Blue Sky Uranium Corp.

Blue Sky Uranium Corp.

February 27, 2008 18:55 ET

Blue Sky Acquires 100 Per Cent Interest in Argentina Uranium Corp.

Blue Sky to become one of the largest uranium explorers in Argentina; acquires over 500,000 hectares (5,000 sq km's) of prospective uranium property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL)(WKN A0MKXP) (the "Company") ("Blue Sky") is pleased to announce that the Company has entered into a Letter of Agreement to acquire 100 per cent of the shares of Argentina Uranium Corp., thereby gaining control of over 500,000 hectare uranium land package in Argentina. With this acquisition, Blue Sky will become one of the largest uranium explorers in Argentina.

"The acquisition is a major step toward Blue Sky Uranium's objective of becoming the leading uranium explorer in mineral-rich Argentina - a country that has historically been under-explored for uranium," said Dr. Clifton Farrell, Executive VP and COO of Blue Sky Uranium Corp. "The Blue Sky team recently completed an airborne radiometric and magnetic survey over much of Argentina Uranium's property and we are very encouraged by the results we have seen so far."

All of the projects staked by Argentina Uranium were completed under the direction of Dr. Jorge Berizzo, one of the foremost authorities on uranium in Argentina. Dr. Berizzo has 22 years of experience in uranium exploration, including 14 years as senior exploration geologist for the Argentinean National Atomic Energy Commission (CNEA). He played a leading role in the discovery of the Cerro Solo uranium deposit (10.14 million pounds U at 0.3 per cent to 0.5 per cent U) in Chubut province.

In 2007, Blue Sky conducted a due diligence review of the assets held by Argentina Uranium Corp. Most recently, Blue Sky has completed more than 3,000 square kilometres of radiometric and magnetic surveys. Based on the preliminary evaluation of the survey results that have been received to date from surface exploration in Rio Negro province, Blue Sky's management and technical teams have recommended the acquisition of Argentina Uranium.

To date there are two new mineralized systems that are associated with the airborne radiometric anomalies on the ground currently held by Argentina Uranium Corp., these are on the ANIT and Santa Barbara properties in Rio Negro province. Uranium-bearing petrified wood and visible, yellow uranium mineralization have been identified on surface at both the ANIT and Santa Barbara projects.

The ANIT anomaly extends for more than 15 km in length and varies up to 2 km in width. The strength of the radiometric anomaly at ANIT closely resembles that of the Cerro Solo deposit in neighboring Chubut Province that contains approximately 10 million pounds U3O8. The footprint of the anomaly at ANIT is an order of magnitude larger than that of Cerro Solo.

The Santa Barbara project contains three parallel anomalies, 11 km, 6.5 km and 5 km in length respectively and up to 1.5 km in width. Both the ANIT and Santa Barbara projects are in a "sandstone-hosted" environment, similar to the important Grants Uranium District in New Mexico, where, according to reports, more than 340 million pounds of uranium have been produced. Systematic exploration has not been conducted on either project.

Argentina Uranium Corp., through its Argentine subsidary holds more than 500,000 hectares property in the Argentine provinces of Rio Negro, Chubut, Santa Cruz and La Rioja.

Summary of Transaction

Based on discussions between Blue Sky Uranium and Argentina Uranium Corp., and on a fairness opinion prepared for Blue Sky, both parties have agreed in principle to exchange 8.295 million common shares of Blue Sky Uranium to acquire 100 per cent of the outstanding shares and assets of Argentina Uranium (approximately $4 million worth of Blue Sky's stock at market price as of Feb. 27, 2008). The shares that will be issued will be subject to a voluntary three-year escrow period that will begin six months after the closing date of the acquisition. This transaction is subject to the approval of the TSX Venture Exchange.

Throughout 2007 and 2008, Blue Sky had been working to earn a 75 per cent undivided interest in the Santa Barbara and ANIT properties by completing a total of $5 million in exploration expenditures over four years. The parties to the letter of intent dated February 27, 2008, are the Company (as purchaser), Argentina Uranium and the principal shareholders of Argentina Uranium, namely Nick DeMare, DNN Investments, Joseph Grosso and Carlos D'Amico, as vendors. The acquisition was approved by a special committee of the Board of the Company comprised of Nikolaos Cacos, Hernan Celario and Ron McMillan.


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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