Mr. Peter Dasler reports

CANALASKA EXPLORATION UPDATE

Cameco Corp. has given notice to acquire its 30-per-cent interest and form a joint venture with Canalaska Uranium Ltd. on the West McArthur uranium project. Canalaska will now become operator of the joint venture. The company is currently in the process of preparing a program of work for 2019 exploration.

West McArthur uranium discovery

In August, 2017, Cameco intersected the first high-grade uranium mineralized intervals on the five-kilometre-long Grid 5 target area at the 36,000-hectare West McArthur uranium project. The West McArthur property commences 15 kilometres (nine miles) west of Cameco's majority-owned McArthur River uranium mine, and is located close to existing mines and infrastructure.

To date, three holes have intersected mineralization, up to a maximum of 1.51 per cent triuranium octoxide (U3O8) over 5.5 metres. The main anomalous zone is centred on the structural complexity observed along the L5700W and L6000W geophysical lines, just west of the property boundary. Further information on the project is available on the Canalaska website.

Canalaska president Peter Dasler comments: "Cameco's team has provided us with significant uranium mineralization on the C10 conductor within the West McArthur property, just one to two kilometres west of the Fox Lake uranium deposits, which show inferred resources of approximately 68.1 million lb based on 387,000 tonnes at 7.99 per cent U3O8.

"We now have drill holes and geophysical modelling indicating a substantial hydrothermal alteration system at a location where we have significant flexures and offsets in the underlying graphitic units. We look forward to operating the project and drilling to extend the current mineralized zones."

West Athabasca diamond update

In 2016, Canalaska entered into an agreement with the De Beers Group of Companies to investigate magnetic anomalies within sandstones of the Western Athabasca. These magnetic anomalies showed as high-amplitude circular magnetic features on a 2012 Saskatchewan-federal government airborne survey. De Beers embarked on an intensive work program, which included high-resolution airborne magnetic surveying and esker sampling for indicator minerals, and concluded with limited drill testing.

De Beers work defined 695 magnetic targets, 123 of which were defined as high priority for kimberlite. Eleven of the 695 targets were modelled as highly magnetic and very near surface, and on dry ground. Seven of these targets were drill tested with short holes, three of the targets were explained by the presence of highly magnetic organic-derived material at the top of glacial gravels. One target was partially explained by a small diabase sill, but the other targets were inconclusive. The esker sampling for indicator minerals was also inconclusive.

De Beers and Canalaska as well as other qualified experts have investigated the magnetic material from the drill holes, and concluded that it is probably biogenic, and formed from bacterial activity in an anaerobic environment. It is not detrital sand.

Following the return of 100 per cent of the project to Canalaska, there has been continued modelling of kimberlite style targets, and discussion with experts. The company has concluded that at least 40 of the 695 magnetic features have the discrete circular nature of classical kimberlite bodies and have a different magnetic responses from the near-surface organic-derived material. In some cases these features are masked by near-surface magnetic responses. The company is currently planning for drill testing of up to 10 of these targets in late first quarter 2019.

About Canalaska Uranium Ltd.

Canalaska Uranium holds interests in approximately 152,000 hectares (375,000 acres) in Canada's Athabasca basin. 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.

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