Exploration Recommences at NW Manitoba Uranium-REE Project

VANCOUVER, March 27, 2012 /PRNewswire/ – CanAlaska Uranium Ltd. (TSX: CVV) (“CanAlaska” or the “Company”) is pleased to announce the commencement
of geophysical field work on its high-potential NW Manitoba uranium-REE
project (“Project”).

Exploration on the NW Manitoba Project had been suspended since 2007 due
to consultation meetings between the Government of Manitoba and local
First Nation communities.  With the Government’s conclusion of a
consultation protocol and the recent execution of a memorandum of
understanding (MOU) to facilitate co-operation for exploration and
future development between CanAlaska and the Northlands Denesuline
community of Lac Brochet, the Company is now pleased to announce the
recommencement of exploration work.

For map click here: http://www.canalaska.com/s/News.asp?ReportID=514641

The Project covers a large area of the geologically-favourable Wollaston
Belt in the Province of Manitoba, where the uranium-rich basement rocks
associated with the Athabasca uranium deposits intermittently come to
surface. CanAlaska has discovered multiple mineralized zones with
extensive boulder dispersion trains and surface showings of high-grade
uranium (>1% U(3)O(8)), rare earths (REE) and molybdenum mineralization across numerous
mineralized belts, either within, or cutting across all rock types in
the area.

The geological targets across the vast NW Manitoba Project match the
styles of basement mineralization reported from the massive uranium
deposits further south in the Athabasca Basin. There is clear
observation of late-replacement pitchblende mineralization in vein
zones, fractures and as disseminations in host rocks at uranium grades
exceeding 60% U(3)O(8). There is also evidence of more disseminated mineralization across
stratigraphic horizons and multitudes of pegmatitic intrusive events,
many of them containing primary uranium mineralization, or with
brecciation and later uranium mineralization. These outcropping targets
host the potential for open pit extraction Preliminary results for many
of these zones were announced by the Company in a news release on February 28th, 2008.

The current resistivity and gravity geophysical surveys will be used to
localize targets of sulphide-bearing mineralization, and other zones of
clay alteration within areas of shallow overburden.  The survey will
concentrate on areas in the vicinity of current showings and
mineralized boulders in preparation for an initial drill program.

Dr. Karl Schimann, CanAlaska’s VP – Exploration commented:  “The
Wollaston Belt of rocks host the majority of the world-class uranium
deposits in the Athabasca Basin, where massive uranium mineralization
has been discovered under up to 900m of covering sandstone. The
advantage of the NW Manitoba project is that we see these basement
rocks on surface, as any overlying sandstone and cover rock has
previously been stripped-off by ice action.  There are many locations
where we have found high-grade uranium (pitchblende bearing boulders,
pebbles and outcrop veins) on surface. It is very exciting to now be
able to plan for the first drill programs on these surface targets,”

Peter Dasler, M.Sc., P Geo. is the qualified technical person
responsible for this news release.

About CanAlaska Uranium

CANALASKA URANIUM LTD. (CVV — TSX, CVVUF — OTCBB, DH7F — Frankfurt) is undertaking uranium exploration in twenty one uranium projects in
Canada’s Athabasca Basin — the “Saudi Arabia of Uranium”.  Since
September 2004, the Company has aggressively acquired one of the
largest land positions in the region, comprising over 2,500,000 acres
(10,117 sq. km or 3,906 sq. miles).  To-date, CanAlaska has expended
over Cdn$75 million exploring its properties and has delineated
multiple uranium targets.

For more information, visit www.canalaska.com

On behalf of the Board of Directors

“signed”

Peter Dasler, M.Sc., P.Geo., President & CEO,   CanAlaska Uranium Ltd.

The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release: CUSIP# 13708P 10 2. This news
release contains certain “Forward-Looking Statements” within the
meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical
fact, included herein are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company’s expectations are disclosed in the
Company’s documents filed from time to time with the British Columbia
Securities Commission and the United States Securities & Exchange
Commission.

SOURCE CanAlaska Uranium Ltd.