CanAlaska Uranium Ltd.: Key Lake Drilling Hits Graphite Conductor and Uranium Mineralization



    VANCOUVER, Feb. 29 /CNW/ - CanAlaska Uranium Ltd, (CVV - TSX.V) the
"Company" and Westcan Uranium Corp (WCU - TSX.V) are pleased to release the
preliminary results for the first drillhole completed on the Key Lake drill
program in 2008, (see NR January 22, 2008). Diamond drill hole Key 005
intercepted a sequence of well foliated to sheared granite gneisses, pelites,
graphitic pelites and brecciated granitoid rocks, with hematite alteration in
the granites and metasediments. The uranium mineralization intercepted in the
hole has been verified by hand scintillometer and down hole probe
measurements. Radioactivity is associated with pelites, granitoid, and the
contact zone between pelites and hematised brecciated granitoid. Assay samples
have been sent for laboratory analysis, but may not be available for some
time.
    Mr. Chris England, President of Westcan Uranium Corp., stated that "We
are extremely pleased with this brand new discovery of uranium in such a
highly prospective area. We intend, in concert with Canalaska, to pursue this
target aggressively".
    The Key Lake Project is located in the southeast of the Athabasca Basin,
Canada. The project is under option to Westcan Uranium Corp., which is funding
$2,000,000 in uranium exploration to earn a 50% ownership interest.

    To view map image and table, click on the link:
    http://www.canalaska.com/s/NewsReleases.asp?ReportID=289108

    In January 2007 the Company drilled three holes in the Key Lake area, and
intercepted strong alteration in core, but only low uranium assay values. In
2008, drilling commenced on January 23rd. The drill site is close to the road
and the facilities at the Key Lake mill.
    The 2008 drill target was a VTEM conductive anomaly which had been
interpreted to lie at a depth of 250 metres within a metasedimentary inlier in
an Archean Dome immediately south of the Key Lake Mine, which produced
approximately 200,000,000 pounds of U(3)O(8) between 1981 and 1999. The first
attempt to drill the target was abandoned when the drill rods became stuck.
This drillhole intersected radioactivity from 120 to 123 metres depth down
hole, and again at the point that the hole was lost. Ludlum 1210 model hand
scintillometer readings of 300-350 cps were recorded at 123 metrres and at 176
metres depth. The second drill hole from the same site, was drilled at a
shallower angle, over the first aborted hole, and successfully drilled into
the target zone. Ludlum 1210 model hand scintillometer readings of 1500 cps
and 800 cps were recorded at 339 and 344 metres. Standard procedure is to use
a downhole gamma probe to obtain a radiometric drill log. The zones of
radioactivity noted in the first hole were noted in the second drillhole,
using a Geovista Natural Gamma Scintillometer probe, (see attached drill
section and gamma log).
    Drill hole Key 005 intercepted a graphitic conductor with four
mineralized sections down hole, and at the target depth, with associated
uranium mineralization. Drill hole radiometric surveying has confirmed the
observations of uranium mineralization in the core. The upper zones of
radioactivity in the successful drillhole match zones intercepted in the first
aborted hole (Key 004).
    Samples of the drill core have been collected and submitted to Acme
Analytical Laboratories Ltd in Vancouver. Acme has implemented a quality
system compliant with the International Standards Organization (ISO) 9001:2000
Model for Quality Assurance and ISO 17025 - General Requirements for the
Competence of Testing and Calibration Laboratories. The samples were collected
by CanAlaska field geologists under the supervision of Dr Karl Schimann, and
were shipped in secure containment to the laboratory.

    
    Drill information and radiometric grade estimate. Key Lake holes 004 and
    005, January 2008

                                                          % eU3O8
                                                             from
    Drill Hole                                Width in   Geovista
    Number            Depth from   Depth to     metres      probe       Zone

    Key 004(*)                          123         na         na          1

                                        175         na         na          2

    Key 005               124.30     124.50       0.20      0.07%          1

                          195.70     196.10       0.40      0.12%          2

                          339.00     340.20       1.20      0.21%          3

    including             338.95     339.45       0.50      0.35%

                          344.05     344.45       0.40      0.11%          4
    


    Chemical results will be released when received, however preliminary
uranium content can be inferred from the radiometric assay logs. These values
are presented in the attached results table. This table shows calculated
equivalent uranium grade for the four mineralized intersections in Key 005.
These uranium values are only indicative, as the assumption is that all the
radioactivity is due to uranium and that there is no dis-equilibrium.
Furthermore, some of the correction factors (water and steel) remain
approximate for the probe used. The K factor used to interpret the uranium
content was derived from calibration runs of the probe in the SRC test pits
located in Saskatoon, SK., in January 2008, prior to the commencement of the
drill program.
    The conductive target is within a magnetic low in the centre of a
reported Archean dome structure. This conductor strikes NE-SW, a similar
direction to the Key Lake mine structure. Historical records show that five
short vertical holes were drilled in this vicinity in the past. These
historical holes were much too short to reach this target which was defined
from the modern VTEM survey carried out by the Company in 2006. The
geophysical modeling of the data from the 2006 VTEM survey puts the top of
this conductor at about 250 m depth with a shallow SE dip, suggesting a
potential thrust structure.
    CanAlaska and Westcan are evaluating further drilling on this target for
later this winter season. In the meanwhile the drill has been transferred to
CanAlaska's nearby Cree property, where it is currently operating. A second
drill is also operating at CanAlaska's Lake Athabasca property in the NW
Athabaaca basin, in an area near the historic Gunnar uranium mine.
    Peter Dasler, M.Sc. P Geo. is the qualified technical person responsible
for this news release.

    About CanAlaska Uranium

    CANALASKA URANIUM LTD. (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).
CanAlaska has expended over Cdn$24 million exploring its properties in the
Athabasca Basin and has delineated multiple uranium targets. Initial drilling
results from the West McArthur Project revealed uranium mineralization and
significant zones of hydrothermal alteration, indicative of a favourable
environment for uranium deposition. Active drilling and exploration has
continued through the Summer, and Fall 2007 seasons at West McArthur and at 2
other significant projects. The Company's high profile in the prominent
Athabasca Basin 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 to earn 50% of the West McArthur Project. In
addition, exploration of CanAlaska's Cree East Project has commenced under a
C$19 mil. agreement executed with a consortium led by Hanwha Corporation, and
comprising Korea Electric Power Corp., Korea Resources Corp. and SK Energy Co,
Ltd.
    For more information visit www.canalaska.com

    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:

For further information: Emil Fung, Vice President, Corp. Dev., Tel:
(604) 688-3211, Toll Free (N. America): 1-800-667-1870, Email:
info@canalaska.com

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