CanAlaska Uranium Ltd. - Non-brokered private placement

VANCOUVER , Oct. 5 /CNW/ - CanAlaska Uranium Ltd. (TSX.V - CVV) ("CanAlaska" or the "Company") wishes to announce the combination of a non-brokered Flow-Through Unit private placement and a non-brokered Ordinary Unit private placement for up to $2,500,000 .

The Flow-Through Units will be issued at a price of $0.21 per unit. Each Flow-Through unit will consist of one common share of the Company and one-half of a share purchase warrant. Each whole warrant will be exercisable into one common share at a price of $0.28 per common share for a period of 18 months from the close of the Flow-Through private placement.

The Ordinary Units will be issued at a price of $0.19 per unit. Each regular unit will consist of one common share of the Company and one-half of a share purchase warrant. Each whole warrant will be exercisable into one common share of the Company at a price of $0.28 per share for a period of 18 months from the close of the private placement.

The proceeds from the unit offerings will be utilized for uranium exploration in Canada and for general corporate purposes. Finders fees may be payable in connection with these proposed placements. The above private placement is subject to regulatory approval.

About CanAlaska Uranium Ltd. - www.canalaska.com

CANALASKA URANIUM LTD. (CVV - TSX.V, CVVUF - OTCBB, DH7 - Frankfurt ) is undertaking uranium exploration in twenty 100%-owned and three optioned 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$55 million exploring its properties and has delineated multiple uranium targets.

CanAlaska's geological expertise and high exploration profile has attracted the attention of major international strategic partners. Among others, Japanese conglomerate Mitsubishi Corporation has undertaken to provide the Company C$11 mil. in exploration funding for its West McArthur Project. Exploration of CanAlaska's Cree East Project is also progressing under a C$19 mil. joint venture with a consortium of Korean companies led by Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources Corp. and SK Energy Co, Ltd. Exploration recently commenced on the Poplar Project with Chinese mining partner East Resources Inc., comprising a potential 100,000 metres of drill testing. In addition, Canadian explorer Kodiak Exploration has also optioned the McTavish Project to advance exploration with the goal of attaining a 60% project interest earn-in by delineating a minimum of 35 million pounds U(3)O(8).

    
    On behalf of the Board of Directors

    (signed)

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

The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release: CUSIP No. 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.

For further information: Emil Fung, Director & V.P. - Corp. Dev., Tel: [phone], Email: [email protected]