Vancouver, Canada, May 27th, 2008 — CanAlaska Uranium Ltd. (CVV — TSX.V, CVVUF — OTCBB, DH7 — Frankfurt) (“CanAlaska” or the “Company”) and Mega Uranium Ltd. (TSX:MGA) (“Mega”) are pleased to report the completion of a helicopter-borne magnetic and high powered transient electromagnetic survey (VTEM) on the Poplar Project located on the northern rim of the Athabasca Basin, Saskatchewan. The survey has successfully identified a large number of unconformity-related conductors and structural breaks in areas which have lacked detailed prior exploration. These areas of interest will be the focus of a detailed shallow seismic survey to be carried out using CanAlaska’s proprietary marine seismic unit in order to better define targets for drilling in the winter of 2008/09.
Mega can earn a 50% interest in the Poplar property (see Figure 1) by spending $6 million and by issuing 100,000 Mega shares to CanAlaska over three years. Mega has a $2 million expenditure commitment in the first year of the option and CanAlaska is the operator during the option period. Mega can earn a further 5% interest (total 55% interest) by paying CanAlaska $2 million and issuing an additional 100,000 Mega shares.
The Athabasca Basin is widely considered as being the richest and one of the largest uranium producing regions in the world. The 1,103 square km Poplar property covers 70 kilometres of the northern margin of the Athabasca Basin in northern Saskatchewan, at the eastern end of Lake Athabasca, stretching from Poplar Point in the east to Uranium City and the Gunnar uranium mine in the west. Geological targets in this area are unconformity style uranium deposits and their basement hosted root zones at the Athabasca unconformity, which in this area lies at relatively shallow depths (100-300 metres). Previous exploration by E&B Exploration Limited in 1979 included airborne and marine geophysics, however this work was hindered by equipment limitations and though targets were generated, none were followed up.
The following images have been prepared to show investors some of the detail of these targets. Summer exploration work will commence in June, 2008.
Figures 2 and 3 show the regional magnetics previously available for the Poplar Project area. Of note is the large 30 km x 20 km area which the Government surveys did not cover. Figure 3 shows the detail of the magnetics from the 2008 VTEM survey. In this image, there is clear evidence of major structural breaks, several edge effects of the north extent of the Athabasca Sandstone cover, and a large number of small isolated spot anomalies, each of which has significance in the search for unconformity style uranium mineralization.
Figure 4 focuses on the central portion of the VTEM survey, and Figure 5 details a portion of the total VTEM survey and shows conductive formations in red and less conductive zones in shades of blue and green. Again, there are a number of sharp linear targets, as well as disruption and bending of these features related to structural disturbances. These zones are of additional importance for locating uranium mineralization in the Athabasca Basin. Of particular note is the apparent definition of the edge of the Athabasca sandstone associated with a major east-west trending fault structure. Previous work in this area has located isolated sandstone remnants much further north and the current survey provides significant control on the geology of the Athabasca sandstone along the north edge of the basin as a critical step towards the definition of drill targets at shallow depths in this area.
Summer Work Program
Figure 6: Lake Athabasca Project Seismic Features Figure 7: Further Lake Athabasca Project Seismic Features
The 2008 summer program is designed to provide additional structural and geochemical data in the area of the main VTEM targets to aid in defining drill targets. The principal tool is shallow seismic surveys, (see Figures 6 and 7 for examples of shallow marine survey profiles from CanAlaska’s adjacent Lake Athabasca Project). This will be complemented by lake bottom geochemistry and selected IP-Resistivity and Gravity geophysical surveys designed to directly detect clay alteration associated with the conductors and structural features.
All of the unconformity related uranium targets in the Athabasca have significant clay alteration and epithermal style alteration halos extending well into the overlying sandstone horizons, and most are associated with conductors, such as is seen in the current surveys. The association of fault structures with these conductors is considered to be very significant, and these are immediate exploration targets for the Company
Mr. Michael Downes, Ph.D., P.Geo., V.P. North America, Mega Uranium Ltd. stated, “Mega is pleased to see that the VTEM survey has provided very prospective targets in a part of the Athabasca basin where the depths to the “unconformity” are anticipated to be relatively shallow, between 100 and 300 metres. The shallow lake depths and the other perceived exploration and development challenges, are well within the feasibility limits of modern exploration and the economics of the Athabasca high-grade style uranium deposits. The Poplar property has seen limited past exploration due mainly to the technical limitations of historic geophysical survey methods, but the current program allows Mega to take advantage of CanAlaska’s highly experienced technical team in focusing on high quality targets.”
Michael Downes Ph.D., P.Geo., Vice President North America and Qualified Person for Mega has reviewed the technical content of this news release.
About CanAlaska Uranium Ltd. — www.canalaska.com
CANALASKA URANIUM LTD. (CVV — TSX.V, CVVUF — OTCBB, DH7 — Frankfurt) is undertaking uranium exploration in eighteen 100%-owned and two optioned uranium projects in Canada’s Athabasca Basin. Since September 2004, the Company has aggressively acquired one of the largest land positions in the region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles). CanAlaska has expended over Cdn$40 million exploring its properties and has delineated multiple uranium targets. The Company’s high profile in the prominent Athabasca Basin has attracted the attention of major international strategic partners. Among others, Mitsubishi Development Pty., a subsidiary of Japanese conglomerate Mitsubishi Corporation, has undertaken to provide CanAlaska C$11 mil. in exploration funding to earn 50% of the West McArthur Project. In addition, exploration of CanAlaska’s Cree East Project has commenced under a C$19 mil. agreement executed with a consortium of Korean companies led by Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources Corp. and SK Energy Co, Ltd.
About Mega Uranium Ltd. — www.megauranium.com
MEGA URANIUM LTD. (TSX:MGA) is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Bolivia, Colombia, Mongolia and Cameroon. Further information on Mega can be found on the company’s website at www.megauranium.com. Mega Uranium’s Australian uranium properties, including without limitation Ben Lomond, Maureen and Lake Maitland, are subject to State policies which presently prohibit the mining of uranium.
On behalf of the Board of Directors
Peter Dasler, P. Geo., President & CEO
Investor Contact: Emil Fung, Vice President, Corporate Development
Tel: +1.604.688.3211 Toll Free (North America) 1-800-667-1870 Email: [email protected]
The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release: CUSIP#13708P 10 2.
This news release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission. Not to be construed as an offer to buy or sell securities of CanAlaska Uranium Ltd.