Mr. Cory Belyk reports

CANALASKA COMPLETES OPTION AGREEMENT DEAL ON CREE EAST PROJECT

Canalaska Uranium Ltd. has signed an arm's-length definitive agreement effective March 18, 2024, with Nexus Uranium Corp. to allow Nexus to earn up to a 75-per-cent interest in the Cree East project. The Cree East project is located in the southeastern Athabasca basin and covers 57,752 hectares. The project is located 35 kilometres west of the Key Lake mine and mill complex.

Nexus may earn up to a 75-per-cent interest in the project by undertaking work and payments in three defined earn-in stages. Nexus may earn an initial 40-per-cent interest (stage 1) in the project by paying the company $750,000 cash in tranches over 12 months, issuing $3-million of common shares of Nexus in tranches over 12 months, and incurring $5.5-million in exploration expenditures and other costs related to the project within 18 months of the date of the definitive agreement. Nexus may earn an additional 20-per-cent interest for a total 60-per-cent interest (stage 2) in the project by paying to the company a further $1-million cash and issuing an additional $3-million Nexus common shares, concurrent with providing notice that it wishes to proceed with the stage 2 earn-in, and by incurring a further $6.5-million in exploration expenditures and other costs related to the project within 24 months of commencing the stage 2 earn in (approximately 3.5 years after the agreement date). Nexus may earn an additional 15-per-cent interest for a total 75-per-cent interest (stage 3) in the project by paying to the company a further $1.25-million cash and issuing an additional $4-million Nexus common shares, concurrent with providing notice that it wishes to proceed with the stage 3 earn-in, and by incurring an additional $7-million in exploration expenditures and other costs related to the project within 24 months of commencing the stage 3 earn in (approximately 5.5 years after the agreement date).

All Nexus shares issued to Canalaska under the option agreement will be subject to a hold period expiring four months and one day after their date of issue, pursuant to applicable Canadian securities laws. In addition, Canalaska has agreed to voluntary resale restrictions on such shares whereby 25 per cent of the shares will be released from voluntary resale restrictions three months, six months, nine months and 12 months after their issue date.

After successful completion of (a) stage 1, if Nexus 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 Nexus 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 thereafter 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 royalty on the project.

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. Nexus 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 60-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 at time of signing the definitive agreement. Initial exploration permits have been submitted for approval.

Cory Belyk, Canalaska chief executive officer, comments: "Bringing this level of exploration investment into the Cree East project is a significant milestone for Canalaska and its shareholders. This spend commitment by Nexus Uranium will allow for multiple priority exploration targets to be advanced in a large eastern Athabasca basin project located close to the producing Key Lake uranium mill. The time is now for discovery in this region and the Cree East project has all the hallmark signs of a potential significant discovery laying in wait. We look forward to working with the Nexus team to advance this project toward that discovery."

About the Cree East project

The Cree East project is located in the southeastern Athabasca basin, 35 kilometres west of the Key Lake mine and mill complex. The southern boundary of the project is located five kilometres north of the present-day Athabasca basin edge. The project consists of 17 contiguous mineral claims for a total of 57,752 hectares.

Early exploration on the Cree East project was undertaken in the 1970s and 1980s, with several stages of historical regional- and project-scale ground and airborne geophysical surveys, focused prospecting, boulder sampling programs, and shallow diamond drilling. In the early 2000s, Canalaska acquired the project through staking and began a property-wide lake sediment, boulder and soil sampling program. This work program was followed up by a series of large-scale airborne electromagnetic and magnetic surveys, which were subsequently refined with higher-resolution ground-based geophysical surveys, including audio-magnetotelluric (AMT), induced polarization (IP)-resistivity and ground moving loop electromagnetics (EM). This large-scale geophysical approach to the Cree East project has identified seven major exploration grids on the project, of which Grid 7 appears to be the most prospective with nine target areas.

Between 2008 and 2012, Canalaska drilled 91 holes for a total of 34,473 metres. All drilling to date has been completed on Grid 7, targeting coincident basement EM-conductors with overlying sandstone low-resistivity features. The most significant drilling results come from the target area B, where clay alteration extends throughout the entire sandstone, with altered pyrite and associated uranium enrichment in the lower sandstone. The sandstone alteration is associated with wide intersections of brecciation and faulting, causing over 50 m of vertical unconformity displacement. Hydrothermal alteration continues into the basement, where the best intersection of uranium mineralization on target area B was intersected in CRE083 that consisted of 0.09 per cent triuranium octoxide (U3O8) over 0.5 metre from 500.1 metres, associated with hematite-altered quartzite.

Since acquiring the project, Canalaska has spent over $20-million on exploration through a previous partnership with a Korean consortium.

About Canalaska Uranium Ltd.

Canalaska Uranium holds interests in approximately 500,000 hectares (1,235,000 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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