Blue Sky Uranium Corp. Announces High-Grade Near Surface Uranium Discovery at IVANA by 24hgold

NEWS RELEASE

Wednesday, October 26, 2011
Blue Sky Announces High-Grade Near Surface Uranium Discovery at IVANA

Blue Sky Uranium Corp. (TSX-V: BSK, FRA: MAL, WKN: A0MKXP, "Blue Sky" or the "Company") is pleased to announce the discovery of high grade mineralization on its Ivana property located in the Rio Negro province, Argentina.The Company's President and Chief Operating Officer Normand Champigny stated: "This is an exciting new discovery at IVANA and to date these are the highest uranium grades we have encountered in Argentina."

The newly discovered mineralized area is located 20 km south from the 20-km long mineralized trenddiscovered earlier this year (press releases of February 22 and August 9, 2011).The highlight from the new discovery is an interval of 1.81% U₃O₈over 0.75 m including 6.67%U₃O₈over 0.15 m. The highlights in the table below are from 5 handpitsexcavated up to 1.2 m deep along a 3.3 km long northwest-southeast mineralized trend. Mineralization is open at depth.

Pit	From	To	Thickness meters	% U₃O₈	% V₂O₅
I CAL 11- 30	0.00	0.60	0.60	0.02	0.04
I CAL 11- 31	0.20	1.00	0.80	0.61	0.40
I CAL 11- 32	0.20	1.20	1.00	0.38	0.15
I CAL 11- 33	0.25	1.00	0.75	1.81	0.47
I CAL 11- 34	0.00	1.00	1.00	0.02	0.02

The mineralization style and geological setting at Blue Sky's new discovery at IVANA are similar to the Langer Heinrich mine in Namibia (Measured and Indicated Resource of 150 million lbs. U₃O₈ at a grade of 0.054% U₃O₈ using a 0.025% U₃O₈ cut-off, Paladin Energy Ltd. 2011 annual report). At Langer Heinrich, mineralization occurs within a 15-km long paleo-drainage system and is near-surface, between one meter and 30 m thick, between 50 m and 1,100 m wide, that is hosted in sediments with a calcrete cover and overlyingArchean granites.

Carnotite, a potassium uranium vanadate, is the uranium ore mineral. Vanadium pentoxide (V₂O₅) can be produced from carnotite and is mainly used as an alloy of steel.

In addition,a total of 27 auger holes, 3 m deep on average, were completed between the hand excavated pits.Downholegamma probe readings (usingdownhole probe Mount Sopris model 2 PGA-1000)confirmed the presence of strong,near surface radioactive zones. Values ranging from1,271 to 111,000 countsper second (next to I CAL 11-33) were measured in 15 holes.

High grade uranium mineralization is foundin the form of carnotite hosted in unconsolidated and well sorted reddish and yellowish sands covered by calcrete. Lower grade mineralization is hosted in green clays with carnotite occurring along parting planes. Less than 500 m from the mineralized pits, outcrops are observed from Upper Proterozoic shales and schists of the NahuelNiyeu Formation and Carboniferous to Permian granites of the Navarrete Plutonic Complex.The mineralized sands appear to be part of fluvial paleochannels eroded in the basement metamorphic and granitic rocks.

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 tem under the supervision of Bruce A. Smith, Country Manager for MineraCielo Azul S.A., a 100% owned subsidiary of Blue Sky, and Qualified Person.

About Blue Sky Uranium Corp.

Blue Sky is one of Argentina's leading 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 is a member of the Grosso Group, aresource management group with experience in South America since 1993. As a member company of the Grosso Group, Blue Sky benefits from the signing ofan 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

"Normand Champigny"
___________________________________
Mr. Normand Champigny, President& COO

For further information please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@blueskyuranium.com

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.

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