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Blue Sky Reports Phase I RC Drilling Results from Ivana Target on Amarillo Grande Surficial Uranium-Vanadium Project, Argentina

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Blue Sky Reports Phase I RC Drilling Results from Ivana Target on Amarillo Grande Surficial Uranium-Vanadium Project, Argentina

Blue Sky Reports Phase I RC Drilling Results from Ivana Target on Amarillo Grande Surficial Uranium-Vanadium Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 19, 2017) - Blue Sky Uranium Corp. (TSX:BSK)(OTCQB:BKUCF)(FRANKFURT:MAL2) ("Blue Sky" or the "Company") is pleased to report complete results from the Phase 1 reverse circulation (RC) drilling program at Ivana, the first of three targets to be drilled in 2017 on the Amarillo Grande uranium-vanadium project, in Rio Negro Province, Argentina.

This is the first drill program at the Ivana target, and it successfully outlined a large area of elevated uranium, within twenty metres of surface, measuring approximately two kilometres square. Within this area multiple higher-grade uranium-vanadium mineralized intervals were intercepted, predominantly in the west-central and east-central part of the drilled area as shown on Figure 1. Delineating the dimensions and average grades of these potential mineralized corridors will be a key priority of the next phase of drilling, as will testing for potential extensions, particularly along the northeastern flank of the area drill-tested in Phase I.

A complete list of Drill hole highlights from Ivana is provided below in Table 1, including:

  • 910 ppm U3O8 over 6.0m in AGI-88
  • 626 ppm U3O8 over 6.0m in AGI-05

The planned 3,000 metre reverse circulation drill program is continuing. Drilling at the Anit target has been completed, with a total of 1,170 metres in 83 holes. The drill rig is now being mobilized to the Santa Barbara target at the northwest end of the Amarillo Grande project.

"We are pleased to be making progress in understanding the controls on uranium-vanadium mineralization at Amarillo Grande" stated Nikolaos Cacos, Blue Sky President & CEO. "We look forward to the balance of results from Phase I and to commencing Phase II."

Ivana Drill Program Technical Summary:

The Ivana target is located at the southern end of the 140-kilometre long trend which comprises the 250,000-hectare Amarillo Grande project. This first RC drilling program at Ivana included 1,390 metres in 98 holes. The drillhole locations and grade x thickness contours are shown on Figure 1 and can be viewed here https://www.blueskyuranium.com/assets/docs/nr/8-BSK-Figure-1-NR-06-19-17.pdf. Uranium-vanadium mineralization at Ivana is believed to be related primarily to carnotite mineralization, a secondary leachable uranium mineral. Visible carnotite has been observed in a number of the drill holes completed to date. Sixty-five percent of the holes completed at Ivana contained at least 30ppm U3O8 over a minimum of 1.0 metre, with uranium values ranging from below detection (<0.1ppm) up to 2,316 ppm U3O8 (or 0.23% U3O8), and vanadium values ranging from below detection (<1ppm) up to 1,892 ppm V2O5 (or 0.19% V2O5). A complete list of weighted average intervals for all holes with results above 30 ppm U3O8 over >1 metre, as well as hole location data is provided on Table 2 and can be viewed here: https://www.blueskyuranium.com/assets/docs/nr/8-BSK-Table-2-Hole-Locations-Intervals-AGI-01-to-98-NR.pdf.

The current drilling at Ivana tested a 3.5 km by 2.0 km area that had been previously identified by the Company through radiometric surveys, surface sampling and auger holes surveyed by radiometric probes. The RC drilling program has shown that higher-grade uranium-vanadium mineralization appears to be open to the east and that hole-to-hole continuity of mineralization is greater on the northeastern flank of the drilled area. Lithological drillhole interpretation indicates that areas of elevated uranium-vanadium mineralization correlate with sand-rich domains and that interfingered clay-dominant strata are much less likely to be mineralized. The drilling in this area of the Ivana target has allowed the Company to compile stratigraphic sections of the prospective sedimentary succession above the basement which will be of assistance in ongoing exploration of the area.

Based on these positive results, the exploration team is preparing a follow-up exploration program for Ivana that includes a second RC drilling campaign.

Drill hole highlights from Phase I drilling at Ivana are provided below in Table 1:

Table 1.Ivana Target Phase I Drill Hole Highlights
Hole # From To Interval U3O8 V2O5
(-90°) m m m ppm ppm
AGI-0004* 1 4 3 280 406
including 2 3 1 511 532
AGI-0005* 0 6 6 626 682
including 1 2 1 2087 1892
AGI-0016* 0 5 5 270 216
including 0 1 1 666 387
AGI-0025* 3 5 2 377 381
including 3 4 1 631 405
AGI-0027* 0 3 3 829 559
including 0 1 1 1473 721
AGI-0053 10 23 13 127 235
including 11 14 3 304 516
AGI-0054 17 20 3 271 48
including 18 19 1 480 41
AGI-0056 12 16 4 119 157
including 14 15 1 302 150
AGI-0058 15 18 3 356 69
including 17 18 1 502 79
AGI-0079 1 5 4 118 221
including 1 2 1 303 334
AGI-0087** 1 5 4 306 375
including 3 4 1 525 610
AGI-0088** 0 6 6 910 680
including 0 2 2 2182 1285
*Holes originally reported in news release dated March 28th, 2017. Results reported here are corrected and supplant previous results. See additional information below.

**True width has not been estimated (drilled at -60°)

As reported in the news release dated March 28th, 2017, drill holes AGI-1 to -31 were initially assayed by Alex Stewart Assayers of Mendoza, but two of the five Blue Sky standards reported results below the acceptable range. The Company undertook an extensive analytical quality review program, which included submitting check samples to two different laboratories. Results from the check samples confirmed a low bias in some of the original sample results and resulted in a change of laboratories for analysis of all samples reported herein, including re-analysis of those previously assayed and reported in the Company's March 28, 2017 news release. Preparation of all samples reported herein was completed by Alex Stewart Assayers of Mendoza, Argentina. Samples were prepared by drying, crushing to 80% passing 10mesh and then pulverizing a 600g split to 95% passing 106 microns. Pulps were analyzed by Bureau Veritas Commodities Canada Ltd. for 45 elements by means of Inductively Coupled Plasma Mass Spectrometry following a four-acid digestion (MA-200). Approximately every 10th sample a blank, duplicate, or standard sample was inserted into the sample sequence for quality assurance/quality control (QA/QC) purposes. Blue Sky is confident in the results reported herein and will continue to monitor results to ensure best practice quality control and quality assurance requirements.

The drilling program been carried out using an ROC L8 drill rig from Atlas Copco, an ore-control track-mounted rig adapted to reverse circulation with double cyclone in order to reduce the dust loss during sampling. Every hole was surveyed by a senior geophysicist from Geopehuen SRL Service Company using a natural gamma probe from Geovista Ltd. The probe was previously calibrated at the Comisión Nacional de Energía Atómica facility (Atomic Energy National Commission, CNEA).

About the Amarillo Grande Project

This new uranium district was first identified, staked and underwent preliminary exploration by Blue Sky from 2007 to 2012 as part of the Grosso Group's strategy of adding alternative energy focus to its successful portfolio of metals exploration companies. The close proximity of several major targets suggest that if resources are delineated a central processing facility would be envisioned. The area is flat-lying, semi-arid and accessible year round, with nearby rail, power and port access.

Mineralization identified to date represents a Surficial Uranium style of deposit, where carnotite mineralization coats loosely consolidated pebbles of sandstone and conglomerates. Carnotite is amenable to leaching, and preliminary metallurgical work indicates that the mineralized material can be upgraded using a very simple wet screening method. The near-surface mineralization, ability to locally upgrade, amenability to leaching and central processing possibility suggest a potentially low-cost development scenario for a future deposit.

Blue Sky believes the mineralization that has been discovered through the work to date at Amarillo Grande can be classified as Surficial-type uranium. Examples of Surficial uranium deposits include Langer Heinrich in Namibia, which has Proven and Probable ore reserves and stockpiles totalling 118.87 Mlb at an average grade of 520 ppm U3O8 and produces approximately 4 Mlb per year1, and Toro Energy Limited's development-stage Wiluna project, which has Measured and Indicated resources totalling 66.6 Mlb within 10 metres of surface at an average grade of 525 ppm U3O8.2 Wiluna consists of 5 separate deposits within a 100-kilometre district in western Australia and projected to operate with a centred concentration plant.

About Rio Negro Province

Rio Negro is host to several facilities related to the nuclear industry. Furthermore, the Provincial government is recently launched in conjunction with the Federal government the construction proposal of the 5th Nuclear Plant in Argentina at its territory. This is the concretion of the Strategic Plan 2015-2025 as published by the Argentina Atomic Energy National Commission (CNEA), which includes a strategic objective "To ensure the supply of domestic uranium for nuclear power plants in operation, under construction and planned."

For additional details on the project and properties, please see the Company's website: www.blueskyuranium.com

Qualified Person

The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff under the supervision of David Terry, Ph.D., P.Geo. Dr. Terry is a Director of the Company and a Qualified Person as defined in National Instrument 43-101. The contents of this news release have been reviewed and approved by Dr. Terry.

1 www.paladinenergy.com.au

2 www.toroenergy.com.au

About Blue Sky Uranium Corp.

Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina. The Company's objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers. Blue Sky holds has the exclusive right to over 428,000 hectares of property in two provinces in Argentina. The Company's flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be among the first domestic suppliers of uranium to the growing Argentine market. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

ON BEHALF OF THE BOARD

Nikolaos Cacos, President, CEO and Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@blueskyuranium.com


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