EXHIBIT 12

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Annual Management Discussion and Analysis

For CanAlaska Uranium Ltd.



MANAGEMENT DISCUSSION & ANALYSIS



The following discussion and analysis is managements assessment of the results and financial condition of CanAlaska Uranium Ltd. (formerly CanAlaska Ventures Ltd.) (the Company or CanAlaska) for the year ended April 30, 2007 and should be read in conjunction with the financial statements for the year ended April 30, 2007 and related notes.  The date of this management discussion and analysis is August 14, 2007.  Additional information on the Company is primarily available on SEDAR at www.sedar.com.



Business of CanAlaska



CanAlaska is an exploration stage company engaged in the acquisition, exploration and development of mineral properties in Canada, the United States and New Zealand with the aim of developing them to a stage where they can be exploited at a profit or to arrange joint ventures whereby other companies provide funding for development and exploitation. The Company is exploring for high grade uranium deposits in the Athabasca Basin area of Saskatchewan.



Forward Looking Statements



Certain information included in this discussion may constitute forward-looking statements.  Forward-looking statements are based on current expectations and entail various risks and uncertainties.  These risks and uncertainties could cause or contribute to actual results that are materially different than those expressed or implied.  The Company disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information or future events.



Project Overview



During the year ended April 30, 2007 the Company continued its very active exploration program in the Athabasca basin of Saskatchewan, exploring for uranium mineral deposits.



The Company owns a 100% interest in a large land package, over 2.5 million acres, both within and on the outskirts of the Athabasca basin, and had four exploration crews working over the summer-fall, with up to 60 personnel working from camps in the north and northeast areas and on Lake Athabasca. In December and January the company carried out preparations for winter drilling, principally on the West McArthur property, and drill programs were carried out on its property until mid June 2007.



Airborne geophysics, coupled with surface mapping and analyses have provided significant targets for further work on each of the project areas worked to date. From February to September 2006, the company carried out drill programs on the West McArthur project, and in early September, welcomed the participation of exploration partner Mitsubishi Development Pty Ltd (Mitsubishi) to fund exploration on the project. Mitsubishi will have the right to earn a 50% interest in the West McArthur property by funding the next $10 million dollars of exploration, and paying a further $1 million to the Company as an option exercise payment. The Company finalized the formal Option and Joint Venture documents in April 2007. The Company also carried out drill testing on its optioned Waterbury, Cree West and the Key Lake properties in January and February 2007. These are funded by third party exploration companies.



The Company is continuing to review property options and strategic alliances with outside interests, with the view to continuing extensive exploration on its properties in the near term. In November and December 2006 two new options were signed with First Nations groups. The Fond Du Lac, and Black Lake First Nations each signed agreements where CanAlaska has the right to earn a 49% interest in mineral resources on Reserve land by carrying out $2M of exploration over 4 years, and issuing 300,000 shares and cash payments of $120,000 to each Band. The Bands have each applied to the Federal Government to provide leases for this exploration work. Each community has voted to support this exploration. In Summer 2007, exploration work has continued on all of the companies properties.





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Selected Annual Information



Unless otherwise noted, all currency amounts are stated in Canadian dollars.



The following table summarizes selected financial data for CanAlaska for each of the three most recently completed financial fiscal years.  The information set forth below should be read in conjunction with the audited financial statements, prepared in accordance with Canadian generally accepted accounting principles, and related notes.



|                                                                |                                        |                  |                   
|--------------------------------------------------------------- | -------------------------------------- | ---------------- | ------------------
|                                                                | Fiscal years ended April 30, (audited)
|                                                                | 2007                                   | 2006             | 2005              
|Total Revenues (i)                                              | $1,095,788                             | $236,689         | $40,976           
|General and administrative expenses                             | 2,054,845                              | 1,764,173        | 1,841,441         
|Mineral property cash costs                                     | 13,776,723                             | 7,399,726        | 1,985,509         
|Net income (loss)
Ø
In total
Ø
Basic and diluted loss per share | (1,135,450)
(0.01)                     | (328,159)
(0.01) | (1,912,218)
(0.06)
|Totals Assets                                                   | 33,207,438                             | 18,822,102       | 7,071,197         
|Total long term liabilities                                     | Nil                                    | Nil              | Nil               
|Cash dividends declared                                         | Nil                                    | Nil              | Nil               



(i)   Total revenues includes interest income, management fee income, gain on sale of portfolio investments and other income.



Selected Quarterly Financial Information



The following selected financial information is derived from the unaudited interim financial statements of the Company prepared in accordance with Canadian generally accepted accounting principles (GAAP).



|                            |            |            |                                    |            |            |            |            |          
|--------------------------- | ---------- | ---------- | ---------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------
|                            |            |            | For the Quarters Ended (unaudited) |            |           
|                            | April 30   | Jan. 31    | Oct. 31                            | July 31    | April 30   | Jan. 31    | Oct. 31    | July 31  
|                            | 2007       | 2007       | 2006                               | 2006       | 2006       | 2006       | 2005       | 2005     
|Total revenues              | $974,212   | $29,341    | $63,381                            | $28,854    | $198,954   | $15,523    | $8,679     | $13,533  
|Net loss (income)           | 297,607    | 810,614    | 373,648                            | 346,890    | (735,004)  | 354,576    | 433,862    | 274,725  
|Net loss (income) per share | 0.01       | 0.01       | 0.01                               | 0.01       | (0.01)     | 0.01       | 0.01       | 0.01     
|Total assets                | 33,207,438 | 24,725,583 | 21,514,809                         | 18,457,140 | 18,822,102 | 12,262,233 | 10,245,904 | 7,647,750



Results of Operations



The year ended April 30, 2007 resulted in a net loss of $1,828,759 which compares with a loss of $328,159 for the same period in 2006. The loss for 2007 has been reduced by $1,173,486 (2006 - $1,435,610), which is the tax benefit associated with the renunciation of flow-through shares.  General and administrative expenses for the year ended April 30, 2007 were $2,054,845, an increase of $290,672 over the same period in 2006.  The total fair value of stock options that vested using the Black-Scholes Option Pricing Model resulted in stock-based compensation expense of $597,314 for the period ended April 30, 2007 compared to $420,014 for the previous year. The stock compensation expense has been allocated by expense category on the income statement.  All general and administrative costs were consistent when compared to the previous fiscal year as the Company continues to be very active in obtaining financing and incurring significant exploration expenditures.



Interest income was $222,549, an increase of $136,217 over the same period in 2006 as the Company had significantly higher cash balances. Management fee income of $464,268 was earned for being the operator of three option agreements on certain of its Saskatchewan mineral properties.  The Company also earned other income of $368,659 from property options compared to $10,000 in the prior year.  This other income results when option payments received on an option agreement exceeds the carrying value of the related mineral property, such that once the related carrying cost of the property has been fully recovered any excess is recognized as income.  The amount has increased substantially over the prior year due to the increase in option payments being received on the Waterbury, Key Lake and Cree West properties and a substantial portion of such payments in the prior year being first applied to reduce the carrying costs of these properties.  A $40,312 gain was realized on the sale of some its short-term investments.



For the year ended April 30, 2007, the Company incurred gross mineral property exploration costs of $15,028,710 with $5,238,010 being recovered in the form of option receipts in cash and shares and recovered exploration costs from optionees. The Company incurred exploration costs of $4,002,564 on the West McArthur project and



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received $3,934,411 of option payments from Mitsubishi Development Pty Ltd. under the terms of their option agreement.  The Company spent $1,029,379 on the Cree East property as compared to $139,768 due to the geophysics program undertaken in the current year.  The Company spent $1,478,867 on the Lake Athabasca project as compared to $747,260 in the prior year due to geophysical and marine seismic work undertaken in the current year.  The Company spent $3,495,075 on the NE Athabasca project as compared to $1,156,218 in the prior year due to detailed structural mapping, surface sampling and geophysical surveying undertaken in the current year.   Staking costs in Saskatchewan accounted for $282,585 of this amount. Acquisition costs including staking, share issuance and cash costs amounted to $309,732.  This was offset by option payments received from exploration property options both in shares and cash of $504,405 for a net recovery of $194,673.  Mineral property costs in the amount of $1,939,895 were written-off as the Zeballos, B.C., Geikie Project, SK, Newfoundland and Labrador, and certain New Zealand projects. The Alaskan optioned properties were terminated, but core claims were retained in the Rainbow area.



Investor Relations



Heightened market activity in all uranium stocks created significant trading activity in CanAlaska.  As a consequence the Company has required further staff to handle incoming enquiries, and to prepare documentation for trade shows during the year.  This increased activity is expected to continue in the current year. Shareholder relations and promotional activities undertaken by the Company, which included attendance at various trade shows was generally on a shared basis with associated companies, cost $278,581 for the year ended April 30, 2007, a decrease of $28,762 over the same period in 2006.



Liquidity and Capital Resources



As at April 30, 2007, the Companys working capital, defined as current assets less current liabilities, was $12,497,057 compared with working capital of $7,615,415 at April 30, 2006.



During the year ended April 30, 2007, 18,443,108 private placement units were issued for gross proceeds of $10,462,048.  A further 10,485,714 warrants were exercised for gross proceeds of $4,793,814 and 1,209,476 options were exercised for gross proceeds of $435,552.



The Company has portfolio investments with a book value of $611,124 and market value of $1,137,271 as at April 30, 2007. The main investments consist of 1,091,800 shares of Pacific North West Capital Corp., 343,007 shares of Freegold Ventures Limited and 260,131 shares of El Nino Ventures Inc. All these companies have certain directors in common. These amounts are included in the above working capital. The Company has total issued and outstanding shares of 107,697,758 at April 30, 2007.



Fourth Quarter Results



The quarter ended April 30, 2007 resulted in a loss of $118,233 as compared with an income of $735,004 earned in the comparative quarter.  The income in the fourth quarter of 2006 resulted from the future income tax recovery of $1,435,610.  The future income tax recovery recorded in the fourth quarter of the 2007 fiscal year of $1,866,795 was offset by the write-offs of several resource properties in the fourth quarter of 2007.  Revenue was $974,212 during the quarter as compared to $198,954 for the comparative quarter.  The increase was primarily due to additional management fee income which was earned for being the operator on several of its Saskatchewan mineral properties. All other quarterly expenses are consistent with the discussion of the annual loss in the previous paragraph and elsewhere in this Annual MD&A.



In the forth quarter of 2007, the Company completed a $5,000,000 private placement.



Contractual Commitments



The Company is committed under an operating lease with a third party Company, for its office premises with the following minimum basic lease payments to the expiration of the lease on June 30, 2010.  The Company is also responsible for its proportionate share of property taxes and operating costs.



|                            |  |         |         |         |        |           
|--------------------------- |  | ------- | ------- | ------- | ------ | ----------
|Fiscal year ended April 30, |  | 2008    | 2009    | 2010    | 2011   | Thereafter
|Office lease                |  | $59,631 | $59,631 | $59,631 | $9,939 | -         
|Management agreement        |  | -       | -       | -       | -      | -         





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A Company controlled by Harry Barr was entitled to receive compensation from the Company through a management agreement dated June 1, 1995. Compensation due under the agreement was $8,508 per month plus benefits.  The Officer and Director was also entitled to receive up to 20% of all stock options granted during the period that the agreement is in place.  The current three-year agreement expired in June 2007.  Subsequent to year-end, this agreement was terminated with the payout of agreed one years compensation plus a bonus payment of six months compensation for a total payout of $153,144.



By agreement dated 15 June 2004 and amended 15 February 2005, the Company agreed to pay a company controlled by the Peter Dasler, the President, consulting fees totaling $75,000 annually.  In addition, the consultant has received 1,000,000 stock options with an exercise price of $0.10 per share.  The options vest every three months over a two-year period. See related party transactions for details.



No mineral option payments have been included as they are being funded by various joint venture partners or may be terminated with appropriate notice.  Further information on mineral option payments are disclosed in Note 5 to the April 30, 2007 financial statements.



New Board Appointments



On March 30, 2007, the Company appointed as a new Director, Ambassador Thomas Graham, a leading proponent of contractual nuclear use. Ambassador Graham has had extensive experience in the nuclear industry.



Off-balance Sheet Arrangements



The Company has no off-balance sheet arrangements.



Critical Accounting Estimates



A detailed summary of all of the Companys significant accounting policies is included in Note 1 to the financial statements for the year ended April 30, 2007.



Significant estimates used in the preparation of these consolidated financial statements include, amongst other things, depreciation, determination of net recoverable value of assets, and the determination of fair value on share option compensation.



Changes in Accounting Policies



There are no changes in significant accounting policies.



Auditors



The Companys auditors for the year ended April 30, 2006, Staley, Okada & Partners, have combined their practice with PricewaterhouseCoopers LLP during the past fiscal year.  The directors subsequently appointed PricewaterhouseCoopers LLP as the Companys auditors for the year ended April 30, 2007.



Financial Instruments and Other Instruments



CanAlaskas financial instruments consist of cash and cash equivalents, accounts and advances receivable, portfolio investments, accounts payable and accrued liabilities and amounts due to directors. Unless otherwise noted, it is managements opinion that CanAlaska is not exposed to significant interest, currency or credit risks arising from the financial instruments.  The fair value of these financial instruments approximates their carrying value , with the exception of portfolio investments where the fair value exceeds the carrying value by $526,147..



Outstanding share data



The Company is authorized to issue unlimited common shares without par value.  As at April 30, 2007, there were 107,697,758 outstanding common shares.  During the year, 30,570,520 common shares were issued.



Directors, officers, employees and contractors are granted options to purchase common shares under the Company stock option plan.  The terms and outstanding balance are disclosed in the below table.



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|                                 |           |             |                     |                                  |                          |            
|-------------------------------- | --------- | ----------- | ------------------- | -------------------------------- | ------------------------ | -----------
|Number
Outstanding
30 April 2006 | Granted   | Exercised   | Expired / Cancelled | Number outstanding
30 April 2007 | Exercise price per share | Expiry date
|10,000                           | -         | -           | (10,000)            | -                                | $0.50                    | 7-Aug-06   
|16,000                           | -         | -           | (16,000)            | -                                | $0.50                    | 28-Aug-06  
|122,850                          | -         | (122,325)   | (525)               | -                                | $0.35                    | 31-Aug-06  
|4,751                            | -         | (4,751)     | -                   | -                                | $0.35                    | 22-Sep-06  
|29,500                           | -         | (6,400)     | -                   | 23,100                           | $0.50                    | 15-May-07  
|36,665                           | -         | -           | -                   | 36,665                           | $0.50                    | 24-Nov-07  
|91,000                           | -         | (91,000)    | -                   | -                                | $0.35                    | 10-Feb-07  
|100,000                          | -         | -           | -                   | 100,000                          | $0.10                    | 26-May-08  
|520,000                          | -         | (247,500)   | -                   | 272,500                          | $0.25                    | 10-Sep-08  
|800,000                          | -         | -           | -                   | 800,000                          | $0.10                    | 25-Jun-08  
|1,565,000                        | -         | (392,500)   | (50,000)            | 1,122,500                        | $0.40                    | 5-Nov-09   
|275,000                          | -         | (100,000)   | -                   | 175,000                          | $0.45                    | 29-Nov-09  
|117,000                          | -         | (15,000)    | -                   | 102,000                          | $0.50                    | 23-Feb-10  
|413,000                          | -         | (5,000)     | (30,000)            | 378,000                          | $0.58                    | 7-Mar-10   
|150,000                          | -         | (150,000)   | -                   | -                                | $0.32                    | 1-May-10   
|75,000                           | -         | -           | -                   | 75,000                           | $0.35                    | 13-Jul-10  
|3,300,000                        | -         | (75,000)    | (20,000)            | 3,205,000                        | $0.45                    | 14-Oct-10  
|200,000                          | -         | -           | -                   | 200,000                          | $0.42                    | 14-Feb-11  
|-                                | 50,000    | -           | -                   | 50,000                           | $0.50                    | 21-Jul-11  
|-                                | 25,000    | -           | -                   | 25,000                           | $0.50                    | 8-Aug-11   
|-                                | 50,000    | -           | -                   | 50,000                           | $0.50                    | 22-Aug-11  
|-                                | 80,000    | -           | -                   | 80,000                           | $0.50                    | 4-Oct-11   
|-                                | 3,000,000 | -           | -                   | 3,000,000                        | $0.50                    | 16-Nov-11  
|-                                | 100,000   | -           | -                   | 100,000                          | $0.75                    | 13-Feb-12  
|-                                | 1,000,000 | -           | -                   | 1,000,000                        | $0.74                    | 30-Mar-12  
|7,825,766                        | 4,305,000 | (1,209,476) | (126,525)           | 10,794,765                       |                          |            



Related Party Transactions



A total of $110,704 was paid to a Company controlled by Harry Barr, the Chairman and Director of the Company for management services during the year ended April 30, 2007. Mr. Barr received a management fee of $8,508 per month.   Pursuant to an office lease agreement dated July 1, 2005, a total of $23,342 was paid to a Company controlled by Harry Barr for office rent.   A total of $85,000 was paid to a Company controlled by Peter Dasler, the President of the Company for geological consulting services.  A total of $30,624 was paid to a Company controlled by Taryn Downing, the Corporate Secretary of the Company for consulting services.  A total of $55,000 was paid to a Company controlled by Emil Fung, the VP Corporate Development of the Company for consulting services.  A total of $33,831 was paid to a Company controlled by Gord Steblin, the Chief Financial Officer of the Company for accounting services.  Effective February 1, 2005, the outside directors are entitled to receive $500 per month, $500 per directors meeting and $500 per committee meeting. During the year, $18,000 has been paid/accrued to directors.



Subsequent Events



On 12 June 2007 the Board of Directors of the Company approved a Shareholder Rights Plan (the Rights Plan). The rights issued under the Rights Plan are subject to reconfirmation at every third annual meeting of shareholders and will expire on June 12, 2017 (the Expiration Time). Pursuant to the Rights Plan, the Board of Directors declared a distribution of one right (a Right) for each outstanding Common Share of the Company to shareholders of record at the close of business on the Record Date and authorized the issuance of one Right for each Common Share issued after the Record Date and prior to the Separation Time (described below) and the Expiration Time. The Rights will separate from the Common Shares at the time (the Separation Time) which is the close of business on the eighth trading day (or such later day as determined by the Board) after the public announcement of the acquisition of, or intention to acquire, beneficial ownership of 20% of the Common Shares of the Company by any person other than in accordance with the terms of the Rights Plan. To constitute a Permitted Bid, an offer must be made in compliance with the Rights plan and must be made to all holders of voting shares (other than the offeror), must be open for at least 60 days and be accepted by shareholders holding more than 50% of the outstanding voting shares and, if so accepted, must be extended for a further 10 business day period.  The Rights Plan is subject to shareholder approval.



By an agreement dated 22 May 2007, the Company entered into an operating lease, for its office premises in Saskatchewan with the following lease payments to the expiration of the lease on 31 May 2012:



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|                          |   |        
|------------------------- | - | -------
|                          |   | Amount 
|2008                      | $ | 42,438 
|2009                      |   | 46,298 
|2010                      |   | 46,298 
|2011                      |   | 46,298 
|2012                      |   | 46,298 
|2013 (expiry in May 2012) |   | 3,860  
|Total                     | $ | 231,490



By a Memorandum of Understanding between the Company and Hanwha Corporation (Hanwha), Hanwha will lead a Korean Consortium of companies to invest $19,000,000 towards the earn-in of a 50% ownership interest in the Cree East Project over a 4-year period.  As part of the agreement, all exploration expenditures incurred by the Company on the Project since 1 June 2007 shall be reimbursed to the Company by the Korean Consortium.  It is now the intention of both parties to execute a definitive Letter Agreement by no later than 31 August 2007.  Following the execution of the Letter Agreement, the parties will obtain requisite board and regulatory approvals with the objective of closing the transaction on or before 30 September 2007.  Accordingly, the exclusivity period granted by the Company to Hanwha Corporation for the commercial undertaking of the proposed transaction has been extended to 30 September 2007.



Mr. Harry Barr stepped down as Chairman and director of the Company on June 13, 2007. On June 28 the Company appointed Dr. Karl Schimann as Vive President Exploration and Mr. Emil Fung as a director and Vice President Corporate Development. The Company also formed an advisory board to assist the Companys future developments. The advisory board is comprised of: Dr. Ken Cai, Mr. Daniel Faure, and Ms. Nana Lampton.



By an agreement dated 31 July 2007, the Company entered into an office lease for premises in downtown Vancouver with the following lease payments to the expiration of the lease on 31 August 2010.



|                             |   |       
|---------------------------- | - | ------
|                             |   | Amount
|2008                         | $ | 21,033
|2009                         |   | 32,391
|2010                         |   | 32,812
|2011 (expiry in August 2010) |   | 10,937
|Total                        | $ | 97,173



Disclosure Controls and Procedures



Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported on a timely basis to senior management, so that appropriate decisions can be made regarding public disclosure. As at the end of the period covered by this managements discussion and analysis, management has evaluated the effectiveness of the Companys disclosure controls and procedures as required by Canadian securities laws.



Based on the evaluation of the disclosure controls performed, management of the Company has determined that certain weaknesses existed in internal controls over financial reporting.  During the current year audit, it was determined that our U.S.  Canadian generally accepted accounting principles (GAAP) reconciliation was materially incorrect and the information for prior year was restated.  The Company is taking steps to augment and improve the design of procedure and controls impacting these areas of weakness over internal control over financial reporting and has retained an independent consultant for the current year to assist with such disclosures.



Internal Controls and Procedures



Internal controls and procedures are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with the Companys generally accepted accounting principles. As at the end of the period covered by this managements discussion and analysis, management had designed and implemented internal controls and procedures as required by Canadian securities laws.



The Company has evaluated the design of its internal controls and procedures over financial reporting for the fiscal year ended April 30, 2007. Management has determined that certain weaknesses existed in the design of its internal control and has concluded that its internal controls were not operating effectively.  Management has



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retained an independent consultant for the current year to assist with its U.S. GAAP reconciliation and continues to review and refine its internal controls and procedures.



Risks and Uncertainties



The mineral industry is intensely competitive in all its phases.  The Company competes with many other companies who have greater financial resources and experience.



The market price of precious metals and other minerals is volatile and cannot be controlled.  Exploration for minerals is a speculative venture.  There is no certainty that the money spent on exploration and development will result in the discovery of an economic ore body. The Company has completed risk assessments with the help of professional management consultants BGH Consulting, and has adopted an operational and insurance scheme to quantify and minimize the Companys risks and uncertainties. The Company also consulted and implemented field operational, safety and environmental policies consistent with its ongoing needs.



The market price of precious metals and other minerals is volatile and cannot be controlled.  Exploration for minerals is a speculative venture.  There is no certainty that the money spent on exploration and development will result in the discovery of an economic ore body.



The Company has limited financial resources, no source of operating cash flows and no assurances that sufficient funding, including adequate financing, will be available to conduct further exploration and development of its projects or to fulfill its obligations under the terms of any option or joint venture agreements.  If the Companys generative exploration programs are successful, additional funds will be required for development of one or more projects.  Failure to obtain additional financing could result in the delay or indefinite postponement of further exploration and development or the possible loss of the Companys properties.



Outlook



The Company has acquired through staking a significant land position in the Athabasca Basin area of Saskatchewan and is exploring these areas for high grade uranium deposits. CanAlaska currently has optioned five of its Saskatchewan properties to several companies. The Elliot Lake property in Ontario and VBE II properties in Labrador have also been sold to third parties. The Glitter Lake property in Quebec is optioned to Pacific North West Capital Corp. in which they are earning an interest in the project by carrying all costs and making exploration expenditures. The Company ended 2007 fiscal year with a strong cash position that will enable it to continue its own exploration efforts in Canada and New Zealand as it continues to identify new projects through early stage grass roots exploration and managing risk by forming joint ventures in which partner companies explore and develop such projects in return for the right to earn an interest in them.



Approval



The Board of Directors of CanAlaska has approved the disclosure contained in this Annual Management Discussion & Analysis. A copy of this Annual Management Discussion & Analysis will be provided to anyone who requests it.









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August 15, 2007







Managements Responsibility for Financial Reporting



The accompanying consolidated financial statements of the Company have been prepared by management in accordance with Canadian generally accepted accounting principles, and contain estimates based on managements judgment. Management is responsible for the implementation and maintenance of an appropriate system of internal control to provide reasonable assurance that transactions are authorized, assets safeguarded, and proper records maintained.



The Audit Committee of the Board of Directors has met with the Companys auditors to review the scope and results of the annual audit and to review the consolidated financial statements and related financial reporting matters prior to submitting the consolidated financial statements to the Board for approval.



The Companys auditors, PricewaterhouseCoopers LLP, are appointed by the shareholders to conduct an audit in accordance with Canadian generally accepted auditing standards, and their report follows.





Peter Dasler



Gord Steblin





Chief Executive Officer

Chief Financial Officer

and Director









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[ex9901002.gif]PricewaterhouseCoopers LLP
Chartered Accountants
PricewaterhouseCoopers Place
250 Howe Street, Suite 700
Vancouver, British Columbia
Canada V6C 3S7
Telephone +1 604 806 7000
Facsimile +1 604 806 7806


AUDITORS REPORT



To the Shareholders of

CanAlaska Uranium Ltd.(Formerly CanAlaska Ventures Ltd.)



We have audited the consolidated balance sheet of CanAlaska Uranium Ltd.(the Company) (Formerly CanAlaska Ventures Ltd.) (an exploration stage company) as at April 30, 2007 and the consolidated statements of shareholders equity, loss and cash flows for the year then ended. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.



We conducted our audit in accordance with Canadian generally accepted auditing standards and with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.



In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Company as at April 30, 2007 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.



The consolidated financial statements as at April 30, 2006 and for each of the years in the two year period then ended were audited by other auditors who expressed an opinion without reservation on those statements in their report dated July 11, 2006 (except for note 5(k) which is on July 21, 2006). We have audited the adjustments to the 2006 financial statements and in our opinion, such adjustments, in all material respects, are appropriate and have been properly applied.







Chartered Accountants

Vancouver, British Columbia

August 15, 2007



Comments by Auditor for U.S. Readers on Canada-U.S Reporting Difference



In the United States, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when there is a correction of accounting errors that has a material impact on the comparability of the Companys financial statements, such as the change described in Note 11e to the financial statements. Our report to the shareholders dated August 15, 2007 is expressed in accordance with Canadian reporting standards which do not permit reference to such changes in the auditors report when these are adequately disclosed in the financial statements.







Chartered Accountants

Vancouver, British Columbia

August 15, 2007





PricewaterhouseCoopers refers to the Canadian firm of PricewaterhouseCoopers LLP and the other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.









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|[ex9901003.jpg] | Suite 400 - 889 West Pender Street
Vancouver, BC Canada  V6C 3B2
Tel604 694-6070
Fax604 585-8377
info@staleyokada.com
www.staleyokada.com





Report of Independent Registered Public Accounting Firm





To the Shareholders of CanAlaska Ventures Ltd.:



We have audited the accompanying consolidated balance sheets of CanAlaska Ventures Ltd. (the Company) as at 30 April 2006 and 2005 and the related consolidated statements of loss, shareholders' equity, and cash flows for each of the years then ended 30 April 2006, 2005 and 2004.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Canadian generally accepted auditing standards and with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform an audit of its 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 also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as at 30 April 2006 and 2005, and the results of its operations and its cash flows for each of the years ended 30 April 2006, 2005 and 2004, in accordance with Canadian generally accepted accounting principles.





Staley, Okada & Partners



|                                                             |                         
|------------------------------------------------------------ | ------------------------
|Vancouver, B.C.                                              | STALEY, OKADA & PARTNERS
|11 July 2006 (except for Note 5(k) which is at 21 July 2006) | CHARTERED ACCOUNTANTS   





[ex9901005.gif]









---



|                                                                                         |            
|---------------------------------------------------------------------------------------- | -----------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Statement 1
|Consolidated Balance Sheets                                                              |            
|As at 30 April                                                                           |            
|Canadian Funds                                                                           |            
|                                                                                         |            



ASSETS20072006CurrentCash and cash equivalents$10,076,042$6,748,271Accounts and advances receivable2,779,134742,480Portfolio investments (Note 3)611,124384,753Prepaid expenses364,31718,19113,830,6177,893,695Reclamation Bonds678,031116,802Mineral Property Costs- Schedule (Note 4)18,369,80810,706,505Property and Equipment(Note 5)328,982105,099$33,207,438$18,822,101LIABILITIESCurrentAccounts payable and accrued liabilities$1,326,060$275,280Due to related parties (Note 7(ii))7,5003,0001,333,560278,280Future Income Tax Liability(Note 8)946,017-2,279,577278,280Commitments (Note 9)Subsequent Events (Note 6d and 12)SHAREHOLDERS' EQUITYShare Capital - Statement 2 (Note 6)Authorized:Unlimited common shares without par valueIssued and fully paid:107,697,758 (2006 - 77,127,238) shares outstanding48,864,21136,560,885Contributed Surplus - Statement 23,152,9621,243,489Deficit - Statement 2(21,089,312)(19,260,553)30,927,86118,543,821$33,207,438$18,822,101




ON BEHALF OF THE BOARD:



Peter Dasler, Director



Bernard Barlin, Director



- See Accompanying Notes -







---



|                                                                                         |             | 
|---------------------------------------------------------------------------------------- | ----------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Statement 2
|Consolidated Statements of Changes in Shareholders Equity                               |            
|Canadian Funds                                                                           |            
|                                                                                         |            



Common SharesContributedAccumulatedNumberAmountSurplusDeficitTotalBalance - 30 April 200427,314,439$21,306,867$157,000$(17,020,176)$4,443,691Issuance of shares for:- Private placements11,050,0003,690,000--3,690,000- Properties170,00066,500--66,500- Exercise of warrants4,110,000594,505--594,505- Exercise of options287,00066,050--66,050- Finders fees170,66062,573--62,573Share issuance costs-(168,364)--(168,364)Stock-based compensation costs--665,459-665,459Future Income tax on flow-through shares-(534,300)--(534,300)Loss for the year---(1,912,218)(1,912,218)Balance - 30 April 200543,102,09925,083,831822,459(18,932,394)6,973,896Issuance of shares for:- Private placements28,998,66511,991,235--11,991,235- Properties160,00062,500--62,500- Exercise of warrants3,982,4251,259,641--1,259,641- Exercise of options884,049256,867--256,867Share issuance costs-(782,284)125,721-(656,563)Stock-based compensation costs--420,014-420,014Transferred on exercise of options-124,705(124,705)--Future Income tax on flow-through shares (Note 6b)-(1,435,610)--(1,435,610)Loss for the year---(328,159)(328,159)Balance  30 April 200677,127,23836,560,8851,243,489(19,260,553)18,543,821Issuance of shares for:- Private placements18,414,7759,090,6051,351,044-10,441,649- Properties210,000149,300--149,300- Finders fees250,555120,399--120,399- Exercise of warrants10,485,7144,793,814--4,793,814- Exercise of options1,209,476435,552--435,552Share issuance costs-(509,741)60,030-(449,711)Stock-based compensation costs (Note 6d)--841,299-841,299Transferred on exercise of options-215,135(215,135)--Transferred on exercise of warrants-127,765(127,765)--Future Income tax on flow-through shares (Note 6b)-(2,119,503)--(2,119,503)Loss for the year---(1,828,759)(1,828,759)Balance  30 April 2007107,697,758$48,864,211$3,152,962$(21,089,312)$30,927,861










- See Accompanying Notes -







---



|                                                                                         |            
|---------------------------------------------------------------------------------------- | -----------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Statement 3
|Consolidated Statements of Loss                                                          |            
|Canadian Funds                                                                           |            
|                                                                                         |            



Years Ended 30 April200720062005General and Administrative ExpensesConsulting fees$299,751$271,863$245,803Consulting fees  Stock compensation (Note 6d)205,857259,230346,762Management fees110,704108,351113,884Director fees18,00018,0004,500Director fees  Stock compensation (Note 6d)284,54878,223131,245Accounting and audit101,61177,68157,352Insurance, licenses and filing175,704119,17859,357Rent48,18840,01540,015Shareholder relations278,581307,343289,738Shareholder relations  Stock compensation (Note 6d)67,60858,713135,290Wages, commissions and benefits70,74381,60465,142Wages  Stock compensation (Note 6d)39,30123,84852,162Office and miscellaneous91,58170,63562,729Travel, food and lodging146,750157,311175,464Amortization75,26036,24223,471Bank charges and interest11,27934,35428,824Legal fees29,37921,5829,703(2,054,845)(1,764,173)(1,841,441)Other Income (Expense)Mineral property costs written off(1,939,894)(179,399)(539,151)Write-down of portfolio investments(10,338)-(64,061)Foreign exchange, net(92,956)(55,086)(42,513)Loss on sale of property and equipment-(1,800)(328)Interest income222,54986,33240,976Recovery of administration cost464,26889,212-Gain on sale of portfolio investments40,31251,145-Other Income34,150--Option payments received in excess of exploration cost incurred (Note 1d)334,50910,000-(947,400)404(605,077)Loss Before Income Taxes(3,002,245)(1,763,769)(2,446,518)Future income tax recovery (Note 6b and 8a)1,173,4861,435,610534,300Loss for the Year$(1,828,759)$(328,159)$(1,912,218)Loss per Share - Basic and Diluted$(0.02)$(0.01)$(0.06)Weighted Average Number of Shares Outstanding86,919,91755,633,44633,356,642






- See Accompanying Notes -







---





|                                                                                         |            
|---------------------------------------------------------------------------------------- | -----------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Statement 4
|Consolidated Statements of Cash Flows                                                    |            
|Canadian Funds                                                                           |            
|                                                                                         |            



Years Ended 30 AprilCash Resources Provided By (Used In)200720062005Operating ActivitiesLoss for the year$(1,828,759)$(328,159)$(1,912,218)Items not affecting cashGain on sale of portfolio investments(40,312)(51,145)-Write-down of portfolio investments10,338-64,061Mineral property costs written off1,939,894179,399539,151Amortization75,26036,24223,471Loss on sale of property and equipment-1,800328Stock-based compensation expense (Note 6d)597,314420,014665,459Other income(334,511)--Future income tax recovery (Note 6b)(1,173,486)(1,435,610)(534,300)(754,262)(1,177,459)(1,154,048)Changes in non-cash working capital(2,495,934)(624,626)(77,011)(3,250,196)(1,802,085)(1,231,059)Investing ActivitiesPurchase of reclamation bonds(561,229)(22,473)(94,329)Proceeds from sale of portfolio investments57,50884,370-Mineral property expenditures(13,776,723)(7,399,726)(1,985,509)Recovery of mineral property expenditures5,565,34954,315-Option payments received250,50095,00055,482Proceeds from sale of property and equipment-13,0001,100Purchase of property and equipment(299,141)(60,732)(66,904)(8,763,736)(7,236,246)(2,090,160)Financing ActivitiesShares issued for cash, net of issuance costs15,341,70312,851,1804,244,764Net Increase in Cash and Cash Equivalents3,327,7713,812,849923,545Cash and cash equivalents  Beginning of year6,748,2712,935,4222,011,877Cash and cash equivalents  End of year$10,076,042$6,748,271$2,935,422Supplemental Disclosure of Non-Cash Investing and Financing ActivitiesFair value of shares issued for mineral properties$149,300$62,500$66,500Fair value of shares received for mineral properties$(253,905)$(53,000)$(27,800)Exploration expenditures included in accounts payable$1,168,435$180,961$18,188Fair value of Agents warrants included in share issue costs$60,030$66,459$-Fair value of common shares included in share issue costs$100,000$-$-Fair value of options included in share issue costs$-$59,262$-












- See Accompanying Notes -







---



|                                                                                         |         
|---------------------------------------------------------------------------------------- | --------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Schedule
|Consolidated Schedules of Mineral Property Costs                                         |         
|For the Years Ended 30 April                                                             |         
|Canadian Funds                                                                           |         
|                                                                                         |         



2007Acquisition
CostsExploration
CostsTotal2006
TotalAlaska PropertiesGeneral exploration costs$-$758$758$-Mineral property fees-1,7101,71010,768-2,4682,46810,768British Columbia PropertiesZeballosGeneral exploration costs---513Mineral taxes-421421421-421421934Treasure ChestGeneral exploration costs---2,623Consulting---16,630Assays---1,554---20,807Ontario PropertiesElliot LakeOption payment cash(13,000)-(13,000)-Option payment shares(13,200)-(13,200)-General exploration costs-3863867,116Consulting-2,9752,97518,847(26,200)3,361(22,839)25,963Quebec PropertiesGlitter LakeShare payment received(27,600)-(27,600)-Option payments received---(20,000)(27,600)-(27,600)(20,000)Saskatchewan Uranium PropertiesGeneral exploration costs146146404,035Consulting---213,300Geophysics-10,93510,93575,948Geochemistry / personnel-500500-Wages-47,59347,593302,593Assays---38,750Saskatchewan exploration credit---(48,391)Stock compensation costs-243,984243,984--303,158303,158986,235Balances Carried Forward$(53,800)$309,408$255,608$1,024,707










---



|                                                                                         |                 
|---------------------------------------------------------------------------------------- | ----------------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Schedule (Cont.)
|Consolidated Schedules of Mineral Property Costs                                         |                 
|For the Years Ended 30 April                                                             |                 
|Canadian Funds                                                                           |                 



2007Acquisition
CostsExploration
CostsTotal2006
TotalBalances Brought Forward$(53,800)$309,408$255,608$1,024,707West McArthur ProjectStaking---18,854Fixed assets-9,3759,375-Drilling-789,958789,958859,322General exploration costs-2,008,7772,008,777317,620Consulting-217,567217,56790,767Geophysics-699,605699,605273,324Refund-(48,970)(48,970)(5,924)Wages-294,120294,120101,217Assays-32,13232,1325,832Option payment  cash received-(3,934,411)(3,934,411)--68,15368,1531,661,012Arnold ProjectStaking---12,782Assays-18,12818,128-General exploration costs-53,16453,164101,128Consulting-10,67210,6724,896Geophysics-87,42887,428122,905Wages-17,37317,373-186,765186,765241,711Cree East ProjectStaking---15,740General exploration costs-386,363386,363139Consulting-48,63548,6352,928Geophysics-532,035532,035120,961Assays-19,03519,035-Wages-43,31143,311--1,029,3791,029,379139,768Geiki ProjectStaking---6,768General exploration costs-19,59119,591-Consulting-8,8748,874550Geophysics-91,57291,57215,749Assays-766766--120,803120,80323,067Helmer ProjectStaking53,650-53,65027,731General exploration costs-181,799181,799166,187Assays---8,733Consulting-30,18730,18751,233Wages-11,72711,727-Geophysics-155,947155,947331,98653,650379,660433,310585,870Balances Carried Forward$(150)$2,094,168$2,094,018$3,676,135










---



|                                                                                         |                 
|---------------------------------------------------------------------------------------- | ----------------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Schedule (Cont.)
|Consolidated Schedules of Mineral Property Costs                                         |                 
|For the Years Ended 30 April                                                             |                 
|Canadian Funds                                                                           |                 



2007Acquisition
CostsExploration
CostsTotal2006
TotalBalances Brought Forward$(150)$2,094,168$2,094,018$3,676,135Hodgson ProjectStaking---15,928General exploration costs-216,186216,186-Geophysics-105,111105,111106,763Wages-61,64061,640-Consulting-38,26438,2641,325Assays-51,71251,712--472,913472,913124,016Lake Athabasca ProjectStaking---54,921Assays-45845880General exploration costs-777,191777,191138,857Consulting-176,091176,09139,430Geophysics-418,884418,884491,350Wages-106,243106,24322,622-1,478,8671,478,867747,260McTavish ProjectStaking---20,149General exploration costs-187,023187,0232,938Consulting-54,78854,788484Geophysics-90,33290,33290,222Assays-24,36724,367-Wages-44,72444,724--401,234401,234113,793Moon ProjectStaking---2,518General exploration costs-3,0893,089-Consulting-1,4601,460-Geophysics-7,0507,0501,926-11,59911,5994,444Camsell ProjectStaking5,781-5,78110,662General exploration costs-13,07713,077-Consulting-6,1816,181750Geophysics-116,824116,82476,0405,781136,082141,86387,452Poplar ProjectStaking---44,510General exploration costs-54,59254,592-Consulting-26,90226,902--81,49481,49444,510Balances Carried Forward$5,631$4,676,357$4,681,988$4,797,610










---



|                                                                                         |                 
|---------------------------------------------------------------------------------------- | ----------------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Schedule (Cont.)
|Consolidated Schedules of Mineral Property Costs                                         |                 
|For the Years Ended 30 April                                                             |                 
|Canadian Funds                                                                           |                 
|                                                                                         |                 





2007Acquisition
CostsExploration
CostsTotal2006
TotalBalances Brought Forward$5,631$4,676,357$4,681,988$4,797,610Fond du LacGeneral exploration costs-22,57222,572696Geophysics-110,822110,822-Consulting-35,92235,9226,250Option20,000-20,000-Shares68,000-68,000-Staking6,937-6,937-94,937169,316264,2536,946Grease RiverStaking---36,021Option payment -  cash received(75,000)-(75,000)-Option payment -  shares received(33,980)-(33,980)-Advance-(70,000)(70,000)-General exploration costs-49,35749,357-Consulting-34,71434,714-Geophysics-372372-Wages-1,9461,946-(108,980)16,389(92,591)36,021NE Athabasca ProjectStaking36,064-36,06416,000General exploration costs-1,978,9431,978,943343,172Consulting-431,143431,143732,088Geophysics-467,360467,3603,080Drilling-36,00036,000-Assays-117,332117,33261,878Amounts received or recovered-(49,953)(49,953)-Wages-478,186478,186-36,0643,459,0113,495,0751,156,218FDLC PropertyStaking18,000-18,000-General exploration costs-4,0124,012-Consulting-2,8382,838-Geophysics-59,63559,635-18,00066,48584,485-Balances Carried Forward$45,652$8,387,558$8,433,210$5,996,795










---



|                                                                                         |                 
|---------------------------------------------------------------------------------------- | ----------------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Schedule (Cont.)
|Consolidated Schedules of Mineral Property Costs                                         |                 
|For the Years Ended 30 April                                                             |                 
|Canadian Funds                                                                           |                 
|                                                                                         |                 



2007Acquisition
CostsExploration
CostsTotal2006
TotalBalances Brought Forward$45,652$8,387,558$8,433,210$5,996,795Waterbury, Saskatchewan PropertyOption payment -  cash received(50,000)-(50,000)(25,000)Option payment -  shares received(53,000)-(53,000)(53,000)Drilling-172,116172,116203,806General exploration costs-169,531169,531146,903Consulting-29,54329,54332,078Geophysics-120,229120,229335,314Wages-43,38943,38922,504Assays10,77710,777-Exploration advances-(538,008)(538,008)(743,901)(103,000)7,577(95,423)(81,296)Key Lake, Saskatchewan PropertyOption payment -  cash received(75,000)-(75,000)(25,000)Option payment -  shares received(35,500)-(35,500)-Drilling-112,981112,981-Consulting-16,31416,3141,475General exploration costs-169,585169,585138,400Assays-1,6801,680-Wages-49,55849,558-Exploration advances-(350,118)(350,118)(138,400)(110,500)-(110,500)(23,525)Cree West, Saskatchewan PropertyOption payment -  cash received(25,000)-(25,000)(25,000)Option payment -  shares received(76,000)-(76,000)-Consulting-21,61921,6192,360Geophysics-299,078299,07835,620Mineral property bond-3,0653,065-General exploration costs-190,387190,387-Wages-50,20150,201-Assays-9,5399,539-Exploration advances-(573,889)(573,889)(35,620)(101,000)-(101,000)(22,640)Black Lake PropertyShares issued74,00074,000-Cash payments20,00020,000-General exploration costs-28,69028,690-Consulting-17,24317,243-Geophysics-76,46076,460-94,000122,393216,393-Balances Carried Forward$(174,848)$8,517,528$8,342,680$5,869,334












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|                                                                                         |                 
|---------------------------------------------------------------------------------------- | ----------------
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | Schedule (Cont.)
|Consolidated Schedules of Mineral Property Costs                                         |                 
|For the Years Ended 30 April                                                             |                 
|Canadian Funds                                                                           |                 
|                                                                                         |                 



2007Acquisition
CostsExploration
CostsTotal2006
TotalBalances Brought Forward$(174,848)$8,517,528$8,342,680$5,869,334Alberta PropertiesGeneral exploration costs-209,563209,56364,685Consulting-130,338130,33849,960Wages15,04815,048-Geophysics-284,477284,477766,044-639,426639,426880,689Newfoundland and Labrador PropertiesOption payment -  cash received(12,500)-(12,500)-Option payment -  shares received(14,625)-(14,625)-Consulting-574574-General exploration costs---159Mineral property fees---1,440(27,125)574(26,551)1,599New Zealand PropertiesShares issued7,300-7,30062,500Consulting-4,6974,697106,542General exploration costs-3,1423,142120,0837,3007,83915,139289,125Rise & Shine, New Zealand PropertiesConsulting-89,14689,146126,684General exploration costs-52,51152,51141,930Geophysics-9,9169,91624,272Assays-14,45314,453-Drilling-131,968131,968187,135-297,994297,994380,021General Exploration---1,916Costs for the Year(194,673)9,463,3619,268,6887,422,684Balance - Beginning of year1,147,2659,559,24010,706,5053,463,220Mineral property costs written off(368,025)(1,571,869)(1,939,894)(179,399)Option payments in excess of costs-334,509334,509-Balance  End of Year$584,567$17,785,241$18,369,808$10,706,505
















- See Accompanying Notes -







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





1.

Significant Accounting Policies



a)

Basis of Consolidation



These consolidated financial statements include the accounts of the Companys wholly-owned subsidiaries, CanAlaska Resources Ltd. USA, CanAlaska West McArthur Uranium Ltd. and Golden Fern Resources Limited (a New Zealand company).



b)

Cash and Cash Equivalents



Cash and cash equivalents include amounts held in banks and highly liquid investments with maturities at date of purchase of 90 days or less.



c)

Portfolio Investments



Investments are recorded at the lower of cost and market value.  Investments are written down to market value when the decline in market value is deemed to be other than temporary.



d)

Mineral Properties and Deferred Exploration Expenditures



The Company is in the process of exploring its mineral properties and has not yet determined whether these properties contain ore reserves that are economically recoverable.



Mineral exploration and development costs are capitalized on an individual prospect basis until such time as an economic ore body is defined or the prospect is determined by management to be impaired or abandoned.  Amounts received for the sale of resource properties, for option payments and for exploration advances are treated as reductions of the cost of the property, payments in excess of capitalized costs are recognized in income.  Costs for a producing prospect are amortized on a unit-of-production method based on the estimated life of the ore reserves.



The recoverability of the amounts capitalized for the undeveloped mineral properties is dependent upon the determination of economically recoverable ore reserves, confirmation of the Company's interest in the underlying mineral claims, the ability to obtain the necessary financing to complete their development, and future profitable production or proceeds from the disposition thereof.



Title to mineral properties involves inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently unreliable conveyancing history characteristic of many mineral properties.  The Company has investigated title to all of its mineral properties and, to the best of its knowledge, all of its properties are in good standing.



e)

Asset Retirement Obligations



The Company recognizes the legal liability for obligations relating to retirement of property, plant, and equipment, and arising from the acquisition, construction, development, or normal operation of those assets. Such asset retirement cost are recognized at fair value, when a reasonable estimate of fair value can be estimated, in the period in which it is incurred, added to the carrying value of the related asset, and amortized into income on a systematic basis over the related assets useful life. The liability is adjusted for changes in the expected amounts and timing of cash flows required to discharge the liability and accreted to full value over time through periodic charges to earnings.



There are no asset retirement obligations as at 30 April 2007 and 2006.





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|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





1.

Significant Accounting Policies - Continued



f)

Property, Equipment and Amortization



Property and equipment are carried at cost less accumulated depreciation.  The Company provides for depreciation on the following basis:



·

Office equipment - 20% declining balance method

·

Automotive equipment - 30% declining balance method

·

Mining equipment - 30% declining balance method



g)

Income Taxes



Income taxes are accounted for using the asset and liability method.  Future taxes are recognized for the tax consequences of temporary differences by applying enacted or substantively enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and tax basis of existing assets and liabilities.  The effect on future taxes of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.  In addition, the method requires the recognition of future tax benefits to the extent that realization of such benefits is more likely than not.  A valuation allowance is provided to the extent that it is more likely than not that future income tax assets will not be realized.



h)

Stock-Based Compensation



All stock-based awards made to employees and non-employees are measured and recognized using a fair value based method.  For employees, the fair value of the options is measured at the date of the grant.  For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete or the date the performance commitment is reached or the date at which the equity instruments are granted if they are fully vested and non-forfeitable.  For employees and non-employees, the fair value of options is accrued and charged to operations, with the offsetting credit to contributed surplus, on a straight-line basis over the vesting period.  If and when the stock options are ultimately exercised, the applicable amounts of contributed surplus are transferred to share capital.



i)

Loss per Share



Basic loss per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the year.  The computation of diluted loss per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings per share.  The dilutive effect of convertible securities is reflected in diluted earnings per share by application of the "if converted" method.  The dilutive effect of outstanding options and warrants and their equivalents is reflected in diluted earnings per share by application of the treasury stock method.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





1.

Significant Accounting Policies - Continued



j)

Foreign Currency Translation



The accounts of the Company's foreign operations have been translated into Canadian dollars as follows:



·

Monetary assets and liabilities at year-end rates,

·

All other assets and liabilities at historical rates, and

·

Revenue and expense and exploration and development items at the average rate of exchange prevailing during the year.



Exchange gains and losses arising from these translations are reflected in income or expense in the year that they occur.



k)

Flow-through Shares



Canadian Income Tax Legislation permits an enterprise to issue securities referred to as flow-through shares, whereby the investor can claim the tax deductions arising from the renunciation of the related resource expenditures.  When resource expenditures are renounced to the investors and the Company has reasonable assurance that the expenditures will be completed, future income tax liabilities are recognized with a corresponding reduction in share capital.



If a Company has sufficient unused tax losses and deductions (losses) to offset all or part of the future income tax liabilities and no future income tax assets have been previously recognized on such losses, a portion of such unrecognized losses (losses multiplied by the effective corporate tax rate) is recorded as income up to the amount of the future income tax liability that was previously recognized on the renounced expenditures.



l)

Management's Estimates



The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods.  Actual results could differ from those estimates.



m)

Mineral Exploration Tax Credits (METC)



The Company recognizes METC amounts when the Companys METC application is approved by the relevant taxation authorities or when the amount to be received can be reasonably estimated and collection is reasonably assured.





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





2.

Fair Value of Financial Instruments



The Companys financial instruments consist of cash and cash equivalents, accounts and advances receivable, portfolio investments, accounts payable and accrued liabilities and due to related parties.  Unless otherwise noted, it is managements opinion that the Company is not exposed to significant interest, currency or credit risks arising from the financial instruments.  The fair value of cash and cash equivalents, accounts and advances receivable, accounts payable, accrued liability, and due to related parties approximates their carrying values, due to their short-term maturity or capacity of prompt liquidation.



The fair value of the companys portfolio investments are summarized in note 3.  Portfolio investments represent shares in publicly traded companies.  The fair value represent the quoted trading price of the shares.







3.

Portfolio Investments



Details are as follows:

20072006Book ValueMarket ValueBook ValueMarket ValuePacific North West Capital Corp. ("PFN") 1,091,800 shares$280,278$469,474$252,679$462,792Freegold Ventures Limited ("ITF") 343,007 shares44,591308,70644,591171,504El Nino Ventures Inc (ELN) 260,131 shares31,216104,05231,216192,497Other portfolio investments255,039255,03956,26764,560$611,124$1,137,271$384,753$891,353




These investments have been accounted for using the lower of cost and market valuation method.   PFN, ITF and ELN are companies with certain directors in common with the Company.  The maximum percentage owned of PFN, ITF or ELN by the Company at any time during the year was less than 10%.









---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs



Details are as follows:



|                                     |                    |                   |                         |                   |                          |               
|------------------------------------ | ------------------ | ----------------- | ----------------------- | ----------------- | ------------------------ | --------------
|                                     | Acquisition
Costs  | Exploration
Costs | Exploration Advances    | Write Offs        | 2007
Total               | 2006
Total    
|Alaska Properties                    | $         111,228  | $       1,249,918 | $                     - | $    (1,361,146)  | $                      - | $    1,358,679
|British Columbia Properties          |                    |                   |                         |                   |                          |               
|Quesnel Canyon                       | 1                  | -                 | -                       | -                 | 1                        | 1             
|Zeballos                             | 4,661              | 58,721            | -                       | (63,382)          | -                        | 62,961        
|Treasure Chest                       | -                  | -                 | -                       | -                 | -                        | -             
|Ontario Properties                   |                    |                   |                         |                   |                          |               
|Elliot Lake                          | (12,615)           | 36,117            | -                       | -                 | 23,502                   | 46,341        
|Quebec Properties                    |                    |                   |                         |                   |                          |               
|Glitter Lake                         | (27,600)           | 64,090            | -                       | -                 | 36,490                   | 64,090        
|Saskatchewan Properties              |                    |                   |                         |                   |                          |               
|Saskatchewan general                 | -                  | 303,158           | -                       | -                 | 303,158                  | 5,875         
|West McArthur Project                | 51,981             | 6,284,109         | (3,934,411)             | -                 | 2,401,679                | 2,333,526     
|Arnold Project                       | 35,240             | 694,292           | -                       | -                 | 729,532                  | 542,767       
|Cree East Project                    | 43,397             | 1,181,487         | -                       | -                 | 1,224,884                | 195,505       
|Geikie Project                       | 18,661             | 140,792           | -                       | (159,453)         | -                        | 38,650        
|Helmer Project                       | 130,104            | 1,074,978         | -                       | -                 | 1,205,082                | 771,772       
|Hodgson Project                      | 43,913             | 605,471           | -                       | -                 | 649,384                  | 176,471       
|Lake Athabasca Project               | 151,418            | 2,330,157         | -                       | -                 | 2,481,575                | 1,002,708     
|McTavish Project                     | 55,552             | 654,718           | -                       | -                 | 710,270                  | 309,036       
|Moon Project                         | 6,944              | 154,143           | -                       | -                 | 161,087                  | 149,488       
|Camsell Project                      | 35,177             | 230,257           | -                       | -                 | 265,434                  | 123,571       
|Poplar Project                       | 122,717            | 81,494            | -                       | -                 | 204,211                  | 122,717       
|Fond du Lac                          | 94,937             | 169,316           | -                       | -                 | 264,253                  | -             
|Grease River                         | (9,668)            | 86,389            | (70,000)                | -                 | 6,721                    | 99,312        
|NE Athabasca Project                 | 52,064             | 4,858,547         | -                       | -                 | 4,910,611                | 1,415,536     
|Black Lake                           | 94,000             | 122,393           | -                       | -                 | 216,393                  | -             
|FDLC                                 | 18,000             | 66,485            | -                       | -                 | 84,485                   | -             
|Waterbury Agreement                  | (151,000)          | 1,432,909         | (1,281,909)             | -                 | -                        | (51,296)      
|Key Lake Agreement                   | (111,500)          | 489,993           | (378,493)               | -                 | -                        | 475           
|Cree West Agreement                  | (86,000)           | 617,744           | (531,744)               | -                 | -                        | 17,360        
|Alberta Properties                   | 10,625             | 1,520,881         | -                       | -                 | 1,531,506                | 892,080       
|Manitoba Properties                  | -                  | 3,853             | -                       | -                 | 3,853                    | 3,853         
|Newfoundland and Labrador Properties | (27,125)           | 51,693            | -                       | (24,568)          | -                        | 51,119        
|New Zealand Properties               |                    |                   |                         |                   |                          |               
|New Zealand general                  | 279,900            | 327,687           | -                       | (331,345)         | 276,242                  | 592,448       
|Rise & Shine Property                | -                  | 679,455           | -                       | -                 | 679,455                  | 381,460       
|                                     | $          935,012 | $     25,571,247  | (6,196,557)             | $     (1,939,894) | $     18,369,808         | $  10,706,505 









---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



a)

Alaska Properties



The Company acquired a 100% interest in certain mineral claims by staking in the Valdez Creek Mining District, Talkeetna Recording District, Alaska, U.S.A.  This is a reduced claim group covering the core of the Rainbow Hill property.  The Company maintains the claims by payment of yearly taxes.



In the current year, management made the determination that the results of its exploration programs on the property did not warrant further expenditures and wrote-off the related acquisition and exploration costs of $1,361,147.



b)

British Columbia Properties



Zeballos



Pursuant to completing the terms of an option and Joint Venture Agreement dated 23 August 1988, and amended November 1998, the Company earned a 50% interest in certain mineral claims in the Alberni Mining Division of British Columbia. The Company increased its ownership to 100% interest in 2002.



In the current year, management made the determination that the results of its exploration programs on the property did not warrant further expenditures and wrote-off the related acquisition and exploration costs of $63,382.



c)

Ontario Properties



Elliot Lake Property



During the previous year, the Company completed the staking of certain mineral claims in the Elliot Lake area of Ontario for Uranium related prospects.



By agreement dated 10 October 2006, the Company granted Pele Mountain Resources Inc. (Pele) the right to earn a 100% interest in the Elliot Lake property.



To earn a 100% interest in the property, Pele must pay $13,000 cash (received) and issue 60,000 shares at a fair value of $13,200 (received).



The Company shall retain a 1.75% NSR with Pele having the right to purchase 1% of this royalty for $1,000,000.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



d)

Quebec Properties



Glitter Lake



In a prior year, the Company acquired a 100% interest in certain mineral claims located near Glitter Lake, Quebec for payment of $32,667 in staking costs and the issuance of 40,000 common shares of the Company.



By an agreement dated 15 August 2003 and subsequent amendments, the Company granted Pacific North West Capital Corp. (PFN) a company with directors in common, the right to earn a 70% interest in the Glitter Lake property.



To earn a 50% interest in the property, PFN, at its option, must issue shares, make payments and incur exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresOn or before 15 April 2003(completed)$--$50,000Upon execution of agreement(received)10,000--On or before 4 June 2004(received)-20,000-On or before 15August 2004(received)15,000--On or before 28 May 2005(received)-20,000-On or before 15August 2005(received)20,000--On or before 28 May 2006(received)-20,000-On or before 15 April 2007(partially
completed)--150,000On or before 15 April 2008--200,000On or before 15 April 2009--300,000Total$45,00060,000$700,000




Upon PFN having vested with a 50% interest by completing the aforementioned payments and obligations, PFN may elect within 45 days to increase its interest to 60% by completing a bankable feasibility study within two years.  In the event PFN does not complete a bankable feasibility study within two years, PFN agrees to make cash payments in the amount of $50,000 per annum for each year the feasibility study is not completed. Upon vesting with a 60% interest PFN may elect within 90 days to earn a 70% interest in the property by placing the property into commercial production within two years from the date of this election. In the event that the bankable feasibility study indicates an IRR in excess of 15%, PFN agrees to make annual cash payments of $50,000 to the optionor for each year the project is not placed into commercial production.



In the event that a major mining company elects to participate in the project before PFN vests with a 50% interest, PFN will issue shares with a value of $100,000 to the Company, within 15 days of PFN becoming vested, or pay such amount that will result in PFN having spent $1 million in exploration expenditures.



The property is subject to a 1.5% NSR payable to a third party.  The Company and PFN will share the NSR buyout privileges in proportion to their respective interests.



By agreement, the Company extended the uncompleted portion of the option to 2010.





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



e)

Newfoundland and Labrador Properties



The Company acquired by staking, certain mineral claims located in the Voisey Bay area of Newfoundland.  Expenditures of $201,186 must be made by 22 December 2007.



i)

VBE  1 (787M) and VBE  2 (785M)



The Company has a 50% interest in mineral licences 787M and 785M.  Columbia Yukon Resources Ltd. (CYR) has a 50% interest in these claims.



By agreement dated 6 September 2006, the Company and CYR granted Celtic Minerals Ltd. (Celtic) and Merrex Gold Inc. (Merrex) the right to earn a 100% interest in the VBE  2 property.



To earn a 100% interest in the property, Celtic and Merrex, at its option, must issue shares, make payments and incur exploration expenditures as follows:



PaymentsCeltic SharesMerrex SharesExploration
ExpendituresUpon execution of agreement(received)$25,00025,00025,000$-On or before 6 September 200750,00025,00025,000100,000On or before 6 September 200875,00025,00025,000250,000On or before 6 September 2009100,00025,00025,000500,000On or before 6 September 201025,00025,000750,000Total$250,000125,000125,000$1,600,000




The Company shall retain a 2% NSR with the Optionees having the right to purchase half of this royalty for $2,000,000.



ii)

Konrad (972M)



Mineral licence 972M is 50% owned by the Company.  On December 5, 1997 the Company entered into an option agreement with Pacific North West Capital Corp. (PFN) whereby PFN could earn up to an 80% interest in each of the properties by issuing shares of its capital stock to the Company, completing specified exploration expenditure on the properties and bringing an operation to the commercial production stage.  PFN has vested with a 50% interest in the property.



In the current year, management and the joint venture partner made the determination that the results of its exploration programs on the property did not warrant further expenditures and allowed the claims to lapse and wrote-off the related acquisition and exploration costs of $24,568.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



f)

Saskatchewan/Alberta/Manitoba Uranium Properties



The Company acquired a 100% interest in certain mineral claims through staking.



i)

Alberta Project, Alberta



This project comprises mineral permits covering most of the Alberta section of Lake Athabasca.



ii)

Arnold Project, Saskatchewan



This project is contiguous block of certain minerals claims located west of the producing McArthur River mine.



iii)

Cree East Project, Saskatchewan



This project is comprised of certain mineral claims located west of the formerly producing Key Lake mine.





iv)

Geikie Project, Saskatchewan



This project is comprised of a single claim and lies on the southeast rim of the Athabasca Basin southwest of the McArthur River mine.  During the year, the Company allowed the claim to lapse and all acquisition and exploration costs in the amount of $159,453 were written-off.



v)

Helmer Project, Saskatchewan



This contiguous block of 1 permit and certain mineral claims lies in the north-central part of the Athabasca Basin, southeast of Uranium City.



vi)

Hodgson Project, Saskatchewan



This project is comprised of certain claims and lies west of the Cigar Lake Mine.



vii)

Lake Athabasca Project, Saskatchewan



This project comprises certain mineral claims chiefly on Lake Athabasca, southwest of Uranium City.



viii)

McTavish Project, Saskatchewan



This property is a block of certain mineral claims lying southeast of the McArthur River mine and northwest of the Key Lake Mine.





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



f)

Saskatchewan/Alberta/Manitoba Uranium Properties- continued



ix)

Moon Project, Saskatchewan



This property is comprised of certain mineral claims lying in two separate blocks between the McArthur River and Key Lake mines.



x)

Northeast Project, Saskatchewan-Manitoba



This property straddles the Saskatchewan-Manitoba border and lies northeast along the trend of basement formations from the cluster of uranium deposits which include Rabbit Lake.



xi)

Camsell, Saskatchewan



This property is located northeast of the Maurice Bay uranium deposit, and west of Uranium City, on the northern edge of Lake Athabasca.



xii)

Poplar, Saskatchewan



This property was recently staked by the company to cover all of the northern edge of the Athabasca Basin located between the Helmer and Lake Athabasca properties



xiii)

Black Lake, Saskatchewan



By agreement dated 13 December 2006, the Company acquired from the Black Lake Denesuline First Nations an option to earn a 49% interest in the Black Lake property.



To earn a 49% interest in the property, the Company, at its option, must make payments, issue shares and incur exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresUpon execution of agreement(paid/issued)$20,000100,000$-On or before 30 November 200730,000100,000300,000On or before 30 November 200840,00050,000400,000On or before 30 November 200940,00050,000500,000On or before 30 November 2010--800,000Total$130,000300,000$2,000,000




Upon exercising its 49% option, a joint venture may be formed.





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



f)

Saskatchewan/Alberta/Manitoba Uranium Properties- continued



xiv)

Fond du Lac, Saskatchewan



By agreement dated 18 October 2006, the Company acquired from the Fond Du Lac Denesuline First Nations an option to earn a 49% interest in the Fond du Lac property.



To earn a 49% interest in the property, the Company, at its option, must make payments, issue shares and incur exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresUpon execution of agreement(paid/issued)$20,000100,000$-On or before 31 October 200730,000100,000300,000On or before 31 October 200840,00050,000400,000On or before 31 October 200940,00050,000500,000On or before 31 October 2010--800,000Total$130,000300,000$2,000,000




Upon exercising its 49% option, a joint venture may be formed.



xv)

FDLC, Saskatchewan



This property is a certain group of claims located adjacent to and surrounding the Fond du Lac property



xiii)

Manitoba Properties



The Company acquired mineral exploration licenses in north western Manitoba, which were originally operated as part of the Northeast property. Additional leases were added adjacent to the properties in 2006 and 2007.



g)

Waterbury Agreement, Saskatchewan Property



The Company acquired a 100% interest in certain mineral claims through staking, known as the Waterbury property.



By agreement dated 9 November 2005, and amended on 30 March 2007, the Company optioned to Northwestern Mineral Ventures Inc. (Northwestern) up to 75% interest in the Waterbury property.



Northwestern may, at its option, earn a 50% interest in the property by making payments, issuing shares and making exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresUpon execution of agreement(received)$25,000100,000$-On or before 1 April 2006(received/completed)25,000100,000500,000On or before 1 April 2007(received/completed)25,000-750,000On or before 1 April 200875,000100,000750,000Total$150,000300,000$2,000,000






---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



g)

Waterbury Agreement, Saskatchewan Property - Continued



Within 90 days of exercising its 50% option, Northwestern may elect to acquire an additional 10% interest by expending an additional $2,000,000 on exploration within 2 years of vesting its 50% interest.  Within 90 days of completing its commitments for a 60% interest, Northwestern may elect to acquire a further 15% ownership, for a total of 75%, by completing a feasibility study within 2 years, issuing to the Company 200,000 additional common shares, and expending a minimum of $500,000 per year on the Project. The Company will act as operator of the project until Northwestern has a vested 60% interest, at which time Northwestern may elect to become the operator.  During the current year the Company recovered administration costs of $46,259 as the operator.



Should the property reach commercial production, the Company will receive a 3% net smelter royalty.



h)

Key Lake Agreement, Saskatchewan Property



The Company acquired a 100% interest in certain mineral claims through staking, known as the Key Lake property.



By agreement dated 2 March 2006, the Company optioned to International Arimex Resources Inc. (Arimex) up to 75% interest in the Key Lake property.



Arimex may, at its option earn a 50% interest in the property by making payments, issuing shares and making exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresUpon execution of agreement(received)$25,000100,000$-On or before 1 April 2006(completed)--100,000On or before 15 October 2006(received)25,000--On or before 31 January 2007(completed)--50,000On or before 28 February 2007(received)50,000100,000-On or before 31 May 2007(completed)--600,000On or before 28 February 200850,000100,000-On or before 31 May 2008--600,000On or before 31 May 2009--650,000---Total$150,000300,000$2,000,000




Within 90 days of exercising its 50% option, Arimex may elect to acquire an additional 10% interest by expending an additional $2,000,000 on exploration within 2 years of vesting its 50% interest.  Within 90 days of completing its commitments for a 60% interest, Arimex may elect to acquire a further 15% ownership, for a total of 75%, by completing a feasibility study within 2 years, issuing to the Company 200,000 additional common shares, and expending a minimum of $500,000 per year on the Project. The Company will act as operator of the project until Arimex has a vested 60% interest, at which time Arimex may elect to become the operator. During the current year the Company recovered administration costs of $25,385 as the operator.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



Should the property reach commercial production, the Company will receive a 3% net smelter royalty.



i)

Cree West Agreement, Saskatchewan Property



The Company acquired a 100% interest in certain mineral claims through staking, known as the Cree West property.



By agreement dated 24 April 2006, the Company optioned to International Arimex Resources Inc. (Arimex) up to 75% interest in the Cree West property.



Arimex may, at its option earn a 50% interest in the property by making payments, issuing shares and making exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresUpon execution of agreement(received)$25,000-$-On or before 1 May 2006(completed)-200,000100,000On or before 1 November 2006(received)25,000-100,000On or before 1 May 2007(received subsequent to year-end)50,000200,000400,000On or before 1 May 200850,000200,0001,000,000On or before 1 May 20092,000,000Total$150,000600,000$3,600,000




Within 90 days of exercising its 50% option, Arimex may elect to acquire an additional 10% interest by expending an additional $4,000,000 on exploration within 2 years of vesting its 50% interest.  Within 90 days of completing its commitments for a 60% interest, Arimex may elect to acquire a further 15% ownership, for a total of 75%, by completing a feasibility study within 2 years, issuing to the Company 400,000 additional common shares, and expending a minimum of $1,000,000 per year on the Project. The Company will act as operator of the project until Arimex has a vested 60% interest, at which time Arimex may elect to become the operator. During the current year the Company recovered administration costs of $42,226 as the operator.





Should the property reach commercial production, the Company will receive a 3% net smelter royalty.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



j)

West McArthur Agreement, Saskatchewan Property



The Company acquired a 100% interest in certain mineral claims through staking, known as the West McArthur property.



By way of an Option Agreement dated 5 April 2007, the Company optioned to Mitsubishi Development Pty Ltd. (Mitsubishi) a 50% interest in the West McArthur property.



Mitsubishi may exercise its option to earn a 50% interest in the property by making a $1,000,000 option exercise payment within 30 days of completing $10,000,000 of required option payments, which are payable as follows:



Option PaymentsOn or before 10 April 2007(paid)$2,309,678On or before 31 October 2007(paid $1,624,733 to 30 April 2007))2,690,322On or before 31 October 20082,500,000On or before 31 October 20092,500,000Total$10,0000,000




Upon the exercise of its option, Mitsubishi will enter into a 50/50 joint venture with the Company which will be governed under a Joint Venture Agreement.  The Company will act as operator of the exploration project prior to the formation of the joint venture and earns a management fee of 10% of the exploration expenditures incurred.  During the current year the Company recovered administration costs of $336,293 as the operator.  Upon the formation of the joint venture, Mitsubishi may elect to become the operator.









---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



k)

Grease River Agreement, Saskatchewan Property



In the prior year, the Company acquired a 100% interest in certain mineral claims through staking, known as the Grease River property.



By way of an Option Agreement dated 10 April 2007, the Company optioned to Yellowcake plc. (Yellowcake) a 60% interest in the Grease River property.



Yellowcake may exercise its option to earn a 60% interest in the property by making payments, issuing shares and making exploration expenditures as follows:



PaymentsSharesExploration
ExpendituresUpon execution of agreement(received)$75,000500,000$-On or before 01 Aug 2007400,000On or before 31 Aug 200775,000500,000On or before 31 Mar 200875,000500,000500,000On or before 31 Mar 200975,000500,0001,000,000On or before 31 Mar 2010500,0001,400,000On or before 31 Mar 20111,700,000Total$300,0002,500,000$5,000,000




The Company will act as operator of the project until Yellowcake has a vested 60% interest, at which time Yellowcake may become the operator.



Should the property reach commercial production, the Company will receive a 3% Yellowcake royalty, with the Optionee having the right to purchase up to half of this royalty for $3,000,000.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





4.

Mineral Property Costs - Continued



l)

New Zealand Properties



Cascade Projects



By agreement dated 28 November 2003, the Company may earn a 100% interest in the Cascade projects.  In order to complete the terms of the agreement, the Company must, at its option, make payments, and issue shares as follows:



Cascade Project APaymentsSharesWithin 5 days of regulatory approval (paid/issued)US$20,000150,000On or before 17 March 2005 (issued)-75,000On or before 17 March 2006 (issued)-75,000US$20,000300,000




Cascade Project BPaymentsSharesWithin 5 days of regulatory approval (issued)US$-150,000On or before 17 March 2005 (issued)-75,000On or before 17 March 2006 (paid/issued)10,00075,000On or before 17 March 200710,000-US$20,000300,000




During the year, the Company terminated the agreement.  Accordingly, the associated acquisition and deferred exploration expenditures of $331,345 were written-off.



m)

Rise & Shine, New Zealand Property



By agreement dated 14 December 2004 and amended 21 July 2006 with OceanaGold, the Company may earn a 70% interest in the Rise and Shine project.  The terms of the agreement are for the Company to complete a minimum 1,000 metre drill program prior to 31 July 2005 (completed), and in subsequent years complete an additional $100,000 of field expenditures by 30 June 2006 (completed) and a further $150,000 by 30 June 2007 for a cumulative total of $350,000.



By agreement dated 18 July 2006, the Company has now completed years 1 & 2 of the property option and has a credit of 50% of costs incurred after November 2005 for the year 3 $150,000 program to be completed by 14 December 2007 (completed).



Other Projects



In addition to the Cascade Projects, the Company has also been granted the following four prospecting permits: Granite Dome, Greymouth North, Reefton South and Mt. Mitchell.









---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





5.

Property and Equipment



Details are as follows:

|                     |      |                          |                     |         |   |        
|-------------------- | ---- | ------------------------ | ------------------- | ------- | - | -------
|                     | Cost | Accumulated
Amortization | 2007
Net Book
Value
|Office equipment     | $    | 260,607                  |                     | 179,324 | $ | 81,283 
|Automotive equipment |      | 57,135                   |                     | 8,570   |   | 48,565 
|Mining equipment     |      | 481,482                  |                     | 282,348 |   | 199,134
|                     | $    | 799,224                  |                     | 470,242 | $ | 328,982



|                     |      |                          |                     |         |   |        
|-------------------- | ---- | ------------------------ | ------------------- | ------- | - | -------
|                     | Cost | Accumulated
Amortization | 2006
Net Book
Value
|Office equipment     | $    | 189,175                  |                     | 161,425 | $ | 27,750 
|Automotive equipment |      | -                        |                     | -       |   | -      
|Mining equipment     |      | 310,906                  |                     | 233,557 |   | 77,349 
|                     | $    | 500,081                  |                     | 394,982 | $ | 105,099





6.

Share Capital



a)

Private Placements



During the year, the Company issued 6,944,444 units at a purchase price of $0.72 per unit, for gross proceeds of CDN $5,000,000.  Each unit consists of one common share and one-half common share purchase warrant (Warrant).  Each Warrant entitles the holder to purchase an additional common share at a price of $0.93 for a period of 12 months from closing.  The share purchase warrants issued as part of this placement have been recorded at a fair value of $322,028 (Note 6e).  The Company paid an aggregate of $136,898, issued 28,333 common shares and issued 44,875 Agent warrants as a finders fee.  Each Agent warrant entitles the holder to purchase one additional common share of the Company for a period of twelve months from the date of closing at a price of $0.93 per share.  The common shares for the finders fee and the Agent warrants issued as part of this placement have been recorded at a fair value of $20,399 and $322,028 respectively (Note 6e).



During the year, the Company issued 4,000,000 units at a price of $0.52 for gross proceeds of $2,080,000. Each unit consists of one common share and one common share purchase warrant exercisable for two years after the issue date at $0.67 per share.  The share purchase warrants issued as part of this placement have been recorded at a fair value of $620,494 (Note 6e).  The agents received $35,150 and 19,519 Agent warrants exercisable for two years after the issue date at $0.67 per share.  The Agent warrants issued as part of this placement have been recorded at a fair value of $5,294 (Note 6e).







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





6.

Share Capital  Continued



a)

Private Placements - Continued



During the year, the Company issued 7,470,331 flow-through units (Note 6b)at a price of $0.45 for gross proceeds of $3,361,649. Each flow-through unit consists of one common share and one-half non-flow-through share purchase warrant exercisable for one year after the issue date at $0.56 per share. The share purchase warrants issued as part of this placement have been recorded at a fair value of $408,522(Note 6e).  The agents received 222,222 shares and 155,555 Agent warrants exercisable for one year after the issue date at $0.56 per share.  The Agent share and the Agent warrants issued as part of this placement have been recorded at a fair value of $100,000 and $47,070 respectively (Note 6e).





During the previous year, the Company issued 3,000,000 flow-through shares (Note 6d)at a price of $0.32 for gross proceeds of $960,000. The agent received $67,200.



During the previous year, the Company issued 3,125,000 flow-through units (Note 6d)at a price of $0.40 for gross proceeds of $1,250,000. The agents received $87,500 and 218,750 compensation options.  Each compensation unit consists of one common share and one-half non-transferable common share purchase warrant exercisable for one year after the issue date at $0.45 per share.



During the previous year, the Company issued 5,000,000 flow-through shares (Note 6d)at a price of $0.40 for gross proceeds of $2,000,000. The agents received $140,000 and 350,000 warrants exercisable at a price of $0.40.



During the previous year, the Company issued 4,893,000 flow-through shares (Note 6d)at a price of $0.55 for gross proceeds of $2,691,150. Each flow-through unit consists of one common share and one-half non-flow-through share purchase warrant exercisable for one year after the issue date at $0.65 per share.



During the previous year, the Company issued 435,000 units at a price of $0.35 for gross proceeds of $152,250. Each unit consists of one common share and one-half share purchase warrant exercisable for one year after the issue date at $0.45 per share. The agents received $10,658 and 30,450 compensation options. Each compensation option is convertible into one unit at a price of $0.35.  Each unit has the same terms as the issued units.



During the previous year, the Company issued 535,000 units at a price of $0.35 for gross proceeds of $187,250.  Each unit consists of one common share and one-half share purchase warrant exercisable for one year after the issue date at $0.45 per share.  The agent received $13,108 and 37,450 compensation options.  Each compensation option is convertible into one unit at a price of $0.35.  Each unit has the same terms as the issued units.



During the previous year, the Company issued 3,231,500 units at a price of $0.35 for gross proceeds of $1,131,025. Each unit consists of one common share and one-half share purchase warrant exercisable for one year after the issue date at $0.45 per share. The agents received $23,345 and 8,350 warrants having the same terms as the issued warrants.



During the previous year, the Company issued 1,353,791 units at a price of $0.37 for gross proceeds of $500,903. Each unit consists of one common share and one share purchase warrant exercisable for one year after the issue date at $0.45 per share. The agents received $34,325 and 92,840 warrants exercisable at a price of $0.40.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





6.

Share Capital - Continued



a)

Private Placements - Continued



During the previous year, the Company issued 7,425,374 units at a price of $0.42 for gross proceeds of $3,118,657. Each unit consists of one common share and one-half share purchase warrant exercisable for one year after the issue date at $0.52 per share. The agents received $176,097 and 340,886 warrants having the same terms as the issued warrants.



The fair value of agents warrants of $66,459 for 2006 was charged to share issue costs with a corresponding increase to contributed surplus.  The fair value of the warrants was determined using the Black-Scholes Option Pricing Model using the following assumptions:



Risk-free interest rate3.14% - 4.17%Expected dividend yieldNILExpected stock price volatility45.5% - 81.74%Expected life1 year




b)

Flow-Through Shares



Flow-through shares are shares issued by a company that incurs certain qualifying resource expenditures and then renounces them for Canadian tax purposes.  This allows the expenditures to flow through to the subscriber for tax purposes.  The subscribers may in turn claim the expenditure as a deduction on their personal or corporate tax returns.



The total amount of funds raised through the flow-through shares must be spent on qualified mineral exploration in order for the subscribers to utilize the deduction for tax purposes.



During the year ended 30 April 2007, the Company renounced $6,233,834 (2006 - $4,210,000) of CEE to the flow-through shareholders.  The recovery of future income taxes of $1,173,486 (2006  $1,435,610) represents the income tax effect of these renouncements.



c)

Exercise of Warrants and Options



i)

During the year, 10,612,790 warrants were exercised for gross proceeds of $4,838,277.



ii)

During the year, 1,082,400 options were exercised for gross proceeds of $391,075.



d)

Share Purchase Options



The Company has established a share purchase option plan whereby the board of directors may, from time to time, grant options to directors, officers, employees or consultants.  Options granted must be exercised no later than ten years from the date of grant or such lesser period as determined by the Company's board of directors.  The exercise price of an option is not less than the closing price on the TSX Venture Exchange on the last trading day preceding the grant date.





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





6.

Share Capital - Continued



d)

Share Purchase Options - Continued



A summary of the Companys options at 30 April 2007 and the changes for the year are as follows:



Number outstanding
30 April 2006GrantedExercisedExpired / CancelledNumber outstanding
30 April 2007Exercise price per shareExpiry date10,000--(10,000)-$0.507-Aug-0616,000--(16,000)-$0.5028-Aug-06122,850-(122,325)(525)-$0.3531-Aug-064,751-(4,751)--$0.3522-Sep-0629,500-(6,400)-23,100$0.5015-May-0736,665---36,665$0.5024-Nov-0791,000-(91,000)--$0.3510-Feb-07100,000---100,000$0.1026-May-08520,000-(247,500)-272,500$0.2510-Sep-08800,000---800,000$0.1025-Jun-081,565,000-(392,500)(50,000)1,122,500$0.405-Nov-09275,000-(100,000)-175,000$0.4529-Nov-09117,000-(15,000)-102,000$0.5023-Feb-10413,000-(5,000)(30,000)378,000$0.587-Mar-10150,000-(150,000)--$0.321-May-1075,000---75,000$0.3513-Jul-103,300,000-(75,000)(20,000)3,205,000$0.4514-Oct-10200,000---200,000$0.4214-Feb-11-50,000--50,000$0.5021-Jul-11-25,000--25,000$0.508-Aug-11-50,000--50,000$0.5022-Aug-11-80,000--80,000$0.504-Oct-11-3,000,000--3,000,000$0.5016-Nov-11-100,000--100,000$0.7513-Feb-12-1,000,000--1,000,000$0.7430-Mar-127,825,7664,305,000(1,209,476)(126,525)10,794,765








---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





6.

Share Capital - Continued



d)

Share Purchase Options - Continued



During the year, the Company granted the following options and recognized the following costs with respect to options granted:



Grant dateGrantedExercise priceFair
Value2007 Vested
Amount21 July 200650,000$0.50$13,764$5,6008 August 200625,000$0.508,3025,84322 August 200650,000$0.5012,61010,7644 October 200680,000$0.5020,62618,73416 November 20063,000,000$0.501,263,496285,58513 February 2007100,000$0.7544,240-30 March 20071,000,000$0.74575,026-Total4,305,000$1,938,064$326,526




The total estimated fair value of the 4,305,000 options is $1,633,547.  Since the options were granted under a graded vesting schedule, $243,984 of the total fair value has been recorded as stock-based compensation deferred exploration expenses and $82,542 of the total fair value has been recorded as stock-based compensation expenses during the year.  The offsetting entry is to contributed surplus.



During prior years, the Company granted the following options and recognized the 2007 vested amount as follows:



Grant dateGrantedExercise priceFair
Value2007 Vested
Amount25 June 20041,076,000$0.10$90,429$22,6075 November 20042,000,000$0.40421,84858313 July 200575,000$0.3522,3147,43814 October 20053,300,000$0.451,031,632453,29214 February 2006200,000$0.4261,70430,852Total6,651,000$1,627,927$514,772




The total estimated fair value of the 6,651,000 options is $1,627,927.  Since the options were granted under a graded vesting schedule, $514,772 of the total fair value has been recorded as stock-based compensation expenses during 2007.  The offsetting entry is to contributed surplus.



The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



200720062005Expected dividend yield0.00%0.00%0.00%Expected stock price volatility67.72%86.93%104.79%Risk-free interest rate3.96%3.66%4.06%Expected life of options5.0 years5.0 years4.0 years








---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





6.

Share Capital - Continued



d)

Share Purchase Options - Continued



Option pricing models require the input of highly subjective assumptions including the expected price volatility.  Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Companys stock options.



Subsequent to the year-end, 100,000 stock options were granted at an exercise price of $0.70 per common share for a period of five years.



e)

Share Purchase Warrants



As at 30 April 2007, the following share purchase warrants are outstanding:



NumberExercise PriceExpiry Date890,000$0.1214 November 20073,735,166$0.5626 October 20073,472,222$0.936 March 200844,875$0.936 March 20084,000,000$0.678 December 200819,519$0.678 December 200812,161,782




During the year, 11,207,388 common share purchase warrants having a fair value of $1,351,044 were issued relating to private placements.



The fair value of the common share purchase warrants included in unit offerings is estimated on the date of issuance of the unit using the Black-Scholes option-pricing model with the following weighed average assumptions:



April 30, 2007Average risk-free interest rate3.95%Expected dividend yieldNILExpected stock price volatility86.22%Average expected warrant life1.36 years




Pricing models require the input of highly subjective assumptions including the expected stock price volatility.  Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore, the existing models do not necessarily provide a reliable single measure of the fair value of the Companys stock purchase warrants.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





7.

Related Party Transactions



Except as disclosed elsewhere in these consolidated financial statements, related party transactions are as follows:



i)

During the year, the Company paid:

200720062005Management fees to a company controlled by the Chairman$110,704$108,351$113,884Rent to a company controlled by the Chairman$23,342$40,015$40,015Consulting fees to a company controlled by the President$85,000$90,000$73,950Consulting fees to a company controlled by the Corporate Secretary$30,624$33,418$31,147Consulting fees to the VP Corporate Development$55,000$-$-Accounting fees to a company controlled by the Chief Financial Officer$33,831$30,370$27,900




ii)

Effective 1 February 2005, each outside director is entitled to receive $500 per month, $500 per directors meeting and $500 per committee meeting. During the year, $18,000 (2006 - $18,000) has been paid/accrued to directors.  At year end, $7,500 (2006 - $3,000) is owing to directors. This is due on demand and non-interest bearing.



These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.







8.

Income Taxes

A reconciliation of income taxes at statutory rates with the reported taxes is as follows:



|                                             |   |             |   |            
|-------------------------------------------- | - | ----------- | - | -----------
|                                             |   | 2007        |   | 2006       
|                                             |   |             |   |            
|Loss before income taxes                     | $ | (3,002,245) | $ | (1,763,769)
|Combined Canadian and US income tax rates    |   | 34.07%      |   | 34.09%     
|                                             |   |             |   |            
|Expected recovery                            | $ | (1,022,881) | $ | (601,691)  
|Items not deductible for income tax purposes |   | 381,377     |   | 189,267    
|Change in valuation allowance and other      |   | (531,982)   |   | (1,023,186)
|                                             |   |             |   |            
|Total recovery                               | $ | (1,173,486) | $ | (1,435,610)
|                                             |   |             |   |            
|Represented by:                              |   |             |   |            
|Current income tax                           | $ | -           | $ | -          
|Future income tax recovery                   | $ | (1,173,486) | $ | (1,435,610)





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





8.

Income Taxes



b)

The significant components of the Company's future income tax assets and liabilities are as follows:



|                                                                  |   |             |   |            
|----------------------------------------------------------------- | - | ----------- | - | -----------
|                                                                  |   | 2007        |   | 2006       
|                                                                  |   |             |   |            
|Future income tax assets (liabilities)                            |   |             |   |            
|Non capital loss carry forwards                                   | $ | 1,934,573   | $ | 1,480,552  
|Capital loss carry forwards                                       |   | 220,355     |   | 220,355    
|Share issue costs                                                 |   | 273,794     |   | 205,255    
|Undepreciated capital cost in excess of accounting net book value |   | 136,477     |   | 110,799    
|Mineral properties                                                |   | (2,817,907) |   | (839,173)  
|                                                                  |   |             |   |            
|                                                                  |   | (252,708)   |   | 1,177,788  
|Valuation allowance                                               |   | (693,309)   |   | (1,177,788)
|                                                                  |   |             |   |            
|Net future income tax assets (liability)                          | $ | (946,017)   | $ | -          



The Company has non-capital losses for Canadian tax purposes of $4,283,760 and net operating loss carryovers for US tax purposes of $1,222,357 available to offset against taxable income in future years, which, if unutilized, will expire through to 2027.  Subject to certain restrictions, the Company also has capital losses of $1,291,646 and resource exploration expenditures of $10,250,545 available to reduce taxable income of future years as compared to the carrying value of $18,369,808 for a temporary difference of $ 8,119,263.



c)

Future Income Tax Recovery



During the year, flow-through shares totalling $6,233,834 (2006 - $4,210,000) were issued, which funds are required to be spent on certain Qualifying Canadian Exploration Expenditures.  Because the Company no longer has the ability to use the expenditures for tax purposes, the Company is required to record a future tax liability which is equal to the renunciation, times the corporation tax rate when expenditures are renounced. This amounted to $2,119,503 (2006 - $1,435,610). However, the Company can utilize previously unrecognized future income tax assets to offset the liability to the extent available.  As at April 30, 2007, the Company had $1,173,486 (2006 - $1,435,610) in future income tax assets to apply.  The excess future income tax liability of $946,017 (2006 $Nil) has been recorded in the financial statements.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





9.

Commitments



a)

By an agreement effective 1 June 1995, the Company entered into a three-year management agreement with a company controlled by the Chairman.  Compensation due under the agreement is $8,508 per month plus benefits.  The Chairman is also entitled to receive up to 20% of all stock options granted during the period that the agreement is in place.  This agreement was renewable at three-year periods with mutual consent.  The current three-year agreement expired in 2007.  The Company may terminate the agreement at any time but will be responsible to pay one year's compensation.  Subsequent to year-end, this agreement was terminated with the payout of agreed one years compensation plus a bonus payment of six months compensation for a total payout of $153,144.





b)

By an agreement dated 1 July 2005, the Company is committed under an operation lease, for its office premises with the following lease payments to the expiration of the lease on 30 June 2010:



Amount2008$59,631200959,631201059,6312011 (expiry in June 2010)9,939Total$188,832




c)

By agreement dated 15 June 2004 and amended 15 February 2005, the Company agreed to pay a company controlled by the President for consulting fees, totalling $75,000 annually.  In addition, the consultant was granted 1,000,000 stock options with an exercise price of $0.10 per share.  The options vest every three months over a two-year period.







10.

Segmented Information



The Company operates in one industry segment, being exploration.  Details on a geographic basis at 30 April 2007 are as follows:



CanadaU.S.A.New ZealandTotalAssets$32,181,384-$1,026,054$33,207,438Capital Expenditures$9,579,5672,468$313,133$9,895,168Income (Loss) for the Year$(259,852)(1,237,562)$(331,345)$(1,828,759)






---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





10.

Segmented Information- Continued



Details on a geographic basis at 30 April 2006 are as follows:



CanadaU.S.A.New ZealandTotalAssets$16,489,614$1,358,679$973,909$18,822,102Capital Expenditures$6,742,770$10,768$669,146$7,483,416Loss for the Year$(328,159)$-$-$(328,159)




Details on a geographic basis at 30 April 2005 are as follows:



CanadaU.S.A.New ZealandTotalAssets$5,330,368$1,436,066$304,763$7,071,197Capital Expenditures$1,966,236$(54,482)$123,876$2,035,630Loss for the Year$(1,912,218)$-$-$(1,912,218)






11.

Differences between Canadian and United States Generally Accepted Accounting

Principles (GAAP)



These consolidated financial statements are prepared in accordance with accounting principles generally accepted in Canada.  The United States Securities and Exchange Commission (SEC) requires that financial statements of foreign companies contain a reconciliation presenting the statements on the basis of accounting principles generally accepted in the United States.  Any differences in accounting principles as they pertain to the accompanying consolidated financial statements are not material, except as follows:



a)

SEC staff have interpreted US GAAP to require that mineral property exploration and land use costs must be expensed as incurred, until commercially mineable deposits are determined to exist within a particular property.  Accordingly, for US GAAP purposes, for all periods presented, the Company has expensed all land use costs for mineral properties and deferred exploration costs, which have been incurred by the Company, for which commercially mineable revenues do not exist. Under Canadian GAAP, such costs have been deferred.  For Canadian GAAP, cash flows relating to mineral property exploration and land use costs are reported as investing activities.  For US GAAP, these costs would be characterized as operating activities.





b)

Under United States GAAP, stock compensation expense is recorded as shares held in escrow become eligible for release, at the market value of the shares at that time.  Under Canadian GAAP, no value is attributed to such shares released and no compensation expense is recorded.  Shares previously held in escrow were performance shares which were issued to certain directors who reorganized the Companys business affairs and raised financing sufficient to fund the Companys business plan.







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





11.

Differences between Canadian and United States GAAP - Continued



c)

Under United States GAAP, investments available for sale are recorded at market value.  The difference between the market value and the carrying value of investments is recorded as a separate shareholder equity category named other accumulated comprehensive income.  Once the investment is sold, the other accumulated comprehensive income relating to that investment is cleared out to income.  Under Canadian GAAP, investments available for sale are recorded at the lower of cost and market.  There is no other comprehensive income category in Canada.



d)

Under Canadian GAAP a premium to market on the issuance of flow-through shares would be recorded in share capital. For U.S. GAAP purposes, SFAS 109, Accounting for Income Taxes, the proceeds should be allocated between the offering of the shares and the sale of tax benefits when the shares are offered. The allocation is made based on the difference between the quoted price of the shares and the amount the investor pays for the flow-through shares. A future tax liability is recognized for the premium paid by the investors and is then recognized as a  future income tax recovery in the period of renunciation.



For Canadian GAAP purposes, the Company records a future income tax liability and a corresponding reduction of share capital in respect of flow-through share financing.  For US GAAP purposes no such entry is recorded.



e)

Prior year restatement



Certain of the comparative numbers in this Canadian to US GAAP reconciliation have been restated to reflect errors in the previous years presentation arising due to write-off of mineral exploration costs, fair value adjustment on portfolio investments, stock based compensation, loss on the write-down on short term investments and flow through share future tax recovery accounting. As a result of the restatement for flow through share future tax recovery, loss for the year 2006 and 2005 under US GAAP increased by $ 1,701,269 and $ 511,861. Basic and diluted loss per share under US GAAP increased from $0.14 to $ 0.16 for 2006 and from $0.10 to $0.11 for 2005 as a result of the restatement.



f)

Restricted cash



Under US GAAP, funds raised from the issuance of flow-through shares, which have not yet been disbursed on qualifying exploration expenditures, would be disclosed as restricted cash and excluded from current assets.  Accordingly, cash and cash equivalents under US GAAP would be reduced by $2,599,384 at 30 April 2006 and $934,725 at 30 April 2005.



g)

The impact of the above differences between Canadian and United States GAAP on the reported assets of the Company is as follows:



|                                               |                      |              |      |              |   |            
|---------------------------------------------- | -------------------- | ------------ | ---- | ------------ | - | -----------
|                                               | Years Ended 30 April
|                                               | 2007                 | 2006         | 2005
|(As restated)                                  | (As restated)       
|Total assets as reported - Canadian GAAP       | $                    | 33,207,438   | $    | 18,822,101   | $ | 7,071,197  
|Write-off of mineral exploration costs         |                      | (17,885,208) |      | (10,403,905) |   | (3,223,120)
|Fair value adjustment on portfolio investments |                      | 526,147      |      | 506,600      |   | 99,674     
|Total assets as reported - United States GAAP  | $                    | 15,848,377   | $    | 8,924,796    | $ | 3,947,751  





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





11.

Differences between Canadian and United States GAAP - Continued



h)

The impact of the above differences between Canadian and United States GAAP on loss for the period is as follows:



Years Ended 30 April20072006
(As restated)2005
(As restated)Loss for the year as reported$(1,828,759)$(328,159)$(1,912,218)Write-off of mineral property exploration costs, net of future income taxes (Note 11a)(7,481,303)(7,180,785)(1,343,076)Premium on flow through shares (Note 11d)35,005--Future tax recovery (Note 11d)(I,173,486)(1,435,610)(534,300)Primary loss for the year in accordance with United States GAAP$(10,448,543)$(8,944,554)$(3,789,594)Primary loss per share for the year in accordance with United States GAAP$(0.12)$(0.16)$(0.11)




i)

The impact of the above differences between Canadian and United States GAAP on other comprehensive income (loss) for the period is as follows:

|                                                                                                          |                      |              |      |             |   |            
|--------------------------------------------------------------------------------------------------------- | -------------------- | ------------ | ---- | ----------- | - | -----------
|                                                                                                          | Years Ended 30 April
|                                                                                                          | 2007                 | 2006         | 2005
|(As restated)                                                                                             | (As restated)       
|Primary loss for the year in accordance with United States GAAP                                           | $                    | (10,448,543) | $    | (8,944,554) | $ | (3,789,594)
|Other comprehensive income (loss): Adjustment for unrealized holding gain (loss) on portfolio investments |                      | 19,547       |      | 406,926     |   | (341,278)  
|Comprehensive (loss) as reported - United States GAAP                                                     | $                    | (10,428,996) | $    | (8,537,628) | $ | (4,130,872)



j)

The impact of the above differences between Canadian and United States GAAP on the deficit, as reported, is as follows:



|                                                                              |                      |              |      |              |   |             
|----------------------------------------------------------------------------- | -------------------- | ------------ | ---- | ------------ | - | ------------
|                                                                              | Years Ended 30 April
|                                                                              | 2007                 | 2006         | 2005
|(As restated)                                                                 | (As restated)       
|Deficit - As reported                                                         | $                    | (21,089,312) | $    | (19,260,553) | $ | (18,932,394)
|Stock compensation expense on release of performance shares (Note 11b)        |                      | (442,500)    |      | (442,500)    |   | (442,500)   
|Write-off of mineral exploration costs, net of future income taxes (Note 11a) |                      | (16,939,191) |      | (10,403,905) |   | (3,223,120) 
|Premium on flow-through shares (Note 11d)                                     |                      | 35,005       |      | -            |   | -           
|Future tax recovery (Note 11d)                                                |                      | (4,089,413)  |      | (1,969,910)  |   | (534,300)   
|Deficit in accordance with United States GAAP                                 | $                    | (42,525,411) | $    | (32,076,868) | $ | (23,132,314)







---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





11.

Differences between Canadian and United States GAAP - Continued



k)

The impact of the above differences between Canadian and United States GAAP on the statement of cash flows, as reported, is as follows:



Years Ended 30 April20072006
(As restated)2005
(As restated)Cash used in operating activities under Canadian GAAP$(3,250,196)$(1,802,085)$(1,231,059)Mineral property exploration and development expenditures , net of recoveries and option payments received(Note 11a)(7,960,874)(7,250,411)(1,930,027)Cash used in operating activities under United States GAAP$(11,211,070)$(9,052,496)$(3,161,086)Cash used in investing activities under Canadian GAAP$(8,763,736)$(7,236,246)$(2,090,160)Mineral property exploration and development expenditures,  net of recoveries and option payments received(Note 11a)7,960,8747,250,4111,930,027Flow-through funds not disbursed during the year (Note 11a)-(2,599,384)(934,725)Flow-through funds realized from previous year (Note 11f)2,599,384934,725731,006Cash used in (generated from) investing activities under United States GAAP$1,796,522$(1,650,494)$(363,852)Cash generated by financing activities under Canadian and United States GAAP$15,341,703$12,851,180$4,244,764Cash and cash equivalents end of year under Canadian GAAP$10,076,042$6,748,271$2,935,422Restricted cash - Flow-through shares (Note 11f)-(2,599,384)(934,725)Cash and cash equivalents end of year under United States GAAP$10,076,042$4,148,887$2,000,697








---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





11.

Differences between Canadian and United States GAAP - Continued



l)

The impact of the above differences between Canadian and United States GAAP on the consolidated statements of changes in shareholders equity, as reported, are as follows:

|                                                                              |               |               |             |        |              |       |             |   |               |   |             
|----------------------------------------------------------------------------- | ------------- | ------------- | ----------- | ------ | ------------ | ----- | ----------- | - | ------------- | - | ------------
|                                                                              | Common Shares |               | Accumulated |        | Contributed  |       | Accumulated |   |              
|                                                                              | Number        |               | Amount      |        | Deficit      |       | Surplus     |   | Comprehensive |   |             
|(As restated)                                                                 |               | (As restated) |             | Income |              | Total
|Shareholders equity balance as reported at 30 April 2005                     | 43,102,099    | $             | 25,083,831  | $      | (18,932,394) | $     | 822,459     | $ | -             | $ | 6,973,896   
|Stock compensation expense on release of performance stock (Note 11b)         | -             |               | -           |        | (442,500)    |       | 442,500     |   | -             |   | -           
|Write-off of mineral exploration costs (Note 11a)                             | -             |               | -           |        | (3,223,120)  |       | -           |   | -             |   | (3,223,120) 
|Unrealized holding gains on portfolio investments (Note 11c)                  | -             |               | -           |        | -            |       | -           |   | 99,674        |   | 99,674      
|Future tax recovery (Note 11d)                                                | -             |               | 534,300     |        | (534,300)    |       | -           |   | -             |   | -           
|Shareholders equity in accordance with United States GAAP at 30 April 2005   | 43,102,099    | $             | 25,618,131  | $      | (23,132,314) | $     | 1,264,959   | $ | 99,674        | $ | 3,850,450   
|Shareholders equity balance as reported at 30 April 2006                     | 77,127,238    | $             | 36,560,885  | $      | (19,260,553) | $     | 1,243,489   | $ | -             | $ | 18,543,821  
|Stock compensation expense on release of performance stock (Note 11b)         | -             |               | -           |        | (442,500)    |       | 442,500     |   | -             |   | -           
|Write-off of mineral exploration costs (Note 11a)                             | -             |               | -           |        | (10,403,905) |       | -           |   | -             |   | (10,403,905)
|Unrealized holding gains on short-term investments (Note 11c)                 | -             |               | -           |        | -            |       | -           |   | 506,600       |   | 506,600     
|Future tax recovery (Note 11d)                                                | -             |               | 1,969,910   |        | (1,969,910)  |       | -           |   | -             |   | -           
|Shareholders equity in accordance with United States GAAP at 30 April 2006   | 77,127,238    | $             | 38,530,795  | $      | (32,076,868) | $     | 1,685,989   | $ | 506,600       | $ | 8,646,516   
|Shareholders equity balance as reported at 30 April 2007                     | 107,697,758   | $             | 48,864,211  | $      | (21,089,312) | $     | 3,152,962   | $ | -             | $ | 30,927,861  
|Stock compensation expense on release of performance stock (Note 11b)         | -             |               | -           |        | (442,500)    |       | 442,500     |   | -             |   | -           
|Write-off of mineral exploration costs, net of future income taxes (Note 11a) | -             |               | -           |        | (16,939,191) |       | -           |   | -             |   | (16,939,191)
|Unrealized holding gains on short-term investments (Note 11c)                 | -             |               | -           |        | -            |       | -           |   | 526,147       |   | 526,147     
|Premium on flow-through share (Note 11d)                                      | -             |               | (35,005)    |        | 35,005       |       | -           |   | -             |   | -           
|Future tax recovery (Note 11d)                                                | -             |               | 4,089,413   |        | (4,089,413)  |       | -           |   | -             |   | -           
|Shareholders equity in accordance with United States GAAP at 30 April 2007   | 107,697,758   | $             | 52,918,619  | $      | (42,525,411) | $     | 3,595,462   | $ | 526,147       | $ | 14,514,817  





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 







11.

Differences between Canadian and United States GAAP - Continued



m)

New Accounting Pronouncements



In June 2006, FASB issued Accounting for Uncertain Tax Positions - an Interpretation of FASB Statement No. 109, FIN 48 which prescribes a recognition and measurement model for uncertain tax positions taken or expected to be taken in the Companys tax returns.  FIN 48 provides guidance on recognition, classification, presentation and disclosure of unrecognized tax benefits. Management is required to adopt this statement effective January 1, 2007 and is currently assessing the impact on the Companys financial statements.



In September 2006, FASB issued SFAS 157, Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value and expands fair value disclosures.  The standard does not require any new fair value measurements.  This standard is effective for fiscal years beginning after November 15, 2007.  Management is currently assessing the impact on the Companys financial statements.



In April 2005, the Canadian Accounting Standards Board issued new accounting standards dealing with the recognition, measurement and disclosure of financial instruments, hedges and comprehensive income, together with many consequential changes throughout the CICA Handbook.  These new standards will affect the companys Canadian GAAP interim and annual financial statements beginning in the first quarter of 2007.  The most significant new standards are as follows:



i) Financial Instruments  Recognition and Measurement, Section 3855

This standard prescribes when a financial asset, financial liability, or non-financial derivative is to be recognized on the balance sheet and whether fair value or cost-based methods are used to measure the amounts.  It also specifies how financial instrument gains and losses are to be presented.  Management is currently finalizing its evaluation of the impact of this standard on the Companys Canadian GAAP financial statements.



ii) Hedges, Section 3865

This standard is applicable when a company chooses to designate a hedging relationship for accounting purposes.  The adoption of this standard is not expected to impact the company.



iii) Comprehensive Income, Section 1530

This standard requires the presentation of a statement of comprehensive income and its components.  Comprehensive income includes both net earnings and other comprehensive income.  Other comprehensive income for the company will include holding gains and losses on investments designated as available for sale.









---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





12.

Subsequent Events



a)

Shareholder Rights Plan



On 12 June 2007 the Board of Directors of the Company approved a Shareholder Rights Plan (the Rights Plan). The rights issued under the Rights Plan are subject to reconfirmation at every third annual meeting of shareholders and will expire on June 12, 2017 (the Expiration Time). Pursuant to the Rights Plan, the Board of Directors declared a distribution of one right (a Right) for each outstanding Common Share of the Company to shareholders of record at the close of business on the Record Date and authorized the issuance of one Right for each Common Share issued after the Record Date and prior to the Separation Time (described below) and the Expiration Time. The Rights will separate from the Common Shares at the time (the Separation Time) which is the close of business on the eighth trading day (or such later day as determined by the Board) after the public announcement of the acquisition of, or intention to acquire, beneficial ownership of 20% of the Common Shares of the Company by any person other than in accordance with the terms of the Rights Plan. To constitute a Permitted Bid, an offer must be made in compliance with the Rights plan and must be made to all holders of voting shares (other than the offeror), must be open for at least 60 days and be accepted by shareholders holding more than 50% of the outstanding voting shares and, if so accepted, must be extended for a further 10 business day period.  The Rights Plan is subject to shareholder approval.



b)

Saskatchewan Premises Lease



By an agreement dated 22 May 2007, the Company entered into an operating lease, for its office premises in Saskatchewan with the following lease payments to the expiration of the lease on 31 May 2012:



Amount2008$42,438200946,298201046,298201146,298201246,2982013 (expiry in May 2012)3,860Total$231,490




c)

Cree East Project



By a Memorandum of Understanding originally entered into between the Company and Hanwha Corporation (Hanwha) on 4 May 2007, Hanwha will lead a Korean Consortium of companies to invest $19,000,000 towards the earn-in of a 50% ownership interest in the Cree East Project over a 4-year period.  As part of the agreement, all exploration expenditures incurred by the Company on the Project since 1 June 2007 shall be recompensed by the Korean Consortium.  It is now the intention of both parties to execute a definitive Letter Agreement by no later than 31 August 2007.  Following the execution of the Letter Agreement, the parties will obtain requisite board and regulatory approvals with the objective of closing the transaction on or before 30 September 2007.





---



|                                                                                         | 
|---------------------------------------------------------------------------------------- | 
|CanAlaska Uranium Ltd.
(Formerly CanAlaska Ventures Ltd.)
(An Exploration Stage Company) | 
|Notes to Consolidated Financial Statements                                               | 
|30 April 2007 and 2006                                                                   | 
|Canadian Funds                                                                           | 
|                                                                                         | 





12.

Subsequent Events - Continued



d)

Vancouver Office Lease



By an agreement dated 31 July 2007, the Company entered into an office lease for premises in downtown Vancouver with the following lease payments to the expiration of the lease on 31 August 2010.



Amount2008$21,033200932,391201032,8122011 (expiry in August 2010)10,937Total$97,173


























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