Mr. Peter Dasler reports

CANALASKA DEALS MANIBRIDGE NICKEL PROJECT IN THOMPSON NICKEL BELT MANITOBA

Canalaska Uranium Ltd. has entered into a letter of intent (LOI) with D Block Discoveries Inc. (DBD), a private company wholly owned by Ore Group Inc., to allow DBD to earn up to a 100-per-cent interest in Canalaska's 100-per-cent-owned 4,368-hectare Manibridge nickel project in Manitoba, Canada.

DBD may earn up to a 100-per-cent interest in the project by undertaking work and payments in three defined earn-in stages. DBD may earn an initial 49-per-cent interest (stage 1) in the project by paying the company $30,000 cash, issue $275,000 worth of common shares and incur $500,000 in exploration expenditures on the project within 12 months of TSX Venture Exchange approval date. DBD may earn an additional 21-per-cent interest (stage 2) in the project by paying to the company a further $50,000 cash, issue a further 1.5 million common shares in DBD and incur an additional $1.5-million in exploration expenditures on the project within 12 months of entering the stage 2 option. DBD may earn an additional 30-per-cent interest (stage 3) in the project by paying to the company a further $100,000 cash, issue a further five million common shares in DBD and incur an additional $2-million in exploration expenditures on the project within 24 months of entering the stage 3 option.

After successful completion of either of stage 1 or stage 2 of the option agreement, and if DBD elects to not enter the final stage, a joint venture will be formed and the parties will either co-contribute on a simple pro rata basis or dilute on a predefined straight-line dilution formula. A summary of the various stages is contained in the attached table.

During stage 1 and stage 2 of the option agreement, Canalaska will be operator of the project. DBD will have sole voting rights on exploration programs while sole financing at the various option stages and will have the right to assume operatorship after successfully earning 70-per-cent interest in the project (stage 2).

As part of completing the stage 1 option, DBD will grant to Canalaska a 1-per-cent net smelter return (NSR) royalty on claims P1271F and P1272F and a 2-per-cent NSR royalty on all other claims.

Manibridge nickel project

The Manibridge nickel deposit was discovered in 1963 by Falconbridge (as Glencore was then named) following up on coincident magnetic and electromagnetic anomalies that were thought to be caused by an ultramafic body. The second hole of the program intersected the fringes of what would become the Manibridge mine. Sulphide nickel mineralization is hosted within an elongate, folded ultramafic body that extends for at least 3.2 kilometres with nickel-bearing sulphide mineralization throughout. The Manibridge nickel deposit is located within the core of a major fold axis with up to 10 sulphide lenses that conform to the fold pattern and plunge to depths in excess of 380 metres.

A production decision was made in 1969 on an initial mineral inventory of 1,409,000 tons (including 15-per-cent dilution) at an average grade of 2.25 per cent nickel and 0.27 per cent copper to a depth of 380 metres. The mine was operational from 1971 to 1977 with concentrate shipped to both Sudbury, Ont., and Thompson, Man. Mining occurred to a depth of 300 metres and the mine infrastructure has since been reclaimed.

In 2007, Crowflight Minerals Inc. and Pure Nickel formed a 50-per-cent/50-per-cent joint venture to explore the Manibridge claims. The 2008 exploration program intersected two new zones of nickel mineralization within 400 metres of the Manibridge deposit. Further drilling confirmed the extension of the mineralization below the mine workings. The most significant results from drill holes MN08-01, MN08-02 and MN08-04 respectively include 16.75 metres (55 feet) at 1.38 per cent nickel (Ni); 5.45 metres (17.9 feet) at 1.18 per cent Ni; and 6.3 metres (20.7 feet) at 1.37 per cent Ni.

In 2019, a 800-metre drill program completed by Canalaska 2.5 kilometres north along the mine trend intersected a broad fold structure that included multiple high-grade nickel assays up to 12.06 per cent nickel. Canalaska president Peter Dasler comments, "Canalaska is pleased to be able to work with D Block's entrepreneurial group and management is looking forward to operating the next exploration programs and new discoveries at Manibridge, as well as being exposed to the new company's other exploration interests."

Other news

Canalaska is currently conducting drilling at its 100-per-cent-owned Waterbury uranium project in the Athabasca basin near the Cigar Lake uranium mine. The company is also awaiting drill results from its Mouse Mountain copper property in British Columbia and drilling permits for the Strong nickel project in Manitoba.

About Canalaska Uranium Ltd.

Canalaska Uranium holds interests in approximately 214,000 hectares (530,000 acres) in Canada's Athabasca basin -- the Saudi Arabia of uranium. Canalaska's strategic holdings have attracted major international mining companies. 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.

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

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