Mitsubishi Development Joins CanAlaska Ventures to Explore West McArthur Uranium Project

CanAlaska Ventures Ltd. (CVV – TSX.V, CVVLF – OTCBB, DH7 – Frankfurt) (the “Company”) is pleased to announce that it has entered into an agreement with Mitsubishi Development Pty. Ltd. (“MDP”) to explore for uranium in Canada’s Athabasca Basin on its 100%-owned West McArthur Project.

Vancouver, Canada (ToenWave Media/PRWeb) September 6, 2006 -- CanAlaska Ventures Ltd. (CVV – TSX.V, CVVLF – OTCBB, DH7 – Frankfurt) (the “Company” - www.canalaska.com) is pleased to announce that it has entered into an agreement with Mitsubishi Development Pty. Ltd. (“MDP”) to explore for uranium in Canada’s Athabasca Basin on its 100%-owned West McArthur Project. The West McArthur Project is located in the Province of Saskatchewan approximately 8km west of the McArthur River uranium mine (389,100,000 lbs. @ 25% U3O8) and comprises nine large claim blocks across 359 square kilometers (88,516 acres).

MDP and CanAlaska have entered into a Letter of Intent whereby MDP may acquire a 50% ownership interest in the West McArthur Project by spending a minimum Cdn$11.0 million in cash and exploration payments to CanAlaska over a 3½ -year period and a further 10% ownership interest on terms to be negotiated. CanAlaska will act as Operator for the project and will be responsible for carrying out all exploration activities. The parties have agreed to finalize the terms of the Option and Joint Venture in a binding agreement to be executed within a 60 day period, subject to final regulatory approval.

MDP’s selection of CanAlaska as an exploration partner reflects highly upon the skills and experience of CanAlaska’s uranium exploration team. MDP is also to be commended for its strategic foresight as being the first Asian investor to initiate investment in the Athabasca Basin since the 1980’s.

West McArthur Uranium Project – Size of Claims

The Athabasca Basin is widely considered as being the richest and one of the largest uranium producing regions in the world. The West McArthur Project holds significant potential for uranium discovery. In 2005 and 2006, CanAlaska flew a series of electromagnetic (EM) and gravity gradient airborne surveys which identified multiple uranium targets on the property. Follow-up work in 2006 has included ground IP-Resistivity surveys, prospecting and initial target definition drilling. Results of drilling in 2 target zones confirmed the depth to unconformity at 810 metres to 830 metres and found the presence of highly-altered clays, both above and below the unconformity, and stringer uranium mineralization. These preliminary results indicate that geological conditions strongly favorable towards the deposition of uranium exist within the immediate target areas. Going forward, the areas will be further delineated utilizing geophysics techniques and shall be subject to additional drill testing in the upcoming winter exploration season.

Key Highlights

• Mitsubishi’s transaction with CanAlaska represents the first new uranium exploration undertaking by an Asian strategic investor in Canada’s Athabasca Basin since the 1980’s

• International interest in Canadian uranium exploration reflects the rapid growth of the international nuclear power industry and the urgent need to find and develop new sizeable deposits to ensure the security of future global uranium fuel supply

• Canada’s Athabasca Basin presently supplies 30% of the world’s mined uranium supply and hosts its richest uranium deposits – richer than other world-class uranium deposits in Australia and Kazakhstan by several orders of magnitude. In comparing the global importance of strategic energy resources, the Athabasca Basin is to Uranium what the Saudi Arabian Basin is to Crude Oil

• Exploration Partnership represents a strong endorsement by Mitsubishi of CanAlaska’s favorable landholdings in the Athabasca Basin as well as the professional expertise of its geological exploration team. Mitsubishi is also presently engaged in uranium exploration and development in the Athabasca Basin with Canada’s Cameco Corporation and French-owned Areva Resources

• Mitsubishi’s renewed commitment towards Athabascan exploration portends the start of increasing international strategic investment in Canada’s uranium exploration sector. CanAlaska has also entertained similar discussions with other like-minded strategic parties over the past 6 months

• The Cdn$11.0 million exploration budget for the West McArthur Project enables CanAlaska to refine and drill-test highly attractive targets identified on the property as a result of previous electromagnetic/gravity-gradient airborne surveys as well as ground IP-resistivity surveys. The exploration program aims to test for the presence of a world-class “unconformity” uranium deposit, similar to that hosting the McArthur River uranium mine situated a mere 8 km from the Project’s perimeter

• The McArthur River mine is the world’s richest uranium mine and also one of the world’s largest. Its 389 mil. pounds of reserves at 25% U3O8 dwarf those of other world-class uranium deposits – which typically grade only 0.5-1.0% U3O8. Economically, ore mined from a Canadian unconformity deposit is worth over US$20,000 per tonne in comparison to US200 per tonne mined elsewhere

About CanAlaska Ventures Ltd. – www.canalaska.com
CanAlaska Ventures (CVV – TSX.V, CVVLF – OTCBB, DH7 – Frankfurt) holds eighteen, 100%-owned, uranium projects in Canada's Athabasca Basin. Since September, 2004, the Company has aggressively acquired one of the largest land positions in the region, now comprising over 2,313,000 acres (9,360 square km). In 2005, CanAlaska expended over Cdn$5 million exploring its properties in the Athabasca Basin and delineated multiple uranium targets. Initial drilling from the West McArthur project revealed uranium mineralization and significant zones of hydrothermal alteration, indicative of a favorable environment for uranium deposition. An aggressive minimum $6.5 million exploration program is underway for 2006.

About Mitsubishi Development Pty., Ltd. – www.mitsubishicorp.com
Mitsubishi Development Pty Ltd (MDP) is a wholly-owned subsidiary of Mitsubishi Corporation in Australia, and its principal activity is producing coking coal for use in making steel and thermal coal for use in generating electrical power. MDP has joint ventures with major resource companies to develop coking coal and thermal coal in Australia. MDP is a 50/50 joint venture partner with BHP Billiton Ltd in the BMA joint venture. BMA (www.bmacoal.com) is positioned as Australia’s largest coal miner and exporter, and the world’s largest supplier to the seaborne coking coal market. MDP is also in partnership with Rio Tinto Ltd and Xstrata in the production and supply of thermal coal.

On behalf of the Board of Directors

Peter Dasler, P. Geo., President & CEO
CanAlaska Ventures Ltd.

Contact for CanAlaska Ventures Ltd.:    
Emil Fung, Corporate Development
Tel: +1.604.685.1870
Toll Free (N. America): 1-800-667-1870

The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release: CUSIP#137089108.

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.

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