I would like to take this opportunity to welcome you as a Kivalliq shareholder. We are expecting the company to begin trading at market open on Monday, July 7th, 2008, under the symbol "KIV" on the TSX Venture Exchange.
Over the last few years we have seen a multitude of speculative companies pursue the uranium market with little success. Most will agree that the uranium sector will be a strategic place to be as we move towards a more nuclear dependent society. With much of the world's known resources being low grade and located in regions with substantial geopolitical risk, the uranium supply will likely remain tight resulting in strong prices going forward. Those companies discovering and developing higher grade deposits in geopolitically favourable areas will reap the rewards.
Kivalliq represents a unique and exciting opportunity to participate in a new company focused on the exploration and development of the high grade, near surface Lac Cinquante uranium prospect and the 250,000 acre Angilak project. Lac Cinquante was discovered in the late 1970's and was extensively explored into the mid 1980's at which time a (non National Instrument 43-101 compliant) resource of 11.6 million lbs of uranium grading 1.03% was reported.** Following the collapse in uranium prices in the early 1980s and a series of corporate changes in ownership further development of the project was suspended. In the late 1990's, the project was selected by the Inuit as part of a comprehensive land claims settlement leading up to the formation of the Nunavut territory. In February of 2008, Kaminak through a wholly owned subsidiary Kivalliq signed an exploration agreement with Nunavut Tunngavik Incorporated allowing Kivalliq to acquire a 100% interest (subject to a 25% back-in) in the project. This landmark agreement is the first of its kind in Canada and provides our company with certainty of title and a strong Inuit partnership as we move this project forward.
We are currently in the midst of a $2.2 million exploration program consisting of airborne geophysics (radiometric, EM and magnetic), prospecting, mapping and sampling. The 2008 program is a precursor to an aggressive drill program in 2009 currently being designed to delineate and expand the areas of known high grade mineralization.
We will be providing you with regular updates on our projects and will endeavor to maximize the value of your investment. Please feel free to call me or any member of the Kivalliq team if you ever have any questions about your company or visit our website at www.kivalliqenergy.com.
KIVALLIQ ENERGY CORPORATION
John Robins, P. Geo.
President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
** The quoted disclosure for the Lac Cinquante Uranium Occurrence was prepared by Aberford Resources Ltd. This estimate is historical and should not be relied upon since it is not compliant to standards set out in National Instrument 43-101. However, it is relevant because: it is indicative of a mineralized zone worthy of follow up exploration as it is based on drilling exploration and development carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. A Qualified Person has not classified historical estimates as current mineral resources/reserves, and Kivalliq is not treating them as current mineral resources/reserves since work to date has not verified the historical estimates. Kivalliq has not done any work to confirm these estimates but will be planning exploration programs aimed at evaluating the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being delineated as a mineral resource.
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, 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. 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.