Blue Sky Announces Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 2, 2016) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO OR THROUGH US NEWSWIRE SERVICES

Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL) (WKN: A0MKXP) ("Blue Sky" or the "Company") is pleased to announce a non-brokered private placement financing of up to 6,500,000 units at a price of $0.38 per unit for gross proceeds of $2,470,000.

"Our Company has maintained its large property portfolio with the belief that Argentina continues to be one of the best destinations for discovering uranium as an alternate energy provider," stated Nikolaos Cacos, President and C.E.O. "Argentina currently relies on the import of uranium at very high cost in order to satisfy its nuclear power requirement. The Company has several discoveries which, if developed, have the potential to become a domestic source for the country's uranium need."

Each unit will consist of one common share and one transferrable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at $0.50 per share for two years from the date of issue. If the volume weighted average price for the Company's shares is $0.80 or greater for a period of 10 consecutive trading days, then the Company may deliver a notice (the "Notice") to the warrantholder that the Warrants must be exercised within twenty (20) days from the date of delivery of such Notice, otherwise the Warrants will expire at 4:30 p.m. (Vancouver time) on the twenty-first (21st) day after the date of delivery of the Notice. The accelerated exercise shall not apply until the expiration of the four-month hold period required under TSX Venture Exchange policies and rules, and securities laws that are applicable to the Company.

This financing is subject to regulatory approval and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. Directors, officers and employees of the Company may participate in a portion of the financing. A commission may be paid on a portion of the financing. The proceeds of the financing will be used for exploration programs on the Company's projects in Argentina and for general working capital.

ON BEHALF OF THE BOARD

Nikolaos Cacos, President, CEO and Director

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.