CanAlaska Uranium Ltd.



Consolidated Financial Statements

April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars, except where
indicated)













Report of Independent Registered Public Accounting
Firm



To the Board of Directors and Shareholders
of CanAlaska Uranium Ltd.



We have audited the accompanying consolidated
financial statements of CanAlaska Uranium Ltd. and subsidiaries (the “Company”), which comprise the consolidated statements
of financial position as at April 30, 2013 and April 30, 2012, and the consolidated statements of net loss and comprehensive loss,
changes in equity, and cash flows for each of the years in the three year period ended April 30, 2013, and a summary of significant
accounting policies and other explanatory information.



Management's Responsibility for the Consolidated
Financial Statements



Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary
to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.



Auditor's Responsibility



Our responsibility is to express an opinion
on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted
auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.We
were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.



An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.



We believe that the audit evidence we have
obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.



Opinion



In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of CanAlaska Uranium Ltd. and subsidiaries as at April
30, 2013 and April 30, 2012, and their financial performance and their cash flows for each of the years in the three year period
ended April 30, 2013 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards
Board.









Emphasis of Matter



Without modifying our opinion, we draw attention
to Note 2 in the consolidated financial statements which indicates that the Company does not earn revenues from its operations,
incurred a net loss of $2.4 million during the year ended April 30, 2013, and has a deficit of $80.9 million at April 30, 2013.
Accordingly, the Company depends on its ability to raise financing in order to discharge its commitments and liabilities in the
normal course of business. These matters, along with the other matters set forth in Note 2, indicate the existence of material
uncertainties that cast substantial doubt about the Company’s ability to continue as a going concern.



As discussed in Note 18 of the consolidated
financial statements (restated), the 2013 consolidated financial statements have been restated to include statements of net loss
and comprehensive loss, changes in equity, and cash flows for the year ended April 30, 2011, as well as the related disclosures
for that year in the notes to the consolidated financial statements, as were previously reported.



/s/ Deloitte LLP



Chartered Accountants

March 21, 2014

Vancouver, Canada









CanAlaska Uranium Ltd.

Consolidated Statements of Financial Position

As at April 30, 2013 and 2012

(Expressed in Canadian dollars
except where indicated)





|                                       |  |  | April 30
        2013
        $000’s | April 30
        2012
        $000’s
|-------------------------------------- |  |  | ------------------------------------ | ------------------------------------
|Assets                                 |  |  |                                      |                                     
|Current assets                         |  |  |                                      |                                     
|Cash and cash equivalents (note 5)     |  |  | 1,265                                | 4,394                               
|Trade and other receivables            |  |  | 58                                   | 243                                 
|Available-for-sale securities (note 6) |  |  | 86                                   | 223                                 
|Total current assets                   |  |  | 1,409                                | 4,860                               
|                                       |  |  |                                      |                                     
|Non-current assets                     |  |  |                                      |                                     
|Reclamation bonds                      |  |  | 203                                  | 345                                 
|Property and equipment (note 7)        |  |  | 375                                  | 504                                 
|Mineral property interests (note 8)    |  |  | 1,238                                | 1,356                               
|Total assets                           |  |  | 3,225                                | 7,065                               
|                                       |  |  |                                      |                                     
|Liabilities                            |  |  |                                      |                                     
|Current liabilities                    |  |  |                                      |                                     
|Trade and other payables               |  |  | 195                                  | 1,792                               
|                                       |  |  |                                      |                                     
|Equity                                 |  |  |                                      |                                     
|Common shares (note 9)                 |  |  | 73,205                               | 73,210                              
|Equityreserve(note 10)                 |  |  | 10,682                               | 10,506                              
|Investment revaluation reserve         |  |  | (1)                                  | 53                                  
|Deficit                                |  |  | (80,856)                             | (78,496)                            
|                                       |  |  | 3,030                                | 5,273                               
|                                       |  |  | 3,225                                | 7,065                               
|                                       |  |  |                                      |                                     
|Going Concern(note 2)                  |  |  |                                      |                                     
|Commitments(note 13)                   |  |  |                                      |                                     
|Subsequent Events(note 17)             |  |  |                                      |                                     







Approved by the Audit Committee of the Board of Directors





|               |               
|-------------- | --------------
|“Peter Dasler” | “Jean Luc Roy”
|Director       | Director      









The accompanying notes are an integral part of these consolidated
financial statements.













CanAlaska Uranium Ltd.



Consolidated Statements of
Net Loss and Comprehensive Loss

For the years ended April
30, 2013, April 30, 2012 and April 30, 2011

(Restated)

(Expressed in Canadian dollars
except where indicated)









|                                                                                                 |  | 2013     | 2012     | 2011    
|------------------------------------------------------------------------------------------------ |  | -------- | -------- | --------
|                                                                                                 |  | ($000's) | ($000's) | ($000's)
|EXPLORATION COSTS                                                                                |  |          |          |         
|Mineral property expenditures                                                                    |  | 632      | 4,825    | 8,026   
|Mineral property write-offs (note 8)                                                             |  | 137      | 451      | -       
|Write-down on reclamation bonds                                                                  |  | 110      | -        | -       
|Equipment rental income                                                                          |  | (3)      | (157)    | (303)   
|Net option payment                                                                               |  | -        | -        | (6)     
|                                                                                                 |  | 876      | 5,119    | 7,717   
|OTHER EXPENSES (INCOME)                                                                          |  |          |          |         
|Consulting, labour and professional fees                                                         |  | 834      | 1,255    | 1,299   
|Depreciation and amortization (note 7)                                                           |  | 108      | 136      | 178     
|Loss (gain) on disposal of property and equipment                                                |  | 4        | (7)      | (11)    
|Foreign exchange gain                                                                            |  | (1)      | (4)      | 4       
|Insurance, licenses and filing fees                                                              |  | 85       | 115      | 130     
|Interest income                                                                                  |  | (24)     | (119)    | (90)    
|Other corporate costs                                                                            |  | 67       | 164      | 159     
|Investor relations and presentations                                                             |  | 52       | 132      | 163     
|Rent                                                                                             |  | 127      | 134      | 118     
|Share-based payments (note 10)                                                                   |  | 176      | 319      | 623     
|Travel and accommodation                                                                         |  | 19       | 68       | 94      
|Management fees                                                                                  |  | (46)     | (363)    | (560)   
|Impairment and loss (gain)
        on disposal of available-for-sale securities
        (note 6) |  | 83       | 122      | (28)    
|Premium on flow-through shares (note 9)                                                          |  | -        | (202)    | -       
|                                                                                                 |  | 1,484    | 1,750    | 2,079   
|                                                                                                 |  |          |          |         
|Net loss for the year                                                                            |  | (2,360)  | (6,869)  | (9,796) 
|                                                                                                 |  |          |          |         
|Other comprehensive loss                                                                         |  |          |          |         
|Unrealized loss (gain) on available-for-sale securities (note 6)                                 |  | 54       | 214      | (257)   
|Total comprehensive loss for the year                                                            |  | (2,414)  | (7,083)  | (9,539) 
|                                                                                                 |  |          |          |         
|Basic and diluted loss per share ($ per share)                                                   |  | (0.11)   | (0.34)   | (0.54)  
|                                                                                                 |  |          |          |         
|Basic and diluted weighted average common
        shares outstanding
        (000's)             |  | 22,058   | 20,425   | 18,114  



The accompanying notes are an integral part of these consolidated
financial statements.









CanAlaska Uranium Ltd.

Consolidated Statements of Changes in Equity

For the years ended April 30, 2013, April 30, 2012 and April 30,
2011

(Restated)

(Expressed in Canadian dollars except where indicated)







|                                                                        |  |                      |                                       | Investment Revaluation Reserve
        $000’s | Accumulated
        Deficit
        $000’s | Total
        Equity
        $000’s
|----------------------------------------------------------------------- |  | -------------------- | ------------------------------------- | --------------------------------------------- | ------------------------------------------ | -----------------------------------
|                                                                        |  |                      |                                       |                                              
|                                                                        |  |                      |                                       |                                              
|                                                                        |  | Common Shares        | Equity
        Reserve
        $000’s
|                                                                        |  | Shares
        000’s | Amount
        $000’s                
|Balance-May 1, 2010                                                     |  | 17,187               | 67,655                                | 10,134                                        | 10                                         | (67,293)                           
|Issued on private placement for cash                                    |  | 2,199                | 3,516                                 | -                                             | -                                          | -                                  
|Warrants issued on private placement                                    |  | -                    | (297)                                 | 297                                           | -                                          | -                                  
|Issued on exercise of stock options                                     |  | 419                  | 419                                   | -                                             | -                                          | -                                  
|Issued to acquire mineral property interest                             |  | 25                   | 24                                    | -                                             | -                                          | -                                  
|Share issuance costs                                                    |  | -                    | (216)                                 | -                                             | -                                          | -                                  
|Share-based payments                                                    |  | -                    | -                                     | 746                                           | -                                          | -                                  
|Transfer on exercise of stock options                                   |  | -                    | 1,007                                 | (1,007)                                       | -                                          | -                                  
|Unrealized gain on available-for-sale  securities                       |  | -                    | -                                     | -                                             | 257                                        | -                                  
|Contributions to the CKU Partnership                                    |  | -                    | -                                     | -                                             | -                                          | 5,462                              
|Net loss for the year                                                   |  | -                    | -                                     | -                                             | -                                          | (9,796)                            
|Balance-April 30, 2011                                                  |  | 19,830               | 72,108                                | 10,170                                        | 267                                        | (71,627)                           
|Issued on private placement for cash                                    |  | 2,223                | 1,168                                 | -                                             | -                                          | -                                  
|Warrants issued on private placement                                    |  | -                    | -                                     | 12                                            | -                                          | -                                  
|Issued to acquire mineral property interest                             |  | 5                    | 4                                     | -                                             | -                                          | -                                  
|Share issuance costs                                                    |  | -                    | (70)                                  | -                                             | -                                          | -                                  
|Share-based payments                                                    |  | -                    | -                                     | 324                                           | -                                          | -                                  
|Unrealized loss on available-for-sale securities                        |  | -                    | -                                     | -                                             | (214)                                      | -                                  
|Net loss for the year                                                   |  | -                    | -                                     | -                                             | -                                          | (6,869)                            
|Balance-April 30, 2012                                                  |  | 22,058               | 73,210                                | 10,506                                        | 53                                         | (78,496)                           
|Share issuance costs                                                    |  | -                    | (5)                                   | -                                             | -                                          | -                                  
|Share-based payments                                                    |  | -                    | -                                     | 176                                           | -                                          | -                                  
|Change in fair value of available-for-sale securities                   |  | -                    | -                                     | -                                             | (137)                                      | -                                  
|Reclassification of losses on available-for-sale securities to earnings |  | -                    | -                                     | -                                             | 83                                         | -                                  
|Net loss for the year                                                   |  | -                    | -                                     | -                                             | -                                          | (2,360)                            
|Balance-April 30, 2013                                                  |  | 22,058               | 73,205                                | 10,682                                        | (1)                                        | (80,856)                           
|                                                                        |  |                      |                                       |                                               |                                            |                                    





The accompanying notes are an integral
part of these consolidated financial statements.









CanAlaska Uranium Ltd.

Consolidated Statements of Cash Flows

For the years ended April 30, 2013, April 30, 2012 and April 30,
2011

(Restated)

(Expressed in Canadian dollars except where indicated)





|                                                                                 |  |  |  | 2013    | 2012    | 2011   
|-------------------------------------------------------------------------------- |  |  |  | ------- | ------- | -------
|                                                                                 |  |  |  | $000’s  | $000’s  | $000’s 
|Cash flows used in operating activities                                          |  |  |  |         |         |        
|Net loss for the year                                                            |  |  |  | (2,360) | (6,869) | (9,796)
|Items not affecting cash                                                         |  |  |  |         |         |        
|Impairment and loss (gain) on disposal of available-for-sale securities (note 6) |  |  |  | 83      | 122     | (28)   
|Loss (gain) on disposal of property and equipment                                |  |  |  | 4       | (7)     | (11)   
|Depreciation and amortization (note 7)                                           |  |  |  | 108     | 136     | 178    
|Premium on flow-through shares (note 9)                                          |  |  |  | -       | (202)   | -      
|Mineral property write-offs                                                      |  |  |  | 137     | 451     | -      
|Write-down on reclamation bonds                                                  |  |  |  | 110     | -       | -      
|Other                                                                            |  |  |  | -       | 10      | 41     
|Share-based payments (note 10)                                                   |  |  |  | 176     | 319     | 623    
|Interest income                                                                  |  |  |  | (24)    | (119)   | (90)   
|                                                                                 |  |  |  | (1,766) | (6,159) | (9,083)
|Interest received                                                                |  |  |  | 30      | 118     | 77     
|Change in non-cash operating working capital                                     |  |  |  |         |         |        
|Decrease in trade and other receivables                                          |  |  |  | 180     | 181     | 748    
|(Decrease) increase in trade and other payables                                  |  |  |  | (1,640) | (670)   | 835    
|                                                                                 |  |  |  | (3,196) | (6,530) | (7,423)
|Cash flows from/used in financing activities                                     |  |  |  |         |         |        
|Issuance of common shares (net of share issue costs)                             |  |  |  | (5)     | 1,311   | 3,300  
|Proceeds from exercise of stock options                                          |  |  |  | -       | -       | 419    
|Funding from partners                                                            |  |  |  | -       | -       | 5,462  
|                                                                                 |  |  |  | (5)     | 1,311   | 9,181  
|Cash flows from/used in investing activities                                     |  |  |  |         |         |        
|Additions to mineral property interests                                          |  |  |  | (20)    | (10)    | (94)   
|Proceeds on disposal of available-for-sale securities                            |  |  |  | -       | -       | 103    
|Acquisition of property and equipment                                            |  |  |  | (2)     | (43)    | (57)   
|Option payments received                                                         |  |  |  | 75      | -       | 12     
|Proceeds from disposal of property and equipment                                 |  |  |  | 19      | 26      | -      
|Reclamation bond                                                                 |  |  |  | -       | (2)     | 34     
|                                                                                 |  |  |  | 72      | (29)    | (2)    
|                                                                                 |  |  |  |         |         |        
|Decrease in cash and cash equivalents                                            |  |  |  | (3,129) | (5,248) | 1,756  
|                                                                                 |  |  |  |         |         |        
|Cash and cash equivalents - beginning of year(note 5)                            |  |  |  | 4,394   | 9,642   | 7,886  
|                                                                                 |  |  |  |         |         |        
|Cash and cash equivalents - end of year(note 5)                                  |  |  |  | 1,265   | 4,394   | 9,642  
|                                                                                 |  |  |  |         |         |        



The
accompanying notes are an integral part of these consolidated financial statements.









CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---







|1 |  | Nature of Operations
|- |  | --------------------



CanAlaska Uranium Ltd. (the “Company”
or “CanAlaska”) and its subsidiaries are principally engaged in the exploration of uranium properties. The Company
brings the properties to production, structures joint ventures with others, option or lease properties to third parties or sell
the properties outright. The Company has not determined whether these properties contain ore reserves that are economically recoverable
and the Company is considered to be in the exploration stage. From time to time, the Company evaluates new properties and directs
exploration on these properties based on the Board of Director’s evaluation of financial and market considerations at the
time. On June 21, 2011, the Company’s shares commenced trading on the Toronto Stock Exchange under the symbol “CVV”
and ceased trading on the TSX Venture Exchange. The Company’s shares are also quoted on the Over-The-Counter Bulletin Board
(“OTCBB”) in the United States under the symbol “CVVUF” and the Frankfurt Stock Exchange under the symbol
“DH7N”. The Company’s registered office is located at 625 Howe Street, Suite 1020, Vancouver, British Columbia,
V6C 2T6, Canada.



|2 |  | Going Concern
|- |  | -------------



These consolidated financial statements have
been prepared on a going concern basis. The going concern basis of presentation assumes that the Company will continue in operation
for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course
of business. These consolidated financial statements do not include any adjustments to the carrying values of assets and liabilities
and the reported expenses and statement of financial position classification that would be necessary should the Company be unable
to continue as a going concern. These adjustments could be material.



The recoverability of the amounts shown for
mineral properties and related deferred costs is dependent upon the existence of economically recoverable mineral reserves, the
ability of the Company to obtain the necessary financing to complete the development, and upon future profitable production or
proceeds from disposition of the mineral properties. Due to increasingly difficult market conditions facing junior uranium exploration
companies there is no assurance that the Company will be successful in raising additional financing. The amounts shown as mineral
property costs represent net acquisition costs incurred to date.



At April 30, 2013, the Company had
cash and cash equivalents of $1.3 million (April 30, 2012: $4.4 million) (note 5) and working capital of $1.2 million (April 30,
2012: $3.1 million). The Company does not earn revenues from its operations, incurred a net loss of $2.3 million during the year
ended April 30, 2013, and has a deficit of $80.9 million at April 30, 2013. Management believes that the cash on hand at April
30, 2013 is sufficient to meet corporate, administrative and selected exploration activities for the coming twelve months. Should
management not be successful in its forthcoming exploration programs, additional fund raising initiatives or sale of certain non-core
properties, it may either need to dilute its ownership in its properties or secure additional financing to continue to advance
the development of its exploration projects. Management has taken steps to streamline non-discretionary expenditures and financial
overheads and is working to option, joint venture or sell its individual exploration projects. The above factors cast substantial
doubt regarding the Company’s ability to continue as a going concern.









CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies
|- |  | ------------------------------------------



|a) |  | Statement of Compliance
|-- |  | -----------------------



These consolidated financial statements have
been prepared in accordance with and in full compliance with International Financial Reporting Standard (“IFRS”) as
issued by the International Accounting Standards Boards (“IASB”). The policies applied in these consolidated financial
statements are presented in note 3 and are based on IFRS issued and effective at April 30, 2013. These consolidated financial statements
were approved by the Board of Directors for issue on March 21, 2014.



|b) |  | Basis of preparation
|-- |  | --------------------



These consolidated financial statements are
presented in Canadian dollars. The consolidated financial statements are prepared on the historical cost basis except for certain
financial instruments that are measured on the fair value basis.



These consolidated financial statements include the accounts of
CanAlaska and its wholly-owned subsidiaries including:

- CanAlaska Resources Ltd. U.S.A., a Nevada company
- CanAlaska West McArthur Uranium Ltd., a B.C. company
- Golden Fern Resources Limited, a New Zealand company
- Poplar Uranium Limited., a B.C. company



Subsidiaries are entities over which
the Company has the power, directly or indirectly, to govern the financial and operating policies of the entity so as to obtain
benefits from its activities. In assessing control, potential voting rights that are presently exercisable or convertible, are
taken into account in the assessment of whether control exists. Subsidiaries are fully consolidated from the date on which control
is transferred to the Company. They are deconsolidated from the date on which control ceases. All inter-company transactions, balances,
income and expenses have been eliminated on consolidation.



These consolidated financial statements
also include the proportionate share of each of the assets, liabilities, revenues and expenses of its interest in CanAlaska Korean
Uranium Limited Partnership (“CKULP” or the “Partnership” or the “CKU Partnership”) and CanAlaska
Korean Uranium Limited.



- 1 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



|c) |  | Share-based payments
|-- |  | --------------------



The Company operates an equity-settled, share-based
compensation plan, under which the entity receives services from employees and non-employees as consideration for equity instruments
(options) of the Company. The total amount to be expensed is determined by reference to the fair value of the options granted.



The fair value of share-based compensation
is determined using the Black-Scholes option-pricing model and management’s assumptions as disclosed in note 10. When a stock
option is exercised, the Company recognizes an increase in its share capital equivalent to the consideration paid by the option
holder and the fair value amount previously recognized in equity reserve. The fair value of any stock options granted to directors,
officers and employees of the Company is recorded as an expense over the vesting period of the options with a corresponding increase
in equity reserve.



|d) |  | Income taxes
|-- |  | ------------



Income tax expense consists of current and
deferred tax expense. Income tax is recognized in the consolidated statement of net loss and comprehensive loss except to the extent
it relates to items recognized directly in equity, in which case the related taxes are recognized in equity.



Current tax expense is the expected tax payable
on the taxable income for the year, using tax rates substantially enacted at period end, adjusted for amendments to tax payable
with regards to previous years.



Deferred tax assets and liabilities are recognized
for deferred tax consequences attributable to unused tax loss carry forwards, unused tax credits and differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using the enacted or substantially enacted tax rates expected to apply when the asset is realized or the liability
settled.



The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income or loss in the period that substantive enactment occurs.



A deferred tax asset is recognized to the extent
that it is probable that future taxable income will be available against which the asset can be utilized. To the extent that the
Company does not consider it probable that deferred tax asset will be recovered, the deferred tax asset is reduced.



The following temporary differences do not
result in deferred tax assets or liabilities:

| | · | the initial recognition of assets or liabilities,
not arising in a business combination, that does not affect accounting or taxable income;                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | · | initial recognition of goodwill;                                                                                                                                                                           
| | · | investments in subsidiaries, associates
and jointly controlled entities where the timing of reversal of the temporary differences can be controlled and reversal in the
foreseeable future is not probable.



Deferred tax assets and liabilities are offset
when there is a legally enforceable right to the set off current tax assets against current tax liabilities and when they relate
to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities
on a net basis.

- 2 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



|e) |  | Flow-through shares
|-- |  | -------------------



Under Canadian income tax legislation, a company
is permitted to issue flow-through shares whereby the Company agrees to incur qualifying expenditures and renounce the related
income tax deductions to the investors. The Company has adopted a policy to (i) allocate the proceeds between the offering of the
shares and the sale of tax benefits when the shares are offered and (ii) recognize an income tax provision upon filing of appropriate
renunciation forms with the Canadian taxation authorities for qualifying expenditures previously incurred.



The allocation of the proceeds is made based
on the residual difference between the quoted price of the shares and the amount the investor pays for the flow-through shares.
A liability is recognized for the premium paid by the investors. The liability is reduced and the reduction of premium liability
is recorded in other income when the Company has the intention to renounce the expenditures with the Canadian taxation authorities
for qualifying expenditures previously incurred. The deferred tax impact, if any, is recorded at the same time.



|f) |  | Property and equipment
|-- |  | ----------------------



Property and equipment (“PPE”)
are carried at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of PPE consists
of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended
use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. An
item of PPE is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the
asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the
carrying amount of the asset, is recognized in profit or loss. Where an item of property and equipment comprises major components
with different useful lives, the components are accounted for as separate items of plant and equipment. Expenditures incurred to
replace a component of an item of property and equipment that is accounted for separately, including major inspection and overhaul
expenditures are capitalized.



The Company provides for amortization of its property and equipment
as follows:



|Automotive             | 30% declining balance basis
|---------------------- | ---------------------------
|Leasehold improvements | 30% declining balance basis
|Mining equipment       | 30% declining balance basis
|Office equipment       | 20% declining balance basis



|g) |  | Exploration and evaluation expenditures
|-- |  | ---------------------------------------



Exploration and evaluation expenditure include
the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the fair value (at acquisition
date) of exploration and evaluation assets acquired in a business combination. Exploration and evaluation expenditures are expensed
as incurred as mineral property expenditures. Costs incurred before the Company has obtained the legal rights to explore an area
are recognized in the statement of comprehensive loss.



Acquisition costs are capitalized to the extent
that these costs can be related directly to the acquisition of a specific area of interest where it is considered likely to be
recoverable by future exploitation or sale.



- 3 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------





Once the technical feasibility and commercial
viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable
to that area of interest are first tested for impairment and then reclassified to mining property and development assets within
property and equipment. Subsequent costs are capitalized to the respective mineral property interests.



Recoverability of the carrying amount of the
exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of
the respective areas of interest.



The Company is in
the exploration stage with respect to its investment in mineral properties and accordingly follows the practice of expensing all
costs relating to exploration for and development of mineral claims and crediting all proceeds received for option or farm-out
arrangements or recovery of costs against the mineral expenditures.



|h) |  | Impairment of non-financial assets
|-- |  | ----------------------------------



At each reporting date, the carrying amounts
of the Company’s non-financial assets are reviewed to determine whether there is any indication that those assets are impaired.
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment,
if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the
amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing
parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable
amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable
amount and the impairment loss is recognized in the profit or loss for the period. For the purposes of impairment testing, exploration
and evaluation assets are allocated to cash-generating units to which the exploration activity relates, generally by mineral property
interests. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash
generating unit to which the asset belongs. For exploration and evaluation assets, indication of impairment includes but is not
limited to expiration of the rights to explore, substantive expenditure in the specific area is neither budgeted or planned, and
if the entity has decided to discontinue exploration activity in the specified area.



Where an impairment loss subsequently reverses,
the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but
so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately
in profit or loss.



Management considers both external and internal
sources of information in assessing whether there are any indications that the Company’s non-financial assets are impaired.
External sources of information management considers include changes in market, economic and legal environment in which the Company
operates that are not within its control and affect the recoverable amount of its non-financial assets. Internal sources of information
management consider include the manner in which non-financial assets are being used or are expected to be used and indications
of economic performance of the assets.



- 4 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



|i) |  | Foreign currencies
|-- |  | ------------------



The functional and presentation currency of
the Company and its subsidiaries is the Canadian dollar. Transactions in currencies other than the functional currency are recorded
at the rates of exchange prevailing on dates of transactions. At each reporting date, monetary assets and liabilities that are
denominated in foreign currencies are translated at the spot rates prevailing at the date. Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated at the date of the transaction and not revalued every period.



|j) |  | Financial assets and liabilities
|-- |  | --------------------------------



Financial assets held are cash and cash equivalents,
trade and other receivables and available-for-sale securities. Financial liabilities are trade and other payables.



These are classified into the following specified
categories: available-for-sale (“AFS”) financial assets, loans and receivables and other liabilities. The classification
depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Available-for-sale
securities held by the Company that are traded in an active market are classified as being AFS and are stated at fair value. Gains
and losses arising from changes in fair value are recognized directly in other comprehensive income ("OCI”) in the investments
revaluation reserve with the exception of significant or prolonged losses which are recognized in profit or loss. Where the investment
is disposed of or is determined to be impaired, the cumulative gain or loss previously recognized in the investments revaluation
reserve is included in the consolidated statement of net loss and comprehensive loss for the period.



The fair value of AFS monetary assets denominated
in a foreign currency is determined in that foreign currency and translated at the spot rate at the financial position reporting
date. The change in fair value attributable to translation differences that result from a change in amortized cost of the asset
is recognized in profit or loss. Trade and other receivables that have fixed or determinable payments that are not quoted in an
active market are classified as loans and receivables. Loans and receivables are measured at amortized cost using the effective
interest method, less any impairment. Interest income is recognized by applying the effective interest rate, except for short-term
receivables when the recognition of interest would be immaterial. Other financial liabilities are measured at amortized cost.

- 5 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



The Company has classified its financial instruments as follows:



|Cash and cash equivalents     | Loans and receivables      
|----------------------------- | ---------------------------
|Available-for-sale securities | Available-for-sale         
|Trade and other receivables   | Loans and receivables      
|Trade and other payables      | Other financial liabilities



Financial instruments recorded at fair value
on the consolidated statement of financial position are classified using a fair value hierarchy that reflects the significance
of the inputs used in making the measurements. The fair value hierarchy has the following levels:

- Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical
assets or liabilities;
- Level 2 - valuation techniques based on inputs other than quoted prices included
in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
- Level 3 - valuation techniques using inputs for the asset or liability that are
not based on observable market data (unobservable inputs).



The Company’s available for
sale investments are classified as Level 1 financial instruments. There have been no transfers between fair value levels during
the reporting period.



Impairment of financial assets



Financial assets are assessed for indicators
of impairment at each financial position reporting date. Financial assets are impaired where there is objective evidence that,
as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash
flows of the investment have been impacted. For unlisted shares classified as AFS, a significant or prolonged decline in the fair
value of the security below its cost is considered to be objective evidence of impairment. For all other financial assets objective
evidence of impairment could include:

- significant financial difficulty of the issuer or counterparty; or
- default or delinquency in interest or principal payments; or
- it becoming probable that the borrower will enter bankruptcy or financial re-organization.



For certain categories of financial assets,
such as trade and other receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment
on a collective basis. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of accounts receivable, where the carrying amount is reduced through the use of an allowance account.
When an accounts receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries
of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account
are recognized in the consolidated statement of net loss and comprehensive loss. With the exception of AFS equity instruments,
if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to
the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized
cost would have been had the impairment not been recognized. In respect of AFS equity securities, impairment losses previously
recognized through profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment
loss is recognized directly in equity.

- 6 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



|k) |  | Investment revaluation reserve
|-- |  | ------------------------------



Investment revaluation reserve includes
unrealized gains and losses on available-for-sale securities, none of which are included in the calculation of net earnings or
losses until realized or until there is a significant or prolonged decline in the investments value.



|l) |  | Cash and cash equivalents
|-- |  | -------------------------



Cash and cash equivalents consist
of cash deposits in banks, bankers’ acceptances and certificates of deposits (note 5) and are readily convertible into a
known amount of cash with maturity days of three months or less.



|m) |  | Decommissioning liabilities
|-- |  | ---------------------------



Obligations associated with the
decommissioning of tangible non-current assets are recorded as provisions when those obligations are incurred, with the amount
of the liability initially measured at management’s best estimates. These obligations are capitalized in the accounts of
the related non-current assets and are amortized over the useful lives of the related assets. It is possible that the Company's
estimates of its ultimate decommissioning liabilities could change as a result of changes in regulations, the extent of environmental
remediation required and the means of reclamation or costs estimates. Changes in estimates are accounted for prospectively from
the period these estimates are revised. There are no decommissioning liabilities obligations as at April 30, 2013 and April 30,
2012.



|n) |  | Equity
|-- |  | ------



An equity instrument is any contract that evidences
a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company
are recorded at the proceeds received, net of issue costs.



|o) |  | Provisions
|-- |  | ----------



A provision is recognized in the statement
of financial position when the Company has a present legal or constructive obligation as a result of a past event, it is probable
that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. If the
effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability.



|p) |  | Interest income
|-- |  | ---------------



Interest income is accrued on a time basis,
by reference to the principal outstanding and at the effective interest rate applicable.

- 7 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



|q) |  | Loss per share
|-- |  | --------------



Basic loss per common share is calculated by
dividing the loss attributed to shareholders for the period by the weighted average number of common shares outstanding in the
period. Diluted loss per common share is calculated by adjusting the weighted average number of common shares outstanding to assume
conversion of all dilutive potential common shares. Stock options, shares to be issued, and warrants outstanding are not included
in the computation of diluted (loss) earnings per share if their inclusion would be anti-dilutive.



|r) |  | Segment reporting
|-- |  | -----------------



A segment is a component of the Company that
is distinguishable by economic activity (business segment), or by its geographical location (geographical segment), which is subject
to risks and rewards that are different from those of other segments. The Company operates in one business segment, the exploration
of mineral property interests.



|s) |  | Future Accounting pronouncements
|-- |  | --------------------------------



Unless otherwise noted, the following revised
standards and amendments are effective for annual periods beginning on or after January 1, 2013 with earlier application permitted.
The Company is determining the impact of the adoption of these standards on its reported results or financial position.



(i) IFRS 9 Financial Instruments, was issued
in November 2009 and addresses classification and measurement of financial assets. It replaces the multiple category and measurement
models in IAS 39 for debt instruments with a new mixed measurement model having only two categories: amortized cost and fair value
through profit or loss. IFRS 9 also replaces the models for measuring equity instruments. Such instruments are either recognized
at fair value through profit or loss or at fair value through other comprehensive income. Where equity instruments are measured
at fair value through other comprehensive income, dividends are recognized in profit or loss to the extent that they do not clearly
represent a return of investment; however, other gains and losses (including impairments) associated with such instruments remain
in accumulated comprehensive income indefinitely.



Requirements for financial liabilities were
added to IFRS 9 in October 2010 and they largely carried forward existing requirements in IAS 39, Financial Instruments - Recognition
and Measurement, except that fair value changes due to credit risk for liabilities designated at fair value through profit and
loss are generally recorded in other comprehensive income. The effective date of IFRS 9 is January 1, 2015.



(ii) IFRS 10, Consolidated Financial Statements,
requires an entity to consolidate an investee when it has power over the investee, is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its power over the investee. Under exiting
IFRS, consolidation is required when an entity has the power to govern the financial and operating policies of an entity so as
to obtain benefits from its activities.



(iii) IFRS 11, Joint Arrangements, requires
a venturer to classify its interest in a joint arrangement as a joint venture or joint operation. Joint ventures will be accounted
for using the equity method of accounting whereas for a joint operation the venturer will recognize its share of the assets, liabilities,
revenue and expenses of the point operation.

- 8 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|3 |  | Summary of Significant Accounting Policies	(continued)
|- |  | ------------------------------------------------------



(iv) IFRS 12, Disclosure of Interests in Other
Entities, establishes disclosure requirements for interests in other entities, including subsidiaries, joint arrangements, associates,
and unconsolidated structured entities. The standard carries forward existing disclosures and also introduces significant additional
disclosures that address the nature of, and risks associated with, an entity's interests in other entities.



(v) IFRS 13, Fair Value
Measurement, is a comprehensive standard for fair value measurement and disclosure for use across all IFRS standards. The new standard
clarifies that fair value is the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction
between market participants, at the measurement date. Under existing IFRS, guidance on measuring and disclosing fair value is dispersed
among the specific standards requiring fair value measurements and does not always reflect a clear measurement basis or consistent
disclosures.



(vi) There have been amendments to existing
standards, including IAS 27, Separate Financial Statements (IAS 27), and IAS 28, Investments in Associates and Joint Ventures (IAS
28). IAS 27 addresses accounting for subsidiaries, jointly controlled entities and associates in non-consolidated financial statements.
IAS 28 has been amended to include joint ventures in its scope and to address the changes in IFRS 10 - 13.



(vii) IAS 1, Presentation of Financial Statements,
has been amended to require entities to separate items presented in OCI into two groups, based on whether or not items may be recycled
in the future. Entities that choose to present OCI items before tax will be required to show the amount of tax related to the two
groups separately.



|4 |  | Significant Accounting Judgments and Estimates
|- |  | ----------------------------------------------



The preparation
of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period.
Actual outcomes could differ from these estimates. The consolidated financial statements include estimates which, by their nature,
are uncertain. The impacts of such estimates are pervasive throughout theconsolidated financial statements, and may require
accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and the revision affects both current and future periods.



Significant assumptions about the future and
other sources of estimation uncertainty that management has made at the statement of financial position date, that could result
in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions
made, relate to, but are not limited to, the following:

- 9 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|4 |  | Significant Accounting Judgments and Estimates (continued)
|- |  | ----------------------------------------------------------



|a) |  | Critical judgments
|-- |  | ------------------



| | · | The Company believes that the cash on hand at April 30, 2013 is sufficient to meet corporate, administrative
and selected exploration activities for the coming twelve months and that the presentation of these consolidated financial statements
on a going concern basis is appropriate.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The Company has determined that it will account for its investment in CKU Partnership using the
proportionate consolidation method to reflect its joint control with the Korean Consortium. In assessing whether the Company has
joint control the Company assessed whether all the parties, or a group of the parties, control the arrangement. This assessment
necessarily involves judgment as to whether (i) the Korean Consortium and the Company have equal rights and powers in governing
the financial and operating policies of the Partnership or appointing and removing members of the Partnership’s Board of
Directors and (ii) decision making is governed by the Partnership’s Board of Directors, with equal representation from the
Consortium and the Company.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The Company decided not to recognize deferred tax assets consisting of Canadian
exploration expenses, capital losses and unused tax losses as it considered it not to be probable that taxable income will be available
in the near future to offset these deferred tax assets.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Under IFRS, accounting for exploration and evaluation expenditures can capitalize
all exploration and evaluation expenditures as a matter of policy, or costs may be expensed as incurred until a decision was made
that commercial exploitation is probable, from which point the costs have been capitalized. The Company has elected to have a policy
to expense all costs for exploration and evaluation expenditures.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Management assesses each mineral property interest at each reporting period
to determine whether any indication of impairment exists, and if events or changes in circumstances indicate that the carrying
value may not be recoverable. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made which
is considered to be the higher of the fair value less costs to sell and its value in use. These assessments require the use of
estimates and assumptions such as future capital requirements and assessments of preliminary assay results. Fair value is determined
as the amount that would be obtained from the sale of the asset in an arm’s-length transaction between knowledgeable and
willing parties.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|b) |  | Estimates
|-- |  | ---------



| | · | the fair value estimation of share-based
awards included in the consolidated statements of financial position and the inputs used in accounting for stock options and warrants
in the consolidated statements of comprehensive loss;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | the accounting and recognition of income
taxes which is included in the consolidation statement of net loss and comprehensive loss and composition of deferred income tax
asset and liabilities included in the consolidated statement of financial position;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | the inputs used in determining the various
commitments and contingencies accrued in the consolidated statements of financial position; and,
| | - | -------------------------------------------------------------------------------------------------------------------------------------------

| | · | the assessment of indications of impairment
of each mineral properties and related determination of the net realizable value and write-down of those properties where applicable.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



- 10 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|5 |  | Cash and Cash Equivalents
|- |  | -------------------------



|                                           |  | April 30, 2013
        $000’s | April 30, 2012
        $000’s
|------------------------------------------ |  | ----------------------------- | -----------------------------
|CKULP funds                                |  | 290                           | 399                          
|Option-in advance                          |  | 116                           | 329                          
|Cash in bank and other short term deposits |  | 859                           | 3,666                        
|Total                                      |  | 1,265                         | 4,394                        



CKULP funds are held by the Company
for expenditures on the properties held by the CKULP.



Option-in advance are advance cash
funding by joint venture partners on various exploration properties.



Cash and cash equivalents of the
Company are comprised of bank balances and short-term investments, which are readily convertible to cash, with an original maturity
of 90 days or less as follows:



|                 |  | April 30, 2013
        $000’s | April 30, 2012
        $000’s
|---------------- |  | ----------------------------- | -----------------------------
|Cash             |  | 364                           | 1,544                        
|Cash equivalents |  | 901                           | 2,850                        
|Total            |  | 1,265                         | 4,394                        



|6 |  | Available-for-Sale Securities
|- |  | -----------------------------



|                                    |  | April 30, 2013 | April 30, 2012     
|----------------------------------- |  | -------------- | -------------------
|                                    |  |                | Cost
        $000’s
|Pacific North West Capital Corp.    |  |                | 42                 
|Westcan Uranium Corp.               |  |                | 6                  
|Mega Uranium Ltd.                   |  |                | 6                  
|Other available-for-sale securities |  |                | 33                 
|Total                               |  |                | 87                 



The Company reviewed the carrying
values of its available-for-sale securities, and after considering where the decreases on fair value were significant or prolonged,
the Company recognized an impairment on available-for-sale securities of $83,000 (2012: $122,000). In 2011, the Company realized
a gain on disposal of available-for-sale securities of $28,000.

- 11 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|7 |  | Property and Equipment
|- |  | ----------------------

| |  | Property and equipment are comprised of the following:
| |  | ------------------------------------------------------



|                  | Automotive
        $000’s | Leasehold improvements
        $000’s | Mining equipment
        $000’s | Office equipment
        $000’s | Total
        $000’s
|----------------- | ------------------------- | ------------------------------------- | ------------------------------- | ------------------------------- | --------------------
|Cost              |                           |                                       |                                 |                                 |                     
|At May 1, 2011    | 111                       | 270                                   | 1,007                           | 494                             | 1,882               
|Additions         | -                         | -                                     | 36                              | 7                               | 43                  
|Disposals         | (29)                      | -                                     | (19)                            | -                               | (48)                
|At April 30, 2012 | 82                        | 270                                   | 1,024                           | 501                             | 1,877               
|Additions         | -                         | -                                     | -                               | 2                               | 2                   
|Disposals         | (57)                      | -                                     | (2)                             | (47)                            | (106)               
|At April 30, 2013 | 25                        | 270                                   | 1,022                           | 456                             | 1,773               



|Accumulated Depreciation and Amortization |      |       |       |       |        
|----------------------------------------- | ---- | ----- | ----- | ----- | -------
|At May 1, 2011                            | (84) | (84)  | (750) | (348) | (1,266)
|Depreciation and amortization             | (4)  | (21)  | (79)  | (32)  | (136)  
|Disposals                                 | 21   | -     | 8     | -     | 29     
|At April 30, 2012                         | (67) | (105) | (821) | (380) | (1,373)
|Depreciation and amortization             | (4)  | (20)  | (61)  | (23)  | (108)  
|Disposals                                 | 54   | -     | 2     | 27    | 83     
|At April 30, 2013                         | (17) | (125) | (880) | (376) | (1,398)
|                                          |      |       |       |       |        
|Carrying Value                            |      |       |       |       |        
|At April 30, 2012                         | 15   | 165   | 203   | 121   | 504    
|At April 30, 2013                         | 8    | 145   | 142   | 80    | 375    



- 12 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|8 |  | Mineral Property Interests
|- |  | --------------------------



The Company holds approximately 780,000 hectares
of mining claims in the Athabasca region located across the provinces of Saskatchewan and Manitoba in Canada. The holdings are
comprised of 18 projects which are in various stages of exploration and discovery.



The Company also holds mining claims
in New Zealand, Alaska and British Columbia.



Details of acquisition costs and
mineral property impairments for the years ended April 30, 2013 and 2012 respectively are as follows:



|Project ($000’s)            | May 1, 2011 | Additions/
        write-offs | April 31, 2012 | Additions/
        write-offs | April 30, 2013
|--------------------------- | ----------- | ----------------------------- | -------------- | ----------------------------- | --------------
|Athabasca Basin             |             |                               |                |                               |               
|Cree East (a)               | -           | -                             | -              | -                             | -             
|West McArthur (b)           | 65          | -                             | 65             | -                             | 65            
|Fond du Lac                 | 120         | -                             | 120            | -                             | 120           
|Grease River                | 133         | -                             | 133            | -                             | 133           
|Cree West (c)               | 48          | -                             | 48             | (48)                          | -             
|Key Lake                    | 24          | -                             | 24             | -                             | 24            
|NW Manitoba                 | 16          | -                             | 16             | -                             | 16            
|Poplar                      | 166         | -                             | 166            | -                             | 166           
|Black Lake                  | 147         | (147)                         | -              | -                             | -             
|Helmer                      | 107         | -                             | 107            | -                             | 107           
|Lake Athabasca              | 118         | -                             | 118            | -                             | 118           
|Alberta (d)                 | 11          | -                             | 11             | (11)                          | -             
|Hodgson                     | 109         | -                             | 109            | -                             | 109           
|Arnold (e)                  | 35          | -                             | 35             | (35)                          | -             
|Collins Bay                 | -           | -                             | -              | -                             | -             
|McTavish                    | 74          | -                             | 74             | -                             | 74            
|Carswell (f)                | 173         | -                             | 173            | (37)                          | 136           
|Ruttan (g)                  | -           | -                             | -              | 15                            | 15            
|Patterson (h)               | -           | -                             | -              | 4                             | 4             
|Other                       | 53          | -                             | 53             | -                             | 53            
|New Zealand                 |             |                               |                |                               |               
|Rise and Shine, NZ          | 301         | (301)                         | -              | -                             | -             
|Reefton, NZ (i)             | 24          | -                             | 24             | -                             | 24            
|Other                       |             |                               |                |                               |               
|Other Projects, Various (j) | 73          | 7                             | 80             | (6)                           | 74            
|Total                       | 1,797       | (441)                         | 1,356          | (118)                         | 1,238         

- 13 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|8 |  | Mineral Property Interests (continued)
|- |  | --------------------------------------



|                                                                                                   | Total
|-------------------------------------------------------------------------------------------------- | -----
|Summary of option payments remaining due by
        CanAlaska in the
        years ending April 30 |      
|2014                                                                                               |      
|2015                                                                                               |      
|Thereafter                                                                                         |      



1Represents
cumulative spend required and not the spend per fiscal year to maintain certain interest in the Company’s mineral property
interests. The cumulative spend is at the Company’s discretion under an option. It may not be the Company’s intention
to pay the option, in which case the expenditure will not be incurred.



|                                                                                  |                     |                      |        | Total
|--------------------------------------------------------------------------------- | ------------------- | -------------------- | ------ | -----
|Summary of option payments receivable  by CanAlaska in the years ending April 302 | Cash
        $000’s | Spend
        $000’s | Shares
|2014 (received)                                                                   |                     |                      |        | -    
|2014                                                                              |                     |                      |        | 25   
|2015                                                                              |                     |                      |        | 250  



2Represents
optionees' commitments to maintain certain interest in the Company’s properties (see note 8(i) and note 8(j)).



|a) |  | Cree East, Saskatchewan – Korean Consortium
|-- |  | -------------------------------------------



Cree East consists of approximately 58,000
hectares of mineral claims in the Athabasca. In December 2007, the Company formed the CKU Partnership with the Korean Consortium
(“Consortium”) to develop Cree East. Under the terms of agreements, the Korean Consortium would invest $19.0 million
towards the earn-in of a 50% ownership interest in the CKU Partnership over a four year period. As of April 30, 2013, the Korean
Consortium had contributed $19.0 million (April 30, 2012: $19.0 million, April 30, 2011: $19 million) and held a 50% interest (April
30, 2012: 50%, April 30, 2011: 50%) in the CKU Partnership. The Company acts as the operator for the exploration project and earns
a management fee of 10% of the exploration expenditures incurred. The total expenditures on the property for the year ended April
30, 2013 was $184,000 (2012: $2,733,000, 2011: $4,581,000).



|b) |  | West McArthur, Saskatchewan - Mitsubishi
|-- |  | ----------------------------------------



West McArthur consists of approximately 36,000
hectares of mineral claims in the Athabasca. In April 2007, the Company optioned the claims to Mitsubishi Development Pty Ltd.
(“Mitsubishi”) whereby Mitsubishi could exercise an option to earn a 50% interest in the property by funding expenditures
of $10.0 million and by making a $1.0 million payment upon completion of the $10.0 million funding requirement. In February 2010,
Mitsubishi exercised their option with a payment to the Company of $1.0 million and an unincorporated 50/50 joint venture was formed
between the parties to pursue further exploration and development of the property. The total cash contribution for the year ended
April 30, 2013 from Mitsubishi was $nil (2012: $1.3 million, 2011: $1.5 million). The Company acts as project operator and earns
a fee (between 5% and 10%) based on the expenditures incurred.

- 14 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|8 |  | Mineral Property Interests (continued)
|- |  | --------------------------------------



|c) |  | Cree West, Saskatchewan
|-- |  | -----------------------



In July 2012, the Company recognized
an impairment on its Cree West claim of approximately $48,000 as it did not renew its permits on this property.



|d) |  | Alberta, Alberta
|-- |  | ----------------



In April 2013, the Company recognized
an impairment on its Alberta claim of approximately $11,000 as it did not renew its permits on this property.



|e) |  | Arnold, Saskatchewan
|-- |  | --------------------



In October 2012, the Company recognized
an impairment on its Arnold claim of approximately $35,000 as it did not renew its permits on this property.



|f) |  | Carswell, Saskatchewan
|-- |  | ----------------------



In April 2013, the Company recognized
an impairment on certain of its Carswell claims of approximately $37,000 as it did not renew its permits on these claims.



|g) |  | Ruttan, Manitoba
|-- |  | ----------------



In June 2012, the Company acquired
the Ruttan project which consists of approximately 1,000 hectares and is adjacent to and northeast of the past-producing Ruttan
Copper Mine located near Leaf Rapids in northern Manitoba for $14,794.



|h) |  | Patterson – Saskatchewan
|-- |  | ------------------------



In January 2013, the Company acquired
three blocks of claims, totaling 6,687 hectares located in the Patterson Lake area of the western Athabasca basin for $4,013.



|i) |  | Reefton – New Zealand
|-- |  | ---------------------



In September 2012, Atlantic Industrial
Minerals Inc. (“Atlantic”) entered into an option agreement to acquire 100% interest in the Reefton project, in South
Island, New Zealand by paying $300,000 in cash or shares in staged payments, issuing 300,000 shares of Atlantic to the Company
and reimbursing the Company for the annual permit fees for the property from 2012 to 2015 which are approximately $50,000 per year
and drilling 1,500 metres by December 31, 2014. The Company also retained a 2% NSR. In September 2012 and October 2012, the Company
received $50,000 from Atlantic for the 2012/2013 annual permit fee as part of the agreement. In May 2013, the Company received
333,334 shares from Atlantic in lieu of the $25,000 cash payment due.







- 15 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|8 |  | Mineral Property Interests (continued)
|- |  | --------------------------------------



|j) |  | Other Projects – BC Copper, British Columbia
|-- |  | --------------------------------------------



| | · | BC Copper is comprised of approximately 7,000 hectares located in south
central British Columbia. In March 2012, the Company optioned the claims to Tyrone Docherty. Tyrone Docherty may earn a 50% interest
in the property by making exploration expenditures of $470,000 by July 2014. In May 2012 the Company amended the agreement where
a third party, Discovery Ventures Ltd and Tyrone Docherty will earn 50% interest for the expenditure of $75,000 (spent) in summer
2012, a further $87,500 of exploration expenditure by July 1, 2013, and a further $87,500 of exploration expenditure by July 1,
2014.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | In April 2013, the Company recognized an impairment on certain of its BC
Copper claims for approximately $7,000 as it did not renew its permits for these claims.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



|9 |  | Share Capital
|- |  | -------------



The Company has authorized capital
consisting of an unlimited amount of common shares without par value.



Share Issuances



| | a) | In March 2012, the Company issued 283,000 common shares for gross proceeds of $121,690. A finder’s
fee of $4,867 in cash and 11,320 warrants were issued in connection with the financing. Each finder’s warrant entitles the
holder to purchase on additional common share for a period of eighteen months from the closing date, at a price of $0.55 per warrant
share. The share purchase warrants issued as part of this placement have been recorded at a fair value of $1,825 which was determined
using the Black Scholes model.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In March 2012, the Company issued
1,522,000 flow-through common shares for gross proceeds of $776,220. A finder’s fee of $31,049 in cash and 60,880 warrants
were issued in connection with the financing. $68,490 was allocated to the flow-through share premium as the market value on the
date of close was less than the offering price associated with this offering. Each finder’s warrant entitles the holder to
purchase one additional common share for a period of eighteen months from the closing date at a price of $0.55 per warrant share.
The share purchase warrants issued as part of this placement have been recorded at a fair value of $9,816 using the Black Scholes
model.



In May 2011, the Company issued 418,141
flow-through common shares for gross proceeds of $472,500. $133,805 was allocated to the flow-through share premium as the market
value on the date of close was less than the offering price associated with this offering.



| | b) | In July 2011, the Company issued 5,000 common shares under the option agreement
for the Black Lake project.
| | -- | -----------------------------------------------------------------------------------------------------------



| | c) | In May and October 2012, the Company incurred share issuance costs totalling
approximately $5,000.
| | -- | --------------------------------------------------------------------------------------------------



| | d) | On September 23, 2010, shareholders approved a share consolidation of ten to one. The shares of
the Company began trading on a consolidated basis on November 8, 2010. All references to common shares, stock options, warrants
and per share amounts for all periods have been adjusted on a retrospective basis to reflect the common share consolidation.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



- 16 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|9 |  | Share Capital (Continued)
|- |  | -------------------------



| | e) | In December 2010, the Company issued 1,721,708 ordinary units for gross proceeds of $2,754,733.
Each unit consists of one common share and one-half of a share purchase warrant. Each warrant entitles the holder to purchase on
additional common share for a period of twenty four months from the closing date, at a price of $1.90 per warrant share. The share
purchase warrants issued as part of this placement have been recorded at a fair value of $205,499 using the Black Scholes model.
A finder’s fee of $119,055 in cash and 31,250 common shares and 136,192 warrants were issued in connection with the financing.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In December 2010, the Company
issued 446,167 flow-through units for gross proceeds of $713,867. Each unit consists of one flow-through common share and one-half
of one share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share for a period of twenty
four months from the closing date at a price of $1.90 per warrant share. The share purchase warrants issued as part of this placement
have been recorded at a fair value of $53,254 using the Black Scholes model. A finder’s fee of $29,280 in cash and 18,300
warrants were issued in connection with the financing.



| | f) | In September 2010, the Company issued 20,000 common shares under the amended option agreement for
the Fond Du Lac project. In July 2010, the Company issued 5,000 common shares under the option agreement for the Black Lake project.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|10 |  | Share Stock Options and Warrants
|-- |  | --------------------------------



The Company has a stock option plan
that permits the granting of stock options to directors, officers, key employees and consultants. Terms and pricing of options
are determined by management at the date of grant. A total of 4,400,000 common shares of the Company may be allotted and reserved
for issuance under the stock option plan.



|                             |  | Number of options
        000’s | Weighted average
        exercise price $
|---------------------------- |  | ------------------------------- | -----------------------------------------
|Outstanding - May 1, 2010    |  | 2,094                           | 3,20                                     
|Granted                      |  | 406                             | 1.05                                     
|Exercised                    |  | (419)                           | 1.00                                     
|Expired                      |  | (172)                           | 4.46                                     
|Forfeited                    |  | (119)                           | 2.02                                     
|Outstanding - May 1, 2011    |  | 1,790                           | 1.03                                     
|Granted                      |  | 1,340                           | 0.54                                     
|Expired                      |  | (191)                           | 1.00                                     
|Forfeited                    |  | (15)                            | 1.00                                     
|Outstanding – April 30, 2012 |  | 2,924                           | 0.81                                     
|Granted                      |  | 1,358                           | 0.26                                     
|Expired                      |  | (661)                           | 1.09                                     
|Forfeited                    |  | (23)                            | 1.21                                     
|Outstanding – April 30, 2013 |  | 3,598                           | 0.55                                     



- 17 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|10 |  | Share Stock Options and Warrants (continued)
|-- |  | --------------------------------------------



As at April 30, 2013, the following stock options
were outstanding:



|      | Number of options outstanding 000’s | Number of options exercisable 000’s | Exercise
        price | Expiry date
        (Fiscal Year)
|----- | ----------------------------------- | ----------------------------------- | ---------------------- | ---------------------------------
|      | 829                                 | 829                                 | $0.54 - $1.00          | 2014                             
|      | 1,481                               | 1,481                               | $0.42 - $1.00          | 2015                             
|      | 1,288                               | 1,288                               | $0.25                  | 2018                             
|Total | 3,598                               | 3,598                               |                        |                                  
|      |                                     |                                     |                        |                                  



For the year ended April 30, 2013,
total share-based compensation expense was $175,981 (2012: $324,295; 2011: $746,296), of which $nil (2012: $5,753; 2011: $123,255)
was allocated to specific projects and expensed to mineral property expenditures on the statement of net loss and comprehensive
loss. The remainder was recognized as share-based payments expense in the year.



Warrants



|                             |  | Number of warrants
        000’s | Weighted average
        exercise price $
|---------------------------- |  | -------------------------------- | -----------------------------------------
|Outstanding - May 1, 2010    |  | 2,847                            | 3.20                                     
|Granted                      |  | 1,238                            | 1.90                                     
|Expired                      |  | (646)                            | 4.78                                     
|Outstanding - April 30, 2011 |  | 3,439                            | 2.44                                     
|Granted                      |  | 72                               | 0.55                                     
|Expired                      |  | (2,200)                          | 2.74                                     
|Outstanding – April 30, 2012 |  | 1,311                            | 1.83                                     
|Expired                      |  | (1,239)                          | 1.90                                     
|Outstanding – April 30, 2013 |  | 72                               | 0.55                                     



At April 30, 2013, the following warrants were
outstanding:



|Number
        of warrants
        outstanding
        000’s | Exercise
        price
        $ | Expiry date
|------------------------------------------------------------ | -------------------------------- | -----------
|                                                             | 72                               | $0.55      
|Total                                                        | 72                               |            







- 18 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|10 |  | Share Stock Options and Warrants (continued)
|-- |  | --------------------------------------------



Option and warrant pricing models
require the input of highly subjective assumptions including the expected volatility. Changes in the assumptions can materially
affect the fair value estimate, and therefore, the existing models do not necessarily provide a reliable measure of the fair value
of the Company’s stock options and warrants. The Company’s expected volatility is based on the historical volatility
of the Company’s share price on the Toronto Stock Exchange. The following assumptions were used in the Black-Scholes option
pricing model to calculate the compensation expense for the year ended April 30, 2013:



|                            |  | Warrants | Options         
|--------------------------- |  | -------- | ----------------
|Weighted average fair value |  | -        | $0.13           
|Forfeiture rate             |  | -        | 15.4%           
|Risk-free interest rate     |  | -        | 1.1% - 1.26%    
|Expected life               |  | -        | 2.4 – 2.54 years
|Expected volatility         |  | -        | 78.7% - 93.8%   
|Expected dividend           |  | -        | 0%              



The following assumptions were used
in the Black-Scholes option pricing model to calculate the compensation expense for the year ended April 30, 2012:



|                            |  | Warrants  | Options          
|--------------------------- |  | --------- | -----------------
|Weighted average fair value |  | $0.16     | $0.24            
|Forfeiture rate             |  | 0%        | 15.40% - 15.42%  
|Risk-free interest rate     |  | 1.28%     | 1.08% - 1.74%    
|Expected life               |  | 1.5 years | 1.48 – 2.79 years
|Expected volatility         |  | 84%       | 82% - 94%        
|Expected dividend           |  | 0%        | 0%               



The following assumptions were used
in the Black-Scholes option pricing model to calculate the compensation expense for the year ended April 30, 2011:



|                            |  | Warrants  | Options         
|--------------------------- |  | --------- | ----------------
|Weighted average fair value |  | $0.25     | $0.63           
|Forfeiture rate             |  | 0%        | 15.04% - 15.17% 
|Risk-free interest rate     |  | 1.68%     | 1.26% - 1.82%   
|Expected life               |  | 2.0 years | 2.0 – 2.53 years
|Expected volatility         |  | 40%       | 106% - 112%     
|Expected dividend           |  | 0%        | 0%              





- 19 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|11 |  | Related Party Transactions
|-- |  | --------------------------



Related parties include the Board of Directors
and Officers of the Company and enterprises which are controlled by these individuals.



The remuneration of directors and key management
of the Company for the years ended April 30, 2013 and 2012 were as follows.



|($000’s)                               |  | 2013
        $ | 2012
        $ | 2011
        $
|-------------------------------------- |  | -------------- | -------------- | --------------
|Employment benefits and directors fees |  | 483            | 705            | 744           
|Share-based compensation               |  | 129            | 242            | 471           



The directors and key management were awarded the following share
options under the employee share option plan during the year ended April 30, 2013:



|Date of grant    | Number of options | Exercise price | Expiry          
|---------------- | ----------------- | -------------- | ----------------
|May 9, 2012      | 60,000            | $0.42          | April 30, 2015  
|August 13, 2012  | 95,000            | $0.25          | August 13, 2017 
|October 3, 1012  | 5,000             | $0.25          | October 3, 2017 
|February 1, 2013 | 845,000           | $0.25          | February 1, 2018



|12 |  | Income Tax
|-- |  | ----------



Income tax expense differs from the amount
computed by applying the combined Canadian federal and provincial income tax rates, applicable to CanAlaska Uranium Ltd., to the
loss before tax provision due to the following:



|                                                                                         | 2013
        $000’s | 2012
        $000’s | 2011
        $000’s
|---------------------------------------------------------------------------------------- | ------------------- | ------------------- | -------------------
|Loss before income taxes                                                                 | (2,360)             | (6,869)             | (9,796)            
|Canadian federal and provincial income tax rates                                         | 25.40%              | 26.39%              | 28.15%             
|Income tax (recovery)/ expense based on Canadian federal and provincial income tax rates | (599)               | (1,813)             | (2,758)            
|Increase (decrease) attributable to:                                                     |                     |                     |                    
|Non-deductible expenditures                                                              | 84                  | 465                 | 209                
|Adjustment for prior periods                                                             | (65)                | 117                 | (1,614)            
|Flow-through shares renounced                                                            | -                   | 329                 | 408                
|Changes in unrecognized deferred tax assets                                              | 474                 | 861                 | 3,537              
|Changes in deferred tax rates and other                                                  | 106                 | 41                  | 218                
|Income tax expense (recovery)                                                            | -                   | -                   | -                  



- 20 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|12 |  | Income Tax (continued)
|-- |  | ----------------------



The significant components of the Company’s
deferred tax assets and liabilities are as follows:



|                               |  | 2013
        $000’s | 2012
        $000’s
|------------------------------ |  | ------------------- | -------------------
|Deferred tax assets:           |  |                     |                    
|Capital losses                 |  | -                   | 6                  
|                               |  | -                   | 6                  
|Deferred tax liabilities:      |  |                     |                    
|Available for sale investments |  | -                   | 6                  
|                               |  | -                   | 6                  



Unrecognized deductible temporary differences,
unused tax losses, and unused tax credits are attributable to the following:



|                                                           |  | 2013
        $000’s | 2012
        $000’s
|---------------------------------------------------------- |  | ------------------- | -------------------
|Non-capital loss carry forwards                            |  | 12,066              | 10,823             
|Capital loss carry forwards                                |  | -                   | 254                
|Available for sale investments                             |  | 324                 | -                  
|Excess tax value of property and equipment over book value |  | 1,448               | 1,327              
|Mineral property interests                                 |  | 21,813              | 21,134             
|Share issuance costs                                       |  | 173                 | 364                
|Investment tax credit                                      |  | 1,020               | 842                
|                                                           |  | 36,844              | 34,744             



The Company has income tax loss carry-forwards
of approximately $10,088,893 (April 30, 2012 - $9,075,000) for Canadian tax purposes. These un-recognized tax losses will expire
between 2014 to 2033.



The Company has net capital loss carry-forwards
of approximately $nil (April 30, 2012 - $254,215) for Canadian tax purposes. These un-recognized tax losses are carried forward
indefinitely.



The Company has investment tax credits of approximately
$1,019,763 (April 30, 2012 - $841,983) for Canadian tax purposes. These un-recognized investment tax credits will expire between
2030 to 2033.



The Company has income tax loss carry-forwards
of approximately $99,818 (April 30, 2012 - $88,797) for the United States tax purposes. These un-recognized tax losses will expire
between 2026 to 2033.



The Company has income tax loss carry-forwards
of approximately $1,877,789 (April 30, 2012 - $1,658,682) for New Zealand tax purposes. These un-recognized tax losses are carried
forward indefinitely.



- 21 -





|13 |  | Commitments
|-- |  | -----------



The Company has the following commitments
in respect of operating leases for office space, land, or computer equipment:



|Fiscal Year Ending |  |  |  |  | Total
        $000’s
|------------------ |  |  |  |  | --------------------
|2014               |  |  |  |  | 150                 
|2015               |  |  |  |  | 150                 
|2016               |  |  |  |  | 133                 
|Thereafter         |  |  |  |  | 7                   
|Total              |  |  |  |  | 440                 



The Company has outstanding and
future commitments under mineral properties option agreements to pay cash and/or issue common shares of the Company (note 8).



|14 |  | Financial Instruments
|-- |  | ---------------------



The fair value of the Company’s
cash and cash equivalent, trade and other receivables and trade and other payables approximate their carrying values due to the
short-term nature of these instruments.



The Company’s financial instruments
are exposed to certain financial risks, including currency risk, credit risk, liquidity risk and interest risk.



| | a) | Currency Risk
| | -- | -------------



The Company’s presentation
and functional currency is the Canadian dollar. The Company is therefore exposed to the financial risk related to the fluctuation
of foreign exchange rates, both in the New Zealand dollar relative to the Canadian dollar , and in the US$ relative to the Canadian
dollar. A 10% change in either of these currencies would not have a significant impact on the comprehensive loss.



The Company does not use any derivative
instruments to reduce its exposure to fluctuations in foreign exchange rates.





- 22 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|14 |  | Financial Instruments (continued)
|-- |  | ---------------------------------



|b) |  | Credit Risk
|-- |  | -----------



Financial instruments that potentially
subject the Company to credit risk consist of cash and cash equivalents and trade and other receivables. To mitigate exposure to
credit risk, the Company deposits cash and cash equivalents with high quality large Canadian financial institutions as determined
by rating agencies.



As at April 30, 2013, the Company’s
maximum exposure to credit risk is the carrying value of its cash and cash equivalents and trade and other receivables.



|c) |  | Liquidity Risk
|-- |  | --------------



Liquidity risk is the risk that
the Company will not be able to meet its financial obligations as they fall due. The Company is reliant upon equity issuances as
it source of cash. The Company manages liquidity risk by maintaining an adequate level of cash and cash equivalents to meet its
ongoing obligations. The Company continuously reviews its actual expenditures and forecast cash flows and matches the maturity
dates of its cash and cash equivalents to capital and operating needs. For further information related to liquidity refer to note
2.



|d) |  | Interest Rate Risk
|-- |  | ------------------



The Company’s interest income
earned on cash and cash equivalents is exposed to interest rate risk. A decrease in interest rates would result in lower relative
interest income and an increase in interest rates would result in higher relative interest income.



|15 |  | Management of Capital
|-- |  | ---------------------



The Company considers its capital
to consist of common shares, stock options and warrants. The Company’s objectives when managing capital are to safeguard
the Company’s ability to continue as a going concern in order to pursue the exploration of its mineral properties and to
maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk.



The Company manages the capital
structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying
assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares and, acquire or dispose of assets.



In order to maximize ongoing exploration
efforts, the Company does not pay out dividends. The Company’s investment policy is to invest its short-term excess cash
in highly liquid short-term interest bearing investments with short term maturities, selected with regards to the expected timing
of expenditures from continuing operations.



- 23 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|16 |  | Geographic Segmented Information
|-- |  | --------------------------------



The Company operates in one business
segment, the exploration of mineral property interest. The following summarizes the Company’s operations based on the geographic
areas in which it operates:



|April 30, 2013 ($000’s) |  | Canada |  | U.S.A. |  | New Zealand |  | Total
|----------------------- |  | ------ |  | ------ |  | ----------- |  | -----
|Non-current Assets      |  | 1,786  |  | 6      |  | 24          |  | 1,816
|Assets                  |  | 3,185  |  | 6      |  | 34          |  | 3,225
|Loss for the Year       |  | 2,342  |  | 9      |  | 9           |  | 2,360



|April 30, 2012 ($000’s) |  | Canada |  | U.S.A. |  | New Zealand |  | Total
|----------------------- |  | ------ |  | ------ |  | ----------- |  | -----
|Non-current Assets      |  | 2,174  |  | 6      |  | 24          |  | 2,205
|Assets                  |  | 7,009  |  | 6      |  | 50          |  | 7,065
|Loss for the Year       |  | 6,454  |  | 10     |  | 405         |  | 6,869



|April 30, 2011 ($000’s) |  | Canada |  | U.S.A. |  | New Zealand |  | Total 
|----------------------- |  | ------ |  | ------ |  | ----------- |  | ------
|Non-current Assets      |  | 2,425  |  | 6      |  | 325         |  | 2,756 
|Assets                  |  | 13,031 |  | 6      |  | 342         |  | 13,379
|Loss for the Year       |  | 9,713  |  | 18     |  | 65          |  | 9,796 



|17 |  | Subsequent event
|-- |  | ----------------



On July 2, 2013, the option agreement
with Tyrone Docherty and Discovery Venture Ltd. for the BC Copper (Big Creek) project was terminated.



In June 2013, the Collins Bay Extension
option agreement dated July 4, 2009 and subsequently amended on March 29, 2011 with Bayswater Uranium Corporation was amended whereby
the Company extended the option period from six years to eight years. In consideration for the amendment, the Company accelerated
its staged common share issuances and issued 10,000 common shares on July 12, 2013. As a result, in July 2013, the Company issued
an aggregate of 20,000 common shares under the amended option agreement for the Collins Bay Extension project.



Subsequent to April 30, 2013, the Company recognized
mineral property impairments on its Grease River, Poplar, Lake Athabasca, Hodgson and Carswell properties for approximately $317,000
as the Company did not renew certain of its permits for these projects.



In November 2013, the Company applied to list
its shares on the TSX Venture Exchange in response to the Company no longer meeting the market capital requirement of the TSX.
The Company's common shares delisted from the TSX and commenced trading on the TSX Venture Exchange on December 30, 2013.



- 24 -





CanAlaska Uranium Ltd.

Notes to the Consolidated Financial Statements

For the years ended April 30, 2013, 2012 and 2011

(Restated)

(Expressed in Canadian dollars except where indicated)

---





|18 |  | Restatement of consolidated financial statements
|-- |  | ------------------------------------------------



The 2013 consolidated financial
statements have been restated to include statements of net loss and comprehensive loss, changes in equity, and cash flows for the
year ended April 30, 2011, as well as the related disclosures for that year in the notes to the consolidated financial statement,
as had been previously reported and which had been omitted in the Company's previously filed consolidated financial statements.





- 25 -