CanAlaska Executes $9 Million Deal in North Thompson Nickel Belt

Nickelex Resource Corporation Granted Staged Option to Earn Up To 80% Interest on Four Large Properties

30,283 hectares total, 30 kilometres from Vale's Thompson Nickel Operations

CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQX: CVVUF) (FSE: DH7N) ("CanAlaska" or the "Company") is pleased to announce that it has signed an arm's-length definitive agreement effective October 13, 2023 with Nickelex Resource Corporation ("Nickelex"), formerly Valterra Resource Corporation, to allow Nickelex to earn up to 80% interest in four of CanAlaska's 100%-owned north Thompson Nickel Belt projects in Manitoba, Canada (the "Project") (Figure 1).

Figure 1 – North Thompson Dispositions Location Map

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Nickelex may earn up to an 80% interest in the Project by undertaking work and payments in three defined earn-in stages. Nickelex may earn an initial 49% interest (Stage 1) in the Project by paying the Company $35,000 cash, issuing 5,000,000 common shares of Nickelex in tranches over two years and incurring $2,000,000 in exploration expenditures on the Project in tranches within two years of the date (the "Approval Date") the TSX Venture Exchange approves the transaction agreement. Nickelex may earn an additional 21% interest (Stage 2) in the Project by paying to the Company a further $50,000 cash and issuing an additional 7,500,000 Nickelex common shares concurrent with providing notice that it wishes to proceed with the Stage 2 earn-in, and by incurring a further $3,500,000 in exploration expenditures on the Project by the third anniversary of the Approval Date. Nickelex may earn an additional 10% interest (Stage 3) in the Project by paying to the Company a further $65,000 cash and issuing an additional 25,000,000 Nickelex common shares concurrent with providing notice that it wishes to proceed with the Stage 3 earn-in, and by incurring an additional $3,500,000 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 TSXV policies), then Nickelex will be required to obtain shareholder approval to same before issuing such Shares in accordance with TSXV 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 $3,000,000 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% 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 pre-defined straight-line dilution formula. Any party diluting to a 10% interest will automatically forfeit its interest in the Project and in lieu thereof will be granted a 2% net smelter return ("NSR") royalty on the Project, half of which NSR (i.e., 1% NSR) may be purchased by the other party at its sole discretion for $2,000,000 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 funding at the various option stages and will have the right to assume operatorship after successfully earning a 70% 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" #1067A, the "Strong Extension" #1167A, the "Moak North" #1168A, and "Wilson" #1169A mineral exploration licenses ("MEL") with a total combined area of 30,283 hectares (Figure 1). The Project is located approximately 30 kilometres from the City of Thompson, Manitoba, 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 150Mt at an average grade of 2.3% 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 survey, provided a suite of high priority drill targets that have had only limited drilling.

The nearby Mel nickel deposit, 100%-owned by CanAlaska, with a historical indicated resource estimate of 4.3 million tonnes at an average grade of 0.875% 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 CEO, 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

CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQX: CVVUF) (FSE: DH7N) 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. For further information visit www.canalaska.com.

The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is Nathan Bridge, MSc., P. Geo., Vice-President Exploration for CanAlaska Uranium Ltd., who has reviewed and approved its contents.

On behalf of the Board of Directors
"Cory Belyk"
Cory Belyk, P.Geo., FGC
CEO, President and Director
CanAlaska Uranium Ltd.

Contacts:

Cory Belyk, CEO and President
Tel: +1.604.688.3211 x 138
Email: cbelyk@canalaska.com

General Enquiry
Tel: +1.604.688.3211
Email: info@canalaska.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

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