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

Blue Sky Uranium Corp.

August 29, 2007 09:30 ET

Blue Sky Uranium Corp.: Letter to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) -

Dear Shareholders,

Blue Sky Uranium Corp. (TSX VENTURE:BSK)(FRANKFURT:MAL)(WKN A0MKXP) has been very active since its inception in 2006 and throughout 2007. During this time our Company has continued to build its asset base, both in term of projects and people and is well positioned for continued growth. While the stock markets overall, and uranium stocks in particular, have seen a significant downward correction over the summer months I strongly believe that the current trading price in Blue Sky's common shares does not reflect the growing value of the Company. We have taken some major steps forward in Argentina, Saskatchewan and Colombia, with many exciting opportunities still ahead of us.

In Argentina, Blue Sky has aligned itself with Argentina Uranium Corp., gaining exclusive access to over 4,000 square kilometres of uranium projects that have been staked by Dr. Jorge Berizzo. Dr. Berizzo has 22 years of experience in uranium exploration in Argentina, much of it 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 in Chubut province, Argentina.

Dr. Berizzo and his team have made what is believed to be the first uranium discovery in Rio Negro province, Argentina, on the Santa Barbara property that Blue Sky is exploring to earn a 75% interest. Blue Sky has completed a Phase I surface exploration program that followed up on visible uranium mineralization discovered at Santa Barbara and the results will be released within the next few weeks. Blue Sky is planning to commence a second surface program as soon as possible to further expand the known areas of uranium mineralization and to evaluate drill targets.

In Saskatchewan, exploration has focused on identifying drill targets on the Eagle Lake/Karin Lake projects that cover 69,000 hectares. The properties are located approximately 35 km east of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada. Blue Sky is earning a 60% interest in these projects from Eagle Plains Resources. Exploration activity at Eagle and Karin Lakes has included both surface and airborne geophysical exploration programs. Results will be released shortly and drilling is planned for Q1-08.

In Colombia, Blue Sky has made a strategic entry into the Country with the acquisition of a 100% interest in two uranium prospects totaling 15,000 hectares. Colombia has been improving at a steady pace and this has created great opportunities for uranium exploration and is a mineral rich country that remains very under explored. Management has a strong network of contacts in Colombia through the Company's relationship with the Grosso Group, and it is this network that continues to generate many new opportunities.

The Company's Team has been growing with the welcomed addition of Dr. Hernan Celorrio in June 2007 to the Board of Directors. Dr. Celorrio was the former President of Barrick Explorations Argentina during the period December 1999 to March 2006. In the Argentine mining industry Dr. Celorrio is a nationally recognized figure and he is an outstanding addition to our team, which now includes Dr. Ron McMillan, a prominent uranium geologist with
worldwide exposure to uranium deposits and exploration over the past 25 years. In addition Mr. David Rhys has joined Blue Sky as Senior Consulting Geologist and has extensive work experience on uranium deposits in the Athabasca basin of Saskatchewan working for Cameco and UEX Corporation.

I would like to thank all of our shareholders for their continued support as we follow our business plan to grow Blue Sky into an industry leader. We have a very exciting future ahead of us and our team is continuously reviewing new opportunities.

Sincerely,

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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