Mr. Nikolaos Cacos reports

BLUE SKY URANIUM PROVIDES AN UPDATE ON ACTIVITIES AT ITS AMARILLO GRANDE URANIUM PROJECT, ARGENTINA

Blue Sky Uranium Corp. has provided an update on exploration and development work carried out at its wholly owned Amarillo Grande uranium-vanadium project (AGP) in Rio Negro province, Argentina, which includes the Ivana uranium-vanadium deposit.

Ivana process design testwork

As an update to the process design testwork program for Ivana (see April 6, 2021, news release), uranium/vanadium leach tests have been completed on the approximately 294-kilogram, averaging 530 parts per million (ppm) U3O8 (triuranium octoxide), composite bulk sample No. 2 prepared from RC (reverse circulation) chips from the Ivana deposit. The optimized leach conditions were 60 g/L (grams per litre) Na2CO3 (sodium carbonate) and 10 g/L NaHCO3 (sodium bicarbonate), at 95 degrees for eight hours. For these new tests, uranium recovery for the alkaline leach stage was 96 per cent and vanadium recovery was 35 per cent.

In December, 2018, Blue Sky completed a first set of process design tests for the Ivana uranium-vanadium mill. Based on this testwork, the overall process plant recovery was 85 per cent for uranium (derived from 89 per cent leach feed preparation recovery and 95 per cent subsequent alkaline leach circuit recovery), and 53 per cent for vanadium (derived from 89 per cent leach feed preparation recovery and 60 per cent subsequent alkaline leach circuit recovery) (see Feb. 7, 2019, news release, filed on SEDAR).

Preparations are under way for testing the next step in the milling process: membrane filtration. Four litres of leach solution have been prepared for the small-scale membrane filtration tests, which will identify the best nanofiltration and reverse osmosis membranes for the process. Leaching of the remainder of mineralized sample No. 2 is under way to provide feed for the larger-scale membrane filtration operation, which will provide solutions for subsequent solvent extraction tests.

Ivana resources and studies

Modelling work using external consultants has been advancing to evaluate the impact of the additional 3,346 metres of drilling in 350 RC drill holes, and additional density measurements carried out in 2022 on the project's current mineral resources and the PEA (preliminary economic assessment) completed in 2019. This work was carried out to refine the boundaries of the deposit and to potentially upgrade the category of mineral resources from inferred to indicated where possible.

Ivana East drilling program

The previously announced RC drilling at Ivana East has been delayed due to technical issues with the drilling rig and will resume once it has been repaired. This program is part of the company's staged approach to evaluating targets within several tens of kilometres from the Ivana deposit that could add to the projects resource base.

Ivana Central drilling program

Drilling at Ivana Central was initially launched in 2020, later suspended due to pandemic effect, and finally completed in 2022. The program totalled 2,607 metres of drilling in 43 scout holes -- the first six holes drilled in 2020 were reverse circulation (RC) holes, the following 36 holes were drilled by direct circulation (DC) due to the geological conditions, and the last (AGIC-043) was drilled DC for the initial 31 m and was completed as a diamond drill hole with core recovered. Radiometric borehole surveys were run from hole AGIC-007 to AGIC-043. It was not possible to survey the initial six RC holes due to the geological conditions. All holes were vertical and, due to flat strata, sample results are believed to approximate true thickness.

Based on borehole radiometric anomalies and chip logging, the target Redox front is understood to have been intercepted in 18 holes, delineating a plus-2.4-kilometre-long and plus-one-kilometre-wide north-northwest-south-southeast corridor at between 40 m and 60 m, open to the north and south. This Redox front is characterized by black sandstones with organic matter and disseminated pyrite, accompanied by radiometric anomalies in most cases. This black sand horizon was initially identified at hole AGIC-01, where it yielded one m at 120 ppm U3O8 at 46 m in depth.

A total of 281 one m samples were collected from RC holes AGIC-001 to -006. Uranium ranged from less than detection to 120 ppm U3O8 in one m samples. Only 56 cutting samples were recovered from the scout drill holes AGIC-07 to AGIC-042 due to recovery limitations -- samples recovered from these holes designed for prospecting have potential for contamination due to the DC drilling technique employed. Uranium ranged from less than detection to 32 ppm U3O8 from one m samples. Radiometric probe results ranged up to 1,442 cps (counts per second) (AGC-028), a result consistent with uranium results in the 150 ppm U (uranium) range based on correlation with other drilling on the project (see the table entitled "Drill hole locations including depths, with highlighted borehole radiometric values greater than 200 cps").

Hole AGIC-043, the last in the program, was drilled in order to better define and assess the geological characteristics of the Redox front, with anomalous uranium and radiometric levels that had been intersected by previous DC drilled holes. The recovery of drill core in AGIC-043 permitted detailed logging of the geological units and the collection of better-quality samples. The hole cut predominantly fine tuffaceous sediments from surface to 38 m in depth, and predominantly sandy sediments from 38 m to 63 m in depth, ending the hole with more fine tuffaceous material at 65 m. The black sand horizon was intersected between 46 m and 62 m in depth, interpreted as the Redox front. Multiple samples with elevated silver-cobalt-copper-uranium-tungsten were observed in the analytical results and, in the case of the high-silver samples (0.35 m at 2,880 ppm Ag), the core permitted resampling of one-fourth core for confirmation analyses. Highlights of the AGIC-043 drill results include:

• One m at 43 ppm Ag (silver), 47 ppm Cu (copper) and 1.3 ppm U3O8 from 39 m;
• 0.35 m at 2,880 ppm Ag, 4,720 ppm Cu and 16 ppm U3O8 from 46 m;
• 0.5 m at 89 ppm Ag, 202 ppm Cu and 13 ppm U3O8 from 49 m;
• 0.3 m at 19 ppm Ag, 50 ppm Cu and 72 ppm U3O8 from 60.7 m.

Two additional discontinuous radiometric anomalous black sand horizons were intercepted at shallower depths in the 20 m to 30 m depth range in several holes. These black sand units correlate with chargeability anomalies identified in the IP (induced polarization) pole-dipole surveys covering the area (see Sept. 19, 2019, news release, filed on SEDAR). Further follow-up of the projected extent of the Redox front at Ivana Central and assessing of the high-grade silver potential are being carried out by the company.

Continuing exploration program

Regional prospecting mapping, sampling and radiometric surveys have been carried out over the southern sector of the Amarillo Grande project. The program is collecting soil samples for detection of Pb (lead)-isotopic anomalies that may be related to uranium-sandstone-type deposits or Redox fronts. The exploration efforts are completed with pit sampling or auger drilling when uranium mineralization and/or radiometric anomalies are detected while mapping.

Assay methodology and quality assurance/quality control

Drill samples were sent to ALS Argentina for preparation by drying, crushing to 70 per cent less than two millimetres (mm), riffle splitter 250 grams and pulverize to 85 per cent less than 75 microns. Pulps were sent to ALS Peru for analysis of multielements using ultratrace method combining four-acid digestion with inductively coupled plasma (ICP) instrumentation. Digestion is performed on 0.25 g of sample to quantitatively dissolve most geological materials. Analytical analysis is performed with combinations of ICP-AES (atomic emission spectrometry) and ICP-MS (mass spectrometry, ME-MS61). Overlimits for silver (greater than 100 pm), were processed by HF-HNO3-HClO4 digestion with HCl leach, ICP-AES or AAS finish (atomic absorption spectroscopy) (OG62), meanwhile overlimits (greater than 1,500 ppm Ag) were analyzed by fire assay and gravimetric finish (GRA21). Gold was processed by fire assay and AAS (AA24). Approximately every 10th sample, a blank, duplicate or standard sample is inserted into the sample sequence for quality assurance/quality control (QA/QC) purposes. The QA/QC internal assessment determined that analytical results reported herein are within standard industry limits.

Qualified persons

The metallurgical program is conducted under the guidance of Chuck Edwards, PEng, FCIM, an independent consultant to 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 Mr. Edwards.

The design of the company's exploration program was undertaken by the company's geological staff under the supervision of 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 the Amarillo Grande project

The company's 100-per-cent-owned Amarillo Grande uranium-vanadium project in Rio Negro province, Argentina, is a new uranium district controlled by Blue Sky. The Ivana deposit is the cornerstone of the project and the first part of the district for which both a mineral resource estimate and a preliminary economic assessment have been completed. Mineralization at the Ivana deposit has characteristics of sandstone-type and surficial-type uranium-vanadium deposits. The sandstone-type mineralization is related to a braided fluvial system and indicates the potential for a district-size system. In the surficial-type deposits, mineralization coats loosely consolidated pebbles, and is amenable to leaching and simple upgrading.

The project includes several other target areas over a regional trend, at or near surface. The area is flat-lying, semi-arid and accessible year-round, with nearby rail, power and port access. The company's strategy includes delineating resources at multiple areas and advancing the project to prefeasibility level.

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

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, while respecting the environment, the communities and the cultures in all the areas in which it works. Blue Sky has the exclusive right to properties 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. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

We seek Safe Harbor.