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Kivalliq Provides Incentive to Accelerate Warrants

June 3, 2010

Kivalliq Energy Corporation (TSX-V: KIV) ("Kivalliq" or the "Company") today announced that it is applying to the TSX Venture Exchange for approval of an incentive program to encourage the early exercise of outstanding warrants (the "Original Warrant(s)").

The Original Warrants were issued as part of a financing that closed on February 24, 2010, which gave holders the right to acquire one common share at a price of $0.35 until the expiry date of February 24, 2012.

In order to encourage the early exercise of such warrants, Kivalliq will be seeking an amendment to the terms of the Original Warrants to enable the holders to receive a Unit (as defined and described below) for each Original Warrant exercised.

The proceeds of the financing would be used to further the Company's exploration projects, fund possible new acquisitions and for general working capital. The incentive program is subject to Exchange approval and Kivalliq will give notice to the Original Warrant holders as soon as the approval is received.

Early Warrant Exercise

After approval of the incentive program and the resulting amendment to the Original Warrants, each holder of an Original Warrant who elects to exercise their Original Warrant prior to the expiry date of the incentive program (the "Expiry Date") will receive a unit ("Unit") comprised of one common share and one-half of one whole warrant (a "New Warrant"). Each whole New Warrant will allow the holder to acquire an additional one common share of KIV at a price of $0.45 per share for 18 months following the date of issuance of the Unit. The Warrants will be subject to a four-month hold period. If a warrant holder does not exercise their Original Warrants by the Expiry Date, the Original Warrants will continue to be exercisable for common shares on the same terms that previously existed. None of the Original Warrants were issued as finders fees or agents warrants and thus no New Warrants will be issued as finders fees or agents warrants as part of this amendment.

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.

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