Vancouver, British Columbia--(Newsfile Corp. - December 23, 2016) - CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N), has received notice from De Beers for the
termination of the West Athabasca project option. De Beers' exploration team has interpreted the 85 large magnetic anomalies
scattered across the claims to be most likely associated with magnetic minerals within organic material in the overburden.
Figure 1: Athabasca Diamond Projects
To view an enhanced version of Figure 1, please visit: http://orders.newsfilecorp.com/files/2864/24287_a1482518160636_50.jpg
De Beers' drill program in September 2016 tested seven magnetic targets accessible before winter, located mostly in the southern
claim groups. At five sites, the drill holes intercepted magnetic material within the organic overburden, unconsolidated sand and
boulders, followed by sandstone. At one drill site, the overburden was not collected but the sandstone intercepted did not explain
the associated magnetic anomaly. One drill hole intercepted overburden consisting of peat, unconsolidated sands and boulders,
followed by sandstone and a thin diabase sill, which may explain the anomaly.
Figure 2: West Athabasca Project: Drill Hole Locations
To view an enhanced version of Figure 2, please visit: http://orders.newsfilecorp.com/files/2864/24287_a1482518160886_48.jpg
It is highly unusual to encounter such magnetic material in organic overburden. Samples from this material were sent to
Saskatchewan Research Council (SRC) and McMaster University for analysis and review. There is some scientific literature that
details bacterial production of magnetic material under certain conditions. Although the Western Athabasca Basin has the right
geological and structural setting for the presence of diamondiferous kimberlite, De Beers decided not to continue drilling and,
under the terms of the Option Agreement, have returned 100% of the project to CanAlaska.
CanAlaska President Peter Dasler commented, "I am very pleased with the excellent relationship we have developed with De Beers
through this project. The Western Athabasca merits exploration for diamonds and we will now concentrate on evaluating several of
the more interesting magnetic anomalies within the remaining 78 targets that CanAlaska does not believe are related to magnetic
organic material. The series of positive and negative (reverse) magnetic responses that are evident from the recent airborne
surveys on our nearby properties, specifically West Carswell and Alberta, would not be caused by similar organic material.
CanAlaska is currently marketing its Alberta property to third parties to explore for diamonds, and with the return of 100% of the
West Athabasca project, we expect that there will be parties that will wish to help us test the remaining targets."
In other news, CanAlaska has received correspondence from Cameco Corporation in relation to the West McArthur uranium project;
Cameco expects to be able to provide a 2017 exploration program and budget by January 31, 2017.
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) holds interests in approximately 500,000 hectares (1.2 million acres), one of the largest land positions
in Canada's Athabasca Basin region - the "Saudi Arabia of Uranium." CanAlaska's strategic holdings have attracted major
international mining companies Cameco, Denison, KORES, and KEPCO. CanAlaska is a project generator positioned for discovery success
in the world's richest uranium district. For further information visit www.canalaska.com.
The qualified technical person for this news release is Dr Karl Schimann, P. Geo, VP Exploration, for CanAlaska.
On behalf of the Board of Directors
"Peter Dasler"
Peter Dasler, M.Sc., P.Geo.
President &
CEO
CanAlaska Uranium Ltd.
Contacts:
Peter Dasler
President
Tel: +1.604.688.3211 x 138
Email: info@canalaska.com
John Gomez
Corporate Development
Tel: +1.604.484.7118
Email: jgomez@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.
