CanAlaska Uranium Ltd. announced that it has signed an arm's-length definitive agreement effective October 13, 2023 with Nickelex Resource Corporation ("Nickelex"), formerly Valterra Resource Corporation, to allow Nickelex to earn up to 80% interest in four of CanAlaska's 100%-owned north Thompson Nickel Belt projects in Manitoba, Canada Nickelex may earn up to an 80% interest in the Project by undertaking work and payments in three defined earn-in stages. Nickelex may earn an initial 49% interest (Stage 1) in the Project by paying the Company $35,000 cash, issuing 5,000,000 common shares of Nickelex in tranches over two years and incurring $2,000,000 in exploration expenditures on the Project in tranches within two years of the date (the "Approval Date") the TSX Venture Exchange approves the transaction agreement. Nickelex may earn an additional 21% interest (Stage 2) in the Project by paying to the Company a further $50,000 cash and issuing an additional 7,500,000 Nickelex common shares concurrent with providing notice that it wishes to proceed with the Stage 2 earn-in, and by incurring a further $3,500,000 in exploration expenditures on the Project by the third anniversary of the Approval Date.

Nickelex may earn an additional 10% interest (Stage 3) in the Project by paying to the Company a further $65,000 cash and issuing an additional 25,000,000 Nickelex common shares concurrent with providing notice that it wishes to proceed with the Stage 3 earn-in, and by incurring an additional $3,500,000 in exploration expenditures on the Project by the fifth anniversary of the Approval Date. In the event any Share issuance would cause CanAlaska to become a new "Control Person" (as such term is defined in TSXV policies), then Nickelex will be required to obtain shareholder approval to same before issuing such Shares in accordance with TSXV policies. If shareholder approval is not received, Nickelex may then pay the outstanding obligation in cash in lieu of Shares based on the fair market value of the Shares at the time of payment.

Nickelex will issue a further $3,000,000 in cash or, at Nickelex's option, subject to shareholder approval in the event such issuance would cause CanAlaska to become a new Control Person, the equivalent number of Nickelex common shares, upon completion of a positive Feasibility Study for the Project, provided that at such time Nickelex has earned, at a minimum, a 49% interest in the Project. After successful completion of (a) Stage 1, if Nickelex elects to not enter the next stage or fails to make the Stage 2 option payments when and as required; or (b) Stage 2, if Nickelex elects to not enter the next stage or fails to make the Stage 3 option payments when and as required; or (c) Stage 3, a joint venture will be formed and the parties will either co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula. Any party diluting to a 10% interest will automatically forfeit its interest in the Project and in lieu thereof will be granted a 2% net smelter return ("NSR") royalty on the Project, half of which NSR (i.e., 1% NSR) may be purchased by the other party at its sole discretion for $2,000,000 at any time prior to commencement of production.

During Stage 1 and Stage 2 of the option agreement, CanAlaska will be operator of the Project and will be entitled to charge an operator fee. Nickelex will have deciding voting rights on annual exploration programs while sole funding at the various option stages and will have the right to assume operatorship after successfully earning a 70% interest in the Project (Stage 2). An Area of Mutual Interest ("AMI") will extend two kilometres from the outer boundary of the Project, excluding all properties within such area that are currently held by CanAlaska.

These properties are not part of the nickel property package proposed to be spun out. The Project consists of the "Strong" #1067A, the "Strong Extension" #1167A, the "Moak North" #1168A, and "Wilson" #1169A mineral exploration licenses ("MEL") with a total combined area of 30,283 hectares. The Project is located approximately 30 kilometres from the City of Thompson, Manitoba, with its existing mines and nickel processing facilities owned and operated by Vale.

The Project covers much of the northern extension of the Thompson Nickel Belt (TNB), the fifth larger sulphide nickel camp in the world based on contained nickel endowment. The larger deposit within the TNB is the main Thompson Nickel Mine owned by Vale with an estimated 150Mt at an average grade of 2.3% nickel. The Project area hosts a similar geological and structural environment as the nearby Tier-1 Thompson Mine but has seen essentially no exploration drilling since 2005.

A detailed compilation of historical information on the Project, including a 2007 VTEM survey, provided a suite of high priority drill targets that have had only limited drilling. The nearby Mel nickel deposit, 100%-owned by CanAlaska, with a historical indicated resource estimate of 4.3 million tonnes at an average grade of 0.875% nickel for 82.5 million pounds of contained nickel is approximately four kilometres south of the Strong MEL boundary.