Kivalliq Energy Corporation
TSX VENTURE : KIV

Kivalliq Energy Corporation

October 05, 2009 08:30 ET

Kivalliq Reports Highly Radioactive Intervals in Final Holes Drilled at Lac Cinquante

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Corporation" or "Kivalliq") today announced that highly radioactive intervals were intersected in five of the last seven drill holes targeting the historic Lac Cinquante Uranium Deposit on the Angilak Project located in Nunavut, Canada. As reported on September 23, Kivalliq completed 1,745 metres of drilling in 16 holes over the course of the 2009 program.

"The 2009 drilling, the first program in over 25 years, has successfully confirmed the widths and extent of uranium mineralization at Lac Cinquante," stated John Robins, President & CEO. "We are eager to receive the final data and assays from this program, which will help guide the second phase of drilling meant to expand this high grade uranium deposit in 2010."

Key Point Summary

- Five of the last seven drill holes intersected highly radioactive intervals with anomalous readings between 9,100 and 35,000 cps in core, bringing the total number of holes intersecting significant radiation to 12.

- Radioactive intervals were intersected in zones 0.4 to 4.3 metres in width, consistent with mineralized intervals reported for the historic Lac Cinquante deposit.

- During the 2009 program, 14 holes drilled from seven sites confirmed radioactive mineralization along 900 metres of strike length to a depth of 125 metres at Lac Cinquante.

- Click here for maps and sections to the 2009 drill program http://kivalliqenergy.com/projects/index.php?&content_id=32

This first phase of drilling was designed to test electromagnetic conductors and confirm dimensions reported for the historic Lac Cinquante uranium deposit. Lac Cinquante was previously described as a vein-type uranium deposit occurring within a one metre wide near vertical alteration zone, over a strike length of one kilometre and to a depth of 250 metres. The historic uranium resource was reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant).(i)

During the 2009 program, radioactive intervals in drill core were measured in counts per second (cps) using a hand-held Radiation Solutions Inc. RS-121 Gamma-Ray Scintillometer and RS-230 Gamma-Ray Spectrometer. Anomalous readings in radioactive zones ranged from 300 to 47,000 cps in all holes drilled, compared with a background of 200 to 250 cps in adjacent rocks. The Corporation cautions that scintillometer readings and down-hole core intervals reported herein cannot be used to determine the uranium grade or true thickness of intervals reported. They are only presented here to indicate zones of radioactive mineralization encountered while drilling, and are used to guide the current drill program until actual chemical assays are received.

Mineralized zones in all holes were up to 4.3 metres wide and associated with a hematite-carbonate-chlorite-graphite altered tuff unit containing pitchblende veins and sulphides. Select scintillometer readings above background are presented in the tables below and are best reviewed with the accompanying drill plan map and drill sections.

All holes were drilled bearing north 26 degrees east. Drill holes 09-LC-008 and 09-LC-009 were drilled from the fourth set-up of the program, at inclinations of minus 55 and 64 degrees respectively. Hole 09-LC-008 intersected a one metre wide, moderately radioactive zone at 126.6 metres, with a peak of 2,000 cps. Drill hole 09-LC-009 intersected the same alteration zone at 120 metres, but with no elevated counts.



DDH 09-LC-008

From (m) To (m) Interval (m) CPS (range)

126.6 127.6 1.0 300 - 2,000


Drill holes 09-LC-010 and 09-LC-011 were drilled from a fifth set-up at inclinations of minus 70 and 45 degrees respectively. Elevated radioactivity in 09-LC-010 was measured in two intervals occurring within a 4.3 metre alteration zone starting at 59.2 metres. Readings ranged from background to a high of 14,000 cps. The hole ended in gabbro at 71.0 metres. Hole 09-LC-011 was abandoned due to poor drilling conditions.



DDH 09-LC-010

From (m) To (m) Interval (m) CPS (range)

59.2 59.6 0.4 380 - 2,000

59.6 60.7 0.6 1,000 - 14,000

60.7 62.4 1.7 220 - 340

62.4 62.9 0.5 1,000 - 11,000

62.9 63.5 0.6 250 - 2,000


Holes 09-LC-012 and 09-LC-013 were drilled from the sixth and western most set-up at inclinations of minus 60 and 45 degrees respectively. Elevated radioactivity in 09-LC-012 was measured over 1.8 metres from 92.3 to 94.1 metres, with readings ranging from 650 to 35,000 cps. Drill hole 09-LC-013 intersected a 0.4 metre radioactive zone at 75.9 metres with a peak of 16,000 cps. The holes ended in basalt and gabbro at 110 metres and 92 metres respectively.



DDH 09-LC-012

From (m) To (m) Interval (m) CPS (range)

92.3 92.6 0.3 650 - 35,000

92.6 93.3 0.7 900 - 10,000

93.3 94.1 0.8 5,000 - 18,000


DDH 09-LC-013

From (m) To (m) Interval (m) CPS (range)

75.9 76.3 0.4 16,000


Holes 09-LC-014 and 09-LC-015 were drilled from the seventh and eastern most set-up at inclinations of minus 60 and 45 degrees respectively. Drill hole 09-LC-014 intersected a 4.3 metre wide zone between 57.1 and 61.4 metres containing elevated readings from background to 9,100 cps. Sporadic radioactivity up to 5,200 cps was also noted in small fractures associated with felsic dykes encountered throughout much of the hole. Elevated radioactivity in 09-LC-015 was measured over a 1.0 metre wide zone at 49.8 metres, with readings up to 18,000 cps. Both holes ended in basalt at 80 metres and 62 metres respectively.



DDH 09-LC-014

From (m) To (m) Interval (m) CPS (range)

57.1 57.5 0.4 340 - 600

57.5 57.9 0.4 3,300 - 9,100

57.9 58.3 0.4 300 - 4,700

58.3 60.2 1.9 250 - 700

60.2 60.9 0.7 1,500 - 9,000

60.9 61.4 0.5 340 - 1,500


DDH 09-LC-015

From (m) To (m) Interval (m) CPS (range)

49.8 50.2 0.4 350 - 4,800

50.2 50.5 0.3 8.900 - 18,000

50.5 50.8 0.3 1,500 - 3,100


Exploration drill hole 09-775-001 tested a geophysical target located 4.5 kilometres east of Lac Cinquante. The hole was drilled bearing north 30 degrees east, at minus 45 degrees, and at 115.4 metres, intersected a 3.9 metre wide chloritic shear zone at a basalt - gabbro contact. No anomalous radiation was measured in the hole, which ended at 194 metres.

In addition to new holes drilled in 2009, core from 23 historic holes was re-logged to provide control during drilling. Core from some of these holes was also submitted for assay.

Split drill core samples from mineralized intervals have been submitted to the 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.

QA/QC

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 new 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, P.Geo, President and CEO

Kivalliq Energy Corporation

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

(i) The quoted disclosure for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd, Abermin Corporation and referenced by subsequent sources. It is a historical estimate as defined in National Instrument 43-101, but should not be relied upon since it does not comply with standards of disclosure required for reserves and resources stated therein. However, it 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. A Qualified Person has not classified historical estimates as current mineral resources/reserves, and Kivalliq is not treating them as current mineral resources/reserves since work to date has not verified the historical estimates. Kivalliq has not done any work to confirm these estimates but will be planning exploration programs aimed at evaluating the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being delineated as a mineral resource.

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.

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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