Blue Sky Drills 1131 ppm U3O8 Over 5M Near Surface; Continues to Expand the Ivana Discovery, Amarillo Grande Uranium-Vanadium Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 30, 2017) - Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL2)(OTCQB:BKUCF) ("Blue Sky" or the "Company") is pleased to report that initial analytical results from the Phase II reverse circulation (RC) drilling program confirm the previously reported significant expansion of the uranium-vanadium mineralized system at the Ivana target on its 100% owned Amarillo Grande uranium-vanadium project, in Rio Negro Province, Argentina (see news release dated October 5^th, 2017).

Highlights of drill intercepts with strong uranium mineralization include:

• 1,131 ppm U₃O₈ over 5 m
  • within 431 ppm U₃O₈ over 15 m in AGI-0170
• 1,030 ppm U₃O₈ over 5 m
  • within 431 ppm U₃O₈ over 14 m in AGI-0169

"The initial assays of the second phase of the program confirm our field observations that we are continuing to significantly expand the known uranium-rich system at Ivana," stated Nikolaos Cacos, Blue Sky President & CEO. "The exploration program has added a potential expansion of more than two kilometres to the recently defined greater than two-kilometre-long uranium-rich corridor."

The Phase II program is planned to include up to 3000 metres of both extension testing and infill drilling with a goal of resource delineation. Broader exploration will include additional geophysical surveying to the west and south, followed by auger testing in areas of interest. Metallurgical testwork is also underway on material from Ivana, and the Company plans to initiate baseline environmental testing.

Program Details:

Results from the current program have extended the two-kilometre-long near-surface strongly mineralized corridor defined in the Phase I program by an additional two kilometres to the south, at the Ivana target. The previously defined corridor is between 200 and >400 metres wide, up to 20 metres thick, with grades as high as 3,136 ppm U₃O₈ over one metre (see news release dated September 18^th, 2017). The Phase II RC drill results received to date are from holes 159 through 193, which total 428 metres; hole locations are shown on Map 1 (https://www.blueskyuranium.com/assets/docs/nr/MAP-PRESS-OCT27-V1.pdf) and grade thickness contours of all results are shown on Map 2 (https://www.blueskyuranium.com/assets/docs/nr/2017OCT27-IVANA-PHASE-2-Grade-x-Thickness.pdf). The near-surface uranium mineralization in the core of the mineralized corridor is associated with fine-grained dark coloured mineral(s), in the process of being identified, and pyrite hosted by medium-grained partially indurated sandstones with abundant organic matter; carnotite mineralization is observed in areas peripheral to the strongly mineralized corridor core. Grades range from 2 ppm to 2,058 ppm U₃O₈ (AGI-0169) at depths ranging from surface and 22 metres; corridor width is interpreted as being consistent with the previously defined segment (200 to 400 metres). Between holes AGI-0137 and AGI-0186 the thickness of the mineralized intervals detected is highly consistent, ranging from 11 to 16 metres over a horizontal distance of approximately 1.2 kilometres. A 400 x 200 metre depression, currently partially water-filled, occurs in the area where the strongly mineralized corridor changes direction from northeast to southeast trending. Step-out hole AGI-0180, located 1.1 kilometres to the south of the southeast-trending strongly mineralized corridor, includes 7 metres averaging 109 ppm U₃O₈ and could represent a significant extension to the southeast that will require further drilling to confirm.