About CanAlaska Uranium

CanAlaska Uranium holds interests in approximately 300,000 hectares (750,000 acres) in Canada’s Athabasca Basin – the "Saudi Arabia of Uranium".

CanAlaska’s strategic holdings have attracted major international mining companies as partners. The Company 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. 

Summary

CanAlaska is currently working with Cameco at the company’s West McArthur property and with Denison at the Moon Lake South property in the infrastructure and uranium-rich eastern Athabasca Basin.

West McArthur lies within a prolific uranium corridor including McArthur River (12 kilometres east), one of the richest uranium mines on the planet, and the high-grade Fox Lake deposit (3 kilometres northeast). CanAlaska’s 2022 exploration programs are building on uranium discoveries made in recent drilling campaigns. 

A $5 million summer drilling program on the West McArthur property has been completed, testing multiple targets with a new high-grade discovery announced in July 2022 which intersected 9 metres of 2.4% U3O8 in basement rocks 100 metres below the unconformity.

CanAlaska has a strong technical team including former Cameco geologists (Cory Belyk, CEO, and Nathan Bridge, VP-Exploration), a former Orano geologist (Greg Gudmundson, Sr Project Geologist), as well as Dr. Karl Schimann (Sr Geoscience Consultant), a discoverer and developer of the giant Cigar Lake uranium mine. 

Thesis

The shift to clean energy has created another nuclear renaissance as the world enters an energy revolution. Globally, nuclear is increasingly gaining support as a viable, reliable, carbon-free option for countries to meet their energy security and climate commitments.

To meet the growing demand for sustainable clean energy, estimates indicate nuclear needs to provide at least 25% of global electricity by 2050. Achieving this means nuclear generation must triple by 2050. 

The growth of nuclear power creates a compelling case for uranium, the fuel to power nuclear plants. Uranium supplies are expected to be between 100 to 200 million pounds short of future demand requirements, fuelling higher prices for U3O8.

Very few exploration companies exist within the relatively small uranium sector. Established companies, like CanAlaska, that have been through the last major uranium cycle and that have survived the extended downturn are expected to attract the greatest attention from investors. 

Exploration potential

Approximately the size of Switzerland, Canada’s Athabasca Basin is the world’s premier region for discovery of large, high-grade uranium deposits. Initial exploration at CanAlaska’s properties indicate several of the company’s properties display key characteristics for hosting major uranium deposits like the world-class McArthur River and Cigar Lake uranium mines. 

Many of CanAlaska’s properties, especially the flagship West McArthur, have several defined strong targets. Upcoming exploration programs are expected to vector-in on the location of high-grade (+5% Uranium) mineralization discovered in recent drilling. 

With a strong $8.5 million cash position, CanAlaska is well-funded for multiple drilling campaigns. The company also benefits from partner funding on many key projects and continues to pursue new deals to move other projects forward. 

In short, given the large property portfolio, experienced team, and financial resources, the company is now at the forefront of exploration in the world’s richest uranium depository.

Risks

The pullback in resource markets has taken CanAlaska’s share price to 2020 levels prior to the July discovery announcement, despite the company’s properties being more advanced.

More staff positions in administration and finance, technical support and geology are required to execute on CanAlaska’s 2023 exploration mandate which pose some risk that future programs may need to be curtailed or altered. In addition, contractors are becoming increasingly busy and costs are climbing. 

Indigenous relations is a dynamic space in Saskatchewan, Manitoba and British Columbia.

Inflationary pressures are real and affect all aspects of the business unit.

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