Kivalliq Energy Corporation
TSX VENTURE : KIV

Kivalliq Energy Corporation

August 25, 2011 16:15 ET

Kivalliq Energy Corporation: High Grade Assays Received From Lac Cinquante Resource Area and Western Extension Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2011) - Kivalliq Energy Corporation (TSX VENTURE:KIV) (the "Company" or "Kivalliq") today provided mineral assay results from diamond drilling along the structure hosting the high grade Lac Cinquante Uranium Deposit, located within the 225,000 acre Angilak Property in Nunavut, Canada. Assay results disclosed herein are from diamond drilling at the Lac Cinquante Main Zone and the Lac Cinquante Western Extension Zone.

  • High grade assays from Lac Cinquante deposit, include
    • 1.19% U3O8, 3.39% Cu, 0.56% Mo, 46.5 g/t Ag over 1.3 metres in hole 11-LC-001
    • 5.69% U3O8 over 0.2 metres at 241.6 metres down hole in 11-LC-008
  • 10 of initial 17 holes at Western Extension Zone intersected grades >0.25%, including
    • 2.25% U3O8 over 2.3 metres in hole 11-LC-036
    • 0.73% U3O8 over 1.7 metres in hole 11-LC-033
  • Western Extension strike length is 550 metres; zone remains open to depth
  • Assays are pending from both Western Extension and Eastern Extension

"We continue to concentrate our efforts on resource expansion drilling along the Lac Cinquante structural trend," stated CEO Jim Paterson. "Continued high grade assays, from deep holes and new zones along strike, bolster our confidence in being able to expand the deposit."

2011 Angilak Property Exploration Program

The ongoing 2011 drill program at Angilak now totals 17,425 metres in 115 diamond drill holes and an additional 5,146 metres in 70 exploratory holes using a reverse circulation (RC) drill rig. Diamond drilling to date has largely focused on resource expansion east and west of the high grade Lac Cinquante deposit and exploratory drilling at the Blaze Zone. The Kivalliq team considers both the Western Extension and Eastern Extension zones to be part of the same northwest–southeast trending geological structure which hosts the high grade Lac Cinquante uranium resource.

Airborne and ground geophysical crews, as well as a prospecting crew, are currently working on the project to advance target areas defined by the 2010 program and generate new targets across the Angilak Property.

For cross sections and drill plan maps, please visit http://www.corebox.net/properties/angilak/.

Lac Cinquante Main Zone

20 holes drilled to date during 2011 at the Lac Cinquante Main Zone are disclosed in this news release, with follow up drilling at depth deemed a priority. All holes reported herein were inclined to the northeast with an azimuth of 26 degrees, at inclinations between minus 45 and 90 degrees, intersecting the Lac Cinquante Main Zone between 82.9 and 261.7 metres depth. For full disclosure regarding the Lac Cinquante Main Zone, please see Kivalliq's NI 43-101 Technical Report on the Lac Cinquante Deposit from March 24, 2011. Please see assay results in table below.

Western Extension

The first 17 of 45 holes drilled to date at the Western Extension Zone are disclosed in this news release. 6,705 metres in 45 diamond drill holes have now tested this zone, along 15 fences spaced at 50 metres and to depths of up to 250 metres. The known strike of the Western Extension is 550 metres, starting 450 metres to the west and along strike of the Lac Cinquante Main Zone.

All holes were drilled to the northeast with azimuths bearing 26 degrees, at inclinations between minus 45 and 90 degrees. This work has identified a mineralized shear zone between 0.3 and 2.7 metres estimated true width, and dipping roughly 65 degrees to the southwest. 37 of 45 holes have intersected anomalous radioactivity between 30 and 250 metres vertical depth. Further assays from Western Extension are pending.

Lac Cinquante Assay Results

2011 Lac Cinquante Drilling Program - Assay Results
Hole From To Interval
(m)
%
U3O8
%
Cu
%
Mo
Ag
g/t
True
Width
Note
11-LC-001 169.2 171.2 2.0 1.19 3.39 0.56 46.5 1.3 Main Zone
11-LC-002 197.0 198.8 1.8 0.09 0.04 0.12 6.0 1.1 Main Zone
219.3 219.8 0.5 0.27 0.02 0.03 2.2 N/A Qtz Carb Vein
11-LC-003 231.3 233.7 2.4 0.00 0.56 0.00 2.9 1.2 Main Zone
11-LC-005 141.6 142.1 0.5 0.10 2.82 0.14 21.6 0.4 Main Zone
11-LC-007 203.4 206.8 3.4 0.12 0.01 0.01 0.1 N/A Qtz Carb Vein
11-LC-008 241.6 242.0 0.4 5.69 0.02 0.23 3.1 0.2 Main Zone
11-LC-009 248.9 249.3 0.4 2.83 0.09 0.40 0.1 0.2 Main Zone
261.3 261.7 0.4 1.13 0.03 0.01 0.1 N/A Qtz Carb Vein
11-LC-010 138.4 141.0 2.6 0.88 0.10 0.60 30.5 2.5 Main Zone
11-LC-012 176.2 176.5 0.3 0.12 0.01 0.08 4.8 1.7 Main Zone
11-LC-013 133.5 134.0 0.5 0.13 0.02 0.02 0.1 N/A Qtz Carb Vein
11-LC-014 84.4 86.2 1.8 0.15 0.04 0.01 8.8 N/A Qtz Carb Vein
175.0 175.7 0.7 0.16 0.01 0.00 0.3 N/A Qtz Carb Vein
11-LC-019 82.9 86.2 3.3 0.11 0.03 0.01 0.8 N/A Qtz Carb Vein

At the Lac Cinquante Main Zone, nine (9) drill holes; 11-LC-006, 011, 015, 016, 017, 018, 027, 028, 050 intersected no significant mineralization. These holes helped delineate high-grade ore shoots at depth and the margins of the Lac Cinquante Main Zone. 11-LC-004 was lost in overburden due to ground conditions.

Western Extension Assay Results

2011 Lac Cinquante Western Extension Drilling Program - Assay Results 11-LC-020 to 11-LC-038
Hole From To Interval
(m)
%
U3O8
%
Cu
%
Mo
Ag
g/t
True
Width
Note
11-LC-020 54.4 57.8 3.4 0.10 0.21 0.00 9.3 N/A Qtz Carb Vein
71.4 78.2 6.8 0.04 0.92 0.03 9.4 6.4 Main Zone
11-LC-021 83.5 84.2 0.7 0.32 1.01 0.09 40.7 0.6 Main Zone
11-LC-023 34.5 37.5 3.0 0.11 0.13 0.00 2.1 0.5 Main Zone
11-LC-025 75.0 76.1 1.1 0.12 0.37 0.00 4.0 N/A Qtz Carb Vein
98.0 112.0 14.0 0.04 0.30 0.00 0.8 N/A Hem Alt Zone
107.9 110.4 2.5 0.12 0.14 0.00 0.5 N/A includes
114.5 122.5 8.0 0.01 0.36 0.00 1.0 N/A Hem Alt Zone
11-LC-026 30.8 32.5 1.7 0.13 0.05 0.02 3.4 N/A Tuff
44.6 45.0 0.4 0.30 0.04 0.00 6.0 N/A Qtz Carb Vein
55.3 57.3 2.0 0.05 0.19 0.00 5.0 N/A Qtz Carb Vein
62.4 64.5 2.1 0.03 0.77 0.00 7.9 N/A Tuff
11-LC-029 84.4 84.9 0.5 0.25 0.04 0.01 5.0 0.5 Main Zone
87.2 89.0 1.8 0.08 0.10 0.01 1.9 1.6 Main Zone
124.0 124.5 0.5 0.35 0.01 0.01 3.8 N/A Qtz Carb Vein
11-LC-030 97.1 100.0 2.9 0.47 0.41 0.00 4.0 2.4 Main Zone
145.2 145.6 0.4 0.48 0.04 0.01 1.8 N/A Qtz Carb Vein
11-LC-031 103.0 104.4 1.4 0.27 0.30 0.03 18.5 N/A Qtz Carb Vein
127.9 132.5 4.6 0.17 0.08 0.00 2.0 3.0 Main Zone
174.0 174.8 0.8 0.50 0.01 0.00 0.9 N/A Qtz Carb Vein
11-LC-032 100.6 101.4 0.8 0.51 0.05 0.08 14.3 N/A Qtz Carb Vein
156.7 158.7 2.0 0.45 0.04 0.00 4.3 N/A Qtz Carb Vein
167.6 168.4 0.8 0.51 0.04 0.00 4.7 0.4 Main Zone
11-LC-033 71.9 73.6 1.7 0.73 1.01 0.00 26.3 1.5 Main Zone
11-LC-034 93.0 96.0 3.0 0.12 0.07 0.00 7.5 2.1 Main Zone
11-LC-035 122.8 124.1 1.3 0.64 0.16 0.00 86.8 0.8 Main Zone
11-LC-036 137.7 138.3 0.6 0.64 0.19 0.02 2.5 N/A Qtz Carb Vein
166.6 169.9 3.3 0.04 0.26 0.00 3.5 N/A Qtz Carb Vein
174.5 176.6 2.1 0.24 0.44 0.01 4.3 0.9 Main Zone
184.5 186.8 2.3 2.25 0.06 0.18 9.1 N/A Qtz Carb Vein
188.4 189.6 1.2 0.10 0.01 0.04 2.2 N/A Qtz Carb Vein
195.5 196.7 1.2 0.12 0.01 0.02 0.8 N/A Qtz Carb Vein
11-LC-037 43.9 48.7 4.8 0.43 0.08 0.00 5.9 4.6 Main Zone
11-LC-038 74.7 79.6 4.9 0.12 0.20 0.08 6.7 2.9 Main Zone

At the Western Extension Zone, two (2) holes; 11-LC-022 and 024 intersected no mineralization but helped delineate high-grade ore shoots within the zone.

*All samples subject to ICP 1 Analysis by SRC in Saskatoon, SK. ICP1 results >1000 ppm U are subject to SRC U3O8 Assay; ICP1 results for Ag, Mo and Cu, are reported by SRC in parts per million (ppm). 1 ppm = 1gm/t, 10000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179%.

QA/QC

Samples from the 2011 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. The method analyzes for multi-elements including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. 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. Mr. Ward 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.

With an NI 43-101 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8, totaling 14.15 million lbs U3O8 (17.5 lbs U3O8/tonne) at a 0.2% U3O8 cut-off grade, the Lac Cinquante Deposit is Canada's highest grade uranium deposit, outside of the Athabasca Basin. Kivalliq's flagship project, the 225,000 acre Angilak Property in Nunavut, hosts the high-grade Lac Cinquante deposit, along with nine additional high priority target areas. Since acquiring the Angilak Property in 2008, the Company has invested approximately $20 million conducting systematic exploration, including ground and airborne geophysics, geological mapping, prospecting and 35,000 meters of drilling.

On behalf of the Board of Directors

James Paterson, CEO

Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com.

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

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to 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. Other than as required by applicable securities legislation, 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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