Mr. Cory Belyk reports

CANALASKA EXECUTES $9 MILLION DEAL IN NORTH THOMPSON NICKEL BELT

Canalaska Uranium Ltd. has signed an arm's-length definitive agreement effective Oct. 13, 2023, with Nickelex Resource Corp., formerly Valterra Resource Corp., to allow Nickelex to earn up to 80-per-cent interest in four of Canalaska's 100-per-cent-owned north Thompson nickel belt projects in Manitoba, Canada (the project).

Nickelex may earn up to an 80-per-cent interest in the project by undertaking work and payments in three defined earn-in stages. Nickelex 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 Nickelex 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. Nickelex 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 Nickelex 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. Nickelex 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 Nickelex 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.

In the event any share issuance would cause Canalaska to become a new control person (as such term is defined in TSX-V policies), then Nickelex will be required to obtain shareholder approval to same before issuing such shares in accordance with TSX-V policies. If shareholder approval is not received, Nickelex may then pay the outstanding obligation in cash in lieu of shares based on the fair market value of the shares at the time of payment.

Nickelex will issue a further $3-million in cash or, at Nickelex's option, subject to shareholder approval in the event such issuance would cause Canalaska to become a new control person, the equivalent number of Nickelex common shares, upon completion of a positive feasibility study for the project, provided that at such time Nickelex has earned, at a minimum, a 49-per-cent interest in the project.

After successful completion of (a) stage 1, if Nickelex 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 Nickelex 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 (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. Nickelex 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.

These properties are not part of the nickel property package proposed to be spun out (refer to news release dated June 12, 2023).

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 city of 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 a similar 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 on the project, including a 2007 VTEM (versatile time-domain electromagnetic) survey, provided a suite of high-priority drill targets that have had only limited 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 MEL boundary.

The company and Nickelex are planning an initial $2-million exploration program.

Canalaska chief executive officer Cory Belyk comments: "Both teams deserve credit for moving this deal from conceptualization to finalization over the summer. With the right investment, we believe discovery of Tier 1 nickel deposits in one of the most prolific sulphide nickel belts in the world is possible. The Thompson nickel belt is proven to be a special place to find nickel and remains remarkably underexplored. I am very pleased to complete this deal that will see significant investment in discovery on world-class assets generated by the Canalaska geological team. We look forward to working with Nickelex to move these projects toward discovery of significant nickel deposits, a critical metal for today and into the future."

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.

The qualified person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is Nathan Bridge, MSc, PGeo, vice-president, exploration, for Canalaska Uranium, who has reviewed and approved its contents.

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