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Winter Exploration Program Refines Jurgen Targets at Genesis Property

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June 24, 2015

Vancouver, BC – Kivalliq Energy Corporation (TSX V: KIV) (Kivalliq) and Roughrider Exploration Limited (TSX V: REL) today announced the results from the ground magnetometer and very low frequency (VLF) electromagnetic (EM) geophysical and biogeochemical sampling surveys completed March 30, 2015 at the Jurgen 1 and Jurgen 2 targets. The Jurgen 1 and Jurgen 2 uranium target areas are located in the western portion of the Genesis property on Wellbelove Bay of Wollaston Lake, eastern Athabasca, approximately 60 kilometres along the Wollaston-Mudjatik lithostructural corridor from Cameco Corporation’s Eagle Point uranium mine.

The Jurgen 1 and Jurgen 2 ground geophysical and biogeochemical grids for the Genesis 2015 winter exploration program were designed to follow-up and tighten spacing on anomalous 2014 soil geochemical results coincident with northeast trending airborne EM geophysical conductors. In the Athabasca region, EM conductors often represent graphitic horizons in pelitic rocks that are a common host for uranium mineralization. Breaks in the general EM and magnetic trends in conjunction with elevated geochemistry may indicate structural disturbances that can be important to uranium mineralization emplacement.

“Results from the 2015 winter program at Genesis continue to upgrade priority target areas such as Jurgen 1 and 2,” stated Kivalliq’s President, Jeff Ward. “These results will be integrated with previous work to help prioritize and rank targets for future drilling.”

Ground magnetic and VLF-EM surveys were performed on two grids over the Jurgen 1 and Jurgen 2 areas during March. Approximately 70 line kilometres of ground geophysics covered on geochemically anomalous areas coincident with priority airborne EM conductors. Grid lines were spaced 50 and 100 metres apart, with readings taken at 12.5 and 20 metre intervals.  A total of 594 biogeochemical samples (black spruce twigs) were collected on the same survey grids at 25 to 50 metre intervals.

Approximately three kilometres separate the Jurgen 1 and Jurgen 2 grids, which are located roughly 80 kilometres northeast of Points North (see figures provided at http://kivalliqenergy.com/uranium/genesis/ additional details of these two priority areas are provided below and in a news release dated March 31, 2015).       

Jurgen 1 remains a compelling target demonstrating good spatial correlation between:

  1. The highest uranium results from the 2015 biogeochemical program;
  2. The highest uranium results from the 2014 enzyme leach soil sampling program (see news release December 1, 2014); and
  3. The main Jurgen 1 EM conductive trend.

At Jurgen 1, eight of 249 samples returned values above the 98th percentile for uranium and twenty-one samples returned values above the 95th percentile. The three highest uranium values from the 2015 program were from samples coincident with the main Jurgen 1 conductor; 1.35ppm U, 1.64ppm U and 1.75ppm U. At Jurgen 2, eight of 296 biogeochemical samples returned values above the 95th percentile for uranium. The highest uranium value on the Jurgen 2 grid was 1.26ppm U.

Biogeochemistry results at the Jurgen 1 and Jurgen 2 grid areas also show anomalous associated metals (Pb, Ni, Cu, Mo, Ag) although their distributions are not conclusive. Anomalous Ni and Pb values accompany anomalous U values in places and in the case of Ni at Jurgen 1, appear to flank the south contact of the main Jurgen 1 EM conductor. At Jurgen 2, the VLF-EM survey suggests a possible structural feature that disrupts the EM conductors mapped. Biogeochemical results for uranium at Jurgen 2 show a more subtle correlation to both the 2014 enzyme leach soil sample results and the airborne EM conductors targeted, but seem to extend to the Jurgen 1 conductor that passes through the south portion of the grid.

At the Sava Lake prospect, approximately 25 kilometres east of Jurgen 2, anomalies in uranium and pathfinder elements identified in reconnaissance level biogeochemical sampling completed to date lack the cohesion to warrant immediate follow-up.

A summary of the 2015 biogeochemical sampling program is shown in the table below.

SUMMARY OF 2015 BIOGEOCHEMICAL RESULTS Jurgen 1 Jurgen 2 Sava
Total Samples 249 296 49
Minimum U Value (ppm U) 0.155 0.128 0.212
Maximum U Value (ppm U) 1.75 1.26 0.654
Samples > 0.59 ppm U (background threshold) 92 52 4
Samples > 0.93 ppm U (95th percentile) 21 8 0
Samples > 1.07 ppm U (98th percentile) 8 3 0
 

A summary of the 2015 ground geophysical surveying program is shown below

SUMMARY OF GEOPHYSICAL SURVEY Jurgen 1 Jurgen 2
Total Line-Kilometres 32 37.2
Grid Orientation (degrees azimuth) 145 150
Line Spacing (m) 50 - 100 50 - 100
Station Intervals (m) 12.5 20
 

QA/QC

Geophysical data review was provided by in3D Geophysics Ltd. and SJ Geophysics Ltd. The VLF-EM survey instrumentation was on board the GEM GSM-19 magnetometer units and collected data from transmission stations at Jim Creek (Seattle), Washington transmitting at 24.8 kHz and Cutler, Maine transmitting at 24.0 kHz.

Genesis Property biogeochemical samples were sent to Activation Laboratories Ltd. (Actlabs), which 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. After a review of biogeochemical analysis methods, Roughrider and Kivalliq elected to use the “ashed vegetation” 59 element ICP/MS bio-geochemical analysis method reported herein rather than the “un-ashed vegetation” 63 element ICP/MS bio-geochemical analysis method used in 2014. Consequently, results from 2015 are reported in parts per million (ppm), with a detection limit of 0.001 ppm U, rather than parts per billion (ppb) as reported in 2014. Biogeochemical samples were dried and the needles were removed from the black spruce twigs before the twigs were ashed for ICP-MS analysis.  A QA/QC review of all geochemical results was undertaken; standards, field blanks and duplicates from the field, and those inserted by the Actlabs as controls, were reviewed graphically for a number of elements. All QA/QC results were within expectations. Percentiles are calculated on the entire 594 sample population from all three sample grid areas.

Jeff Ward, P.Geo., President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the technical information contained in this release.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based company with a portfolio of high-quality uranium exploration projects in Canada. Kivalliq holds Canada’s highest-grade uranium resource outside of Saskatchewan. The Company’s flagship project, the 105,280 hectare 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. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposits, please refer to Kivalliq’s news release of March 1, 2013.

In Saskatchewan, Kivalliq holds a 100% interest in the recently acquired 13,711 hectare Hatchet Lake Property adjacent to the north-eastern margin of the highly prolific uranium-producing Athabasca Basin. Compilation of results from previous exploration by Hathor Exploration Limited and Rio Tinto have identified multiple, priority unconformity-related basement targets at Hatchet Lake for follow-up in 2015.

Kivalliq also holds a 100% interest in the 200,677 hectare Genesis Property located northeast of Saskatchewan’s Athabasca Basin, with Roughrider Exploration Limited funding the current exploration program pursuant to an option to acquire up to an 85% interest in the property. This highly prospective project is located along the Wollaston-Mudjatik trend and extends 90 kilometres northeast from the Athabasca Basin to the Manitoba border.

Kivalliq’s team of northern exploration specialists has 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.