Mr. Nikolaos Cacos reports

BLUE SKY REPORTS SIGNIFICANT VANADIUM ZONE AT THE ANIT TARGET, AMARILLO GRANDE PROJECT, ARGENTINA

The integration of the 2017 phase I drill results at the Anit target (see news release dated Sept. 18, 2017) with data from previous sampling programs carried out by Blue Sky Uranium Corp. has led to the delineation of a significant area of vanadium mineralization, covering a much-larger area than the previously defined uranium mineralized zone.

"The current market interest in vanadium as a component of storage batteries for renewable energy has helped spur a significant price increase over the last year," stated Nikolaos Cacos, Blue Sky president and chief executive officer. "These results confirm the regional potential of Amarillo Grande where two significant uranium-vanadium discoveries have been made by the company. Amarillo Grande covers a 140-kilometre trend, where there is potential for many more discoveries."

Reverse circulation drill intercepts from phase I yielded strong vanadium mineralization, including:

• 3,411 parts per million V2O5 (vanadium pentoxide) over one metre within 560 ppm V2O5 over 10 metres in AGA-0049;
• 2,510 ppm V2O5 over one metre within 810 ppm V2O5 over 16 metres in AGA-0059;
• 2,508 ppm V2O5 over one metre within 930 ppm V2O5 over eight metres in AGA-0060;
• 2,367 ppm V2O5 over one metre within 876 ppm V2O5 over 13 metres in AGA-0058;
• 2,349 ppm V2O5 over one metre within 859 ppm V2O5 over eight metres in AGA-0078;
• 2,190 ppm V2O5 over one metre within 685 ppm V2O5 over 12 metres in AGA-0050;
• 2,085 ppm V2O5 over one metre within 616 ppm V2O5 over 11 metres in AGA-0051;
• 2,074 ppm V2O5 over one metre within 746 ppm V2O5 over nine metres in AGA-0056;
• 2,030 ppm V2O5 over one metre within 847 ppm V2O5 over eight metres in AGA-0049.

About vanadium

Vanadium is traditionally used as a hardening additive in steel manufacturing. More recently, vanadium has become the main constituent of vanadium redox flow storage batteries. Storage batteries are a key component in the sustainability of renewable but intermittent energy sources such as wind and solar, which are expected to see increasing future market share. The current market supply of vanadium is mainly from China, where supply reportedly tightened in the last year. These and other factors have resulted in prices of vanadium surging over the past year.

Program details, Anit zone, Amarillo Grande project

The phase I program recently carried out at Anit included a pole-dipole electrical tomography (ET) geophysical survey and 1,170 metres of reverse circulation drilling in 83 holes drilled to a maximum depth of 20 metres. Results from these holes were previously released (see Sept. 18, 2017, news release); however, the interpretation was focused on uranium, and, therefore, intervals were reported only when uranium was greater than 30 ppm over more than one metre. Reinterpreted results focused on vanadium intervals over 250 ppm over one metre, are shown in a table on the company's website.

Previous exploration efforts, carried out by the company at Anit between 2008 and 2010, included airborne radiometric surveying, pit and trench sampling, radon gas surveys, and auger and air-core drilling along a 15-kilometre-long airborne radiometric anomaly related to a surficial paleochannel. (For details of these programs, please refer to the National Instrument 43-101 technical report filed on SEDAR dated May 29, 2012.) The primary focus of work at the Anit target to date has been on near-surface uranium mineralization related to the uranium-vanadium mineral carnotite (K2(UO2)2(VO4)2.3H2O), which occurs as coatings on grains and interstitially in weakly consolidated medium-grained sands that have been sampled from surface to a depth of approximately 20 metres. Integration of the data has shown that elevated vanadium is distributed over a wider area with greater thickness than the main zone of uranium mineralization concentrated in the core of the paleo-channel; more work is required to determine the extent and mineralogy of the vanadium mineralization.

Using an isocurve of 1,000 ppm V2O5 by metre as a lower limit defines an open area covering approximately three kilometres by one kilometre within which the mineralized interval ranged between zero and 16 metres in thickness. Initial interpretation of the observed spatial and quantitative relationship between the two metals may relate to initial concentration of vanadium-rich minerals in the paleochannel system, likely as vanadium-bearing oxide and/or hydroxide minerals, and subsequent formation of carnotite, incorporating a portion of the available vanadium upon introduction of uranium.

Additional exploration work to advance understanding of the mineralogy, metallurgical characteristics, grade and aerial extent of the vanadium mineralization at the Anit target will be incorporated into the phase 2 exploration program. This work will include ground geophysics, reverse circulation drilling and mineralogy/metallurgical studies.

Methodology and quality assurance/quality control

Preparation of all samples reported herein was completed by Bureau Veritas Minerals of Mendoza, Argentina. Samples were prepared by drying, crushing to 80 per cent passing 10 mesh and then pulverizing a 250-gram split to 95 per cent passing 150 mesh. 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. No significant quality assurance/quality control issues were identified during review of the data.

The drilling program been carried out using a FlexiROC D65 drill rig from Atlas Copco, an ore-control track-mounted rig adapted to reverse circulation with triple cyclone to reduce the dust loss during sampling and automatic 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, 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 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 at Amarillo Grande has characteristics of sandstone-type and surficial-type uranium-vanadium deposits. The sandstone-type deposit is related to a braided fluvial system comprising a potentially district-size roll front system. Uranium minerals are present in the porous of poorly consolidated sandstones and conglomerates. In surficial-type uranium deposits, carnotite mineralization coats loosely consolidated pebbles of sandstone and conglomerates. Carnotite is amenable to leaching, and preliminary metallurgical work at the project 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.

For additional details on the project and properties, please see the company's website.

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 434,000 hectares (equivalent to 1,072,437 acres) 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 both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier.

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