Dr. David Terry reports

BLUE SKY REPORTS PHASE I RC DRILLING RESULTS FROM IVANA TARGET ON AMARILLO GRANDE SURFICIAL URANIUM-VANADIUM PROJECT, ARGENTINA

Blue Sky Uranium Corp. has released the complete results from its phase I 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 in Argentina.

This is the first drill program at the Ivana target, and it successfully outlined a large area of elevated uranium, within 20 metres of surface, measuring approximately two square kilometres. 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. 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 in the attached table, including:

• 910 parts per million triuranium octoxide over six metres in AGI-88;
• 626 parts per million U3O8 over six metres 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 and chief executive officer. "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 drill hole locations and grade-times-thickness contours can be viewed on the company's website. 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. A total of 65 per cent of the holes completed at Ivana contained at least 30 parts per million U3O8 over a minimum of one metre, with uranium values ranging from below detection (less than 0.1 part per million) up to 2,316 parts per million U3O8 (or 0.23 per cent U3O8) and vanadium values ranging from below detection (less than one part per million) up to 1,892 parts per million vanadium (V) oxide (or 0.19 per cent V2O5). A complete list of weighted-average intervals for all holes with results above 30 parts per million U3O8 over greater than one metre as well as hole location data is provided in the attached table and can be viewed on the company's website.

The current drilling at Ivana tested a 3.5-kilometre-by-two-kilometre 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 drill hole 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 continuing 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 in the attached table.

              IVANA TARGET PHASE I DRILL HOLE HIGHLIGHTS
 
                     From          To    Interval        U3O8        V2O5   
Hole No.               (m)         (m)         (m)       (ppm)       (ppm)

AGI-0004 (1)            1           4           3         280         406
Including               2           3           1         511         532
AGI-0005 (1)            0           6           6         626         682
Including               1           2           1       2,087       1,892
AGI-0016 (1)            0           5           5         270         216
Including               0           1           1         666         387
AGI-0025 (1)            3           5           2         377         381
Including               3           4           1         631         405
AGI-0027 (1)            0           3           3         829         559
Including               0           1           1       1,473         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 (2)            1           5           4         306         375
Including               3           4           1         525         610
AGI-0088 (2)            0           6           6         910         680
Including               0           2           2       2,182       1,285

(1) Holes originally reported in the news release dated March 28, 2017.
Results reported here are corrected and supplant previous results. See
additional information.
(2) True width has not been estimated (drilled at negative 60 degrees).

As reported in the news release dated March 28, 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 reanalysis 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 per cent passing 10 mesh and then pulverizing a 600-gram split to 95 per cent 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 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 Comision Nacional de Energia Atomica facility (Atomic Energy National Commission).

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 suggests 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 million pounds at an average grade of 520 parts per million U3O8 and produces approximately four million pounds per year, and Toro Energy Ltd.'s development-stage Wiluna project, which has measured and indicated resources totalling 66.6 million pounds within 10 metres of surface at an average grade of 525 parts per million U3O8. Wiluna consists of five separate deposits within a 100-kilometre district in Western Australia and is 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 recently launched in conjunction with the federal government the construction proposal of the fifth nuclear plant in Argentina at its territory. This is the concretion of the strategic plan from 2015 to 2025 as published by the Argentina Atomic Energy National Commission, which includes a strategic objective "[t]o ensure the supply of domestic uranium for nuclear power plants in operation, under construction and planned."

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 Dr. David Terry, PhD, PGeo. 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.

About Blue Sky Uranium Corp.

Blue Sky Uranium 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.

We seek Safe Harbor.