Mr. Cory Belyk reports

CANALASKA SIGNS LOI TO OPTION FOUR NORTH THOMPSON NICKEL BELT PROJECTS IN MANITOBA TO VALTERRA RESOURCE CORPORATION

Canalaska Uranium Ltd. has entered into a letter of intent (LOI) with Valterra Resource Corp. to allow Valterra to earn up to an 80-per-cent interest in four of Canalaska's 100-per-cent-owned north Thompson nickel belt projects in Manitoba, Canada. These properties are not part of the nickel property package proposed to be spun out (refer to news release dated June 12, 2023).

Valterra may earn up to an 80-per-cent interest in the project by undertaking work and payments in three defined earn-in stages. Valterra may earn an initial 49-per-cent interest (stage 1) in the project by paying the company $35,000 cash, issuing five million common shares of Valterra in tranches over two years and incurring $2-million in exploration expenditures on the project in tranches within two years of the date the TSX Venture Exchange approves the transaction agreement. Valterra may earn an additional 21-per-cent interest (stage 2) in the project by paying to the company a further $50,000 cash and issuing an additional 7.5 million Valterra common shares concurrent with providing notice that it wishes to proceed with the stage 2 earn-in, and by incurring a further $3.5-million in exploration expenditures on the project by the third anniversary of the approval date. Valterra may earn an additional 10-per-cent interest (stage 3) in the project by paying to the company a further $65,000 cash and issuing an additional 25 million Valterra common shares, concurrent with providing notice that it wishes to proceed with the stage 3 earn-in, and by incurring an additional $3.5-million in exploration expenditures on the project by the fifth anniversary of the approval date.

Valterra will issue a further $3-million in cash or, at Valterra's option, the equivalent number of Valterra common shares, upon completion of a positive feasibility study for the project, provided that at such time Valterra has earned, at a minimum, a 49-per-cent interest in the project.

After successful completion of (a) stage 1, if Valterra elects to not enter the next stage or fails to make the stage 2 option payments when and as required, or (b) stage 2, if Valterra elects to not enter the next stage or fails to make the stage 3 option payments when and as required, or (c) stage 3, 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. Any party diluting to a 10-per-cent interest will automatically forfeit its interest in the project and, in lieu thereof, will be granted a 2-per-cent net smelter return (NSR) royalty on the project, half of which NSR (that is, 1-per-cent NSR) may be purchased by the other party at its sole discretion for $2-million at any time prior to commencement of production.

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

An area of mutual interest (AMI) will extend two kilometres from the outer boundary of the project, excluding all properties within such area that are currently held by Canalaska.

Valterra is currently conducting due diligence on the properties comprising the project. Upon successful due diligence, the parties will work toward finalizing and executing a formal agreement. The company will provide updates on this transaction if and when they become available.

Optioned North Thompson nickel projects

The project consists of the Strong No. 1067A, the Strong Extension No. 1167A, the Moak North No. 1168A and Wilson No. 1169A mineral exploration licences (MEL), with a total combined area of 30,283 hectares. The project is located approximately 30 kilometres from the Thompson, Man., with its existing mines and nickel processing facilities owned and operated by Vale.

The project covers much of the northern extension of the Thompson nickel belt (TNB), the fifth-largest sulphide nickel camp in the world based on contained nickel endowment. The largest deposit within the TNB is the main Thompson nickel mine owned by Vale, with an estimated 150 million tonnes at an average grade of 2.3 per cent nickel.

The project area hosts the same geological and structural environment as the nearby Tier 1 Thompson mine, but has seen essentially no exploration drilling since 2005. A detailed compilation of historical information of the project, including a 2007 VTEM (versatile time domain electromagnetics) survey, provided a suite of priority Tier 1-size drill targets that have never been followed up with drilling.

The nearby Mel nickel deposit, 100 per cent owned by Canalaska, with a historical indicated resource estimate of 4.3 million tonnes at an average grade of 0.875 per cent nickel for 82.5 million pounds of contained nickel, is approximately four kilometres south of the Strong property.

Cory Belyk, Canalaska chief executive officer, comments: "Management is very pleased to be working with the Valterra team to move four of our very strategic North Thompson nickel projects forward with significant exploration investment by Valterra. We look forward to results from these staged work programs on what is a very underexplored portion of the prolific Thompson nickel belt, one of the largest sulphide nickel belts in the world."

About Canalaska Uranium Ltd.

Canalaska Uranium holds interests in approximately 350,000 hectares (865,000 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.

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