Kivalliq Reports Assay Results from 2013 Drilling at the ML and J1 Zones

VANCOUVER, June 27, 2013 /CNW/ - Kivalliq Energy Corporation ("Kivalliq", TSX-V: KIV) today announced assay results from drilling at the newly discovered ML and J1 zones within the Lac 50 Trend located at Kivalliq's 340,268 acre Angilak Property in Nunavut Territory. This news release summarizes the drilling component of the 2013 exploration program.

Key Point Summary:

• The ML and J1 discoveries this season bring the count to 12 new zones drilled within the highly prospective Lac 50 Trend since 2010.
• ML Zone highlight assay results:
• 1.42% U₃O₈, 0.40% Mo, 139 g/t Ag and 0.64% Cu over 1.2 metres in 13-ML-001
• J1 Zone highlight assay results:
• 0.56% U₃O_8,  0.28% Mo, 15.5 g/t Ag over  0.6 metres in 13-J1-003
• 1.06% U₃O₈   over 0.3 metres in 13-J1-002

"Exploratory drilling within the Lac 50 Trend this season has been extremely successful, with the discovery of the ML and J1 zones," stated Kivalliq's President, Jeff Ward. "The geological similarity and proximity of the ML and J1 zones to the current Lac 50 Trend mineral deposits confirm our belief that we can continue to grow our inferred resource base through drilling. Exploration work in July will be focussed on increasing our confidence level of specific high-priority zones to be tested with future drill programs."

ML Zone

Four core holes tested the 1.5 kilometre long ML Zone electromagnetic ("EM") conductor from two sites 1.1 kilometres apart. At 60 metres vertical depth, hole 13-ML-001 intersected 1.2 metres of uranium mineralization within a 4.3 metre wide zone of sheared, hematized, sulphidic graphitic tuff and carbonate veining. Hole 13-ML-002 intersected the same altered tuff unit 36 metres down dip, but with weak mineralization. Holes 13-ML-003 and 004 tested the ML conductor 1.1 kilometres along strike to the east, intersecting a similar sheared tuffaceous host rock with no radioactivity.

J1 Zone

The J1 Zone is a one kilometre long EM conductor located between the J4 and Eastern Extension zones. Six holes drilled from two drill sites along 150 metres of strike length intersected varying amounts of uranium at depths between 28 and 180 vertical metres. Mineralization at J1 occurs as narrow carbonate veins in sheared, hematized, sulphidic graphitic tuff within a larger sequence of basalt and gabbro, similar to the lithological units hosting mineralization at the Lac 50 Trend resource.

All holes were drilled northeast at an azimuth of 26 degrees and with inclinations between -45 and -67 degrees. Assay results for the ML and J1 Zones are presented in the table below. For cross sections with assays and drill plan maps, please visit:

http://www.corebox.net/properties/angilak/ or www.kivalliqenergy.com/projects/angilak/program_images

ML Zone Assay Results

J1 Zone Assay Results

*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.

Five drill holes; 13-ML-003 and 004, 13-J1-007, 13-J4W-001 and 13-VGR-001 intersected no significant mineralization. Drill hole 13-VGR-001a was not completed due to poor drilling conditions.

QA/QC

Half-spilt NQ core samples from Angilak Property drill holes were sent to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") for analysis. 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, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq's news release of March 1, 2013.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based uranium exploration company holding Canada's highest-grade uranium resource 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 Mineral 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 the budget and exploration program proposed for 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 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.

SOURCE: Kivalliq Energy Corporation