Mr. James Paterson reports

KIVALLIQ ANNOUNCES SIGNIFICANT URANIUM ASSAYS FROM DIPOLE DISCOVERY

Kivalliq Energy Corp. has released complete assay results from the first drill program at the recent Dipole discovery. These encouraging results demonstrate that complementary geophysical and geochemical surveys are very effective tools for making new uranium discoveries on Kivalliq's 100-per-cent-owned, 105,280-hectare (260,154 acres) Angilak property in Nunavut Territory, Canada.

Highlights include:

• 2.34 per cent triuranium octoxide over 1.3 metres from 28.3 m to 29.6 m in 15-DP-009;
• 0.21 per cent U3O8 over 6.7 m from 46.4 m to 53.1 m in 15-DP-009;
• 0.17 per cent U3O8 over eight m from 27.9 m to 35.9 m in 15-DP-005;
• 0.18 per cent U3O8 over 6.7 m from 35.5 m to 42.2 m in 15-DP-006;
• 0.14 per cent U3O8 over 2.1 m from 75.5 m to 77.6 m in 15-DP-002;
• The Dipole zone remains open in all directions.

"The Dipole discovery confirms that high-grade Lac 50-type uranium mineralization occurs in other areas across the Angilak property," stated Kivalliq president Jeff Ward. "The assays from Dipole returned significant near-surface uranium mineralization over broad widths. We are extremely encouraged by the multiple mineralized intervals intersected and look forward to additional drilling successes at the Dipole-RIB trend in the coming seasons."

Dipole drill program summary

The new Dipole discovery is located within the Dipole-RIB trend, approximately 25 kilometres southwest of the Lac 50 deposits, in a northeast-trending belt of Archean metavolcanic basement rocks that is an excellent analogue to Lac 50. The Dipole drill program was designed to test the centre of a prominent two-kilometre-long very low-frequency electromagnetic (VLF-EM) conductor, having a coincident 3.4 km long uranium-in-soil anomaly. A total of 958 m was drilled in nine core holes using one of three diamond drill rigs currently on-site. Holes were drilled at an azimuth of 135 degrees with inclinations between minus 45 and minus 90 degrees from four set-ups spaced 50 m apart.

The initial drilling at Dipole has outlined a 25 m to 48 m wide zone of multiple, steeply dipping mineralized intervals hosted in a sequence of structurally weak pyroclastic horizons. All nine holes intersected shallow uranium at vertical depths ranging from 15 m to 110 m and along 150 m of strike length. Multiple mineralized intercepts in all holes had intervals ranging from one m to eight m downhole. Mineralization at Dipole is associated with sheared/brecciated hematite-carbonate-chlorite altered graphitic tuff units, containing pitchblende and sulphides, within a sequence of mafic to intermediate tuffs and massive to pillowed basalt. Similar to the Lac 50 analogue, molybdenum and silver occur with and adjacent to the uranium mineralization at Dipole. The Dipole zone remains open in all directions.

Drill hole assay results are presented in the table and are best reviewed with the accompanying drill plan maps and sections that can be viewed at the company's website.

DIPOLE ZONE -- 2015 DIAMOND DRILL HOLE COMPOSITE (WEIGHTED) ASSAY RESULTS
                                                                    
Drill hole         From        To  Interval      U3O8        Mo        Ag  
                     (m)       (m)       (m)       (%)       (%)     (g/t)

15-DP-001          21.6      22.6       1.0      0.05      0.62       9.9   
15-DP-002          38.1      39.9       1.8      0.02      0.36       4.3   
15-DP-002          73.1      78.0       4.9      0.07      0.01       2.0   
Includes           75.5      77.6       2.1      0.14      0.00       1.4   
15-DP-003          23.0      24.0       1.0      0.09      0.29       5.5   
15-DP-003          34.4      35.4       1.0      0.03      0.26       5.0   
15-DP-003          68.5      70.4       1.9      0.14      0.01       2.2   
15-DP-004          56.0      57.5       1.5      0.13      0.50       6.6   
15-DP-004          99.5     101.9       2.4      0.02      0.04       3.6   
15-DP-005          27.9      35.9       8.0      0.17      0.16       6.7   
Includes           27.9      29.8       1.9      0.37      0.04       3.1   
and includes       34.0      35.0       1.0      0.42      0.71      27.4   
15-DP-005          91.0      94.0       3.0      0.02      0.05       5.0   
15-DP-006          35.5      42.2       6.7      0.18      0.13       4.2   
Includes           35.5      36.7       1.2      0.35      0.09       7.0   
and includes       39.1      41.1       2.0      0.34      0.11       4.6   
15-DP-006         107.8     111.3       3.5      0.01      0.05       5.1   
15-DP-007          74.9      78.6       3.7      0.06      0.61       6.7   
15-DP-007         108.7     112.0       3.3      0.07      0.45       5.3   
15-DP-008          79.0      80.3       1.3      0.12      0.12      14.9   
15-DP-008         135.2     136.7       1.5      0.02      0.03       6.1   
15-DP-009          27.8      31.3       3.5      0.88      0.46      17.6   
Includes           28.3      29.6       1.3      2.34      1.13      44.0   
15-DP-009          46.4      53.1       6.7      0.21      0.25       3.8   
Includes           49.3      50.4       1.1      0.77      0.62       7.9   
15-DP-009          57.4      62.3       4.9      0.04      0.06       1.3   
15-DP-009          78.2      80.0       1.8      0.03      0.02       1.8   

Parameters:

• All samples are subjected to ICP1 analysis by Saskatchewan Research Council Geoanalytical Laboratories (SRC) in Saskatoon, Canada. ICP1 results greater than 1,000 parts per million U are subjected to SRC U3O8 assay; ICP1 results for copper, molybdenum and silver are reported by SRC in parts per million.
• All from, to and interval measurements are metres downhole. True widths are yet to be determined.
• 15-DP-001 was lost at 23.5 m due to drilling condition.

The 2015 summer exploration program at Angilak included drilling at the Dipole zone, as well as a prospecting and soil sampling campaign at the RIB target, located four km south of Dipole. The program was completed for approximately $900,000, substantially under the $1.5-million initially budgeted. Results from the 2015 follow-up soil geochemical surveying and prospecting in the Dipole-RIB trend are pending.

Quality assurance/quality control

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) and is accredited by the Standards Council of Canada. The samples are first analyzed by SRC's ICP-OES multielement uranium exploration ICP1 method. The method analyzes for multielements, including Ag, Mo, Cu, Pb, Zn and a suite of rare earth elements. ICP results with greater than 1,000 parts per million U are analyzed using SRC's ISO/IEC 17025:2005-accredited U3O8 assay method. Laboratory quality control 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, PGeo, president of Kivalliq and a qualified person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release.

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