Kivalliq Energy: Final Drill Results Received from the Lac 50 Trend, Including High-Grade Uranium Assays from J4 Zone; 2.42% ...

Kivalliq Energy Corporation (TSX VENTURE:KIV) ("Kivalliq") today announced
results from 80 diamond drill holes from within the Lac 50 Trend, including
high-grade uranium assays from the J4 Zone. Discovered on July 1, 2012, the J4
Zone is located approximately two kilometres southeast of the Lac Cinquante
Uranium Deposit and is one of five mineralized zones discovered this year within
the 252,830 acre Angilak Property in Nunavut, Canada. Final results have now
been reported from drilling within the Lac 50 Trend in 2012. Tables of assay
results are available at:
http://kivalliqenergy.com/projects/angilak/program_images/




Highlight Assay Results

--  2.42% U3O8, 0.25% Cu, and 137.4 g/t Ag over 3.8 metres(i) in hole 12-J4-
    029

--  2.86% U3O8 and 29.2 g/t Ag over 1.5 metres(i) in hole 12-J4-038

--  3.91% U3O8 and 18.3 g/t Ag over 0.9 metres(i) in hole 12-J4-028

--  2.85% U3O8, 0.66% Cu and 20.6 g/t Ag over 1.1 metres(i) in hole 12-J4-
    062

--  0.30% U3O8 and 10.1 g/t Ag over 24.1 metres(i) in hole 12-J4-050

--  Drilling at J4 intersected uranium over a strike length of 800 metres
    and; to a vertical depth of 383 metres, the deepest uranium intercept on
    the Angilak Property to date

    (i)estimated true widths 



"This year's drilling at J4 Zone has returned assay results with both high
grades, and now with Hole J4-12-050, broad intervals of uranium mineralization,"
stated Kivalliq's President, Jeff Ward. "We look forward to incorporating
results from this significant 2012 discovery into a revised resource estimate,
scheduled for early 2013."


J4 Zone

The J4 Zone is defined by an electromagnetic ("EM") conductor located 1.8
kilometres southeast of the Lac Cinquante's Eastern Extension and about 300
metres north of the Ray Zone. Significant uranium mineralization has now been
intersected along 800 metres of strike length in 49 of 63 holes drilled from 24
sites at the J4 Zone. A total of 12,756 metres were drilled at J4 Zone in 2012.
Assay results from 60 holes are presented in tables at:
http://kivalliqenergy.com/projects/angilak/program_images/#section2-b


Uranium mineralization at J4 is hosted by two sub-parallel mineralized horizons,
10 to 45 metres apart, referred to as the J4 Upper Zone and the J4 Lower Zone.
These zones have been intersected at vertical depths of between 35 and 383
metres, the deepest uranium interval drilled on the Angilak Property to date.
Mineralization occurs in quartz-carbonate veins, having estimated true widths
between 0.2 and 24.1 metres, hosted by a sheared sulphidic, graphitic tuff
within a larger sequence of basalt.


Ray Zone

The Ray Zone is expressed as a subtle EM conductor, parallel to J4 and located
two kilometres along strike and southeast of Lac Cinquante's Eastern Extension.


In 2012, a total of 2,796 metres were drilled at the Ray Zone from five sites
along 310 metres of strike length and uranium mineralization was intersected in
10 of the 16 holes drilled at vertical depths between 25 and 129 metres. This
mineralization occurs in a narrow sulphidic, graphitic tuff horizon similar to
mineralization at Lac Cinquante. The estimated true width of the zone varies
between 0.4 and 1.8 metres, with the best result to date being 0.66% U3O8 over
an interval of 1.2 metres. Assay results from the final seven holes are
presented in the tables at:
http://kivalliqenergy.com/projects/angilak/program_images/#section2-a-01


All holes at the J4 and Ray zones were drilled northeast with azimuths of 026
degrees at inclinations ranging from -45 degrees and -90 degrees.


Lac Cinquante Main Zone and Eastern Extension

Assay results from the last nine holes drilled at the Main Zone and four holes
drilled at the Eastern Extension in 2012 are presented in tables at:


http://kivalliqenergy.com/projects/angilak/program_images/#section2-bbb

http://kivalliqenergy.com/projects/angilak/program_images/#section2-aaa

Drilling at the Main Zone tested for mineralization below the current resource
using 14 wide spaced holes, whereas drilling at the Eastern Extension tested the
gap between the Eastern Extension and the Main Zone with four holes.


Limited drilling at the Main Zone below the current resource along 1.3
kilometres of strike intersected weak uranium mineralization in four holes, with
the best result being 0.43% U3O8 over 0.3 metres estimated true width at 300
metres vertical depth (hole 12-LCM-006). At the Eastern Extension, two of four
holes extended known mineralization by 50 metres westward, with the best result
being 0.44% U3O8 over 0.8 metres estimated true width at 82 metres vertical
depth (hole 12-LCE-001). All holes were drilled to the northeast with azimuths
of 026 degrees, at inclinations ranging from -45 degrees and -79 degrees.


For descriptions of the 2012 drilling and these zones please reference Kivalliq
news releases July 25 and August 27, 2012.


To view cross sections, assays and drill plan maps from the 2012 exploration
program, 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 before
the end of the first quarter of 2013.


The Highly Prospective Lac 50 Trend

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, including
five new uranium discoveries drilled this season. Our exploration work and the
identification of new mineralized zones continue to validate the "District
Scale" potential of the Angilak Property.


QA/QC

Half-spilt NQ core samples from Angilak Property drill holes having anomalous
radioactivity levels above 200 counts per second ("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, reported in parts per million ("ppm"); where 1 ppm = 1gm/t, 10,000 ppm
= 1%. Intervals include ICP U analysis in ppm converted to U3O8% (conversion to
U3O8% = ppm x 0.0001179). ICP results Ugreater than 1,000 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