Blue Sky Uranium Corp.

Blue Sky Uranium Corp.

January 14, 2008 03:01 ET

Blue Sky to Earn 75% Interest in New Uranium Discovery in Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2008) - Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL)(WKN:AOMKXP) is pleased to announce that as a result of the ongoing review of the uranium property portfolio of Argentina Uranium Corp., a letter of intent has been signed to earn a 75% interest in the 128,689 hectare "Anit" uranium property in the Province of Rio Negro, located in the northern portion of the Patagonia region of Argentina.

An airborne radiometric survey over the Anit project has identified a 15 kilometre long and up to 1 kilometre wide uranium anomaly within the Anit project. Blue Sky's and Argentina Uranium's technical teams followed up to ground truth the anomaly and immediately located several rock samples with visible uranium mineralization that were exposed due to a freshly graded gravel road that intersects a portion of the anomaly. The Anit project has had no prior exploration history and represents a brand new grassroots uranium discovery in Rio Negro Province, Argentina.

The Anit prospect is in a "sandstone-hosted" environment, similar to the important Grants Uranium District in New Mexico, where more than 340 million pounds of uranium have been produced. Except for in and around a few known deposits, exploration for uranium in Argentina has been very limited until recently. Blue Sky and Argentina Uranium are the first to do any sort of systematic modern exploration in the Province of Rio Negro. The Anit discovery indicates the effectiveness of our grassroots exploration strategy in this region.

The eastern part of the Anit anomaly was detected while flying East-West, 1-kilometre spaced lines and the western part defined by North-South lines flown a few days later. Airborne Uranium Gamma ray spectrometry results higher than 30 counts per second (CPS) delimit the Anit anomaly. A uranium-sourced west-northwest trending anomaly with readings over 50 CPS and up to 138 CPS represents the core of the Anit anomaly. Thorium readings are homogeneous and low (23 CPS average) throughout the Anit anomaly. Regional geologic maps (1:250,000 scale) show that early Cretaceous sandstone and conglomerate underlie the Anit anomaly. Late Tertiary and Quaternary gravel and sand deposits cover the early Cretaceous rocks. Gamma ray spectrometry results and available geologic information are consistent with a "sandstone-hosted" environment.

On April 19, 2007 the Company announced that it had entered into an exclusive agreement with Argentina Uranium Corp. to review over 4,000 square kilometres of its prospective uranium property in Argentina. Blue Sky is continuing its due diligence review of Argentina Uranium Corp.'s other projects. Argentina Uranium's land package has been assembled under the direction of Dr. Jorge Berizzo.

Argentina Uranium's projects that Blue Sky is currently evaluating have been selected by Dr. Berizzo for their potential to host economic uranium deposits. Dr. Berizzo is Argentina Uranium's Chief property scout. He has 22 years of experience in uranium exploration and production obtained as a senior exploration geologist, and later on as mine manager for the Argentinean National Atomic Energy Commission ("CNEA"), as well as privately owned companies. Dr. Berizzo also played a leading role in the discovery of the Cerro Solo uranium deposit in Chubut province, Argentina.

In order to earn a 75% undivided interest in the Anit property Blue Sky must complete CDN $2.0 million in exploration expenditures over 4 years. During year one there is a firm commitment to complete CDN $100,000 of exploration expenditures. After completing the expenditure commitments, the parties will form a 75/25 joint venture. If Argentina Uranium fails to contribute its share to development of the project it would be diluted down to a 2% yellowcake royalty. Official title for the Anit exploration permits have not yet been officially granted. The permit applications are shown on the tenure maps for the Province of Rio Negro and are expected to be officially granted upon completion of consultation with the owners of the relevant surface rights. The transaction is subject to TSX Venture acceptance.

The contents of this news release have been reviewed by Dr. Ron McMillan, P.Geo., a consultant to and director of the Company, and a Qualified Person as defined by National Instrument 43-101.

Blue Sky is a uranium exploration company led by experienced management and technical teams and is actively exploring in the Patagonia region of Argentina and in the Athabasca area of Northern Saskatchewan. Blue Sky is a member of the Grosso Group, a resource management group with over 15 years experience in exploring South America.


Mr. Sean Hurd, President & CEO

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. 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. 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.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

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