Kivalliq Receives Final Assays From Lac Cinquante 2010 Drill Program;
High grade Mineralization Extended Eastward Along Trend

Vancouver, B.C. � Kivalliq Energy Corporation (KIV: TSX-V) (the �Company� or �Kivalliq�) today announced assay results from the final 27 holes drilled at the 225,000 acre Angilak Property in Nunavut, Canada. Assays reported from the eastern end of the Main Zone represent some of the highest grades reported to date on the property, including 6.86% U3O8 over 0.58 metres. The area of known mineralization at Lac Cinquante deposit has now been extended to over 1.35 km and drilling confirms the deposit remains open along strike and to depth.

�These drill intervals reinforce the high-grade nature of the deposit and demonstrate the potential to continue to expand the Main Zone along trend,� stated Kivalliq�s President Jeff Ward, P. Geo. �The receipt of these final assays allows commencement of the modelling work needed to deliver the project�s first NI 43-101 mineral resource by the first quarter of 2011.�

New Assay Highlights

Drill Hole ID  - %U3O8 - True Width (estimate)
10-LC-089 � 6.86% over 0.58 metres
10-LC-090 � 2.25% over 1.05 metres
10-LC-091 � 1.02% over 2.04 metres
10-LC-099 � 3.56% over 0.86 metres
10-LC-101 � 2.77% over 1.62 metres

All holes reported herein were inclined to the northeast with an azimuth of 26 degrees, intersecting the Lac Cinquante Main Zone between 27 and 265 metres depth. See the table of results below, and visit www.kivalliqenergy.com for an updated drill plan map, drill sections and drill collar information.

Table 1: 2010 Phase 2 Assay Results � Lac Cinquante Drill Program

For seven drill holes not reported above: holes 10-LC-094 and 097 were abandoned due to bad ground; 10-LC-074, 077, 093 and 100 intersected the altered tuff host unit with no uranium mineralization; and exploratory hole 10-LC2-001 was collared in 18.5 metres of broken basalt while testing a geophysical target one kilometre east. No anomalous radiation was noted in core at 10-LC2-001 but further work is warranted.

Overview of 2010 Exploration Program at Angilak

The 2010 Program at Angilak operated from April to October and consisted of new camp construction, property-wide prospecting, environmental baseline studies, and a total of 16,600 metres of resource definition and exploratory drilling in 107 holes. All U3O8 assays from the 2010 drill program have now been reported.

The prime objective in 2010 was to generate data necessary to deliver the first NI 43-101 mineral resource at Lac Cinquante. New drilling has confirmed mineralization at the Main Zone, down to a depth of 275 metres, and expanded mineralization to 1.35 km of strike length.  Lac Cinquante remains open in both directions and at depth based on the current drilling. The remainder of the year will be dedicated to technical and resource modeling analysis with the goal of establishing a NI 43-101 mineral resource by early 2011.

As part of the 2010 program, two exploratory holes encountered significant uranium mineralization 500 metres and 1.8 kilometres west of Lac Cinquante. These holes clearly demonstrate the potential to expand the Lac Cinquante Main Zone along trend and make new discoveries elsewhere on the Angilak Property. 

Assay results from a property wide prospecting and sampling program will be released prior to the end of the year.

QA/QC

Samples from the 2010 Phase 2 drilling program comprised half split NQ drill core. All samples were analyzed for U3O8 and a multi-element suite by Saskatchewan Research Council (SRC) Geoanalytical Laboratories. 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. ICP results U>1000 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 QC included the insertion of blanks into the sample inventory at the project site prior to shipment in sealed containers. All blank results were within expectations.

Disclosure of a technical nature contained in this release has been reviewed and approved by Jeff Ward, P.Geo. (President, Kivalliq) who is the Qualified Person for the purposes of National Instrument 43-101.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation is a uranium exploration and development company, and the first company in Canada to sign a comprehensive agreement with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut.

The Lac Cinquante Deposit is Canada�s highest grade uranium deposit outside of the Athabasca Basin.   Kivalliq�s core asset, the 225,000 acre Angilak Property hosts the historic Lac Cinquante uranium deposit, and over 150 other uranium occurrences. Since acquiring the project in 2008 the Company has invested approximately $11.9 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping, prospecting and 18,350 meters of drilling.

On behalf of the Board of Directors

�Jim Paterson�

Jim Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at info@kivalliqenergy.com. 

Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com (m.discoveryexp.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.