The current work, financed by Yellowcake plc under a 4-year Cdn.$5 mil. 60% earn-in option, and operated by CanAlaska www.canalaska.com under the direction of Dr. Karl Schimann, combines airborne surveys with ground prospecting and mapping. The project area covers an extensive belt of uranium showings, located within a regional scattering of Uranium-Thorium anomalies in lake sediments. Very high uranium values (over 1,000 ppm) in historical lake sediments indicate the presence of further uranium mineralization hosted in basement rocks.

Mr. Robert Wallace, Chief Executive of London-quoted Yellowcake plc, said "We are very pleased that our partner CanAlaska has been able to advance the exploration program at Grease River. Investors are realising that near-surface, basement-hosted projects on the Athabasca rim have advantages in lowered exploration and prospective production costs." Grease River has exciting historical grades; we are happy to accelerate our spending for this Summer and look forward to the results enabling us to progress to the drilling and development stage in 2008.

Summer Exploration Activity
CanAlaska has contracted Terraquest Ltd to perform the airborne survey work. The 6,900 line-km airborne survey on the Grease River property has commenced. The survey includes high resolution aero-magnetics, horizontal gradiometer, gamma spectrometry, and XDS/VLF -- EM.

This survey will delineate priority areas within the regional targets for the fifteen field technicians and geologists who will commence ground work in early July. The accelerated program of ground surveys will continue for the following two months. This follow-up work will include a lake sediment confirmation survey, prospecting, and detailed geological mapping in preparation for drill programs.

Project Geology
The Grease River claims have been staked on combined lake sediment and radiometric anomalies straddling major geological domain boundaries, including the Grease River Shear Zone. The area is known for very high uranium in lake sediments (over 1,000 ppm U) as well as several in-situ uranium showings with values up to 1.6 % U3O8. CanAlaska www.canalaskas.com considers the project area to have potential for both basement-hosted unconformity deposits as well as bulk tonnage Rossing style deposits. The extensive nature of the uranium mineralization in lake sediments, and the early success from cursory past exploration, give strong indication for definition of drill targets from the summer work. The area is easily accessible from the road-head and airport at Stony Rapids, located to the south of the Grease River project area. The basement rocks in this area are thought to have been stripped of any overlying Athabasca sandstone, exposing structurally-controlled uranium replacement zones, as well as possible larger tonnage intrusive related targets.