Bayswater: Drilling at Collins Bay Extension Finds New Targets

Table 1 - Fife Island Drilling: Mineralized Uranium Intersections 
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 Drill Hole   thickness   %eU     from      to     MAX CPS
   CBX001       0.35      0.03    78.45    78.80     1700
   CBX001       0.55      0.01    90.30    90.85      740
   CBX001       0.70      0.01    97.80    98.50      590
   CBX001       1.15      0.02   109.55   110.70     1200

   CBX002       0.25      0.02    81.65    81.90      750
   CBX002       0.25      0.04   114.30   114.55     1600
   CBX002       0.55      0.07   115.45   116.00     3740
   CBX002       0.35      0.29   117.30   117.65    14850
   CBX002       0.55      0.09   119.60   120.15     5040
   CBX002       0.40      0.07   122.60   123.00     1850

   CBX003       0.35      0.01    67.80    68.15      770
   CBX003       1.00      0.01    71.75    72.75      760
   CBX003       0.90      0.03   113.65   114.55     1700
   CBX003       0.40      0.02   128.35   128.75     1100

   CBX006       0.35      0.01   238.60   238.95      895
   CBX006       1.15      0.02   160.40   161.55     1590

The fourth drill hole at Fife Island targeted another historical intersection in the vicinity,

and along the same Archean-Aphebian geological contact. This drill hole showed strongly-fractured and favourable rock from top to bottom, but was lost at 89 metres depth. Down-hole probing was not possible because of drilling problems. The recovered core shows no anomalous radioactivity, but there was very poor core recovery in several sections, and further evaluation of this target is required.


Blue Island Circular Feature:

The Blue Island target, which is lake-covered, was identified from the VTEM airborne geophysical survey completed in 2007. In-house conversion of the survey data defined two large zones of very high conductivity in basement rocks, each 700 metres x 500 metres in area. These zones are located below conductive lake sediments and straddle an east-west magnetic structural trend. Detailed gravity surveys across the target in January 2010 confirmed a large gravity low associated with each conductive zone.

Drilling commenced on the Blue Island target in mid-March. However, the drilling contractor was unable to complete the first hole on this target, CBX005, and the hole was abandoned. A second drill contractor, Driftwood Diamond Drilling Ltd., was able to commence testing the target in early April, and completed the first of three planned holes, before having to leave the site due to warm weather conditions and failing ice.

The first drill hole into the target is located south-west of Blue Island on the western of the two circular geophysical anomalies (combined conductivity and gravity anomalies, each 500-700 metres in diameter). Drill hole CBX006 was completed in the western portion of the anomaly to a depth of 417 metres. The hole was located in 60 metres of water and penetrated 100 metres of glacial boulder till and varved clay above the basement rocks.

There is strong evidence of an extensive disruptive geological event associated with the circular features from the basement rock cored in drill hole CBX006. The hole penetrated a very long section (257 metres) of heterolithic diatreme breccia containing rafts of various Aphebian and possibly Archean metamorphic rocks together with some granite and diorite. Most of the fragments in the breccia zone are rounded with the rocks in the larger rafts being sheared, chloritised and/or argillized. This brecciation continues to the end of the drill hole.

The overburden-basement interface, is marked by a 3 metre zone of black silty clay, more massive than the varved clay, containing a rounded nodule and angular fragments of pyrite, together with some graphite. The exact depth of this black horizon is uncertain because of long sections of no recovery above and below it. The radiometric probing data shows a marked step-up of the radioactive background at the overburden-basement interface, which starts with a 1,590 cps peak, which, from calibrated tests, corresponds to 1.15 metres at a grade 0.02% eU1 (160.40 to 161.55 metres depth).

A second radioactive peak occurs lower down within the basement breccias. This peak of 895 cps on the calibrated probe corresponds to 0.35 metres at a grade of 0.01% eU1 (238.60 to 238.95 metres depth).

There are additional zones of high background radioactivity corresponding to fault zones, with core loss, between 205-210 metres and between 293-306 metres depth in the basement breccias. Most of these various radioactive peaks have been observed with the calibrated probe, but not on the core recovered. However, there are extensive zones of poor to no core recovery throughout the drill hole.

CanAlaska President Peter Dasler commented, "The Blue Island target is a large new feature in this area of the Athabasca Basin, and we are pleasantly surprised by the amount of breccia intersected in the drill hole. Other areas of the Athabasca Basin have circular structures associated with brecciation, alteration, and uranium mineralization. This is a discrete target, and it is very encouraging the first drill hole has given us evidence of uranium mineralization associated with the breccias. This will be a priority for us to follow-up, and work will continue on the target area over the summer."

Collins Bay Extension Further Programs:

An extensive ground geophysical Max-Min survey was completed over the Fife Island target during the winter program. This survey identified the strong conductive sedimentary package which trends north-northeast in this area. Additionally, the geophysical surveys over the Blue Island target were matched by other gravity surveys in the Pow Bay area. Pow Bay is immediately up-ice of historical uranium mineralized boulder trains, and is thought to host the source of the mineralized boulders. These geophysical surveys will be used to design follow-up exploration on other targets in the area during the summer exploration season.

Bayswater Chief Operating Officer and Executive VP, Victor Tanaka stated, "Based on my experience in the Athabasca Basin, the Collins Bay Extension targets recently drill tested with positive encouragement and identified for further drill testing by CanAlaska, offer excellent opportunities for discovery-especially the enigmatic breccia system which locally contains anomalous uranium and its associated conductivity and circular gravity low anomaly at Blue Island. CanAlaska plans to continue work on this and other targets."

CanAlaska's Qualified Person for this news release is Peter. G. Dasler, P/ Geo.

Note 1. - In this news release "Equivalent uranium grades" (eU) have been calculated using a dead-time correction and K factor specific to each natural gamma probe based on calibration runs in the Saskatchewan Research Council test pits. Equivalent uranium grade assumes that in these mineralized intersections, the radioactivity is produced by uranium and that there are only negligible amounts of other radioactive elements present.


Other News

Further to the Company's news release dated March 3, 2010, it has now closed the second tranche of its non-brokered private placement through the issuance of 142,300 units at $0.55 per unit. Each unit consists of one common share and one half of one share purchase warrant to purchase an additional common share for $0.75 over a 24-month period from the date of issuance. The Securities issued will be subject to a four month hold period from the date of issuance.