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Kivalliq Initiates Metallurgical Testing at Lac Cinquante

January 18, 2010

Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Corporation” or “Kivalliq”) today announced that SGS Mineral Services (“SGS”) has been engaged to carry out initial metallurgical studies on samples prepared from drill core generated during the 2009 Program on the historic Lac Cinquante Uranium Deposit located in Nunavut, Canada.

“This metallurgical test work is an important step forward and will further demonstrate the potential at Lac Cinquante”stated John Robins, President & CEO. “It will provide essential information on ore characteristics that will help us advance and develop this uranium deposit.”

As reported in October 2009, Kivalliq confirmed the widths, continuity and high-grades previously reported for Lac Cinquante. Thirteen holes drilled during the 2009 Program intersected significant near surface uranium mineralisation, over roughly one kilometre of strike. Assay highlights for the Lac Cinquante main zone include 2.06% U3O8 over 2.88 metres width (see October 29, 2009 release). Historic documents note that in 1985, the Minerals Division of Abermin Corporation conducted a feasibility study to investigate mining and processing ore from Lac Cinquante. At the time, Abermin concluded that ore from this deposit could be processed at existing uranium facilities in Canada. Kivalliq intends to corroborate these findings with a new metallurgical test program carried out by SGS.

SGS Mineral Services is a recognized leader in the minerals sector and has provided metallurgical expertise on Canadian uranium projects for over 50 years. Initial testing by SGS will determine uranium recoveries at Lac Cinquante through head analysis, leach optimization, solvent extraction and neutralisation, followed by tailings and effluent characterisation.

In addition, results reported for Lac Cinquante last October included other metal assays as high as 65 grams/tonne Ag, 1.72% Mo and 2.73% Cu. Kivalliq will investigate the value of recovering these metals as part of any future ore processing circuit.    

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo (Vice President Exploration of Kivalliq) and Rob Carpenter, Ph.D., P.Geo (Chairman of Kivalliq) who are Qualified Persons 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.

This landmark partnership with the Inuit gives Kivalliq a unique opportunity to explore and develop the Lac Cinquante Deposit, northern Canada’s highest grade uranium deposit.  Reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant)**, the historic Lac Cinquante uranium deposit and over 160 other uranium occurrences on the property comprise Kivalliq’s core asset, the 270,000 acre Angilak Project.

On behalf of the Board of Directors

“John Robins”

John Robins, P.Geo
President and 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 Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 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. 

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, 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. 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.

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