Mr. Nikolaos Cacos reports

BLUE SKY URANIUM ANNOUNCES A POSITIVE NEW PRELIMINARY ECONOMIC ASSESSMENT FOR THE IVANA URANIUM-VANADIUM DEPOSIT, AMARILLO GRANDE PROJECT, ARGENTINA

Blue Sky Uranium Corp. has released the results of a new preliminary economic assessment (PEA) for the Ivana uranium-vanadium deposit at the company's 100-per-cent-owned Amarillo Grande project in Rio Negro province, Argentina. The updated PEA incorporates a new mineral resource estimate (MRE), in which approximately 80 per cent of the resources are now in the indicated category. The PEA demonstrates robust economics from a surficial mining operation, entailing 11 years of uranium and vanadium production.

PEA highlights (all figures are in United States dollars):

• After-tax NPV (net present value) at an 8-per-cent discount: $227.7-million;
• After-tax IRR (internal rate of return): 38.9 per cent;
• After-tax payback period: 1.9 years;
• Preproduction capital cost: $159.7-million, includes $35.4-million contingency;
• Life of mine (LOM) sustaining capital cost: $27.3-million, includes $5.4-million contingency;
• Average LOM total cash cost net of credits: $23.29/pound (lb) triuranium octoxide (U3O8);
• Average LOM all-in sustaining costs (AISC) net of credits: $24.95/lb U3O8.

PEA key assumptions and inputs:

• Uranium price: $75/lb U3O8;
• Vanadium price $7.5/lb vanadium oxide (V2O5);
• Years of construction: two;
• Years of production: 11;
• Strip ratio: 1.5:1 (waste:ore);
• Dilution: 3 per cent;
• Average mining rate (waste plus mill feed): 5.10 Mtpa (million tonnes per annum);
• Processing throughput: 2.17 Mtpa;
• Process plant recoveries (net), uranium: 84.6 per cent;
• Process plant recoveries (net), vanadium: 52.5 per cent;
• Average annual production (LOM): 1.5 million pounds (Mlb)/year U3O8;
• LOM uranium production: 16.5 Mlb U3O8.

"This PEA reaffirms that the Ivana deposit is a leading low-cost uranium-vanadium project. We believe that this resurgent uranium market has a strong long-term outlook and we are therefore preparing to complete a prefeasibility study for Ivana as soon as possible," stated Nikolaos Cacos, Blue Sky's president and chief executive officer. "We will also continue our ongoing exploration work to discover and delineate new uranium and vanadium resources throughout the remaining highly prospective district-scale Amarillo Grande project."

Additional detailed processing studies are under way to further derisk and enhance the economics for development of the Ivana deposit. This technical work will be incorporated into the program to support a prefeasibility study (PFS), which the company is preparing to commence in the coming months.

PEA summary

A summary of key physical parameters and costs for the PEA are presented in the table entitled "PEA Summary Parameters." All figures are in U.S. dollars. The mineral resource estimate included in the PEA is reported according to the classification criteria set out in the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Reserves (CIM definition standards).

Readers are cautioned that the PEA is preliminary in nature, and is intended to provide an initial assessment of the project's economic potential and development options. The PEA mine schedule and economic assessment includes numerous assumptions, and is based on both indicated and inferred mineral resources. Inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Additional exploration will be required to potentially upgrade the classification of the inferred mineral resources to be considered in future advanced studies.

Supporting information for the mineral resource estimate and the PEA will be detailed in an independent technical report prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101), which will be filed on SEDAR+ under the company's profile within 45 days of the date of this news release.

Mineral resource estimate

The effective date of the mineral resource estimate is Oct. 14, 2023. This updated resource estimate includes data from an additional 350 reverse circulation (RC) drill holes (3,346 metres) completed up to March of 2022. The mineral resource estimate is presented in the table entitled "Estimate of mineral resource reported at 100 ppm [parts per million] uranium cut-off."

The indicated and inferred mineral resource estimation for the Ivana project is summarized in the table entitled "Estimate of mineral resource reported at 100 ppm uranium cut-off." The base case cut-off grade of 100 ppm U (uranium). The addition of 350 RC drill holes decreased the drill hole spacing, and 80 per cent of the estimate is now classed as indicated mineral resources based on two holes within 100 m of a block. As far as the qualified persons (QPs) are aware, there are no issues related to environmental, permitting, legal, title, taxation, socio-political or marketing which could materially impact the mineral resource.

Mine plan

The Ivana operation will consist of surface mining operation delivering mill feed to a nearby processing plant or feed stockpiles. The annual mining rate will be approximately 5.1 Mtpa (13,000 tpd (tonnes per day)) consisting of waste material and mill feed. The average strip ratio is approximately 1.5:1.

The table entitled "Potentially extractable portion of the mineral resource" presents the potentially excavated tonnages. Mill feed may be delivered directly to the process plant or placed into stockpiles for blending purposes.

The surface mine will be relatively shallow, with a maximum depth of 30 metres. The length of the mine will be approximately 3,000 metres with widths ranging from 100 m to 400 m.

Mining will be done with a fleet of two (five-cubic-metre) excavators, a front-end loader and seven 31-tonne articulated trucks, along with a fleet of support equipment. The materials mined are unconsolidated gravels and sands, and are free digging, therefore drilling and blasting will not be required.

Mine waste materials will be used for construction activities on site (for example, construction of the surface tailings management facility (TMF), in-pit cell divider berms, et cetera). Waste materials not used in construction will be stockpiled outside of the footprint of the pit. Waste will be managed in the external stockpiles until it is used as in-pit backfill or for reclamation activities.

Processing and recovery

Mined mill feed may be delivered directly to the processing plant or stockpiled. Stockpiles provide a surge capacity between the mining and processing, and enable blending, to manage the head grade of the process plant feed. Mill feed will then be processed in two stages. The net process recovery is 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 net for vanadium (derived from 89 per cent leach feed preparation recovery and 59 per cent subsequent alkaline leach circuit recovery). Recoveries were determined through the mineralogical, metallurgical and process engineering test work program completed by the Saskatchewan Research Council (SRC), as detailed in the company's press release dated Feb. 7, 2019.

Feed material will first be processed through the leach feed preparation plant, a semi-mobile screening and scrubbing facility located at the proposed mining site. The leach feed preparation plant will liberate fine material (100 micrometres) and scrub away and recover fine uranium and vanadium mineral particles coating the large particles, into a leach feed slurry. The rejected coarse fraction (approximately 75 per cent of the mill feed mass from which most of the original uranium and vanadium has been stripped) will be dewatered, and either stockpiled on surface (during the first three years of operations) or backhauled by the mine fleet, for backfill into containment cells within mined out sections of the pit.

In the second process stage, the slurry containing the fine fraction of the mineralized material will be pumped to the leach plant. An alkaline leach circuit (sodium carbonate and bicarbonate) will be used to dissolve uranium and vanadium from the leach feed minerals. No oxidant is required. Subsequently, uranium and vanadium will be separated by selective chemical precipitation, with uranium solids then calcined to U3O8 or UO3 (uranium trioxide) and vanadium solids calcined to V205.

Tailings slurry from the alkaline leach circuit (approximately 25 per cent of the mill feed mass, and from which the majority of uranium and vanadium has been stripped) will initially be pumped to a surface TMF, where it will settle and release water. This released water will be reclaimed and pumped to the water treatment circuit in the process plant, where it will be further treated, resulting in solids that are pumped back to the TMF with the alkaline leach tailings. The final pH-adjusted water will be returned to the process water tank for reuse. The TMF will be used for tailings management for the first three years of mill production.

The fine tailings will be pumped into containment cells in mined out sections of the pit after the surface TMF reaches design capacity (approximately year 4 of mill production), for co-disposal with mine waste rock and coarse rejects. Long-term storage of all waste material from mining operations will comply with all local and international regulations and requirements.

Infrastructure

The Ivana operation will take advantage of local infrastructure whenever possible. Employees will reside in local communities, most likely the town of Valcheta, approximately 25 kilometres from the mine site. Grid power will be accessible to the project via the construction of a 30 km powerline. For the PEA, it is assumed that process water will be supplied from on-site pumping wells. Ground water at the mine site is classified as non-potable for humans and animals, but suitable for processing use. Future studies will further assess the local water resources.

Other site infrastructure will include maintenance shops, administration offices, a mine dry, diesel fuel storage and warehouses.

Capital and operating costs

The life-of-mine capital and operating costs are summarized in the tables entitled "Capital cost summary" and "Operating cost summary." The costs assume a fully owner-operated project. The closure and reclamation cost are estimated at $26.8-million, and includes costs for site remediation and final backfilling of the remaining mine excavation. These costs are commensurate with a PEA-level study and have an accuracy of plus/minus 35 per cent.

Project economics and sensitivities

The economic results of the PEA are summarized in the table entitled "Economics and sensitivity," on both a before-tax and after-tax basis. For the PEA base case, a long-term uranium price of $75/lb U3O8 and a vanadium price of $7.50/lb V2O5 were used. Sensitivity to various uranium prices are shown in the table entitled "Economics and sensitivity," while the vanadium price is kept fixed.

Uranium provides approximately 97 per cent of the project's revenue stream at the base case prices.

Opportunities

Infill drilling at the Ivana deposit is expected to upgrade the mineral resource from the inferred and indicated categories. It is estimated that an infill RC drilling program of approximately 3,000 m in 180 holes will be required in order to further upgrade resources within the pit shell zone.

There is also potential to expand mine feed at Ivana, particularly to the west, where recent infill drilling returned low-uranium-rich-vanadium resources that may be potentially considered for mine-life extension during high-price scenario (see Blue Sky news release dated Sept. 8, 2022). Furthermore, there is excellent exploration potential in the 30 km to 40 km surrounding areas of the Ivana deposit for considering a potential cluster of deposit with a central facility, and elsewhere on the Amarillo Grande project concessions.

Additional improvements to the project economics are expected as more detailed engineering studies are undertaken and optimization studies are completed.

Future work on Ivana will include additional infill drilling to upgrade mineral resources, as well as advanced engineering studies that will incorporate the continuing comprehensive environmental base line study, and additional metallurgical and process test works, as well as mine design optimization and detailed permitting assessment, among other items required for the completion of a PFS.

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 project includes several major target areas over a regional trend, with uranium and vanadium mineralization in loosely consolidated sandstones and conglomerates, at or near surface. The area is flat-lying, semi-arid and accessible year-round, with nearby rail, power and port access.

The Ivana deposit is located in the southernmost of three target areas that comprise the Amarillo Grande uranium-vanadium project. Mineralization was first identified at Ivana after field follow-up of a 2010 regional high-resolution airborne radiometric and magnetic survey.

The Ivana deposit displays characteristics of both surficial-type and sandstone-type uranium-vanadium deposits. In plan view, the Ivana uranium-vanadium mineralization has a broad C-shaped pattern with some isolated outlying areas of peripheral mineralization. The uranium mineralization at Ivana is composed of secondary uranium minerals, which include carnotite, a coffinite-like mineral that has been called beta-coffinite, as well as lesser tyuyamunite, leibigite and an unidentified uranium-bearing mineral species.

Mineralization occurs within 25 m of surface in two stacked zones. The upper zone is composed of predominantly carnotite mineralization, and the lower zone contains a mixture of mainly carnotite and beta-coffinite mineralization. The two zones occur together through most of the deposit, but there are localized areas where only one zone is present. The upper zone averages 2.7 m in thickness, with a maximum of 10 m, while the lower zone has a maximum of 20 m and has an average thickness of six m.

The Amarillo Grande project is believed to have district-scale potential for discovery of similar styles of mineralization.

Quality assurance/quality control (QA/QC)

The resource estimation was based on 838 RC drill holes, representing 10,968 metres of drilling with one-metre samples. The drilling was completed in four phases starting in January, 2017, and finishing in March, 2022. Only two holes were inclined, the remainder were vertical. Bedding and mineralized horizons are approximately horizontal so vertical samples are believed to represent true thickness. The qualified persons (QPs) reviewed the QA/QC program for the drilling samples, and found the analytical results are within standard industry limits and the drill samples are appropriate for use in the mineral resource estimation.

Qualified persons and National Instrument 43-101 disclosure

The results of the company's drilling program were reviewed, verified (including sampling, analytical and test data) and compiled 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.

A National Instrument 43-101 technical report supporting the mineral resource estimate and the preliminary economic assessment will be filed on SEDAR+ within 45 days of this news release.

The mineral resource estimate and associated information in this news release were prepared under the direction of Bruce Davis, PhD, FAusIMM, consultant, and Susan Lomas, PGeo, of Lions Gate Geological Consulting Inc. Both Dr. Davis and Ms. Lomas are independent qualified persons as defined in NI 43-101.

The PEA and associated information in this news release were prepared under the direction of consultant Ken Kuchling, PEng, a mining engineer specializing in economic reviews and an independent qualified person as defined in NI 43-101.

Additional contributing independent qualified persons for the PEA are:

• Chuck Edwards, PEng, FCIM -- metallurgy and processing;
• Ken Embree, PEng, of Knight Piesold Ltd. -- environmental, waste and water management.

All the QPs have reviewed and approved the content of this news release.

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.

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