Mitsubishi Development finalizes uranium exploration joint venture with CanAlaska

On April 11, 2007, CanAlaska Uranium Ltd. reported that it had finalized an agreement with Mitsubishi Development Pty Ltd. (MDP), to undertake uranium exploration on CanAlaska's 100%-owned West McArthur Project. The West McArthur Project is situated in Canada's Athabasca Basin in Saskatchewan, widely considered the richest and one of the largest uranium producing regions in the world. The Project comprises nine large claim blocks across 359 square kilometres. MDP and CanAlaska have entered into an Option Agreement whereby MDP may acquire a 50% ownership interest in the Project by spending a minimum $11 million in cash and exploration payments to CanAlaska over a 3 1/2-year period. Upon MDP fulfilling its exploration commitments under the Option Agreement, the parties shall enter into a 50/50 joint venture to be governed under the terms of a pre-negotiated Joint Venture Agreement. CanAlaska will act as Operator for the Project and will be responsible for carrying out all exploration activities. The terms of the Option and Joint Venture Agreements are subject to the regulatory approval of the TSX Venture Board. MDP is an Australian based mining company wholly owned by Mitsubishi Corporation in Japan. Andrew Gabrielson and Josh Lewis of Fasken Martineau advised MDP in the negotiation of this agreement.