(via Thenewswire.ca)

Blue Sky Uranium Corp. (TSX-V: BSK, FSE: MAL (WKN A0MKXP), "Blue Sky" or the "Company") is pleased to announce the discovery of additional high grade mineralization on its Ivana property located in the Rio Negro province, Argentina (press release of October 26, 2011). The highlight from the discovery is an interval of 1.40% U3O8 over 1.10 m including 2.74% U3O8 over 0.5 m (see photograph at http://www.blueskyuranium.com/i/maps/calicata-37.jpg).

Remote sensing and geological mapping interpretation shows a paleo-channel cut into the granitic basement. The mineralized pits are located within this paleochannel in areas of very high surface radiometric anomalies (+200 counts per second using a Georadis RS 125 scintillometer) that cover a large area of approximately 3 km2. High grade uranium mineralization is found in the form of carnotite hosted in unconsolidated and well sorted reddish and yellowish sands covered by calcrete, and extends into the weathered granitic and rhyolitic basement.

The mineralization style and geological setting at Ivana are similar to BHP Billiton's Yeelirrie uranium deposit in Western Australia*. Ivana, as with Yeelirrie, are both surficial uranium deposits that are situated in a paleo-channel directly overlying granitic basement rocks.

The highlights in the table below are from 4 hand pits excavated up to 1.8 m deep. Mineralization is open in all directions and at depth.

 ------------------------------------------------
 |            |    |    |                |      |
 |Pit         |From|To  |Thickness meters|% U3O8|
 |----------------------------------------------|
 |I CAL 11- 35|0.00|1.13|1.13            |0.20  |
 |----------------------------------------------|
 |I CAL 11- 36|1.10|1.82|0.72            |0.11  |
 |----------------------------------------------|
 |I CAL 11- 37|0.62|1.72|1.10            |1.40  |
 |----------------------------------------------|
 |I CAL 11- 38|0.48|1.37|0.99            |0.43  |
 ------------------------------------------------

Analyses of samples reported herein were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized analytical services provider, by means of a four acid digestion followed by a reading with Inductively Coupled Plasma Mass Spectrometer (ICP-OES). Blank, duplicate, and standard samples were inserted into the sample for quality assurance/quality control ("QA/QC") purposes. Blue Sky detected no significant QA/QC issues during review of the data.

This press release was reviewed by Normand Champigny, Qualified Person as defined by NI 43-101. Field work was carried out by Blue Sky's exploration team under the supervision of Bruce A. Smith, MAusIMM, Chartered Professional Geologist, and Qualified Person.

* World Nuclear Association web site presents a figure of resource estimate of 52,500 tonnes contained U308 (174 million lbs.) @ 0.15% U3O8 in the Indicated category.

About Blue Sky Uranium Corp.

Blue Sky is one of Argentina's best positioned uranium exploration companies with more than 5,000 km2 of tenements. The Company's mission is to deliver exceptional returns to shareholders by acquiring, exploring and advancing a portfolio of uranium projects with an emphasis on surficial deposits, in Argentina and other jurisdictions.

The Company recently entered into a MOU with AREVA to jointly explore Argentina for uranium deposits. The partnership will take full advantage of AREVA's vast global experience, Blue Sky's technical team and the Company's well established presence throughout Argentina (see press release of January 4, 2012 for complete details).

The Company is a member of the Grosso Group, a resource management group with experience in South America since 1993. As a member company of the Grosso Group, Blue Sky benefits from the signing of an agreement in principle for a strategic alliance with the Government of the Rio Negro province, Argentina, for the purpose of jointly exploring the potential for commercial mining activity. Argentina has an advanced nuclear industry, centered in the Rio Negro Province.

ON BEHALF OF THE BOARD

"Sean Hurd"