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Kivalliq Energy Corporation: Referral fee for Royalty Portfolio

Mergers & Acquisitions Royalties & Streams

Kivalliq Energy Corporation: Referral fee for Royalty Portfolio

February 9, 2017

Not For Distribution To United States Newswire Services Or For Dissemination In The United States

Vancouver, British Columbia – Kivalliq Energy Corporation (TSX-V:KIV) (“Kivalliq”) today announced, in

connection with the $1.0-million payment from Sandstorm Gold Ltd., subject to certain conditions, in

return for Kivalliq granting to Sandstorm a royalty portfolio on certain Kivalliq projects, principally a 1 -

per-cent net smelter return (NSR) royalty pay able on all mineral products produced from the Angilak

property uranium project in Nunavut, Canada , (see Kivalliq news release January 16, 2017), Kivalliq has

agreed to pay a referral fee.

As compensation for its role in facilitating the transaction betw een Kivalliq and Sandstorm, Kivalliq has

agreed to pay a third party a referral fee of up to C$60,000.00 and issue up to 750,000 warrants ,

exercisable at a price of $0.15 for a period of 60 months , representing 6% cash and 6% warrants of the

equivalent of 12,500,000 units as a referral fee. This fee is consistent with the previously announced

fees paid in connection with the Kivalliq financing (See Kivalliq news release January 16, 2017).

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX -V: KIV) is a Vancouver -based company with a portfolio of high -quality

uranium exploration projects in Canada. Kivalliq holds Canada’s highest-grade uranium resource outside

of Saskatchewan. The Company’s flagship project, the 89,852 hectare Angilak Proper ty in Nunavut

Territory, hosts the Lac 50 Trend with a NI 43 -101 Inferred Resource of 2,831,000 tonnes grading 0.69%

U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to

demonstrate the “District Scale” potential of the Angilak Property. For disclosure related to the inferred

resource for the Lac 50 Trend uranium deposits, please refer to Kivalliq’s news release of March 1, 2013.

In Saskatchewan, Kivalliq holds a 100% interest in the 13,711 hectare Hatchet Lake Property adjacent to

the north -eastern margin of the highly prolific uranium -producing Athabasca Basin. Compilation of

results from previous exploration by Hathor Exploration Limited and Rio Tinto have identified multiple,

priority unconformity-related basement targets at Hatchet Lake that were followed up in 2015.

Kivalliq also holds a 100% interest in the 200,909 hectare Genesis Property located northeast of

Saskatchewan’s Athabasca Basin, with Roughrider Exploration Limited funding the current explorat ion

program pursuant to an option to acquire up to an 85% interest in the property. This highly prospective

project is located along the Wollaston-Mudjatik trend and extends 90 km northeast from Wollaston Lake

to the Manitoba border.

Kivalliq’s team of no rthern exploration specialists has forged strong relationships with sophisticated

resource sector investors and Angilak Property partner Nunavut Tunngavik Inc. (NTI). Kivalliq was the

first company to sign a comprehensive agreement to explore for uranium o n Inuit Owned Lands in

Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels

of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO

Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website

at www.kivalliqenergy.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or

by email at [email protected].

Kivalliq Energy Corporation is a member of the Discovery Group of Companies, for more information

please visit www.discoverygroup.ca.

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.

Certain disclosures in this release 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 expresse d 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. Other than as required by applicable

securities legislation, K ivalliq 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.