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Blue Sky Launches Phase 1 of 10,000 metre RC Drilling Program at Amarillo Grande Uranium Project, Argentina

Exploration Programs

Terminal City Club Tower, Suite 411 - 837 West Hastings Street TSX Venture Exchange: BSK

Vancouver, BC CANADA V6C 3N6 Frankfurt Stock Exchange: MAL2

Tel: 604-687-1828 • Fax: 604-687-1858 • Toll Free: 1-800-901-0058 OTCQB Venture Market (OTC): BKUCF

www.blueskyuranium.com • [email protected]

NEWS RELEASE – January 26, 2017

Blue Sky Launches Phase 1 of 10,000 metre RC Drilling Program at

Amarillo Grande Uranium Project, Argentina

Vancouver, BC / Marketwired / January 26, 2017 / Blue Sky Uranium Corp. (TSX -V: BSK, F SE: MAL 2;

OTC: BKUCF ), "Blue Sky" or the "Company") is pleased to announce that the Company has launched a

Phase 1, 3,050 metre reverse circulation (“ RC”) drilling program at the Amarillo Grande project, in Rio Negro

Province, Argentina. This program will include 166 holes at the previously explored Ivana, Anit and S anta

Barbara targets (see Table 1 below) with a goal of refining the geological model and further evaluating the

potential for near-surface uranium deposits. This program is the first phase of the overall 10,000 metre program

which is designed to prepare for potential resource estimation in 2017.

"The commencement of the phase one drill program marks an exciting step forward in the development of the

project and we anticipate moving quickly towards our goal of resource delineation, ” stated Nikolaos Cacos, Blue

Sky President & CEO.

RC Drilling Program Details

Targets for the drilling program were chosen based on the geological model that was adjusted by the results of

the recent geophysical program (see News Release dated January 12, 2017) . The average estimated depth of

drilling is between 10 and 45 metres. The drill program is being carried out by Cono Sur SA, an Argentine drilling

company, using an ROC L8 drill rig from Atlas Copco, an ore- control track-mounted rig adapted to reverse

circulation. A double cyclone was built in order to reduce the dust loss during sampling. Every metre is weighed,

measured by scintillometer and split into two samples of three to five kilograms each, one for assaying and one

as control. The sampling includes a Q uality Assurance – Quality Control (“QAQC”) program comprising duplicate

samples, blanks and standards. Every hole will also be surveyed with a radiometric probe under the supervision

of a Senior Geophysicists with experience in resource estimation at uranium deposits.

Table 1. Amarillo Grande Phase I Drill Program

SECTOR PLANNED NUMBER

OF HOLES

ESTIMATED

METRES

Ivana 66 1,570

Anit 75 1,000

Santa Barbara 25 480

About the Amarillo Grande Project

This new uranium district was first identified, staked and underwent preliminary exploration by Blue Sky from

2007 to 2012 as part of the Grosso Group’s strategy of adding alternative energy focus to its successful portfolio

of metals exploration companies. The close proximity of several major targets suggest that if resources are

delineated a central processing facility would be envisioned. The area is flat -lying, semi-arid and accessible year

round, with nearby rail, power and port access.

Mineralization identified to date represents a Surficial Uranium style of deposit, where carnotite mineralization

coats loosely consolidated pebbles of sandstone and conglomerates. Carnotite is amenable to leaching, and

early metallurgical work indicates that the mineralized material can be upgraded using a very sim ple wet

News Release January 26, 2017

Blue Sky Uranium Corp. Page 2

screening method. The near-surface mineralization, ability to locally upgrade, amenability to leaching and central

processing possibility suggest a potentially low-cost development scenario for a future deposit.

Rio Negro is host to several facilities related to the nuclear industry. Furthermore, the Provincial government is

amenable to mining as a means of socio- economical development. In addition, the Federal government has

expressed support for building domestic resources of uranium. In particular, the Argentina Atomic Energy

National Commission (CNEA) published its Strategic Plan 2015- 2025, which includes a strategic objective "To

ensure the supply of domestic uranium for nuclear power plants in operation, under construction and planned."

For additional details on the project and properties, please see the Company’s

website: www.blueskyuranium.com

Qualified Person

The contents of this news release have been reviewed and approved by David Terry, Ph.D., P.Geo. Dr. Terry is

a Director of the Company and a Qualified Person as defined in National Instrument 43- 101.

About Blue Sky Uranium Corp.

Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina. The Company's objec tive is to deliver

exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low -cost

producers. Blue Sky holds has the exclusive right to over 428,000 hectares of property in two provinces in

Argentina. The Company’s flagship Amarillo Grande Project was an in-house discovery of a new district that has

the potential to be among the first domestic suppliers of uranium to the growing Argentine market and to the

international market. The Company is a member of the Grosso Group, a resource management group that has

pioneered exploration in Argentina since 1993.

ON BEHALF OF THE BOARD

“Nikolaos Cacos”

______________________________________

Nikolaos Cacos, President, CEO and Director

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 Exc hange) 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 co nditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently an ticipated in

such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed disc ussion 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 t ype 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.