CanAlaska options Reefton JV to Kent

2009-02-09 12:42 ET - News Release

Mr. Peter Dasler reports

CANALASKA OPTIONS NEW ZEALAND GOLD PROJECT TO KENT EXPLORATION

CanAlaska Uranium Ltd. and Kent Exploration Inc. have entered into a five-year option agreement under which Kent Exploration will acquire a 70-per-cent interest in the Reefton project in South Island, New Zealand.

The terms of the agreement call for the payment of $5,000 on execution of the agreement and $3.5-million in exploration expenditures on the project over the five-year option period, with $100,000 in immediate exploration expenditures, $1.15-million of expenditures to be made before the end of the third anniversary of the agreement, $2.25-million of expenditures to be made before the end of the fifth anniversary of the agreement and, subject to approval by the TSX Venture Exchange, the issuance of two million Kent common shares, of which 500,000 common shares are to be issued on or before the end of the first anniversary of the agreement, 500,000 on or before the third anniversary of the agreement and one million on or before the end of the fifth anniversary of the agreement.

The road-accessible property, encompassing approximately 14,060 hectares (34,743 acres), is located in the historic Reefton gold fields, off NZ state, Highway 7, with the property extending from approximately three kilometres to 20 kilometres southwest of the town of Reefton, South Island, New Zealand. Historic records indicate that since gold was discovered in the district in the late-1800s, approximately 10 million ounces of placer gold and two million ounces of lode gold have been recovered from the Reefton gold fields.

The Reefton project is presently non-strategic to the company's uranium exploration efforts in the Athabasca basin of Northern Canada and CanAlaska looks forward to working with Kent in the exploration of this project.

Hg