at shallow depths, is a geochemical and geophysical analogue to Dipole

Based upon review of data generated from Kivalliq’s 2014 geophysical and geochemical surveys, Dipole has now emerged as a top priority drill target in the southwest portion of the Angilak Property.

Dipole Target Area

The Dipole target is located approximately 27 kilometres southwest of Lac 50, in a northeast trending belt of Archean metavolcanic rock interpreted to be equivalent to Lac 50 Trend resource host rocks. In 2011, a very-low frequency electromagnetic (VLF-EM) geophysical ground survey outlined a prominent two kilometre long conductor coincident with mineralized boulders found along a radioactive shoreline. One angular boulder assayed 2.24% U3O8, 0.94% Mo, and 116 g/t Ag. In 2014, EL soil sampling within the Dipole target area focused on the Dipole VLF-EM conductor and the historic and similar RIB target located four kilometres south of Dipole.

At Dipole, 237 EL geochemical sample results identified a 3.4 kilometre long uranium-in-soil trend with 107 anomalous values between 6.0 parts per billion (ppb) and 56.3 ppb. The geochemical trend also contains anomalous copper (Cu), molybdenum (Mo) and silver (Ag) values. Based on corroborative geophysical and geochemical results, Dipole is an excellent analogue to the Lac 50 deposit and is now Kivalliq’s most advanced, drill-ready target outside of the Lac 50 Trend.

In 1980, historic work by Pan Ocean Oil Ltd., three kilometres north of the Dipole target, identified several other uranium prospects resulting in a drill intercept of 1.2 metres grading 0.07% U3O8 and 0.15% Cu. Grab samples at that time returned 8.41% U3O8 and 5.38% Cu from boulders located one kilometre further north of the Pan Ocean drill hole.

RIB Target

The RIB target was identified by airborne geophysics conducted by Noranda Exploration Ltd. in 1976, which showed a strong basement conductor occurring along the western margin of the Angikuni Basin unconformity. During 1977-78, 14 of 25 diamond drill holes intersected uranium mineralization at shallow depths, with the two best intercepts being 0.19% U3O8 over 9.3 metres (including 0.52% U3O8 over 2.6 metres) and 1.61% U3O8 over 0.7 metres.

Exploration performed by Kivalliq in 2014 confirmed the RIB conductor using VTEM methods. In addition, 74 of 211 EL soil samples outlined a coincident 3.6 kilometre long geochemical trend with anomalous uranium values between 6.0 ppb and 61.9 ppb. Based on the 2014 results, previous drilling tested only a portion of the RIB target and the area warrants closer evaluation due to geological similarities with both Dipole and Lac 50.

VTEM Airborne Geophysical Survey

As part of the 2014 Angilak exploration program, a 1,335 line kilometre helicopter-borne VTEM survey was completed by Geotech Ltd. of Aurora, Ontario at 200 metre line spacing that focused on two grids in key target areas at the northeast and west side of the Angikuni Basin. Preliminary data has confirmed geophysical targets at Dipole and RIB. Final data is expected shortly and will be used to further refine shallow drill targets situated south of the Lac 50 Trend along the unconformity, or just within basin cover rocks (i.e. KU and Nine Iron).

Enzyme Leach Soil Sampling

The 2014 soil geochemical sampling program focussed on priority geophysical trends and geochemically anomalous areas identified by Kivalliq’s 2013 exploration programs. A total of 1,514 soil samples were collected from 10 grids along lines spaced approximately 100 to 200 metres apart using 25 to 50 metre stations. These soil samples were analysed at Activation Laboratories Ltd. (“Actlabs”) in Ancaster, Ontario using a 67 element ICP-MS Enzyme Leach method. 379 anomalous uranium results (25% of all samples taken) range from 6.0 ppb U to a high of 285 ppb U. Of these anomalous results, 379, 231,154 and 77 reported in the 75th, 85th, 90th and 95th percentiles respectively.  Anomalous ranges for EL uranium analyses were determined through statistical frequency analysis. Background was calculated by the population mean after cutting significant outliers to the 99th percentile. Anomalous U was also compared with Cu, Mo and Ag to identify Lac 50 Trend-type mineralization. 225 samples yielded anomalous Cu values >70 ppb, 188 anomalous samples were >3.0 ppb Mo, and 94 anomalous samples were >2.0 ppb Ag. Table 1 shows value ranges and anomalous thresholds for elements of interest obtained by the 2014 EL soil sampling program.

Table 1


2014 Enzyme Leach Soil Sampling Program
Uranium Copper Molybdenum Silver
Percentile U ppb Percentile Cu ppb Percentile Mo ppb Percentile Ag ppb
75 6 85 70 85 3 94 2
85 8.7 90 85 90 4 96 2.5
90 11.2 95 125 95 6 98 3.6
95 17.6 98 179 98 12 99 5.8
Min 0.1 Min 3 Min 1 Min 0.2
Max 285 Max 644 Max 443 Max 16.4
Avg 5.6* Avg 43.5 Avg 3 Avg 0.8

*U outliers cut to 99th percentile

For more information and to see a compilation map of the Dipole Target and summary maps of the 2014 exploration work, please visit http: http://kivalliqenergy.com/uranium/archive/.

QA/QC

The Actlabs facility is accredited to international quality standards through the International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) 17025 (ISO/IEC 17025 includes ISO 9001 and ISO 9002 specifications) with CAN-P-1578 (Forensics), CAN-P-1579 (Mineral Analysis) and CAN-P-1585 (Environmental) for specific registered tests by the SCC. For EL analysis, a 0.75 gram sample of -60 mesh B soil horizon is leached in an enzyme matrix containing a glucose oxidaze solution at 30o C for one hour, where it reacts with amorphous MnO2 dissolving it. Metals complex with the gluconic acid present and solutions are then analyzed on a Perkin Elmer ELAN 6000, 6100 or 9000 ICP/MS.  Laboratory quality control (QC) includes four controls for every 49 samples leached, one blank for every 49 samples, and a repeat analysis on every 10th sample. Kivalliq’s quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates in the field. All QA/QC results were within expectations.

Jeff Ward, P.Geo., President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX-V:KIV) is a Vancouver-based company exploring for uranium on the 495,883 acre Genesis Property located northeast of Saskatchewan’s Athabasca Basin. In addition, Kivalliq holds Canada’s highest-grade uranium resource outside of Saskatchewan. Its flagship project, the 275,469 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.

Kivalliq’s team of northern exploration specialists recently entered into a property option agreement with Roughrider Exploration Limited (TSX-V:REL) to explore the Genesis uranium property in Saskatchewan. Kivalliq has also forged strong relationships with sophisticated resource sector investors and Angilak Property partner Nunavut Tunngavik Inc. (“NTI”). Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO
Kivalliq Energy Corporation

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

Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies. For more information please visit www.auroraresource.com.

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

Certain disclosures in this release 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. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq’s news release of March 1, 2013. 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.