Athabasca Basin, Northern Saskatchewan

The Cree West project comprises four mineral claims in two blocks for a total of 12,860 hectares (31,778 acres) in Saskatchewan's highly prospective eastern Athabasca basin. The Cree West project claims are located on the northwest side of Cree Lake and some 65 km northeast of the Key Lake mine site. Previous exploration on the property was limited, but drilling by Uranerz Exploration and Mining Company Ltd. intersected 0.8 % U3O8 over 0.2 m in a conductor parallel to the conductor trend going through the property, some 4 kilometre to the Northwest.

In September 2007, the Company received final documentation and reports on an audio-frequency magneto-telluric (AMT) survey of the Cree West property in the Athabasca basin of Saskatchewan. Discrete basement conductors were located on both blocks of the 12,860 hectare property.

The southwest group (2 claims, 6897 hectares) contains a conductor that runs the whole length of the property in a northeastsouthwest direction.

The northeastern half of this feature is more strongly conductive and it contains a short “hot spot” on one survey line.

The northeastern claim group (2 claims, 5963 hectares) shows a weak conductor along the northwestern property boundary, and a stronger, more northerly trending conductor in the southwest part of the survey area.

Dr. Colin Bowdidge, who reviewed this data, stated: “This oblique conductor may reflect a crossstructure of the type that is often associated with unconformity-type uranium mineralization in the Athabasca basin. These basement conductors are likely to be caused by graphitic units of the type that are closely associated with all the major uranium deposits of the Athabasca basin.”

The company and CanAlaska Uranium Ltd. plan additional ground geophysical surveys during the coming winter to more accurately refine the conductor locations prior to diamond drilling.

The claims cover a prominent NE-SW trending linear feature which has been explored by drilling on adjacent ground still held by Cogema. This could represent a fault that is potentially mineralized where it intersects the unconformity. An analysis of a VTEM EM and Magnetic Survey conducted early fall of 2006 has delineated the existence of 2 target zones of interest on the property. These zones have been interpreted as graphitic zones with the potential to host uranium deposits.