Mr. Stephen Barley reports

CALYPSO PROVIDES AN UPDATE ON THE EXPLORATION PROGRAM FOR ITS ENERGIA MINERAL PROPERTIES IN ARGENTINA

Calypso Uranium Corp. has provided an update on the continuing exploration and follow-up program on the Argentine properties controlled by its wholly owned subsidiary Energia Mineral Inc. This program has been approved by the joint technical committee and is incorporated in the option agreement signed on Sept. 21, 2010, with Cameco Global Exploration Ltd., a wholly owned subsidiary of Cameco Corporation.

The Energia Mineral exploration team has focused on the development and follow-up exploration programs for the Central Block and Campesino Norte projects, both located in Neuquen province and expected to be drilled during the coming summer season in the southern hemisphere.

The Central Block project is an in situ recovery (ISR) project located along the Chihuido High range in the Neuquen oil-and-gas-producing basin. Following the anticipated approval of new mining licences recently claimed, the Central Block ISR project would comprise more than 230,000 hectares (or 2,300 square kilometres) representing the most significant ISR project under exploration in Argentina. The program is focused on the development of a geological and exploration model based on detailed basin analysis with the support of historical oil and gas geological and geophysical data. Neuquen basin experts are assisting the team on the geophysical and stratigraphic analysis, while the team continues the field follow-up program collecting new geological, geochemical and geophysical information. The goal of the program is to define the first target for this ISR project that the company expects to drill this southern summer with a program of approximately 4,500 metres by reverse circulation (RC). In October, 2010, Energia Mineral submitted the Environmental impact report required by law to advance with the drill program and which is expected to be approved during the course of this year.

The Campesino Norte follow-up program includes a ground geophysical survey and a new RC drill program southwest of the drill fences completed in 2008. The 4,135 metres in 135 short, reverse-circulation holes drilled in 2008 defined a main paleo-river channel in the Petrosaurius area at least 900 metres wide and containing several sand-and-gravel bars which are preferentially altered and mineralized. Mineralization was mainly copper and vanadium. The highest uranium value obtained was in the zone named Javier, more than five kilometres southward of the Petrosaurios area, where hole CN-121 returned two metres, between 10 and 12 metres, grading 0.033 per cent U3O8 (triuranium octoxide). This intercept was in sheet-flood sandstone, and the main channel horizon was not drilled due to drill rig limitations. The control for this zoning pattern is currently unknown, but zonal arrangements between uranium, vanadium and copper are common in these environments. The new target area is located three km southeast of the Javier zone, and the goal of the exploration program is to define the main paleo-river channel depth using geophysical surveys and testing with a 1,500-metre RC drill program later in the summer. An update of the environmental impact report for the entire Campesino Norte project was submitted in July and is expected to be approved in 2010.

The company is also preparing an intensive field season for the San Jorge basin exploration program in Chubut province. Energia Mineral has been granted all the environmental permits to conduct the prospecting and exploration program, which will be focused on the properties granted by the provincial mining authority. Energia Mineral has claimed a total of 18 areas for exploration covering more than 150,000 hectares (or 1,500 square km) of which six, comprising more than 48,000 hectares (or 480 square km), already have been granted. More properties are expected to be granted in 2010.

In order to conduct the exploration programs, Energia Mineral has increased the exploration team by two senior geologists, a junior geologist and a senior field technician. This will allow the company to accelerate the programs with professionals who will maintain the high technical, environmental and social standards adopted by Calypso. One of the senior geologists will be responsible for the database and QA/QC (quality assurance/quality control) program in order to maintain field and lab techniques according to international standards. The program also includes the acquisition of borehole geophysical equipment that will be manipulated by the team's in-house expertise comprising more than 19 years of uranium exploration experience.

The company continues to work closely with local, provincial and federal authorities, as well as non-governmental organizations (NGO) and provincial mining chambers in order to maintain a fluid communication channel with the communities as part of its transparency and sustainable development policy.