Blue Sky Reports Positive Preliminary Metallurgical Testwork on the ANIT Uranium Project

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NEWS RELEASE – February 7, 2011

Blue Sky Reports Positive Preliminary Metallurgical Testwork on the ANIT Uranium Project

Blue Sky Uranium Corp. (TSX-V: BSK, WKN: AOMKXP) is pleased to announce that it has received a Sighter Metallurgical Testwork Report from Independent Metallurgical Operations Ltd (IMO) for the ANIT Uranium Project in Rio Negro Province, Argentina. This work demonstrates that most of the mineralized material from the ANIT can be significantly upgraded. The technique involves simple and inexpensive wet screening to remove coarse pebbles that contain little or no uranium mineralization producing low-mass high-grade concentrates.

Upgrading has the potential to significantly reduce processing and transportation costs, making the development of several satellite deposits utilizing one central processing facility economically attractive. It is estimated that approximately 70% of the uranium mineralization at ANIT is hosted by Gravel, Reddish Sand and Sand-Dominated material (see Table 1 below).

Table 1 - Upgrading Flowsheet at 0.2 mm Split

The results to date are preliminary and are based on seven select samples of the main uranium-mineralized lithologies at ANIT.

The ANIT project, a low grade paleochannel target lies within the region where Blue Sky is exploring for other paleochannel and paleolake targets that have been identified within the large and vastly underexplored Rio Negro basin. Management is very excited about the regional targets it has identified in the Rio Negro Basin where ANIT is located and is working to expedite the permitting granting of concessions covering them. The region has a very low population density, averages 200 meters in elevation, receives approximately 300 mm of rainfall per year (12 inches), is road accessible, topographically flat and permits year round exploration.

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A summary of the main findings of the IMO study include:

• Uranium preferentially reports to the fines fraction, consistent with the visual observations that the uranium appears as a surface precipitate;
• Wet screening achieved a significantly improved upgrade over that obtained by dry screening across all domains with the exception of the Clay + Gypsum sample; The highest upgrades were achieved in the case of the Gravel, Reddish Sand and the Sand Dominated domain samples, which upgraded to between 0.748% and 1.628% U with >85% uranium recovery;
• The Gypsum sample showed significant upgrade potential with the uranium grade increasing from 0.062% U to 0.14% U with greater than 82% recovery; The Gypsum + Sand domain sample demonstrated some upgrade potential with the uranium grade increased from 0.008% U to 0.04% U with 70% recovery, however the uranium grade in the concentrate remained low (<0.05% U);
• The Clean Sand domain indicated a ten-fold increase in the uranium grade could be achieved from 0.0013% to ~0.014% but with significant (>50%) uranium loss. Most of the uranium losses were in the +2mm fraction which accounted for ~49% of the uranium. The uranium content of the -2mm to +149μm fractions were below detection limit and suggest that uranium is easily removed from the surface of the sand. It is possible that the coarse particles (+2mm) may have been agglomerates and if liberated the uranium could be recovered;
• The significantly improved performance via wet screening suggests that uranium predominantly exists as a surface precipitate. Wet screening is more efficient at transferring these fine particles from the surface of coarse particles into the fines fraction;
• A significant proportion of the uranium in the coarser size fractions is likely present as uranium adhering to the surface of coarse particles. Whole ore Drum Scrubbing and/or Attrition scrubbing of the coarse could potentially liberate uranium and allow it to report to the fines thereby increasing overall uranium recovery over that obtained by simple wet screening alone;

These results are preliminary and the study was designed only as a guide to future detailed metallurgical investigations.

Recommendations for further work include:

• Perform XRD mineralogy on domain samples;
• Undertake staged drum scrubbing and attrition scrubbing of selected samples to assess the potential for improved metal recovery and upgrade from coarse fractions;
• Assess the application of gravity separation via elutriation and spirals upgrade;
• Incorporate cyclosizing analysis of fines in further testing to assess the potential for improved upgrades at finer cut sizes than accessible via screening;
• Undertake sighter uranium alkaline and acid leach tests to determine the extent and rate of uranium recovery from upgraded samples and preliminary reagent consumptions;
• Based on the results derived from the above testwork, undertake a scoping level desk top study to provide conceptual capital and operating cost estimates for potentially viable processing options.

The full metallurgical report is available to download on Blue Sky’s web site.

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Within the mineralized zone outlined to date at ANIT by the excavator pit program at ANIT West and Central, including only pits with mineralization greater than 50 ppm Uranium over 1m, the average thickness of the mineralized layer is 1.97 meters with a weighted average grade of 0.04% * U3O8 (337 ppm Uranium) and 594 ppm Vanadium (see January 20, 2011 News Release).

The technical information contained in this release has been prepared by Bruce Smith, AUSIMM, Blue Sky Uranium Exploration Manager and a Qualified Person as defined in National Instrument 43-101.

About Blue Sky Uranium Corp.

Blue Sky has, through its membership with Grosso Group Management, signed an agreement in principle for a strategic alliance with the Government of Rio Negro for the purpose of jointly exploring the potential for commercial mining activity to develop mining projects that provide for the acquisition, exploration and exploitation of polymetallic and energy related mineral deposits. The Company is dedicated to actively exploring the Patagonia region of Argentina. Experienced management and technical members, who foster relationships with a vast amount of international industry contacts, lead the exploration team on the search for quality resource opportunities. 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

“Sean Hurd”

____________________________ Mr. Sean Hurd, President & CEO

For further information please contact:

Corporate Communications Tel: 1-604-687-1828 Toll-Free: 1-800-901-0058 Email: [email protected]

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.

2011