Blue Sky Uranium: Update on discoveries in Rio Negro province, Argentina

Aug 9th, 2011 (via Thenewswire.ca) - Blue Sky Uranium Corp (TSX-V: BSK, FRA: MAL, WKN: A0MKXP, "Blue Sky" or the "Company") provides an update on the progress of its 100% owned uranium discoveries - Ivana, Anit and Santa Barbara - in the Rio Negro Province, Argentina. The work performed to date confirms a district-scale uranium discovery in an area of 150 km by 15 km (see Map: www.blueskyuranium.com). Uranium mineralization occurs in near surface horizons in poorly consolidated sediments underlain by gypsum and calcite-rich strata, resembling to the Langer Heinrich deposit in Namibia (Measured and Indicated Resource of 149 million lbs. U3O8 at a grade of 0.055% U3O8 using a 0.025% U3O8 cut-off).


Ivana

At its Ivana uranium discovery announced on February 22, 2011, a major 20-km long northwest-southeast mineralized trend has been confirmed within a 40 km by 10 km enclosed basin. A hand-excavated pit sample returned 0.068% U3O8 over 3 m in unconsolidated sediments beginning at surface and open to depth. This discovery was the result of the identification of three (3) radiometric anomalies following a 22,000 km2 airborne radiometric and magnetic survey. Work to date has comprised of ground radiometric surveys and augering (31 holes on the granted exploration licenses), prospecting and geological mapping. The Ivana discovery consists of eight (8) licenses totaling 725 km2 in the Rio Negro province, Argentina. Four (4) licenses have been granted and four (4) are under application. Blue Sky considers the results to be very encouraging and exploration work will continue to evaluate anomalies using pit sampling and augering.


Anit

The discovery area is represented by a 15-km long by up to 1.5-km wide radiometric anomaly. Sampling of 103 pits covering over an area 6 km long and 40 to 480 m wide showed for mineralization greater than 0.006% U3O8 at an average grade of 0.04% U3O8 and 0.11% V2O5 with an average thickness of 2.0 meters. Mineralized material can be significantly upgraded by inexpensive wet screening to remove coarse pebbles that contain little or no uranium mineralization producing low-mass high-grade concentrates (press release of February 7, 2011). Blue Sky\'s exploration teams continue prospecting in the areas of the identified airborne anomalies within the vicinity of the known Anit mineralized zones. This work aims at outlining areas where mineral resources may be estimated with additional sampling.


Santa Barbara

An airborne survey identified three northeast trending radiometric anomalies, approximately 11 km, 6.5 km and 5 km in length and varying up to 1.5 km in width. A total of 35 shallow hand auger holes and pits were completed to a depth of two (2) to three (3) meters and have outlined mineralization between 0.5-1.0 m in thickness at a depth of 0.5-1.5 m below the surface. Highlights include 0.035% U3O8 over 1 m and 0.086% U3O8 over 0.5 m. Results to date are being reviewed and Blue Sky believes that the property has very good exploration potential.


Outlook

Blue Sky is moving forward with the exploration of its uranium properties in the Province of Rio Negro in Argentina with a focus on reviewing the results obtained to date in order to determine the best target areas to bring to the excavation and/or drill-ready stage. It is also actively evaluating opportunities to acquire new prospective ground in the Rio Negro Province and other provinces of Argentina.

This press release was prepared by Normand Champigny, Qualified Person as defined by NI 43-101. Field work was carried out under the supervision of Bruce A. Smith, Country Manager for Minera Cielo Azul S.A., a 100% owned subsidiary of Blue Sky, and Qualified Person.


About Blue Sky Uranium Corp.

Blue Sky is a member of the Grosso Group, a resource management group with over 18 years of exploration experience in South America. Blue Sky, through its membership with the Grosso Group, signed an agreement in principle for a strategic alliance with the Government of Rio Negro, Argentina, for the purpose of jointly exploring the potential for commercial mining activity to develop mining projects that provide for the acquisition, exploration and exploitation of polymetallic and energy related mineral deposits. Blue Sky is one of the country\'s leading uranium exploration companies with more than 6,000 km2 of tenements. Argentina has an advanced nuclear industry, centered in the Rio Negro Province.


ON BEHALF OF THE BOARD

"Normand Champigny"
Mr. Normand Champigny, President & COO


Paladin Energy Ltd. Website - Resource estimate October 2010



For further information please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@blueskyuranium.com



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company\'s public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC\'s mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.