CanAlaska Completes Key Uranium Project Agreement

Targets Follow 10km Section of Key Lake Fault

Key Lake Mill Nearby with Deposits Host to 150 Million lbs Uranium

Vancouver, British Columbia--(Newsfile Corp. - October 6, 2021) - CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) ("CanAlaska" or the "Company") is pleased to announce it has signed the Property Option Agreement (the "POA") with Durama Enterprises Limited ("Durama"), a private company, which allows CanAlaska to earn up to 100% interest in Durama's 17,665 hectare Key Extension Project in the Southeast Athabasca Basin region, adjacent to the Key Lake mine and uranium milling complex (the "Project") (Figure 1).

Figure 1

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The Company can earn up to a 100% interest in the Project by undertaking work and payments in a single stage over a four year period. In order to meet conditions of the four year earn-in, CanAlaska will make total cash payments of $50,000, issue 300,000 common shares in the Company subject to approval of the TSX Venture Exchange, and complete work totalling $850,000 as outlined in Table 1. In addition, a 1.5% Net Smelter Return (NSR) royalty will be granted to Durama to complete the earn-in. CanAlaska will retain the right to bring in third-party funding and parties to complete the option requirements.

Table 1: Summary of Option Requirements

*Work must cover minimum assessment costs

The Key Extension Project lands cover the highly prospective Wollaston-Mudjatik transition zone (WMTZ) in the Southeastern Athabasca Basin (Figure 2). The Project lands have been explored with historical regional and project scale ground and airborne geophysical surveys, with additional focused prospecting programs targeting lake sediment and boulder anomalies.

Figure 2

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The Project lands have undergone minimal drill testing despite the prolonged regional exploration and Key Lake deposit discoveries in the area. in the late 1970's consisting of shallow regional tests of conductors. The Key Lake deposits and associated showings are located approximately 10 km from the northeastern project boundary. The Key Lake deposits consist of a series of east-northeast striking pods of unconformity associated uranium mineralization, which have historically produced over 150 million lbs U₃O₈ from the Gaertner and Deilmann open pits. The deposit-controlling Key Lake structure and stratigraphy are interpreted to trend onto the Project lands based on the magnetic lineaments and conductor patterns in the geophysical data.

Planned Work Programs

Work permit applications have been submitted to the Saskatchewan Ministry of Environment for the 2022 field season. Work will consist of a ground gravity survey focused on the Key Lake structure corridor targeting Eagle Point and Arrow uranium deposit analogues. A regional geological prospecting program and re-interpretation of a historical VTEM survey are also planned for the Key Extension project. Diamond drilling is planned for late 2022 targeting results of the ground gravity, VTEM re-interpretation, and geological prospecting.

CanAlaska CEO, Cory Belyk, comments, "CanAlaska is very pleased to enter into the purchase option with Durama. It is a rare opportunity in the eastern Athabasca Basin to gain access to an underexplored section of the prolific Key Lake structure just 15 kilometres from the operating Key Lake uranium mill. The application of geological knowledge gained from recent basement-hosted uranium deposit discoveries at Eagle Point and Arrow have never been applied on this section of the Key Lake Fault providing incredible discovery opportunity for our shareholders."

About CanAlaska Uranium

CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) holds interests in approximately 300,000 hectares (750,000 acres), in Canada's Athabasca Basin - the "Saudi Arabia of Uranium." CanAlaska's strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company's properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world's richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds. For further information visit www.canalaska.com.

The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska's Vice President, Exploration.

On behalf of the Board of Directors
"Peter Dasler"
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd.

Contacts:

Cory Belyk, Executive VP and CEO
Tel: +1.604.688.3211 x 306
Email: cbelyk@canalaska.com

Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email: info@canalaska.com 

Neither 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.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

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