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Kivalliq Closes Financing with Lumina Capital

February 24, 2010

Vancouver, BC - Kivalliq Energy Corporation (TSX-V: KIV) ("Kivalliq" or the "Company") today announced the closing of a non-brokered, private placement offering (“Offering”) of 10,000,000 units at a price of $0.20 per unit, for total gross proceeds of CDN$2,000,000. Lumina Capital Limited Partnership ("Lumina Capital"), an investment partnership held principally by Vancouver mining entrepreneur Ross Beaty, purchased $500,000 of the total Offering. The proceeds from this financing will be used to explore and develop Kivalliq’s high-grade Lac Cinquante uranium deposit, located within the Angilak Project in Nunavut, Canada, and for general working capital purposes.

"This financing allows for a planned commencement date of early April for the first phase of the 2010 drill program at Lac Cinquante,” said Kivalliq’s President & CEO, John Robins. “Lumina Capital’s financial support and involvement has increased the Company’s profile and greatly accelerated the project exploration timeline.”

As announced by Kivalliq on January 28, 2010, the Offering consists of 10 million units (“Units”), at a price of $0.20 cents per Unit. Each Unit consists of one common share and one common share purchase warrant. Each share purchase warrant will entitle the holder to purchase one common share at a price of $0.35 for a period of two years. Upon the closing of the financing and if it were to exercise its warrants, Lumina Capital will own approximately 9.9% of the shares of the Company on a fully diluted basis. Directors and Officers of Kivalliq purchased 135,000 units of the financing. Finder's fees totaling $57,000 have been paid in connection with the financing. The Units will be subject to a four month resale restriction expiring June 23, 2010.

Angilak Project, Nunavut, Canada

Covering 225,000 acres, the Angilak Project is Kivalliq’s core asset. A consolidation of multiple land positions in the 1970s and 1980s, and unexplored for over 25 years, the Angilak Project offers Kivalliq a unique opportunity to apply modern day exploration techniques and technology in a highly prospective terrain.

The Angilak Project is host to the historic, high-grade Lac Cinquante uranium deposit which is reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant)**.  Open at depth and along trend, the Lac Cinquante uranium deposit is near-surface and has been drilled to a depth of 265 metres.  The Angilak Project also boasts other high-grade uranium surface showings near the deposit and many geophysical signatures analogous to Lac Cinquante, suggesting high potential for the discovery of look-alike deposits on the property.

The technical information contained in this release has been prepared by Jeff Ward, Vice-President, Exploration, Kivalliq Energy Corporation and a Qualified Person as defined by National Instrument 43-101.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation is a Vancouver, Canada, based 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.

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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