Mr. Jeff Ward reports

KIVALLIQ DRILLING AT DIPOLE DISCOVERS NEW RADIOACTIVE ZONE

The first exploration drilling of the previously untested Dipole target has discovered multiple, steeply dipping, parallel radioactive intercepts contained within a new zone that is between 35 to 48 metres wide. This new discovery at Dipole clearly demonstrates that complementary geophysical and geochemical surveys are very effective tools for targeting exploration drilling on Kivalliq Energy Corp.'s 100-per-cent-owned, 105,280-hectare (260,154-acre) Angilak property in Nunavut Territory, Canada.

Drilling summary:

• All nine holes from the inaugural core drilling program at Dipole intersected anomalous radioactivity.
• Dipole is a 35- to 48-metre-wide zone hosting one to four steeply dipping, parallel mineralized drill intercepts, at a vertical depth of between 15 and 110 metres and along strike approximately 150 metres.
• Multiple downhole intercepts, which are between 0.3 to 6.7 metres wide, have elevated to significantly radioactive intervals (greater than 300 to 18,800 counts per second (cps)).
• The highest radioactive interval (up to 18,800 cps) on the easternmost set-up is more than 650 metres away from a high-grade boulder (2.24 per cent triuranium octoxide) found along strike to the southwest.

"Discovering this new and significantly radioactive zone at Dipole confirms that Lac 50-type mineralization exists in multiple trends on the Angilak property and supports our belief we have an important uranium district in Nunavut," stated Kivalliq president Jeff Ward. "In addition, the potential of the Dipole-RIB trend is enhanced by several kilometres of coincident geophysical and soil geochemical anomalies not yet tested by drilling."

Soil geochemical summary:

• In conjunction with geophysics, geochemical sampling (enzyme leach) has proven to be a valuable exploration tool for detecting subsurface mineralization in both the Lac 50 and the Dipole-RIB trend.
• A total of 408 additional infill soil samples were collected along a 3.6-kilometre-long uranium geochemical anomaly adjacent to the unconformity at RIB and will help delineate drill targets.
• Additional follow-up exploration, that includes drilling and surface sampling, is warranted along more than two kilometres of combined geophysical and geochemical anomalies at both the Dipole and RIB trends.

Assay results from the drilling and geochemical sampling on the Dipole-RIB trend are expected within six to eight weeks.

Dipole-RIB trend

The Dipole-RIB trend is located approximately 25 kilometres southwest of the Lac 50 deposits, in a northeast-trending belt of Archean metavolcanic rocks that are an excellent analogue to Lac 50.

This first drill program (2015) at Dipole was designed to test the centre of a prominent two-kilometre-long very-low-frequency electromagnetic (VLF-EM) conductor and a coincident 3.4-kilometre-long uranium-in-soil anomaly. Field crews were mobilized in July, and a total of 958 metres were drilled in nine holes using one of three diamond drill rigs already on site. The 2015 exploration program at Angilak has been completed for approximately $900,000, which is substantially under the $1.5-million initially budgeted.

The nine holes drilled at Dipole, along 150 metres of strike length, encountered elevated to significantly radioactive (more than 300 to 18,800 cps) intervals ranging from 0.3 to 6.7 metres wide, within a zone 35 to 48 metres wide. All holes were drilled from four set-ups spaced 50 metres apart, at an azimuth of 135 degrees and with inclinations of between minus 45 and minus 90 degrees. Mineralization and radioactivity are associated with sheared/brecciated hematite-carbonate-altered graphitic tuff units, containing pitchblende and sulphides. The highest radioactive interval, which resulted in up to 18,800 cps within DDH15-DP-009, was intersected on the easternmost set-up and more than 650 metres along strike to the northeast from a high-grade boulder found in 2011, which assayed 2.24 per cent U3O8.

The RIB target is located four kilometres south of Dipole and was identified by Noranda Exploration Ltd. in 1976. During 1977 to 1978, 14 of 25 diamond drill holes intersected uranium mineralization adjacent to the Angikuni basin unconformity at depths of fewer than 35 metres, with the two best intercepts being 0.19 per cent U3O8 over 9.3 metres (including 0.5 per cent U3O8 over 2.6 metres) and 1.61 per cent U3O8 over 0.7 metre. Exploration by Kivalliq in 2014 confirmed a 3.6-kilometre-long uranium-in-soil anomaly with an associated airborne versatile time domain electromagnetic (VTEM) conductive trend. As part of the 2015 program, additional ground geochemical sampling and prospecting were carried out in the RIB target area.

A total of 408 EL soil samples were collected to infill the previous grid to 100- and 200-metre-spaced lines, with samples collected at 50-metre intervals along survey lines. The combination of geophysics and EL geochemical sampling has proven to be an effective tool for detecting mineralization in the Dipole-RIB trend, and it is expected that new soil data from the 2015 program will delineate new drill targets at RIB.

Quality assurance/quality control

Natural gamma radiation was measured in counts per second using a hand-held RS-230 gamma spectrometer manufactured by Radiation Solutions Inc. Spectrometer readings are not directly related to uranium grade and are only used to indicate gamma radioactive intervals that may be of interest. Anomalous readings ranged from 300 to 18,800 cps, and all holes drilled resulted in anomalous values. This is compared with a background of 150 to 250 cps in adjacent rocks. All drill intervals noted are downhole with true widths of intervals yet to be determined.

Split drill core samples from mineralized intervals have been submitted to the Saskatchewan Research Council Geoanalytical Laboratories for chemical analysis. Soil samples have been sent to Activation Laboratories Ltd. in Ancaster, Ont., for 67-element ICP-MS enzyme leach analysis.

Previous exploration results by Noranda Exploration reported herein are historical in nature, and, although not verified by Kivalliq, this work was carried out by knowledgeable explorers using acceptable industry practices at the time.

Mr. Ward, PGeo, president of Kivalliq, a qualified person for Kivalliq, has reviewed and approved the publicly available scientific and technical information by previous exploration groups contained in this release.

We seek Safe Harbor.