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The increase in the Inferred Mineral Resource from the previous 2012 estimate is primarily attributed to the addition of the newly-discovered J4 and Ray deposits, situated near surface and 1.8 kilometres along strike from the eastern margin of the Lac Cinquante Eastern Extension zone. The sensitivity of mineral resources contained within the Lac 50 Trend is presented at a series of U3O8 cut-off thresholds for comparison purposes in Table 2 and the base case cut-off grade of 0.2% U3O8 is highlighted. Kivalliq believes that the base case used is conservative but appropriate at this stage of the project's development.

Table 2: Sensitivity of Inferred Mineral Resources within Lac 50 Trend---------------------------------------------------------------------------Cut-off   Tonnes                                U3O8      Ag      Mo     Cu Grade      (T x   U3O8     Ag     Mo     Cu      (M   (oz x      (M     (M (U3O8%)    1000)    (%)  (g/t)    (%)    (%)    lbs)   1000)    lbs)   lbs)---------------------------------------------------------------------------                                Lac Cinquante---------------------------------------------------------------------------0.1        2,547   0.53   13.7   0.13   0.23      30    1123     7.1   12.7---------------------------------------------------------------------------0.2(x)     1,906   0.67     16   0.15   0.25      28     983     6.3   10.4---------------------------------------------------------------------------0.3        1,479   0.79   17.2   0.17   0.25    25.6     818     5.5    8.3---------------------------------------------------------------------------0.4        1,136   0.92   17.7   0.19   0.25      23     647     4.8    6.3---------------------------------------------------------------------------0.5          882   1.06   18.9   0.22   0.25    20.5     534     4.3    4.9---------------------------------------------------------------------------                                   J4/Ray---------------------------------------------------------------------------0.1        1,039   0.69   28.4   0.19   0.25    15.7     947     4.3    5.7---------------------------------------------------------------------------0.2(x)       925   0.75   30.1   0.20   0.26    15.3     895     4.1    5.2---------------------------------------------------------------------------0.3          791   0.84   31.7   0.21   0.25    14.6     806     3.7    4.3---------------------------------------------------------------------------0.4          553   1.04     38   0.26   0.25    12.7     675     3.1      3---------------------------------------------------------------------------0.5          495   1.11   40.1   0.27   0.25    12.1     637     2.9    2.7---------------------------------------------------------------------------                      Combined Lac Cinquante and J4/Ray---------------------------------------------------------------------------0.1        3,585   0.58     18   0.14   0.23    45.7    2070    11.4   18.4---------------------------------------------------------------------------0.2(x)     2,831   0.69   20.6   0.17   0.25    43.3    1878    10.4   15.6---------------------------------------------------------------------------0.3        2,270   0.80   22.3   0.18   0.25    40.2    1624     9.2   12.6---------------------------------------------------------------------------0.4        1,689   0.96   24.3   0.21   0.25    35.7    1322     7.9    9.4---------------------------------------------------------------------------0.5        1,377   1.08   26.5   0.24   0.25    32.6    1171     7.2    7.7---------------------------------------------------------------------------Note:-Base case cut-off limit of 0.2% U3O8 is highlighted with an (x) in the table