WESTCAN URANIUM OPTIONS ADVANCED PROJECT ON
ATHABASCA BASIN’S NORTH RIM
Tuesday August 10th, 2010

WestCan Uranium Corp. (the “Company”) (“WestCan”) (WCU.V) is pleased to announce that the Company has entered into an option agreement with CanAlaska Uranium Ltd (“CanAlaska”) (CVV.V), on CanAlaska's 100%-owned Grease River Project located on the northern rim of Saskatchewan's Athabasca Basin.

Under the terms of the Agreement, WestCan will issue to CanAlaska, a total of 5% of the issued and outstanding common shares of the Company and a further 5% on the first anniversary date of the agreement; and must spend 4.5 million dollars in exploration on the claims over a 3 year period, in order to earn a 50% participating interest in the project. CanAlaska will also receive a three percent (3%) Yellowcake Royalty. At any time following the formation of the 50% Joint Venture, WestCan may purchase a portion of the Royalty by paying CanAlaska a consideration of $1 million (Cdn) in cash for each half per cent (0.5%) Yellowcake Royalty increment, up to a maximum total purchase of two and one-half percent (2.5%) Yellowcake Royalty for a total consideration of $5 million (Cdn).

The agreement is subject to approval by the TSX Venture Exchange;

The Grease River property comprises 15 claims totaling 81,821 hectares, lying between 10 and 60 kilometres from the edge of the north rim of the Athabasca Basin, 50 kilometres northwest of Stony Rapids, Saskatchewan. CanAlaska has spent approximately $2.7 million on exploration of the property since 2006, and has discovered 24 uranium occurrences, one rare-earth element (REE) occurrence and one occurrence of REE plus uranium mineralization. The highest analytical result encountered from surface sample analysis on the property was 550,600 ppm (55.06%) U3O8.

The primary focus of exploration at Grease River will be to drill test the Shearika Ridge uranium zone for a large tonnage intrusive hosted deposit. Historical trenches were found over a 600 metre strike length within a zone 1,500 metres long and up to 500 metres wide, in which there are numerous sill-like bodies of white pegmatitic granite or alaskite, at the margins of a large granitic intrusion. Individual sills are up to 100 metres thick. During the 2008 field season, CanAlaska crews collected 99 grab samples of mineralized alaskite for analysis, of which 85 contained over 500 ppm U3O8 (0.05% U3O8). The average analysis of these 85 samples was 1600 ppm (0.16%) U3O8, and the average uranium/thorium ratio was 2.4:1, which is high for primary magmatic uranium mineralization.

WestCan believes that the Shearika Ridge uranium occurrences show similarity to the famous Rössing deposit in Namibia, which has been mined continuously since 1976 and has produced a total of 215 million pounds of U3O8 to the end of 2009. The planned program for 2010 at Shearika Ridge is to map the zone in detail, then to put down a series of 200 metre deep diamond drill holes to determine the average grade of the main alaskite sills.

If time permits, some exploration may also be carried out on the Bradley Shear Zone, where vein-type, shear-hosted uranium mineralization has been discovered in outcrop by CanAlaska. Eight grab samples were collected by CanAlaska in 2008, and analyses ranged from 0.03% to 1.65% U3O8, with an average of 0.49% U3O8.

Mr. Chris England, President & CEO of WestCan stated “This is a major project with multiple uranium discoveries, and management has a high degree of confidence in successfully achieving our exploration goals based on results produced by prior exploration, and CanAlaska’s expertise in the Athabasca Basin area”.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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