Kivalliq Announces High Grade Uranium Discovery 1.8 km from Lac Cinquante

VANCOUVER, BRITISH COLUMBIA - Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Company" or "Kivalliq") today announced high grade  assays results from drill hole 10-NE-001. This new zone is located 1.8 kilometres west of the Lac Cinquante Main Zone, and within the 225,000 acre Angilak Property in Nunavut, Canada.

The assay results from drill hole 10-NE-001 at the new zone yielded two distinct intervals of significant U3O8 mineralization:

• 0.83% U3O8 over 1.4 metres, in altered sulphidic tuff, starting at 33.9 metres
• 0.66% U3O8 over 2.4 metres, in brecciated basalt, starting at 72.3 metres

(Intervals reported are down-hole)

"The drill hole announced today reinforces our belief in the potential for discovering additional uranium deposits elsewhere on the Angilak Property," stated Jeff Ward, P. Geo., Kivalliq's President. "As part of the 2011 exploration program, we plan to drill this new zone along strike, with a goal of significantly expanding the known zone of mineralization.”

Exploratory Drilling Increases Project Potential

An important component of the 2010 exploration program was to identify possible deposit analogues through exploratory drilling and prospecting. As announced on October 26th, 10-NE-001 was one of the last holes of the season, testing a separate geophysical conductor 1.8 kilometres west of Lac Cinquante. This target was drill tested with one hole based on Kivalliq's increased understanding of the mineralization at the Lac Cinquante Main Zone and results from the 2010 summer prospecting program. Hole 10-NE-001 was inclined at -45 degrees and drilled to the northeast with an azimuth of 35 degrees. The hole intersected two radioactive zones at 25 and 50 metres vertical depth. The shallowest zone includes altered, sulphidic tuff hosting Lac Cinquante-style uranium mineralization; the deeper zone is an interval of altered basalt and breccia, with pitchblende-quartz-carbonate veining.

Since 2009, a total of four exploratory holes have been drilled outside of the Lac Cinquante Main Zone. Two of these (10-NE-001 and 10-LC-013) intersected potentially ore grade intercepts within the favourable Lac Cinquante stratigraphy. Drill hole 10-LC-013intersected 0.21% U308 over 1.96 metres approximately 500 metres west of the Lac Cinquante Main Zone (released June 24, 2010). These results confirm the potential for extensions to the main zone, or separate analogous mineralized zones.

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

News is still pending for assay results from the final 26 holes drilled at the Lac Cinquante Main Zone and 290 samples collected during the Company’s 2010 prospecting program at the Angilak Property.

QA/QC

Samples from the 2010 Phase 2 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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. ICP results U>1000 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 QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Kivalliq’s President, Jeff Ward, P.Geo., 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 $11.9 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

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 (m.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 (m.discoveryexp.com).

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