CanAlaska Uranium Ltd. announced that it has entered into a Letter of Intent with Durama Enterprises Limited to allow CanAlaska to earn up to 100% interest in Durama's 100%-owned 17,665 hectare Key Extension Project in the Athabasca Basin region, Saskatchewan, Canada. The Company may earn up to a 100% interest in the Project by undertaking work and payments in a single stage over a four year period. In order to meet conditions of the four year earn-in, CanAlaska will make total cash payments of $50,000, issue 300,000 common shares in the Company subject To Approve the TSX Venture Exchange, and complete work totalling $850,000. In addition, a 1.5% Net Smelter Return (NSR) royalty will be granted to Durama to complete the earn-in. CanAlaska will retain the right to bring in third-party funding to complete the option requirements. The Key Extension Project lands cover the highly prospective Wollaston-Mudjatik transition zone (WMTZ) in the Southeastern Athabasca Basin. The Project lands have been explored with historical regional and project scale ground and airborne geophysical surveys, with additional focused prospecting programs targeting lake sediment and boulder anomalies. The regional geophysical surveys map linear magnetic low features with corresponding electromagnetic (EM) conductors on the eastern-most claim of the Project, typical of the Lower Wollaston Domain. On the Western claims, the conductors are generally shorter strike length discontinuous features, typical of the Mudjatik Domain. Focused airborne magnetics and VTEM (Versatile Time Domain Electromagnetic) surveys were completed by past operators of the Project in the early 2000's, outlining a prominent 10 kilometre long northeast-trending conductor corridor that is coincident with a magnetic lineament that trends toward the historically producing Key Lake uranium deposits, Deilmann and Gaertner, and swings to the south along the Wollaston-Mudjatik boundary. Despite the prolonged regional exploration and Key Lake deposit discoveries in the area, the Project lands have only undergone minimal drill testing in the late 1970's consisting of shallow regional tests of conductors. Extensive drilling has been completed in and around the Key Lake deposits and associated showings, located approximately 10 km from the northeastern project boundary. The Key Lake deposits consist of a series of east-northeast striking pods of unconformity associated uranium mineralization, which have historically produced over 150 million lbs U3O8 from the Gaertner and Deilmann open pits. The deposit-controlling Key Lake structure and stratigraphy are interpreted to trend onto the Project lands based on the magnetic lineaments and conductor patterns in the geophysical data.