Kivalliq Energy Reports High Grade Uranium Results from Angilak Property in Canada

Kivalliq Energy Corporation (TSX VENTURE:KIV) today announced high grade assays results from drill hole 10-NE-001.

This new zone is located 1.8 kilometres west of the Lac Cinquante Main Zone, and within the 225,000 acre Angilak Property in Nunavut, Canada.

The assay results from drill hole 10-NE-001 at the new zone yielded two distinct intervals of significant U3O8 mineralization:

• 0.83% U3O8 over 1.4 metres, in altered sulphidic tuff, starting at 33.9 metres
• 0.66% U3O8 over 2.4 metres, in brecciated basalt, starting at 72.3 metres
  (Intervals reported are down-hole)

"The drill hole announced today reinforces our belief in the potential for discovering additional uranium deposits elsewhere on the Angilak Property," stated Jeff Ward, P.Geo., Kivalliq's President. "As part of the 2011 exploration program, we plan to drill this new zone along strike, with a goal of significantly expanding the known zone of mineralization."

Exploratory Drilling Increases Project Potential

An important component of the 2010 exploration program was to identify possible deposit analogues through exploratory drilling and prospecting. As announced on October 26^th, 10-NE-001 was one of the last holes of the season, testing a separate geophysical conductor 1.8 kilometres west of Lac Cinquante. This target was drill tested with one hole based on Kivalliq's increased understanding of the mineralization at the Lac Cinquante Main Zone and results from the 2010 summer prospecting program. Hole 10-NE-001 was inclined at -45 degrees and drilled to the northeast with an azimuth of 35 degrees. The hole intersected two radioactive zones at 25 and 50 metres vertical depth. The shallowest zone includes altered, sulphidic tuff hosting Lac Cinquante-style uranium mineralization; the deeper zone is an interval of altered basalt and breccia, with pitchblende-quartz-carbonate veining.

Since 2009, a total of four exploratory holes have been drilled outside of the Lac Cinquante Main Zone. Two of these (10-NE-001 and 10-LC-013) intersected potentially ore grade intercepts within the favourable Lac Cinquante stratigraphy. Drill hole 10-LC-013 intersected 0.21% U3O8 over 1.96 metres approximately 500 metres west of the Lac Cinquante Main Zone (released June 24, 2010). These results confirm the potential for extensions to the main zone, or separate analogous mineralized zones.