Vancouver, Canada, March 17th, 2010 — CanAlaska Uranium Ltd. (CVV — TSX.V) (the “Company”) is pleased to be able to report that, after a 3-year hiatus, the Manitoba Government has completed consultation with local First Nations and has issued exploration permits for ground work and drilling on CanAlaska’s NE Wollaston Project. These permits now allow CanAlaska to proceed to unlock the value of its previous $7 million of exploration expenditures, and entertain new partnerships for ongoing intensive exploration, in an environment where local communities are strongly supportive of the Company’s efforts.
In February 2008, the Company was able to present evidence of extensive Uranium and REE mineralization in over 40 separate mineralized zones within the original permit area (See Feb 28, 2008 News Release). These samples showed high uranium content surface rock and boulder samples collected from the NE Wollaston project during 2005-2007 exploration.
The project covers a large area in North West Manitoba, where the uranium rich basement rocks associated with the Athabasca Uranium deposits intermittently come to surface (see figure 1). This release detailed 1,440 samples from multiple zones with extensive high-grade boulder dispersion trains and surface uranium mineralization for all samples over 0.05% U3O8 (1 lb/ton).
There is associated heavy rare-earth elements mineralization (REE) with many of the high uranium grades as well as molybdenum and base metal mineralization for the hundreds of samples collected from forty four separate target areas within this extensive (approx 80 km x 40 km) project land area.
The extensive REE mineralization associated with the majority of these targets areas are detailed in the Company’s previous October 20, 2009 News Release.
The NE Wollaston project area, shown in the attached location map, was historically explored for base metal mineralization between the 1960’s to 1980’s. In the late 1980’s, reconnaissance work identified several areas with anomalous uranium mineralization. Limited exploration was carried out, but radon surveys, and a few isolated drill holes, indicated that there was potential for uranium mineralization in sediments and granites. In 2004, CanAlaska acquired the mineral leases in the area and began systematic prospecting and lake sediment sampling. With encouraging results, this continued into reconnaissance, and then detailed airborne surveys. In 2006, exploration was accelerated, and a framework of discoveries highlighted extensive uranium-mineralized belts, either within, or cutting across all rock types in the area. In many of these areas, shallow glacial cover, or local swamps or lakes, mask the basement rocks. However, the nature of the sample distribution, and the characteristics of the glacial outwash, as confirmed by Government surveys and CanAlaska observations, provided encouragement that most boulder fields occur within 500 metres to 2,000 metres of their source. In many areas, CanAlaska’s geophysical surveys and mapping have targeted the postulated source areas. The Company aborted drill testing of initial targets in early 2007 due to drill contractor difficulties. However, further detailed work was carried out in summer, 2007 on each of the current targets as well as on additional preliminary targets.
The geological targets across the NE Wollaston project match the styles of mineralization reported from mineral deposits further south in the Athabasca Basin. There is clear observation of late replacement pitchblende mineralization in vein zones, fractures, and as disseminations in host rocks. There is also evidence of more disseminated mineralization across stratigraphic horizons, and multitudes of pegmatitic intrusive events, many of them containing primary uranium mineralization, or with brecciation and later uranium mineralization.
Previous announcements made public by CanAlaska of results from the NE Wollaston project include our press releases of October, 2006, November, 2006, August 2007 November 2007, February 2008, and October 2009. The Company is now providing complete data on all forty four zones, along with more detailed information and maps to show sample distribution for some of the most advanced zones. There is an extensive table of individual assay results attached to this news release. In the table, the 2007 results are highlighted in bold. Individual zones are discussed as follows:
Grevstad 2 (GR2)
The Grevstad 2 showings, shown in the attached map, cover an area, 750 m x 500 metres with predominantly intrusive hosted mineralization, with some pelites, but mostly as boulder trains. Uranium averages 0.2% U3O8, with a max of 0.8% U3O8. There are only two outcrop samples, one being at 0.18 % U3O8. Some of the results from long linear zones in the SE have previously been released (Nov 2006), but the new main zone shows disseminated pegmatitic boulders within multiple felsenmeer covered zones, over a 600 metre by 1,000 metre area. There is a constant association with REE mineralization of up to 3.97% in the granites and molybdenum mineralization associated with many of the samples. Of particular note is that uranium mineralization is found in ALL rock types, and most specifically in sediments.Elsewhere nearby, late-stage cross cutting pitchblende stringers are also found in the sediments. There is extensive structural deformation in the area and fracturing in the uranium rich pegmatites, which is also expected to also occur in the adjacent sedimentary package.
NW Grevstad 2
This is a 3.5 km zone of mineralized white granite boulders discovered in the NW part of Grevstad 2 in 2007 and shown in the attached map. There is uranium mineralization with consistent REE mineralization associated with the white granites in this area, with above-average uranium values in the sample distribution, as well as distinctly enriched molybdenum values. There are multiple target zones over 2,000 metres along a regular NE trend, all showing high REE and uranium. However, one zone to the south supports uranium values but no REE, so it is probably indicative of another local source.
Mostly white granite and pegmatite with some pelites, with good uranium values and moderate REE enrichment. Some frost-heave and outcrops, with up to 0.56 % U3O8.
Scattered boulders and a few outcrops over an area of 9,000 metres x 3,000 metres, predominantly white granite boulders with values to 0.725%, U3O8, but with some pelites with 0.25% U3O8. The samples are variably enriched in REE, including an outcrop with 2% REE. There is molybdenum in some samples.
A significant area of Archean gneisses to meta-psammites with some white and pink granite and pegmatites. A large number of high grade boulders, generally associated with moderate to high REE enrichment in most samples, and very significant molybdenum values is shown in the attached map.
There are two significant zones of uranium bearing outcrop, and some pitchblende stringer mineralization, which was identified in the 1970’s on nearby Hook Lake zone, where mineralization in outcrop and boulders is of the same type, but lower grade.
The surface exploration by CanAlaska crews in 2006 and 2007 identified separate mineralized boulder trains with high grade uranium values in an area 2,000 metres x 1,500 metres, located further to the east of historical exploration. Airborne survey information for this area identifies a number of structural and stratigraphic targets.
High uranium values to over 3.0% U3O8 with a very strong association with rich REE, mostly in the mixed granite rocks, the average REE/U = 4. There are three probable source areas, over a 2,000 metre x 3,000 metre area, as indicated by the dispersion patterns shown in the attached map. The boulders are mostly pink and white granite, some calcsilicates with up to 3.3 % U3O8 in calcsilicate.
Mostly pink and white granite boulders over a 5,000 metre trend, some calcsilicates, with up to 1.15% U3O8, and slight enrichment in molybdenum and up to 1% REE.
White pegmatite and granite boulders, and frost heave samples from a newly discovered area. There is little uranium to go with the radioactivity noted. Most of the radioactivity is due to Thorium. There is highly anomalous REE mineralization, in the 0.6 to 10.16 % range.
Three zones of boulders of mostly pink and white granite, some calcsilicates over an area of 2,000 metres x 3,000 metres. U3O8 averages 0.23%, with a max of 1.9% U3O8. Each of these zones is associated with slight enrichment in molybdenum and REE.
In this area, very high uranium values are sometimes associated with REE and, locally, there is very good molybdenum mineralization in boulders. There are four discrete zones of boulder mineralization over a 500 metre x 1,000 metre area, within a general target 1,000 metre x 1,500 metre. The zone was discovered in 2007 and is predominantly fine-grained mafic-poor calcsilicate, with uranium mineralization as fine wisps in the calcsilicate. The uranium averages 0.98% U3O8 with a maximum of 6.4% U3O8. There is minimal REE, but some high molybdenum and phosphate.
This zone is located adjacent to major structures and lineaments and is approximately 2,000 metres long. The more significant geophysical targets are linear, and mostly covered by narrow lakes. There is a mixture of boulders and outcrop, the highest uranium value in outcrop is 9.5% U3O8. The lithologies, which are mineralized, are varied, including calcsilicates, granitic and psammitic/arkosic rocks, as well as some syenites. The uranium averages 0.5% U3O8 (excluding a sample at 65% U3O8). The U/Th ratio is high with some REE and molybdenum (up to 0.5%). About half the samples are enriched in P2O5 (up to 28%).
A concentration of higher grade boulders over a 150m long zone, with outlying boulders to 500 metres away across strike. This is a preliminary target, with U3O8 values up to 1.6:
Snyder 4 -Hook Lake-Island
A further area of Archean gneisses to meta-psammites with some white and pink granite and pegmatites. A large number of high grade boulders and some outcrops, generally associated with moderate REE enrichment in most samples, and very significant molybdenum values (see the attached map of the southern part of the zone). The mineralized samples average 0.64% U3O8, (0.38% U3O8 on outcrop) with a maximum of 3.6% U3O8. U/Th ratio is 8, molybdenum is occasionally high (up to 2.7% Mo), REE and phosphate are slightly enriched. This area was previously drill tested by Amax in the 1970-80’s, but only locally, and with limited success.
An area of white granite and pegmatites, relatively poor in uranium, but enriched in thorium and high in REE (up to 1.4%).
A smaller 100m long area of calcsilicates with some white granite. The mineralization is in boulders and outcrop as pegmatoid calcsilicates and as late cross cutting veins (massive pitchblende and calcite). The uranium averages 0.6% U3O8, excluding one sample of pitchblende recovered from weathered vein material which assayed at 56% U3O8. The U/Th ratio is 8.6 and there is some REE enrichment.
A 5,000 metre zone of varied lithologies of quartzites, psammites, pelites, calcsilicates and white granite. The uranium averages 0.76% U3O8, with a max of 2.8% U3O8. The U/Th ratio is 13, and there is minor molybdenum enrichment. One of the high grade samples has been described as coming from a shear zone. This showing is the original showing from the 1970-80’s work, and there are early reports of 6% U3O8 boulders combined with a very high lake sediment sample (100+ ppm U)
An interesting 3,000 metre, east-west trending target area, this mineralization was newly-discovered in 2007. The mineralization is mostly boulders of white granite with quartz veins and one outcrop of uranium mineralized calc-silicates. The best mineralized boulders assay to 1.4% U3O8, some samples have moderate REE enrichment.
This is a broad area along the NE shore of Maguire Lake with mostly pink granite and pegmatite, but with some calc-silicates and a quartzite. Uranium values are up to 1.6% U3O8. One sample is anomalous as it is a white granite sample low in uranium, but with 2.5% REE.
U-Th-1 (Oct 2, 2006)
A previously reported zone of uranium enrichment, mostly in boulder trains. The newly reported samples on this 9,000 x 3,000 metre zone, discovered in 2006, are mostly from the southern extension of the zone. The samples are mostly white granite and pegmatite with some pelites. There is minor REE enrichment.
Pitchblende Ridge (Nov. 1, 2007)
This area is predominantly boulders of calcsilicate with a range of mafic poor to mafic rich. The uranium average is 1.1% U3O8, with a maximum of 17% U3O8. These are mostly boulders, but frost-heave samples at 9.08 % U3O8 with outcrops at 3.72% and 1.91 % U3O8. There is low REE, but some high P2O5 (max 13%). There are two groups of samples: “pitchblende nodules” above 2% U3O8 and the remainder below 2% with a cubic radioactive mineral disseminated or along laminae. The setting is a low resistivity “structural” conductor, and graphite is present in some samples.
Crazy Train (Aug 23, 2007)
This area is exclusively boulders of intrusive rock, mainly white granite with strong alteration of alkali feldspar and apatite, producing rocks composed exclusively of feldspar and apatite.
The U3O8 averages 0.39% with a maximum of 1.24 % U3O8. Thorium and molybdenum are very low, but there is high phosphate (P2O5, average 9.7%). There is enriched in REE (max 8.80%) and Yttrium, with a LREE/HREE ratio of 3.
Table of results samples over 0.05% U3O8 (2005-2007)
All of the samples were submitted to qualified Canadian laboratories for analysis. Samples submitted to Saskatchewan Research Laboratories were analysed for multi-element geochemistry and including uranium by tri-acid digestion and ICP. Samples submitted to Acme Laboratories in Vancouver, BC for assay for trace element geochemistry were analysed by aqua regia digestion and ICP analysis. The samples were collected by CanAlaska field geologists under the supervision of Dr. Karl Schimann, P. Geo. and were shipped in secure containment to the laboratories noted above. Peter Dasler, M.Sc. P Geo. is the Qualified Person responsible for this news release.
About CanAlaska Uranium
CANALASKA URANIUM LTD. (CVV — TSX.V, CVVUF — OTCBB, DH7 — Frankfurt) is undertaking uranium exploration in twenty 100%-owned and three optioned uranium projects in Canada’s Athabasca Basin — the “Saudi Arabia of Uranium”. 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). To-date, CanAlaska has expended over Cdn$60 million exploring its properties and has delineated multiple uranium targets.
CanAlaska’s geological expertise and high exploration profile has attracted the attention of major international strategic partners. Among others, Japanese conglomerate Mitsubishi Corporation has provided the Company C$11 mil. in exploration funding to earn a 50% ownership interest in the West McArthur Project. Exploration of CanAlaska’s Cree East Project is also progressing under a C$19 mil. joint venture with a consortium of Korean companies led by Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources Corp. and SK Energy Co, Ltd., in which the Korean Consortium presently holds a 40.6% ownership interest. Other Company projects in the Athabasca Basin scheduled for drill testing during this winter 2010 season include McTavish, Collins Bay Extension and Helmer.
For more information visit www.canalaska.com
On behalf of the Board of Directors
Peter Dasler, P. Geo., President & CEO
Emil Fung, Director & V.P. – Corp. Dev.
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.