Kivalliq Announces Positive Metallurgical Results from Lac 50 Trend; Low Impurity Yellowcake Produced

VANCOUVER, Feb. 28, 2013 /CNW/ - Kivalliq Energy Corporation ("Kivalliq"- "KIV: TSX-V") today announced preliminary metallurgical test results for the Lac 50 Trend uranium deposits. Optimized results from alkaline leaching indicate that 94.1% of uranium can be extracted in 48 hours and 95.9% of uranium extracted in 72 hours. Furthermore, from a preliminary yellowcake precipitation test, the uranium value ("U") attained was 71.9% for a final yellowcake product.

"The final yellowcake produced from the leach solution was a low-impurity product. Available final yellowcake assays fell below the Maximum Concentration Limit Without Penalty  of ASTM C967-13, Standard Specification for Uranium Ore Concentrate." stated Chuck Edwards, Director of Metallurgy, AMEC. "The alkaline leaching process proposed for the Lac 50 Trend uranium deposits is similar to that used successfully for almost 30 years at Eldorado Nuclear's Beaverlodge mill in northern Saskatchewan."

Commencing in June 2012, the Saskatchewan Research Council ("SRC") metallurgical testing program on core from Kivalliq's Lac 50 Trend was designed to investigate uranium alkaline leaching optimization and perform a preliminary evaluation of the purity levels of the final yellowcake product. Objectives of the tests were to:

• Maximize uranium extraction through optimizing the alkaline leaching process
• Maximize the recovery of sulphides through flotation
• Compare preliminary yellowcake product impurity levels to ASTM C967-13 uranium ore concentrate specifications

A 60 kilogram ("kg") composite was derived from split drill core pulp rejects submitted to SRC for analysis. Samples were selected from 51 holes drilled along 3.2 kilometres of strike length at the Lac 50 Trend Main Zone, Western Extension and Eastern Extension.  Previous work indicated carbonate content above 13% and therefore alkaline leaching was considered the most effective extraction process for the Lac 50 Trend uranium deposits.  Results from alkaline leaching tests to date are highly encouraging.

Optimized results(shown in Figure 1) indicate that a - 74 µm (-200mesh) feed at 70^oC, atmospheric pressure, 50% pulp density, sufficient oxidation, and a reagent addition rate of 70 kg/tonne (50 kg Na₂CO₃ and 20 kg NaHCO₃), extracts 94.1% of uranium in 48 hours and extracts 95.9% of uranium in 72 hours.

To view FIGURE 1: Optimized Leach Kinetics of Uranium click the following link: http://files.newswire.ca/1209/Kivalliq.pdf

Alkaline leaching is a selective process that can result in a pregnant leaching solution with relatively low impurity levels. The use of an alkaline leach circuit at the Lac 50 Trend could have additional benefits:

• Simple purification processes to produce yellowcake
• Environmentally sensitive recirculated processing solution circuit resulting in reduced reagent use and uncomplicated effluent treatment
• Simplified tailings handling with the possibility to utilize tailings for backfill during mining

A preliminary yellowcake precipitation was performed with the leach solution from the composite.  Uranium in the pregnant solution was readily precipitated as sodium diuranate. The optimized uranium value attained was 71.9% for a final yellowcake product. In addition to U, the final yellowcake sample was analysed for several major impurities, the results for which are shown compared with Impurity Maximum Concentration Limits from ASTM C967-13 Standard Specifications for Uranium Ore Concentrate in Table 1.

Assayed impurities are below the Maximum Concentration Limit Without Penalty standard specifications for uranium ore concentrate. Low impurity levels achieved in preliminary yellowcake tests are very encouraging at this early stage of testing.

The SRC metallurgical program was designed to build on first phase metallurgical testing initiated in 2010 by SGS Mineral Services ("SGS"). SRC aggregated a master composite sample weighing approximately 60 kg, by blending and homogenizing 166 quarter split and half split pulp reject samples from drill core submitted to SRC Geoanalytical Lab for analysis as part of Kivalliq's 2010 and 2011 diamond drilling programs. A head grade sample from the 2012 composite analyzed by SRC's ICP 1 total digestion method assayed 0.737%U, 0.217%Mo, 0.667%Cu, 0.221%Zn, 0.231%Pb, and 26.7 g/tonne Ag.

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 analyzed by SRC's ICP-OES multi-element ICP1 method. ICP1 results for are reported in parts per million (ppm).  1 ppm = 1g/tonne, 10,000 ppm = 1%. ICP results U>1,000 parts per million (ppm) are analyzed using SRC's ISO/IEC 17025:2005-accredited U₃O₈ Assay method.  Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for the Company, has reviewed and approved the information contained in this release.*For disclosure related to the inferred resource for the Lac 50 Trend, please refer to Kivalliq news release of January 15, 2012.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSXV: KIV) is a Vancouver-based uranium exploration company holding Canada's highest grade uranium deposit outside of Saskatchewan's Athabasca Basin.  Its flagship project, the 340,268 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U₃O₈, totaling 43.3 million pounds U₃O₈. Kivalliq's comprehensive exploration programs continue to advance the Lac 50 Trend 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

"Jim Paterson"

James R. Paterson, CEO

Kivalliq Energy Corporation

Kivalliq Energy Corporation is a member of the Aurora Resource Group of companies, for more information please visit www.auroraresource.com .

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.

Certain disclosures in this release, including management's conclusions regarding the metallurgical results from the Lac 50 Trend 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.

Cautionary Note concerning estimates of Inferred Resources:

This news release uses the term "inferred resources". Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

PDF available at: http://stream1.newswire.ca/media/2013/02/28/20130228_C9381_DOC_EN_24156.pdf

SOURCE: Kivalliq Energy Corporation