Blue Sky Uranium Corp.
TSX VENTURE : BSK
FRANKFURT : MAL

Blue Sky Uranium Corp.

September 10, 2007 00:01 ET

Blue Sky Discovers 11km Trend at Santa Barbara Uranium Project, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2007) - Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL)(WKN:A0MKXP) is very pleased to announce results from a Phase I reconnaissance sampling and scintillometer surveying program on the Santa Barbara uranium property in the Province of Rio Negro, Argentina. The surface program has identified uranium and radiometric anomalies along a linear east-northeast oriented trend over 11km long. These anomalies occur along a prominent fault identified on government geology maps of the area.

Results from 21 additional samples and handheld scintillometer surveying confirm the previously announced uranium showing (greater than 10,000 ppm U or greater than 1% U, May 9, 2007 News Release). In the initial discovery area grab samples returned grades up to 13,400 ppm U and ground scintillometer surveying has defined a radiometric anomaly over 1 km in length at the east-northeast end of a larger 11 km radiometric anomaly trend (see figure 1).

In addition, the Company has commenced an airborne radiometric survey of the 60,000 hectare property. The airborne survey has been contracted to New Sense Geophysics Limited of Canada, and is utilizing a fixed wing aircraft equipped with a magnetometer and gamma ray spectrometer. Data is being collected along 200m spaced flight lines flown at 100m above the ground. The survey is expected to provide detailed radiometric and magnetic data that will greatly assist in targeting anomalies and structures during future exploration of the Santa Barbara property.

After the results from the ongoing airborne survey are processed, an aggressive follow-up program comprising grid rock and soil sampling, trenching, scintilometer and radon gas surveying will be carried out with the aim of identifying drill targets on the Santa Barbara project.

Blue Sky is earning a 75% interest in the 60,000 hectare Santa Barbara uranium property in the Province of Rio Negro, located in the northern portion of the Patagonia region of Argentina. The Santa Barbara uranium project is a new discovery made by Dr. Jorge Berizzo, an internationally recognized Argentine geologist who also played a leading role in the discovery of the Cerro Solo uranium deposit (10.14 million lbs. U at 0.3 to 0.5% U) in nearby Chubut Province (see news release dated May 9, 2007).

Technical Summary

The Santa Barbara uranium property is located in the Province of Rio Negro within Argentinian Patagonia. Triassic-Jurassic igneous and volcaniclastic units and sub-horizontal, Cretaceous continental sedimentary rocks underlie the region. Tertiary basaltic flows partially cover the Mesozoic rocks. In general, the topography is flat with scarce and small hills interrupted by basalt plateaus. The region is semi-desert and it is characterized by sparse scrub vegetation.

The Santa Barbara property is underlain by a succession of clastic sedimentary rocks, assigned to the Late Cretaceous, covered by Quaternary sand and gravel deposits. Conglomerate and coarse to fine sandstone comprise the majority of the sequence with minor amounts of tuffaceous sandstone and mudstone with gypsum. The Cretaceous sequence is interpreted as a fluvial facies of the Neuquen Basin. Rock outcrops in the Santa Barbara area are poorly consolidated, and as a result it is often difficult to differentiate Cretaceous sediments from Quaternary cover. Both Cretaceous and Quaternary units are sub-horizontal. The Cerro Solo deposit in Chubut (10.14 million lbs. U at 0.3 to 0.5%) is hosted by Lower Cretaceous fluvial sedimentary rocks of the San Jorge Basin in a similar geological setting as that found in the Neuquen Basin in the Santa Barbara area.

Phase I reconnaissance program carried by Blue Sky Uranium on the Santa Barbara property was designed to substantiate the information provided by Argentina Uranium and to delineate the continuity and extent of radiometric anomalies and mineralization in the area. Less than 10% of the property has been prospected and surveyed and 21 samples of consolidated and unconsolidated material were collected (see Table 1 for sample results).

The initial radiometric anomaly detected in the Santa Barbara property has measurements over 10,000 counts per second that correspond to sub-crops of yellow uranium-vanadium mineralization. Sampling of the exposure by Argentina Uranium returned values of greater than 10,000 ppm (greater than 1%) U and 797.8 ppm U (0.08%) U from two points (see May 09, 2007 News Release). Blue Sky Uranium samples (M1425 and M1420) collected over the same mineralized horizon assayed 13,400 and 3,070 ppm U confirming previous results (see figure 1 inset).

Preliminary prospecting traverses completed around the initial radiometric anomaly outlined a 1km long, continuous anomaly with readings greater than 100 counts per second. Additional traverses identified 4 clusters of significant radiometric anomalies to the southwest up to 11km away from the initial discovery. The new anomalies are located along a linear northeast-southwest trending belt that has only been partially surveyed (see figure 1). Although the continuity between the four anomaly clusters has not been verified, they represent an 11km long trend open in both directions.

In total, 16 samples of poorly consolidated material and 5 rock samples were collected during Phase I program.



Table 1: Phase I Rock Samples

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Sample Description U ppm V ppm P ppm Th ppm cps
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M1416 U.M. 55 112 379 4.8 300
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M1417 U.M. 122 99 259 3.9 450
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M1418 U.M. 87 164 322 4.9 250
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M1420 U.M., Yellow U mineral 3,070 762 458 5.3 5,000
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M1421 U.M. 164 149 371 5.1 400
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M1422 U.M. 23 67 147 3.0 120
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M1423 U.M. 22 81 497 4.0 200
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M1424 U.M. 223 98 342 4.3 1000
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M1425 U.M., Yellow U mineral 13,400 2884 289 5.3 greater
than
10,000
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M1426 U.M. 83 117 297 3.6 400
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M1431 U.M., organic matter 159 842 234 5.8 250
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M1432 U.M., Yellow U mineral 159 93 322 2.9 1,200
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M1433 U.M., Yellow U mineral 1,279 315 341 1.6 5,000
---------------------------------------------------------------------------
M1434 U.M., Yellow U mineral 411 129 182 1.0 2,000
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M1435 U.M., Yellow U mineral 130 104 427 2.5 450
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M1436 U.M., Yellow U mineral
and gypsum 1,059 349 352 3.0 8,000
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M1419 Coarse sandstone fragments 33 46 277 6.2 -
---------------------------------------------------------------------------
M1427 Conglomerate 37 54 189 3.2 220
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M1428 Conglomerate 21 15 243 2.7 260
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M1429 Conglomerate 27 19 281 2.9 200
---------------------------------------------------------------------------
M1430 Sandstone and conglomerate 12 19 85 2.5 250
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- U.M. Unconsolidated Material; cps counts per second


Current data reveals that organic matter is not the reducing agent at the known anomalies. Phosphorous and Vanadium are very likely the precipitating agents in the Santa Barbara region. Low Thorium concentrations are consistent with a sedimentary model for the Santa Barbara mineralization.

The analytical results reported in this news release were carried out by SGS Del Peru S.A.C., an internationally recognized analytical service provider. A set of 52 elements was analyzed by SGS using ICP-AES and ICP-MS techniques after digestion by aqua-regia. Scintillometer readings were taken using a Saphymo Stel SPP2 scintillometer. 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. Official title for the Santa Barbara exploration Permits has 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.

Blue Sky is a uranium exploration company led by experienced management and technical teams. Blue Sky is actively exploring in 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.

ON BEHALF OF THE BOARD

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.

To view figure 1 please click on the following link:
http://www.ccnmatthews.com/docs/411990.jpg

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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