Kivalliq Energy Investor Presentation August 9, 2013

Click to edit Master title styleAdvancing Northern Canada’s Highest

Grade Uranium DepositAugust 2013

KIV: TSX-V kivalliqenergy.com

Presentation Outline

2

• Company • Jurisdiction • Angilak Property • Uranium Industry


Delivering Results 2010 - 2012

• Team strengthened• CDN$39.5M raised in equity financings since

Fukushima• 89,500+ metres drilled• 12 new mineralized zones identified through

drilling• multiple prospecting discoveries property-wide• 80,000+ acres acquired totalling 340,000+ acres

3

43.3 million pounds of high grade U₃O₈ added to inferred resource category since 2010


Uranium Exploration Leadership

4

April 17, 2013

Rob Chang, Equity Research Analyst - Metals & Mining, Cantor Fitzgerald

"... Kivalliq’s management team has demonstrated an ability to cost-effectively add resources to the project…”

• Expertise added to the Board of Directors related to uranium fuel markets and uranium industry M&A experience

• Bolstered management team with finance and legal capacity

• Operational team continuously executes large logistical programs and successful exploration campaigns – on budget


High-Impact Exploration: Low Discovery Costs

5

April 2, 2013

David Talbot, Vice President - Senior Mining Analyst, Dundee Securities

"Kivalliq (is)… discovering significant pounds likely more cheaply than anyone else in the business … This remains one of our favourite uranium exploration stocks."

• Industry beating discovery cost of CAD$1.32 per lb uranium

• 200% increase in Lac 50 Trend inferred resource in past two seasons


6

2010

2011

2012

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

810,000 T@ .79%

1,779,000 T@ 0.69%

2,831,000 T@ 0.69%

Inferred Resource Growth By YearM

Lbs

of

U3O

8

Main Zone

14.5 M Lbs

Added:Eastern &Western Extension

Added:J4 & Ray

27.13 M Lbs

43.30 M Lbs

16.2 M Lbs U3O87.9 M Lbs U3O8 3.8 M Lbs U3O8 15.3 M Lbs U3O8J1 (2013 Discovery)

Lac 50 Trend: 200% Growth Since 2010


Community Engagement

7

• Landmark agreement with Nunavut Tunngavik Inc. to explore for uranium on Inuit Owned Lands

• Ongoing engagement with the people of Nunavut Territory through community visits, site visits and employment opportunities

• Winners of environmental stewardship awards from the regional Inuit regulator, Kivalliq Inuit Association for two of the past three years


Market Cap Value VS Inferred Resource

8

Catalysts

• One• Two• Three


Corporate InformationAs at August 8, 2013

Corporate StructureShares Outstanding 189,067,703Fully Diluted Shares 220,637,922Working Capital C$3.20 millionWarrants weighted avg strike 0.50 17,420,219Options weighted avg strike 0.44 14,150,000Market capitalization (@ $0.23) C$43.49 million Average Trading Volume (3 months) 162,348

OwnershipInsiders: 5%Lumina Capital 16.63% Close associates: 26%Resources/Mining Funds: 15%

9

Recent FinancingQ2 2013: 15 million units at $0.30

(unit = 1 share and 1 warrant at $0.50)Q2 2012: 16.77 million FT shares at $0.50

7.12 million NFT shares at $0.45Q1 2012: 6.85 million FT shares at $0.52

13.13 million NFT shares at $0.45

Management John Robins, P.Geo., ChairmanJim Paterson, CEO, DirectorJeff Ward, BSc, P.Geo., PresidentAndrew Berry, COOJonathan Singh, BAccS, CGA, CFOBill Cronk, Exploration ManagerBrenda Nowak, Corporate SecretaryJim Dawson, MSc., P.Eng., DirectorGarth Kirkham, BSc, P.Geo, P.Geoph, DirectorDale Wallster, DirectorJim Malone, Director


Angilak Property Advantages

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• Experienced Exploration Team

• Mining Friendly Jurisdiction with Uranium Development Policy

• District Scale Potential

• Growing High-Grade Resource

• Highly Attractive Yellowcake Product


A Mining Friendly Jurisdiction

11

Angilak Property located in Nunavut Territory – a mining friendly jurisdiction, hosting multiple projects being advanced or operated by global mining companies


Transportation and Logistics

12

Seasonal transportation methods include:

• Snow Cats, Snow Mobiles

• Helicopters

• Fixed wing aircraft: Otter, Dash 7, 737, and Hercules

• Bulldozer, Loader

• Barge

• Rail


13

Kivalliq has invested CDN$54M+ in the 340,000 acre Angilak Property to date, delineating one of the highest grade uranium deposits in the world (excluding Athabasca Basin deposits)

• Kivalliq’s exploration team has cost-effectively run large-scale exploration programs, under-budget, while consistently delivering high grade uranium discoveries for the past 5 years

• Angilak has “District Scale Potential”, with opportunity to grow the current 43 million pound inferred uranium resource base substantially through aggressive exploration programs

Angilak: High Quality Uranium Asset


Angilak Property Details

• Camp open in March: Exploration from April to September

• Camp hosts 50+ people during the summer

• Heavy equipment on-site to facilitate logistics and exploration

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Angilak Exploration Program and Milestones

2008 2009 2010 2011 2012

$2M* $1.5M*

$9M*

$17M*

$20M*

Property-wide airborne geophysical survey First drilling at

Angilak in 25 years

Lac Cinquante resource estimate

increases 92%, announced January

2012 27.13 million lbs U₃O₈: 1,779,000 T @ 0.69%

New zones discovered: Western Extension, Eastern Extension,

Pulse, Spark, BIF, AG

$12.7M equity raised

2011 KIA Environmental

Excellence Award

Lac 50 Trend deposits inferred resource

estimate announced January 2013

43.3 million lbs U₃O₈: 2,831,000 T @ 0.69%

New zones discovered: J4, Ray, Flare, South West,

Hot, Nine Iron


2012 KIA Environmental

Excellence Award

Maiden NI 43-101 resource, announced

February 201114.15 million lbs U₃O₈:

810,000 T @ 0.79%

Property-wide prospecting and ground geophysics commence


2011-12 exploration programs some of the largest exploration programs globally – compared with uranium explorer peer group

*Annual Exploration Budgets


2013 Exploration Program

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• Drill 2,000m of high priority targets March - June

• Geophysical activities in key areas

• Ongoing baseline and environmental studies

• Optimization mining and metallurgical testing

• Continued emphasis on community consultation

• Geological mapping, prospecting, and geochemical/soil sampling (July)


District Scale Potential

17


18

2013 Discoveries


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Lac 50 Trend: A Growing Resource Base

2013 Drill Holes

2013 EM Conductor - - -

April 17, 2013

David Sadowski, Equity Analyst, Mining, Raymond James

“Solid Execution Continues into 2013...Resources have grown each of the last three years and now sit at 43.3 Mlbs grading 0.69% ... but (we) would not be surprised if Angilak eventually reaches district-scale, >100 Mlbs levels.”

28.0 Mlb @ 0.67% U3O8Lac 50 MZ + WE + EE

15.3 Mlbs @ 0.75% U3O8J4 Uper/Lower

& Ray Zones

J4 Upper Zone J4 Lower

Zone

J4 W J1 Zone


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Highest Grade Project Not Controlled by a Major

Kiva

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| An

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Stra

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| Ro

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Euro

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Allia

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| Fo

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Uran

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Res

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Val

encia

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%0.69%

0.49%

0.41%

0.34%0.31%

0.18% 0.17%

0.11% 0.09% 0.08% 0.07% 0.06% 0.05% 0.05% 0.05% 0.05% 0.04% 0.04% 0.04% 0.02% 0.01%

Project Grades (%U3O8)

% o

f U3O

8

Source: Canaccord Genuity (this pertains to compliant resources)


High Grade Deposit vs PeersAs at February 8, 2013

Lac CinquanteKivalliq Energy Corp.

MatoushStrateco Resources

KuriskovaEuropean Uranium Resources(formally Tournigan)

FaleaRockgate Capital Corp

KiggavikAreva

MichelinPaladin Energy Ltd.

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20.00 40.00 60.00 80.00 100.00 120.00 140.000.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

Lac 50 Trend Kivalliq Energy Corp

KiggavikAREVAMatoushStrateco

Falea Rockgate

Michelin Paladin Energy Ltd

Kuriskova European Uranium

Resources

Series1

Resource M lb U3O8

Gra

de %

U3O

8

Resource M lb U3O8

Global Median Grade (Excluding Athabasca Projects)


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Optimized tests produce encouraging values:

Alkaline leaching process indicates high recovery - 95.9% of uranium extracted in 72 hours

Precipitation tests yield low-impurity - 71.9% U in a final yellowcake product

"The final yellowcake produced from the leach solution was a low-impurity product. Available final yellowcake assays fell below the maximum concentration limit without penalty of ASTM C967-13 (standard specification for uranium ore concentrate)," stated Chuck Edwards, director of metallurgy, Amec. "The alkaline leaching process proposed for the Lac 50 trend uranium deposits is similar to that used successfully for almost 30 years at Eldorado Nuclear's Beaverlodge mill in Northern Saskatchewan."

Excellent Preliminary Metallurgical Test Results


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Catalysts for Improvement

• Japanese Restarts (Q1 2014)

• Seasonality and fragile primary supply pipeline

• Continued stable growth in reactor builds (China and India)

• M & A

Misery Loves Company

OUCH!!


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Projected Seasonal Trends in Uranium Prices (US$)

month-end figures

% a

bove

or b

elow

long

-ter

m tr

end

Source: UxC, Nuexco, analysis by Salman Partners Inc. (as estimated by Statistics Canada’s “X-11” program)


25

New Supply is the Issue


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Strengthening Fundamentals

Source: Dundee Capital Markets


126% Increase in New Nuclear Reactors1

Over Currently Operable

27

1 World Nuclear Association, Jan. 2013

• Recent startup up of new large reactors in China and India - Japan restarts by end of year • 4 new reactors approved and under construction in US – first in 30 years

“..with China and India getting up to speed in nuclear energy and a world energy demand double…, a realistic estimate of what is possible might be the equivalent of one 1000 MWe unit worldwide every 5 days (after 2015).” WNA website


28

69 New Reactors Under Construction - 13 countriesIAEA/WNA


Takeout Valuation per lb U3O8 (US$/lb)

29

U Spot Price (US$/lb)$42.25$42.25$41.25$49.00$50.00$51.25$52.00$52.00$52.00$52.00$49.90$62.78$53.00$60.50$41.50$42.50$54.00$60.00

$138.00$138.00$122.00

$75.00

Source: Rob Chang, Equity Research Analyst, Metals & Mining, Cantor Fitzgerald


Disclaimer

This presentation does not constitute an offer to sell or solicitation of an offer to buy any securities of Kivalliq Energy Corporation.

The information in this presentation related to the mineral resource estimate has been approved by Robert Sim, P.Geo, of SIM Geological Inc. who is an independent Qualified Person as defined under National Instrument 43 101. Jeff Ward, P.Geo, ‐President of Kivalliq and a Qualified Person for the Company has reviewed and approved the information contained in this presentation and related news releases.

FORWARD LOOKING STATEMENTS

This presentation contains "forward-looking statements". These forward-looking statements are made as of the date of this presentation and Kivalliq Energy Corporation does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and access to data.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of property interests; future prices of mineral resources; accidents, labour disputes and other risks of the mining industry; ability to obtain financing; and delays in obtaining governmental approvals or financing.Appendix


Contact Information

Kivalliq Energy Corporation#1020 - 800 W Pender Street, Vancouver, BC V6C 2V6

www.kivalliqenergy.com

Reesa Meltzer, Senior Administrator++604-646-8361 or [email protected]

http://www.kivalliqenergy.com/

mailto:[email protected]

Investor Relations

Kivalliq Energy Investor Presentation August 9, 2013