Kivalliq Energy Corporation: Assays Confirm Tenth Uranium Discovery in the Lac 50 Trend; Three Metres of 0.85% U3O8 Drilled a...

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 Highlights

--  Highlight 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 degrees (NNE) and inclinations
ranging from -45 degrees to -88 degrees. 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 Results

----------------------------------------------------------------------------
          2012 Hot Zone Diamond Drill Hole Weighted Assay Results(i)        
----------------------------------------------------------------------------
              From     To  Interval  U308    Cu    Mo     Ag                
DDH             (m)    (m)       (m)   (%)   (%)   (%)  (g/t)  Description  
----------------------------------------------------------------------------
12-HOT-002   119.9  120.3       0.4  0.40  0.03  0.40   49.3   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-003    42.8   43.1       0.3  0.18  0.01  0.12    3.3   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-003    64.1   64.7       0.6  0.37  0.27  0.70   88.4   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-003    66.6   67.5       0.9  0.07  0.02  0.20   19.4   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-003    71.9   73.1       1.2  0.11  0.13  0.14   17.9   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-003    82.8   84.0       1.2  0.07  0.00  0.09    1.4   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-004    84.1   87.1       3.0  0.85  0.07  0.53   56.2   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-004   112.0  113.8       1.8  0.31  0.08  0.44   71.8   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-004   119.2  119.6       0.4  0.25  0.01  0.04    4.7   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-004   138.2  138.5       0.3  0.31  0.03  0.11   11.3   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-004   143.6  144.3       0.7  0.38  0.01  0.14    5.0   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-004   191.0  191.3       0.3  0.18  0.02  0.06    4.8   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-005   112.0  112.4       0.4  0.27  0.05  0.08   12.7   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-005   114.7  115.3       0.6  0.48  0.05  0.16   27.6   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-005   132.8  133.4       0.6  0.53  0.18  0.21   87.9   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-006    57.6   58.1       0.5  0.02  0.08  0.35   37.4   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-006   113.5  113.8       0.3  0.29  0.01  0.12    4.2   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-007    78.0   79.5       1.5  0.06  0.03  0.11   11.5   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-007    85.0   86.0       1.0  0.09  0.01  0.05    3.8   Qtz Carb Vein
----------------------------------------------------------------------------
12-HOT-007   141.4  141.8       0.4  0.11  0.03  0.09    2.1   Qtz Carb Vein
----------------------------------------------------------------------------

(i)  All samples are subjected to ICP1 Analysis by Saskatchewan Research
     Council Geoanalytical Laboratories"SRC" in Saskatoon, Canada. ICP1
     results greater than 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.
(ii) 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/QC

Half-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 Ugreater than 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 Corporation

Kivalliq 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% U3O8, totaling
27.13 million pounds U3O8. 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 Directors

James R. Paterson, CEO

Kivalliq Energy Corporation

Kivalliq 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: 
Kivalliq Energy Corporation
James R. Paterson
CEO
604.646.4527 or Toll Free: 1.888.331.2269
[e-mail]
www.kivalliqenergy.com and www.auroraresource.com