CanAlaska to explore Collins Bay Extension uranium project

    VANCOUVER, July 15 /CNW/ - CanAlaska Uranium Ltd. (TSX.V - CVV)
("CanAlaska" or the "Company") is pleased to announce that it has executed an
Option Agreement ("Option") with Bayswater Uranium Corporation. ("Bayswater")
to commence exploration of the Collins Bay Extension uranium project
("Project"), situated directly adjacent to, and following the North-East
strike of the past-producing uranium mines at Rabbit Lake and Collins Bay, and
the current producing uranium mine at Eagle Point in the Province of
Saskatchewan (See Figure 1 -
http://www.canalaska.com/i/maps/CVV_Map_attachment_July152009Fig1.pdf). The
Project contains a significant number of exploration targets within the
Snowbird and Fife Island areas.
    Under the terms of the Option, CanAlaska shall act as the exploration
operator and may earn a 51% participating interest in the Project by
undertaking a minimum of Cdn$4 million in exploration expenditures within 5
years and issuing a total of 500,000 Company shares to Bayswater over this
period. The Company may increase its participating interest in the Project to
a 70% level by successfully undertaking a further Cdn$2 million in exploration
expenditures over a period of 3 years.

    Collins Bay Extension Project

    CanAlaska's prime focus in the current exploration season is to re-visit
and drill test the structurally- controlled uranium mineralization intersected
in historical (1984) Minatco drillholes MWLD8 to MWLD13.

    The best of these holes intersected 0.152% U(3)O(8) over 4 metres (over 3
pounds per ton U(3)O(8)), along an offset structure on the northern part of
Fife Island, in an area designated as the "VIC" zone.

    The geological trends mapped in the Eagle Point-Collins Bay uranium mines
and surrounding areas extend to the north and east onto the Collins Bay
Extension property. Historical exploration dating from the late 1960's was
controlled by large corporations, such as by Gulf Minerals, E&B Explorations,
Minatco Ltd (now part of AREVA), SMDC and Cameco. These exploration efforts
involved extensive use of then-current geophysical survey techniques and made
multiple uranium discoveries, evidenced by uranium mineralization in drill
holes in 4 separate areas. Ten areas of the property produced geological and
structural targets. However, a total of only 73 diamond drill holes were
drilled on this extensive property throughout these years through to 2008.
This amounted to less than one drill hole per 5 square kilometres. This
minimal quantity of physical drilling of the significant targets from the
early exploration provides CanAlaska an excellent opportunity to test prime
exploration targets in a highly productive uranium exploration territory.
    The historical drill holes on the Project were not evenly distributed,
but were concentrated in clusters within the North Fife area in the north part
of the property, the Northern Snowshoe Island - Greenway Peninsula area in the
west-center of the property, and the Rabbit Lake North area in the south of
the property. These areas remain prime targets for further exploration.
Similarly, the target containing the source of the Pow Bay uranium mineralized
boulder train, north-east of the Rabbit Lake deposit, is thought to be under
the lake-covered portion of the southern part of the Collins Bay extension
property. In all of these areas, the postulated pre-existing Athabasca
sandstone has been removed by erosion, and the uranium exploration will be for
Athabasca "basement style" unconformity targets, such as the Eagle Point or
Rabbit Lake deposits.
    In 2007, Northern Canadian Uranium (NCU), the previous operator of the
property, carried out a small drill program totaling 1,330 meters in five
holes on a newly identified target, intersecting narrow intervals of
sub-economic mineralization at the northern end of Snowshoe Island (up to
0.03% U(3)O(8) over 2.0 metres from drill hole CBE07-06. In 2008, NCU carried
out 2,014 line-km of modern VTEM geophysical surveys over most of the Project,
including the area east of the Pow Bay mineralized boulder train. In late
2007, NCU was amalgamated with Bayswater Uranium, and Bayswater carried out a
drilling program in early 2008 consisting of 3,510 m of drilling in 12 drill
holes. All these holes interesected favourable lithologies of the basal
Wollaston group of metasediments, which host all the basement hosted
unconformity related deposits in the eastern Athabasca basin, and one hole
interested 710 ppm U in a tourmaline rich pegmatite.
    There still remains untested high priority targets on the project area.
The geology and target figures (Figure 2 -
http://www.canalaska.com/i/maps/CVV_Map_attachment_July152009Fig2.pdf) show
the strong structural trends and zones of conductor targets on strike and
adjacent to the know uranium mine mineralization in the Rabbit Lake and
Collins Bay/Eagle Point mineral trends.
    President Peter Dasler, commented. "CanAlaska has been focusing its 2009
summer exploration on drill testing near-surface uranium targets on the
Northern Rim of the Athabasca Basin, on its Black Lake, Fond Du Lac and Grease
River projects. The opportunity to combine these logistical operations on a
readily accessible project, which has associated road and power
infrastructure, is significant. The Collins Bay Extension Project hosts
multiple zones of known uranium mineralization, and on Fife Island, at least
one zone of ore-grade values. This latter target has not been investigated
since 1984. The publicly available updates on style and geology of the mineral
deposits at the current mines in the trend, coupled with the advanced modern
geophysical modeling that CanAlaska staff is regularly carrying out, provides
us with the knowledge to define very strong exploration targets on the
project. It is fortuitous that CanAlaska has the funding and personnel in
place to advance this significant exploration opportunity."
    Since 2005, CanAlaska has successfully carried out over 4,000 line
kilometres of marine seismic survey mapping within areas of the Athabasca
Basin. The Company intends to utilize this extensive experience with seismic
surveys to map near shore lake targets peripheral to the know mines and
mineral showings. CanAlaska intends to carry out an initial drill program on
the Fife Island, "VIC" zone mineralization, commencing in August, 2009.

    About CanAlaska Uranium Ltd. -- www.canalaska.com

    CANALASKA URANIUM LTD. (CVV -- TSX.V, CVVUF -- OTCBB, DH7 -- Frankfurt)
is undertaking uranium exploration in twenty 100%-owned and two optioned
uranium projects in Canada's Athabasca Basin. Since September 2004, the
Company has aggressively acquired one of the largest land positions in the
region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles).
To-date, CanAlaska has expended over Cdn$50 million exploring its properties
and has delineated multiple uranium targets. The Company's geological
expertise and high exploration profile has attracted the attention of major
international strategic partners. Among others, Mitsubishi Development Pty., a
subsidiary of Japanese conglomerate Mitsubishi Corporation, has undertaken to
provide CanAlaska C$11 mil. in exploration funding for its West McArthur
Project. Exploration of CanAlaska's Cree East Project is also progressing
under a C$19 mil. joint venture with a consortium of Korean companies led by
Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources
Corp. and SK Energy Co, Ltd. Memoranda of Understanding have also been
executed with mining partner East Resources Inc. to commence exploration on
the Poplar and NE Wollaston Projects, comprising a potential 100,000 metres of
drill testing on each property.

    About Bayswater Uranium Corporation -- www.bayswateruranium.com

    BAYSWATER URANIUM CORPORATION (BAY -- TSX.V) is an international uranium
exploration and development company. The Company owns several advanced uranium
properties in the United States with significant historical resources that may
be amenable to ISR and/or conventional mining. As well, Bayswater is the only
uranium company to have major landholdings in each of Canada's most important
producing and exploration regions - the Athabasca Basin, the Central Mineral
Belt, and the Thelon Basin. Bayswater combines a balanced portfolio of
advanced and exploration projects with the uranium expertise of its technical
and managerial teams. To capitalize on current market conditions and strong
growth of the nuclear industry, the Company is pursuing acquisition
opportunities of advanced-stage uranium projects with near-term production
potential. Bayswater's vision is to build a major international uranium
company.

    On behalf of the Board of Directors

    (signed)
    Peter Dasler, M.Sc., P.Geo.
    President & CEO, CanAlaska Uranium Ltd.

    The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release: CUSIP No. 13708P 10 2. This news
release contains certain "Forward-Looking Statements" within the meaning of
Section 21E of the United States Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included herein are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the Company's
documents filed from time to time with the British Columbia Securities
Commission and the United States Securities & Exchange Commission.

For further information: Emil Fung, Director & V.P. - Corp. Dev., Tel:
(604) 688-3211, Email: info@canalaska.com