Blue Sky Drills 547 ppm U3O8 Over 6 Metres at Amarillo Grande Surficial Uranium Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 28, 2017) - Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL2)(OTCQB:BKUCF) ("Blue Sky" or the "Company") is pleased to provide initial results from the ongoing Phase 1 reverse circulation (RC) drilling program at the Ivana target on the Amarillo Grande uranium project, in Rio Negro Province, Argentina. The results from 31 holes received to date outline a broad area of near surface uranium measuring approximately 1,800 metres by 600 metres. Within this area, a higher-grade northwest oriented corridor is interpreted to have been intersected by four holes and a second area with higher grades is indicated by two holes at the eastern margin of the drill grid. A full geologic interpretation will be completed once results from the remaining 66 holes from the Ivana target are received. Blue Sky holds over 440,000 hectares of property located in two provinces in the most prospective uranium regions of Argentina.

Drill hole highlights include:

• 743 ppm U₃O₈ over 3.0m in AGI-27
• 547 ppm U₃O₈ over 6.0m in AGI-05

"The initial results from the Ivana area provide important information on where to focus our follow-up drilling as we delineate new zones of surficial uranium mineralization at Amarillo Grande," stated Nikolaos Cacos, Blue Sky President & CEO. "These initial results confirm the broad occurrence of uranium mineralization at Ivana."

The 250,000-hectare Amarillo Grande project includes three areas of known mineralization (Ivana, Anit and Santa Barbara) within a 140 kilometre-long uranium trend discovered by Blue Sky. This 3,000 metre preliminary drill program is designed to delineate the mineralized zones at all three areas, for follow-up infill drilling. The program is testing areas prospective for discovery of near-surface uranium mineralization as identified by ground radiometric surveys, trenching, manually excavated pits and geo-electrical surveys. This program is the first phase of the overall 10,000 metre program which is designed to prepare for potential resource estimation later this year.

Blue Sky believes the mineralization that has been discovered through the work to date at Amarillo Grande can be classified as Surficial-type uranium. Examples of Surficial uranium deposits include Langer Heinrich in Namibia, which has Proven and Probable ore reserves totalling 91.31 Mlb at an average grade of 560 ppm U₃O₈ and produces approximately 4 Mlb per year⁽¹⁾, and Toro Energy Limited's development-stage Wiluna project, which has Measured and Indicated resources totalling 66.6 Mlb within 10 metres of surface at an average grade of 525 ppm U₃O₈.⁽²⁾ Wiluna consists of 5 separate deposits within a 100-kilometre district in western Australia.