Ms. Anita Algie reports

UNITY ACQUIRES THE CAMSELL URANIUM PROJECT, NORTHERN ATHABASCA BASIN

Unity Energy Corp. has entered into a property option agreement with an arm's-length vendor to earn a 100-per-cent interest in the Camsell uranium project, located in the northwestern Athabasca basin on the north shore of Athabasca Lake. The property, which covers an area of about 14,200 hectares, about 30 kilometres west of Uranium City, Sask., begins on the shoreline and extends into Lake Athabasca.

In 2006, CanAlaska Uranium examined the Camsell project with a VTEM survey, with the intention of identifying subsurface and basement conductors lying within magnetic lows. Unconformity depths at Camsell are relatively shallow: between zero to 250 metres. The current project area contains the highest-priority targets interpreted from that survey by Condor Consulting. The E target zone is described as very large with dimensions of approximately 26 by 17 km, and is open along the eastern and southern boundaries of the survey area. The target comprises strong, medium and weak WZ conductors with most of the target zones correlating with a broad magnetic low, with the western and northern edges encroaching onto the flanks of a number of magnetic highs. The higher-conductivity subzones all correlate with general magnetic lows. Because of the large overall size of the target zone, the strong WZ conductors are separated out into subzones, which are relatively equi-dimensional and do not appear to have a preferred strike direction. For example, subzone E-5 near the centre of the larger target zone has dimensions of approximately five by three km and resistivities less than 200 ohm-metres. The tops of the conductors lie close to the predicted UC. It correlates with a general magnetic low. The most conductive section of target zone, which has dimensions of approximately three by three km and lies close to the edge of the basin, had resistivities as low as 25 ohm-metres. The top of the strong conductor (which was also noted in a Mark VII airborne electromagnetic survey in 1978) lies approximately 300 m below the predicted UC within this subzone, so either the UC deepens very abruptly at the edge of the basin or the conductor does not extend to the UC surface. This subzone correlates with a generally low magnetic area.

The northern boundary of the project area hosts the Meadow Ridge uranium showing, which lies on the peninsula of land that juts out from the north shore of Lake Athabasca to the northeast of Slate Island and to the northwest of Charlot Island. The showing is located approximately six km west of Camsell Portage. The geology of Slate Peninsula consists of north-to-northeast-trending, steeply east dipping, Thluicho group meta-greywackes that contain andesite flow and breccia interbeds. In 2004, Ashton and Hunter remapped the showing host rocks as unit Tcw or Thluicho Lake group Camsell Portage formation-Waterloo member sediments or grey, green and red, fine-grained, thin-bedded, laminated and ripple-laminated, highly magnetic sandstones and siltstones. The meta-greywackes consist of thinly bedded, interlayered mudstones, siltstones, marls and sandstone that are grey to brown in colour and highly fractured. Both hematite and calcite occur as fracture fillings. Locally, the rocks exhibit ripple marks and worm trail casts. The interbedded andesitic composition flows and breccias were deposited contemporaneously with the above-described sediments. The repetitive nature of the volcanic event that produced the andesite resulted in an interlayering of meta-greywacke and andesite. The Meadow Ridge radioactive zone, which produced scintillometer counts up to 6,200 counts per second, consists of fracture controlled mineralization. Grab samples returned the values shown in the table.

                 MEADOW RIDGE GRAB SAMPLE RESULTS

Sample No.          U3O8       Cu         Ni        Pb         Zn
                    (ppm)    (ppm)      (ppm)     (ppm)      (ppm)

S101-004             660       26         41        78         35
S101-006             793       33         32        77         41
S101-007           1,214       46        131       128         58
S101-008             505       10         29        59         55

Upon the receipt of regulatory approval, the company can earn a 100-per-cent interest in the property by paying $20,000 and issuing one million common shares to the vendor. The company must make additional payments totalling $550,000 over the next 42 months and complete $2-million in exploration expenditures on the property within five years. A 1-per-cent net-smelter-returns royalty has also been granted to the vendor, which may be purchased by the company for $1.5-million. This transaction is subject to regulatory approval.

Peter Born, PGeo, the company's qualified person, has neither reviewed the original Meadow Ridge sampling or assays. The assay values reported herein are not National Instrument 43-101 compliant, and although they were prepared by what is assumed to be reputable professionals, they cannot be relied upon. These values are only relevant in assessing the potential type or mineralization that could exist. Geological and exploration information contained in this release is derived from sources believed to be credible.