Mr. Peter Dasler reports

CANALASKA OPTIONS ADDITIONAL CLAIMS FOR DIAMOND EXPLORATION IN THE NORTHWESTERN ATHABASCA

Canalaska Uranium Ltd. has optioned two claim groups for diamond exploration to Fjordland Exploration Inc. The two claims, comprising 449 hectares and 2,045 hectares, respectively, were recently staked by the company and are located east of the claims Canalaska optioned to De Beers Canada Inc. in the northwestern Athabasca basin, Saskatchewan (see May 18, 2016, news release). The option deals with De Beers and Fjordland collectively comprise 84 kimberlite-style targets.

The claims optioned to Fjordland cover anomalous magnetic response targets identified on the Saskatchewan government's airborne magnetics survey completed in 2011. Claim MC00004307 has two prominent magnetic targets. Claim MC00004306 has seven prominent targets.

For a 100-per-cent interest in the claims, Canalaska will receive a cash payment of $50,000, of which $5,000 has been received, and the balance payable on the anniversary date of the agreement. Fjordland will also issue to Canalaska four million shares on TSX Venture Exchange approval. Canalaska reserves a 4-per-cent gross overriding royalty for diamonds and a 2-per-cent net smelter return royalty for other minerals. Fjordland has the priority right to purchase up to a 2-per-cent GOR for $500,000 for each 0.5-per-cent GOR, thereby reducing Canalaska's GOR to 2 per cent. Aggregate work commitments are $100,000 by Dec. 31, 2017; not less than 40 per cent of expenditures shall qualify as allowable assessment work. The terms of the agreement are subject to approval of the TSX Venture Exchange.

West Carswell and Alberta, 100-per-cent-owned diamond projects

In addition to the properties optioned to De Beers and Fjordland, the company holds the West Carswell and Alberta diamond projects. These two large properties, comprising over 200,000 acres, are immediately northeast of a group of kimberlite indicator minerals discovered in the McKay-McMurray field in Alberta. The kimberlite indicator minerals are down-ice from Canalaska's properties; their source has yet to be discovered.

Canalaska's diamond-shaped West Carswell project is located approximately 10 kilometres west of the Cluff Lake uranium mine and encompasses six discrete line magnetic anomalies derived from the 2011 Saskatchewan geological survey.

These six targets exhibit discrete magnetic lows and are characteristic of magnetic features intruding the thick sequence of Athabasca sandstone lying above the southern portion of the Rae craton.

Alberta diamond project

Canalaska holds an additional 184,320 acres (73,728 hectares) of mineral claims in neighbouring Alberta, where wide-spaced airborne magnetic surveys have been completed. These surveys show circular magnetic anomalies similar to those recognized from the Saskatchewan survey data.

Of special interest are at least two kimberlite-style anomalies within the Alberta project in an area where the Saskatchewan and Alberta surveys overlap. The confirmation of these two targets and the recognition of anomalous features from the earlier wide-spaced Alberta survey data indicate that the clusters of kimberlite-style features noted in Saskatchewan may continue into Alberta.

Discussions are under way with parties which may be able to assist the company to further develop these targets.

The qualified technical person for this news release is Dr. Karl Schimann, PGeo, vice-president of exploration for Canalaska.