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Press release from Marketwire

Kivalliq Energy Corporation: Assays Confirm Tenth Uranium Discovery in the Lac 50 Trend; Three Metres of 0.85% U3O8 Drilled at New Hot Zone

Tuesday, November 06, 2012

Kivalliq Energy Corporation: Assays Confirm Tenth Uranium Discovery in the Lac 50 Trend; Three Metres of 0.85% U3O8 Drilled at New Hot Zone16:50 EST Tuesday, November 06, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 6, 2012) -Kivalliq Energy Corporation (TSX VENTURE:KIV) ("Kivalliq") today announced significant assay results from six of seven diamond drill holes at the newly-discovered "Hot Zone". The Hot Zone is located on a two kilometre long geophysical target within the Lac 50 Trend, drilled late in the season as part of the 2012 exploration program at the 252,830 acre Angilak Property in Nunavut, Canada.Hot Zone HighlightsHighlight assay results from the Hot Zone include: 0.6 metres of 0.37% U3O8, 0.70% Mo and 88.4 g/t Ag in HOT-12-003 3.0 metres of 0.85% U3O8, 0.53% Mo and 56.2 g/t Ag in HOT-12-004 0.6 metres of 0.53% U3O8, 0.21% Mo and 87.9 g/t Ag in HOT-12-005 1,292 metres of core drilling in seven holes intersected significant uranium over 150 metres of strike length The two kilometre long Hot electromagnetic ("EM") geophysical anomaly is located within the Lac 50 Trend, parallel to, and 1.8 kilometres northeast of the Lac Cinquante Deposit Hot Zone remains open along strike in both directions and at depth Hot Zone: Fifth Mineralized Zone Discovered in 2012 within Prospective Lac 50 Trend"Discoveries such as the Hot Zone continue to add momentum to our exploration efforts at the Angilak Property. This is the tenth discovery since 2010 and the fifth uranium zone discovered by drilling this season, within the Lac 50 Trend," stated Kivalliq's President, Jeff Ward. "We look forward to assay results from the remaining 86 holes prior to year end, including 67 holes from the J4 and Ray zones."On September 24, 2012, Kivalliq announced the completion of an aggressive exploration program, which included 38,856 metres of core and reverse circulation ("RC") drilling focused on adding inferred resources and testing new mineralized target areas within the Lac 50 Trend. The Lac 50 Trend is a three kilometre wide by 15 kilometre long southeast striking structural trend within Archean volcanic rocks adjacent to an unconformity with Proterozoic sediments of the Angikuni sub-basin. In addition to the Lac Cinquante Uranium Deposit, the Lac 50 Trend is host to ten significant uranium occurrences discovered by Kivalliq since 2010. The Hot Zone is the most recent of these, and one of five new uranium discoveries drilled this season. Our exploration work and the identification of new mineralized zones like the Hot Zone continue to validate the "District Scale" potential of the Angilak Property.Seven core holes totaling 1,292 metres were drilled along a 150 metre segment of the two kilometre long Hot EM conductor. Drilling, from three sites spaced 50 and 100 metres apart, was at an azimuth of 026° (NNE) and inclinations ranging from -45° to -88°. Anomalous mineralization was intersected in six of the seven holes, over down-hole core interval between 0.3 and 3.0 metres, and at depths between 30 and 170 vertical metres. Uranium mineralization is associated with quartz-carbonate alteration and veining containing 1-2% disseminated sulphides in sheared basalt and a quartz feldspar porphyry.Hot Zone Assay Results2012 Hot Zone Diamond Drill Hole Weighted Assay Results*DDHFrom (m)To (m)Interval (m)U308 (%)Cu (%)Mo (%)Ag (g/t)Description12-HOT-002119.9120.30.40.400.030.4049.3Qtz Carb Vein12-HOT-00342.843.10.30.180.010.123.3Qtz Carb Vein12-HOT-00364.164.70.60.370.270.7088.4Qtz Carb Vein12-HOT-00366.667.50.90.070.020.2019.4Qtz Carb Vein12-HOT-00371.973.11.20.110.130.1417.9Qtz Carb Vein12-HOT-00382.884.01.20.070.000.091.4Qtz Carb Vein12-HOT-00484.187.13.00.850.070.5356.2Qtz Carb Vein12-HOT-004112.0113.81.80.310.080.4471.8Qtz Carb Vein12-HOT-004119.2119.60.40.250.010.044.7Qtz Carb Vein12-HOT-004138.2138.50.30.310.030.1111.3Qtz Carb Vein12-HOT-004143.6144.30.70.380.010.145.0Qtz Carb Vein12-HOT-004191.0191.30.30.180.020.064.8Qtz Carb Vein12-HOT-005112.0112.40.40.270.050.0812.7Qtz Carb Vein12-HOT-005114.7115.30.60.480.050.1627.6Qtz Carb Vein12-HOT-005132.8133.40.60.530.180.2187.9Qtz Carb Vein12-HOT-00657.658.10.50.020.080.3537.4Qtz Carb Vein12-HOT-006113.5113.80.30.290.010.124.2Qtz Carb Vein12-HOT-00778.079.51.50.060.030.1111.5Qtz Carb Vein12-HOT-00785.086.01.00.090.010.053.8Qtz Carb Vein12-HOT-007141.4141.80.40.110.030.092.1Qtz Carb Vein*All samples are subjected to ICP1 Analysis by Saskatchewan Research Council Geoanalytical Laboratories"SRC" in Saskatoon, Canada. ICP1 results >1,000 ppm U are subjected to SRC U3O8 Assay; ICP1 results for Cu, Mo and Ag are reported by SRC in parts per million (ppm). 1 ppm = 1gm/t, 10,000 ppm = 1%; Intervals include ICP U analysis in ppm converted to U3O8%. Conversion to U3O8% = ppm x 0.01179. **Down-hole core interval. True widths cannot be estimated at this time.Hole 12-HOT-001 did not intersect significant mineralization.To view cross sections, assays and drill plan maps from the 2012 exploration program and the Hot Zone please visit: http://www.corebox.net/properties/angilak/ or www.kivalliqenergy.com/projects/angilak/program_images.The fourth quarter of 2012 will be dedicated to initial metallurgical and engineering studies, technical analysis and resource modeling with the goal of identifying new target areas and updating the NI 43-101 mineral resource by the end of Q1, 2013.QA/QCHalf-spilt NQ core samples from Angilak Property drill holes having anomalous radioactivity levels above 200 cps were sent to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") for analysis. All samples were analyzed for U3O8 and a multi-element suite. 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>1,000 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 quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. All QA/QC results were within expectations.Jeff Ward, P.Geo. and President of Kivalliq, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release.About Kivalliq Energy CorporationKivalliq Energy Corporation (TSX VENTURE:KIV) is a Vancouver-based uranium exploration company holding Canada's highest grade uranium deposit outside of Saskatchewan's Athabasca Basin. The Company's flagship project, the 252,830 acre Angilak Property in Nunavut Territory, is host to the Lac Cinquante Deposit with a NI 43-101 Inferred Resource of 1,779,000 tonnes grading 0.69% UΓéâOΓéê, totaling 27.13 million pounds UΓéâOΓéê. Kivalliq's comprehensive exploration programs continue to advance the Lac Cinquante Deposit and demonstrate the "District Scale" potential of the Angilak Property.Kivalliq's team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. ("NTI") in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.On behalf of the Board of DirectorsJames R. Paterson, CEOKivalliq Energy CorporationKivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies.For further information about Kivalliq Energy Corporation or this news release, please visit our websites at www.kivalliqenergy.com and www.auroraresource.com.Certain disclosures in this release, including the growth and value of the Angilak Property, 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 market price of Kivalliq's securities and the market for securities of resource exploration companies in general; commodity prices and, in particular, the price of uranium and the completion of Kivalliq's 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.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Kivalliq Energy CorporationJames R. PatersonCEO604.646.4527 or Toll Free: 1.888.331.2269info@kivalliqenergy.comwww.kivalliqenergy.com and www.auroraresource.com