CanAlaska Undertakes Uranium Exploration with Yellowcake plc



    VANCOUVER and LONDON, UK, April 16 /CNW/ - CanAlaska Uranium Ltd. (CVV -
TSX.V) ("CanAlaska") and the UK-based uranium investment company Yellowcake
plc (PLUS:YEL) ("Yellowcake") are pleased to report that they have entered
into an agreement to undertake uranium exploration on CanAlaska's 100%-owned
Grease River Project. The Grease River Project is situated along the Northern
rim of Canada's Athabasca Basin in the Province of Saskatchewan and comprises
twelve claim blocks totalling 68,250 hectares.
    CanAlaska and Yellowcake have entered into an Option Agreement whereby
Yellowcake may acquire a 60% ownership interest in the Grease River Project by
making payments to CanAlaska totalling Cdn$300,000 in cash and 2.5 million
Yellowcake shares, and funding exploration expenditures of Cdn$5.0 million
over a four year period. Upon Yellowcake fulfilling its exploration
commitments under the Option Agreement, the parties will (see map insert:
http://www.canalaska.com/i/maps/Grease_River_BasinMapApr162007.pdf) form a
joint venture to be owned 60% by Yellowcake and 40% by CanAlaska. CanAlaska
will act as Operator for the project and will be responsible for carrying out
all exploration activities.
    The Athabasca Basin is widely considered as being the richest and one of
the largest uranium producing regions in the world. The Grease River Project
covers large and strong lake sediment and radiometric anomalies as identified
from Geological Survey of Canada surveys performed in the 1970's.
    The lake sediment anomalies reach uranium (U) values of several hundred
ppm and the radiometric anomalies show high equivalent uranium combined with
elevated eU/eTh (uranium/thorium) ratios.
    The area is underlain by Archean and Paleoproterozoic intrusives and
metasediments and metavolcanic rocks. Some of the claims cover a north-south
trending tectonic flexure and others straddle the Grease River Shear Zone, a
regional structure that was active during the formation of the Athabasca
Basin. The Fond du Lac unconformity uranium deposit is located along this
major lineament.

    Please click on the hyperlink to view Map
    http://www.canalaska.com/i/maps/GreaseRiverMap04162007.pdf

    Work done by several companies in the late 1970's confirmed these
anomalies and located lakes with even higher uranium values (up to 1,870 ppm
uranium). In addition to these very high lake sediment anomalies, surface
prospecting produced soil anomalies reaching 1.3 % uranium, and showings with
up to 1.6% U(3)O8 in grab samples. To date, the source of most of the
geochemical anomalies has not been found.
    The pending 2007 summer exploration program will include airborne
geophysics, lake sediment and soil geochemistry, prospecting, and mapping. The
objective is to locate the geochemical anomalies and showings described in the
historical work, put them in the framework of present-day knowledge of
Athabasca uranium deposits, and define drill targets using prospecting,
mapping of bedrock and surficial geology, geochemistry, and geophysics.
    Mr. Peter Dasler, President & CEO of CanAlaska Uranium stated, "We are
extremely pleased to welcome Yellowcake as our exploration partner on the
Grease River project. The Grease River region is geologically prospective for
uranium and has received scant exploration attention in the past. Along with
Yellowcake, we believe that renewed efforts with modern exploration techniques
will serve to provide us with better definition of the historical uranium
anomalies".
    Mr. Robert Wallace, Chief Executive of Yellowcake plc stated, "In
accordance with its strategy, Yellowcake plc has examined possible investments
in uranium projects all over the world. We have selected Grease River because
of its location in the Athabasca district in mining-friendly Saskatchewan, its
history of significant uranium showings at surface and its potential as a
shallow, low-cost exploration and production project. We are delighted to have
secured this agreement with CanAlaska which will be providing a top-class
exploration team under the direction of its Chief Geologist Dr. Karl Schimann,
one of the discoverers of the Cigar Lake uranium deposit".
    The Qualified Person for this news release is Peter Dasler, P.Geo.

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

    CanAlaska Uranium (CVV -- TSX.V, CVVUF -- OTCBB, DH7 -- Frankfurt) is
undertaking uranium exploration in seventeen 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). In
2005/2006, CanAlaska expended over Cdn$15 million exploring its properties in
the Athabasca Basin and has delineated multiple uranium targets. Initial
drilling results from the West McArthur Project (now under an earn-in option
to Mitsubishi Development Pty. Ltd.) revealed uranium mineralization and
significant zones of hydrothermal alteration, indicative of a favorable
environment for uranium deposition. Active drilling and exploration will
continue in the winter of 2007 at West McArthur and at 4 other significant
projects.

    About Yellowcake plc -- www.yellowcakeplc.com

    Yellowcake plc (PLUS:YEL) is the world's first portfolio company
specialising wholly in investing in uranium explorers, developers and
producers. Founded in February 2005, it floated on London's PLUS Markets in
July 2005. Yellowcake commenced investing in quoted and unquoted uranium
companies in late September 2005 and currently its portfolio includes 32
companies, with operations in Africa, Australia, Canada, Kazakhstan, Mongolia,
Paraguay and the United States. Since it began investing, its portfolio value
has risen over fourfold with a gain of 312% at 12 April 2007. Its strategy
includes investing directly in uranium projects and Grease River represents
the first such investment.

    
    On behalf of the Board of Directors,

    Peter Dasler, M.Sc., P.Geo.                Robert Wallace
    President & CEO                            Chief Executive
    CanAlaska Uranium Ltd.                     Yellowcake plc
    Tel: +1.604.685.1870                       Tel: +44 07970 648480
    Web: www.canalaska.com                     Web: www.yellowcakeplc.com
    

    The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release: CUSIPNo. 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:

For further information: Emil Fung, Vice President, Corporate
Development, Tel: (604) 685-1870, Toll-Free: 1-800-667-1870, E-mail:
info@canalaska.com

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CanAlaska Uranium Ltd.

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