Mr. Cory Belyk reports

CANALASKA ACQUIRES NEBULA PROJECT FROM F3 URANIUM

Canalaska Uranium Ltd. has signed a property swap agreement with F3 Uranium Corp. dated Jan. 16, 2024, for the acquisition of the Nebula project in the Athabasca basin, Saskatchewan. The Nebula project, formerly known as F3 Uranium's Hobo Lake property, is located in the southeastern Athabasca basin and covers 14,854 hectares. The project is located approximately 35 kilometres southwest of the Key Lake mine and mill complex and covers over 40 kilometres of the interpreted Key Lake structural corridor and associated conductors.

About the Nebula project

The Nebula project is located approximately 25 kilometres south of the present-day Athabasca basin margin and covers the extension of the Key Lake structural corridor and stratigraphy where it trends along the western contact of the highly prospective Wollaston-Mudjatik transition zone. The project also runs immediately adjacent to Highway 914, providing excellent access to all the claims.

The Nebula project has been explored in several stages with historical regional- and project-scale ground and airborne geophysical surveys, focused prospecting programs targeting lake sediment and boulder anomalies, and historical shallow diamond drilling. Historical prospecting in the region identified several uranium occurrences both on and proximal to the project. Most notably, prospecting identified the Karpinka Lake boulder train in the northern portion of the Nebula project. The Karpinka Lake boulder train consists of 111 radioactive boulders, 81 of which returned grab sample results containing up to 0.39 per cent U3O8 (triuranium octoxide).

In 2017, F3 Uranium completed a versatile time-domain electromagnetic (VTEM) plus airborne geophysical survey on the project that, in conjunction with historical VTEM surveys, identified a series of conductors associated with an arcuate belt of metasedimentary rocks. Follow-up drilling was carried out in 2019, consisting of 1,300 metres in eight drill holes, that focused on VTEM targets coupled with favourable geology and lithostructural features in the interpreted Key Lake structural corridor. Graphitic metasedimentary rocks with fault structures were intersected during the program. The drill program was highlighted by drill hole KL19-005 which intersected a 40-metre-wide strongly graphitic, chlorite and clay altered fault zone. This fault target remains open along strike. Prior to this drill program, this 40-kilometre-long section of the Key Lake structural corridor had limited drill testing.

The Nebula project is part of the company's strategy to increase its landholdings in the infrastructure-rich southeastern Athabasca basin region. Land acquisitions in this part of the Athabasca basin deliberately focus on staking or acquiring the interpreted structural corridors that are host to, or geologically similar to, the nearby Key Lake deposits, or corridors with Arrow or Eagle Point basement-hosted uranium potential. This project is well situated in relation to other projects in the company's portfolio and critical infrastructure such as power, road and the Key Lake mill. The main target areas on the Nebula project are centred around the 40-kilometre-long conductive structural corridor which extends from the Key Lake mine and mill complex, down through the company's Key Lake extension and Voyager projects, and onto the Nebula project. Off property, the interpreted corridor is host to the Key Lake deposits that consist of a series of east-northeast-striking pods of unconformity-associated uranium mineralization, which have historically produced over 150 million pounds U3O8 from the Gaertner and Deilmann open pits. The company believes this target corridor represents a vastly underexplored opportunity for the discovery of basement-hosted uranium deposits like Arrow or Eagle Point.

Initial work by Canalaska is expected to include property-wide compilation of all historical data to generate further target areas for immediate exploration and drilling follow-up.

Canalaska chief executive officer Cory Belyk comments: "The Nebula project deal provides Canalaska with 100-per-cent ownership in an area with historical exploration which has already identified several significant uranium occurrences, including the large Karpinka Lake uranium boulder train. In conjunction with the company's Key extension, Voyager, Enterprise and Constellation projects, Canalaska now has a semi-contiguous, commanding and dominant land position in an extremely prospective and underexplored region of the southeastern Athabasca basin. I am very pleased with the team's effort to assemble this 100-per-cent-owned land position in the last 18 months that realizes management's vision of focusing our asset portfolio and shareholder investment near critical mine and mill infrastructure. I thank F3 Uranium management for moving this process forward quickly to help bring value to both asset portfolios."

Property swap details

Pursuant to the property swap agreement, Canalaska agreed to sell its 100-per-cent ownership in the two mineral claims comprising the Patterson West property to F3 Uranium in consideration for the Nebula project and a 2.5-per-cent net smelter return (NSR) royalty over the Patterson West property, subject to a buyback right permitting F3 Uranium to purchase 40 per cent of the NSR royalty (being a 1-per-cent NSR royalty) for $3-million. Under the same agreement, F3 Uranium agreed to sell its 100-per-cent ownership in the 37 mineral claims comprising the Nebula project to Canalaska in consideration for the Patterson West property and a 2.5-per-cent NSR royalty over the Nebula Project, subject to a buyback right permitting Canalaska to purchase 40 per cent of the NSR royalty (being a 1-per-cent NSR royalty) for $3-million.

Other news

Join the company's management team at the Vancouver Resource Investment Conference (VRIC) on Jan. 21 and 22 in Vancouver, B.C., at booth No. 635 to discuss this and other exciting projects within its portfolio of discovery opportunities.

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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