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Kivalliq Drills "Lac Cinquante – Style" Zone 1.8 Kilometres from Main Zone; 2010 Program Totals 16,600 Metres in 107 Holes


October 26, 2010

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Company” or “Kivalliq”) today announced the successful completion of the 2010 drill program, totalling 16,600 metres in 107 holes, along the Lac Cinquante Trend, located within the 225,000 acre Angilak Property in Nunavut, Canada.   Additionally, a new zone has been drilled, which yielded three distinct intervals of significant CPS counts, 1.8 kilometres west of the Lac Cinquante Main Zone but in the same geological setting.

“The drill hole announced today adds great value to the project and underscores the very real potential for discovering additional uranium ore bodies elsewhere on the prolific Angilak Property,” stated Jeff Ward     , P. Geo., Kivalliq’s President. “Drilling at the Lac Cinquante Main Zone was fundamental to delivering the project’s first NI 43-101 mineral resource by Q1 2011, while the exploratory holes have given this project real growth potential.” 

Key Point Summary: 2010 Drill Program

  • Significant CPS levels, up to 13,000, in exploratory hole (10-NE-001) 1.8 kilometres from Main Zone confirm discovery potential within the Lac Cinquante trend and elsewhere on the  property
  • 16,600 metres drilled in 107 holes during Phase 1 & 2 of 2010 program
  • New assays pending from  57 additional holes; results received for only 45 holes to date
  • Extension of uranium mineralization 100 metres east and 500 metre step out west (10-LC-013, see KIV release May 27, 2010) demonstrate potential to expand the Lac Cinquante Main Zone along strike

Exploratory and Step-Out Drilling Increase Project Potential

An important component of drilling in 2010 was to identify deposit analogues through exploratory drilling and demonstrate the potential to expand Lac Cinquante. One of the last holes of the season tested a geophysical conductor 1.8 kilometres west of Lac Cinquante. This target was drilled based on Kivalliq’s increased understanding of the mineralization at the Lac Cinquante Main Zone and results from the 2010 summer prospecting program; augmented by a review of historic data. Hole 10-NE-001 intersected multiple radioactive zones down to 60 metres depth that include breccia, altered basalt, quartz carbonate veining and a 1.1 metre wide sulphidic tuff hosting Lac Cinquante-style uranium mineralization. CPS counts varied throughout the downhole interval, with a maximum value of 13,000 CPS in the sulphidic tuff zone.  Also, eight holes drilled to the east and outside of the modelled historic resource have extended the known mineralization 100 metres eastward and down to a depth of 125 metres.

Main Zone Drilling Forms Base for NI 43-101 Resource

The prime objective of drilling at the Lac Cinquante Main Zone was to generate data necessary for completing a mineral resource calculation. Drilling tested the Main Zone down to a depth of 275 metres, and along 1,350 metres of east –west strike length for this historic deposit.  Lac Cinquante remains open in both directions and at depth based on the current drilling. To date, Kivalliq has released assay results from 45 holes. Assay results from 57 additional holes will be released, pending receipt and review, prior to the end of the year.

Phases 1 & 2 of the 2010 program consisted of new camp construction, property-wide prospecting, environmental baseline studies, and resource definition and exploratory drilling. The fourth quarter of 2010 will be dedicated to technical and resource modeling analysis with the goal of establishing a NI 43-101 mineral resource by early 2011.

To view a drill plan map noting updated drill hole locations of the 2010 drill program, please visit www.kivalliqenergy.com .

QA/QC

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. 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 Jeff Ward     , P.Geo (President, Kivalliq) who 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.

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 $11.7 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

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

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 or contact Investor Relations toll free at 1.888.331.2269  at 604.646.4527 or by email at [email protected]. 

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.

** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources.  It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate is relevant because: it is indicative of a mineralized zone worthy of follow-up exploration as it is based on drilling and surface exploration  carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.