CanAlaska Uranium Ltd. - MD&A October 31, 2022

Page 1 of 22

CanAlaska Uranium Ltd.

CVV - TSX CVVUF - OTCQX DH7N - Frankfurt

Management Discussion and Analysis

For the Second Quarter and Six Months Ended

October 31, 2022

Dated December 7, 2022

For further information on the Company reference should be made to the Company's public filings which are available on SEDAR. Information is also available at the Company's website www.canalaska.com. In addition, reference should be made to the risk factors section of the most recently filed Annual Information Form ("AIF") or the Company's audited consolidated financial statements for the year ended April 30, 2022. The following information is prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB and denominated in Canadian dollars, unless otherwise noted. This MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements for the three months ended October 31, 2022.

Table of Contents:

1.

OVERVIEW OF THE COMPANY AND STRATEGY

2

2.

MILESTONES AND PROJECT UPDATES

4

3.

FINANCIAL POSITION

14

4.

EXPENDITURES REVIEW

16

5.

CASHFLOW REVIEW

17

6.

OTHER MATTERS

17

7.

QUARTERLY FINANCIAL INFORMATION

22

This MD&A contains forward-looking information. Refer to Section 6 "Forward-Looking Statements" and "Risks Factors" for a discussion of the risks, uncertainties and assumptions relating to such information.

www.canalaska.com

CanAlaska Uranium Ltd. - MD&A October 31, 2022

Page 2 of 22

1. OVERVIEW OF THE COMPANY

  • Over 15 projects covering over 300,000 hectares focused on Uranium, 1 project covering 37,000 hectares focused on Diamonds and 10 projects covering 51,000 hectares focused on nickel, copper and other minerals (section 1.1)
  • Cash resources of $11.6 million (as at October 31, 2022)
  • 122,517,804 common shares issued and outstanding (December 7, 2022)

1.1 Profile and Strategy

The Company is an exploration stage company engaged in the acquisition and exploration of mineral properties, principally in Canada. The Company aims to acquire and advance its projects to a stage where they can be exploited at a profit or it can arrange joint ventures, whereby other companies provide funding for development and exploitation. The Company's principal focus has been the exploration for high-grade uranium deposits in the Athabasca Basin area of Saskatchewan and the exploration for copper/nickel deposits in the Thompson Nickel Belt, Manitoba. There are several projects on which the Company has expended recent efforts. The West McArthur project is under a joint venture with Cameco Corporation ("Cameco"), the Cree East project was under a 50% joint venture with a Korean Consortium up to early July 2017, the Moon Lake South project is under a joint venture 75% with Denison Mines, the NW Manitoba project is under a joint venture 30% with Northern Uranium Corp ("Northern Uranium"), the Mouse Mountain project is under option to Omineca Mining and Metals Ltd., the Manibridge project is under option to Metal Energy Corp. and the Geikie, and North Millennium projects are under option to Basin Energy Limited. Going forward it is expected that the Company will focus its effort on West McArthur, Cree East, and Key Extension, and selected base metal and precious metal opportunities. The Company is actively marketing the remainder of its projects for option, joint venture or sale.

Table 1: Canadian Strategic Uranium Property Summary

Property / Project Name

Notes

Hectares

West McArthur

Joint Venture with Cameco Corporation

35,830

Cree East

Seeking Venture Partner

57,752

Key Extension

Option Agreement with Durama Enterprises

12,349

Waterbury South

Seeking Venture Partner

988

Moon Lake South

Joint Venture with Denison Mines

2,716

Key Lake

Seeking Venture Partner

1,357

Waterbury East

Seeking Venture Partner

1,337

NE Wollaston

Seeking Venture Partner

42,618

North Millennium

Option Agreement with Basin Energy Ltd.

5,872

Geikie

Option Agreement with Basin Energy Ltd.

33,896

Chymko

Seeking Venture Partner

32,602

Marshall

Royalty Agreement with Basin Energy Ltd.

11,225

McTavish

Seeking Venture Partner

2,865

Taggart

Seeking Venture Partner

28,328

Carswell

Seeking Venture Partner

13,352

NW Manitoba

Joint Venture with Northern Uranium Corp.

22,765

Patterson West

Seeking Venture Partner

3,014

Costigan

Seeking Venture Partner

3,015

Frontier

Seeking Venture Partner

15,929

www.canalaska.com

CanAlaska Uranium Ltd. - MD&A October 31, 2022Page 3 of 22

Table 2: Canadian Strategic Nickel Property Summary

Property / Project Name

Notes

Hectares

Hunter

Seeking Venture Partner

12,520

Strong

Seeking Venture Partner

6,165

Strong Extension

Seeding Venture Partner

13,606

Manibridge

Option Agreement with Metal Energy Corp.

4,368

Halfway Lake

Seeking Venture Partner

1,876

Resting Lake

Seeking Venture Partner

2,322

Wilson

Seeking Venture Partner

5,272

North Moak

Seeking Venture Partner

5,240

Table 3: Canadian Strategic Diamond and Copper Property Summary

Property / Project Name

Notes

Hectares

Ruttan Area

Seeking Venture Partner

1,551

Quesnel Mouse Mountain

Option Agreement with Omineca Mining and Metals Ltd.

2,275

West Athabasca Kimberlite

Seeking Venture Partner

37,890

The Company's exploration activities are managed through CanAlaska offices maintained in Vancouver, BC and Saskatoon, SK.

The Company believes that the fundamentals of the nuclear power industry and the economic superiority of uranium over other energy fuels will ensure the long-term future of global uranium markets and prices. Since 1985, CanAlaska has expended over $96 million of the total equity of $102.0 million on exploration and research towards the advancement of uranium, nickel, copper and diamond discovery on our project areas. The information gained from this work has provided the Company with significant evidence about the nature and location of mineral rich hydrothermal systems in areas of the Athabasca Basin and Thompson Nickel Belt where previous information was lacking. The increase in understanding of the geology of the target areas, and the integration of modern geophysical methods with data processing to get more precise target definition at depth gives management the confidence to continue exploration for large scale mineral deposits on our projects.

1.2 Strategic and Operating Intent

  • Complete equity financing options over the next months
  • Targeted marketing of uranium projects for financing
  • Targeted marketing of non-core projects
  • Strong commitment to option, joint venture or sale of individual exploration projects
  • Evaluate alternate commodities and projects suitable for market financing, or acquisition and sale
  • Company believes that it has the projects, strategic partners, people and knowledge base, corporate treasury and fund raising ability to maintain a position in the uranium and nickel sector.

As of December 6, 2022, the Company had 122,517,804 shares outstanding with a total market capitalization of $46.6 million. The Company's shares trade on the TSX Venture Exchange ("CVV") and are quoted on the OTCQX in the United States ("CVVUF") and the Frankfurt Stock Exchange ("DH7N").

The consolidated financial statements have been prepared under International Financial Reporting Standards ("IFRS") applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business. For the six months ended October 31, 2022, the Company reported a loss of $2.3 million and as at that date had cash and cash equivalents of $11.6 million, net working capital balance of $14.9 million and an accumulated deficit of $102.0 million.

The Company does not generate recurring revenues from operations and other factors may cast significant doubt regarding the Company's ability to continue as a going concern. Management believes that the cash on hand is sufficient to meet corporate, administrative and selected exploration activities for at least the next twelve months. Management may either need to dilute its ownership in its properties or secure additional financing to continue to advance the development of its exploration projects. Management has taken steps to streamline non-discretionary expenditures and financial overheads and is working to option, joint venture or sell its individual exploration projects.

www.canalaska.com

CanAlaska Uranium Ltd. - MD&A October 31, 2022

Page 4 of 22

2. MILESTONES AND PROJECT UPDATES

  1. Overview- May 1, 2022 to December 6, 2022
    • Assays confirm nickel mineralization in ongoing phase 2 summer drill program at Manibridge (November 2022)
    • CanAlaska assay returns 25.4% U3O8 at West McArthur (November 2022)
    • Continuation of 10,000 metre drill program at Manibridge (November 2022)
    • Maiden geophysical survey at Geikie project defines multiple priority targets (October 2022)
    • Additional uranium intersections from summer drill program at West McArthur (September 2022)
    • CanAlaska confirms high-grade uranium mineralization in new uranium zone at West McArthur (August 2022)
    • CanAlaska completes airborne electromagnetic and magnetic survey at Hunter project (August 2022)
    • Metal Energy acquires 70% interest in Manibridge project (August 2022)
    • Assays confirm high-grade nickel in all drill holes from phase 1 winter program at Manibridge (August 2022)
    • CanAlaska discovers significant new uranium zone at West McArthur (July 2022)
    • CanAlaska commences airborne survey at Geikie project (June 2022)
    • CanAlaska commences airborne survey at Key Extension project (June 2022)
    • CanAlaska commences West McArthur uranium drilling (June 2022)
    • 10,000 metre phase 2 drill program started on Manibridge high-grade nickel project (June 2022)
    • CanAlaska acquires large position NE of Patterson Lake - Taggart project (May 2022)
    • Manibridge diamond drilling program intersects nickel (May 2022)
  2. Project Updates

Overview

The Company has over 15 projects within the Athabasca basin area. The majority of the first two quarters of 2023 exploration spend was carried out on the Company's West McArthur project, which was under an option to Cameco and is now under a 79.3/20.7% joint venture with Cameco with CanAlaska holding 79.3%. In the six months ended October 31, 2022, the Company spent approximately $4.0 million on exploration.

Exploration spending in the first two quarters of 2023 is up from the same comparative quarters of 2022. The increase exploration spend is primarily due to exploration activities for the West McArthur, Geikie and Hunter properties with the vast majority being spent at West McArthur.

The following table summarizes the Company's expenditures for the sis months ended October 31, 2022.

Table 4: ($000's)

West

Other

Total Exploration

McArthur

Manibridge

Geikie

Hunter

Projects

Total

Camp Cost & Operations

665

24

-

-

8

697

Drilling

2,417

2

-

-

2

2,421

General & Admin

191

34

24

25

65

339

Geochemistry

4

23

-

-

26

53

Geology

307

-

183

-

4

494

Geophysics

11

42

297

112

80

542

Other

6

-

-

-

20

26

Gross Expenditures

3,601

125

504

137

205

4,572

Reimbursement

-

(125)

(504)

-

-

(629)

Net Expenditures

3,601

-

-

137

205

3,943

The following section contains a comparative breakdown of project expenditures for the Company's significant projects.

www.canalaska.com

CanAlaska Uranium Ltd. - MD&A October 31, 2022

Page 5 of 22

2.2.1 West McArthur Project, Saskatchewan - Cameco

The West McArthur project in the Athabasca Basin, Saskatchewan, was optioned in April 2007 to Mitsubishi Development Pty Ltd., a subsidiary of Mitsubishi Corporation of Japan. Under the option agreement, Mitsubishi earned a 50% interest in the property and in January 2016, the Company entered into a buy back agreement with Mitsubishi for their 50% interest to then hold a 100% interest in the property. In February 2016, the Company then entered into an option agreement with Cameco Corporation. The option agreement enabled Cameco to earn up to a 60% interest in the West McArthur project through total expenditures of $12.5 million until February 2022 ($725,000 received) consisting of cash payments to the Company and accelerated exploration programs, culminating in a joint venture. In October 2018, the Company entered into a 30:70 (Cameco:CanAlaska) joint venture agreement with Cameco Corporation.

The West McArthur project is located between 6 and 30 kilometres west of the producing McArthur River uranium mine operated by Cameco Corp, and covers approximately 36,000 hectares. On the property, there is evidence of hydrothermal alteration extending well into the sandstone, matching the typical alteration model of Athabasca unconformity style uranium deposits. There is evidence of uranium mineralization from drill testing in multiple areas, either as enrichment (locally high grade) at the unconformity or in basement structures. The most compelling target area on the project is the Pike Zone, which was discovered in the summer of 2022. The Pike zone contains multiple metre-scale intersections of high-gradebasement-hosted uranium mineralization. High-grade uranium mineralization has also been encountered in the 42 Zone area near Cameco's Fox Lake uranium deposit.

The project is accessible during the winter drill season by seasonal winter ice roads and winter trails and during the summer exploration season by land, air and water. There is no physical plant or permanent infrastructure on the property and no source of power. However, the property is in close proximity to the McArthur River uranium mine operated by Cameco. There are multiple extensive lakes, which can provide a source of water for the project.

The mineral rights for West McArthur were acquired between October 2004 and February 2009 from the Ministry of Energy and Resources in the province of Saskatchewan, Canada. The claim numbers are as follows, S-107561,S-107562,S-107563,S-107565, S- 107773, S-108010,S-108011,S-108012,S-111412S-111413,S-111511 and S-111512. The mineral rights to West McArthur are valid and in good standing with the earliest claim, requiring renewal in May 2041 with no further exploration expenditures required.

www.canalaska.com

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CanAlaska Uranium Ltd. published this content on 08 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 December 2022 03:01:02 UTC.