Blue Sky Uranium Corp. Discovers Uranium at Sierra Colonia, Chubut Province, Argentina by 24hgold

NEWS RELEASE

Tuesday, October 18, 2011
Blue Sky Discovers Uranium at Sierra Colonia, Chubut Province, Argentina

Blue Sky Uranium Corp. (TSX-V: BSK, FRA: MAL, WKN: AOMKXP) ("Blue Sky") announces the discovery of surface uranium mineralization at its Sierra Colonia project located in central part of the Chubut province. The project is situated 96 km from the Cerro Solo project where the National Commission of Atomic Energy ("CNEA") identified in the same geological environment a historical resource¹ of 15 million pounds of contained U₃0₈. Mineralization at Cerro Solo is found at depths ranging from 50 to 130 m; whereas at Sierra Colonia it is found in outcropping.

Following a surface radiometric survey, Blue Sky's exploration team defined 12 zones over a 14 km long mineralized trend. Highlights from the sampling of 54 hand pits and chip samples ranging in depth from surface to 2 m are summarized below.

Zone	Width (m)	Grade % U₃O₈	Grade % V₂O₅
Fluo	2	0.14	0.07
	1	0.09	1.12
	1.5	0.07	0.01
Zone 1	1	0.13	0.50
Zone Ca�adon Lillo	0.5	0.53	1.32
Zone 5	1	0.03	0.27

A total of 283 grab samples were also collected from outcrops and hand pits. Results are as follows:

16 samples were higher than 0.10%, highlights include, 0.65 % U₃0₈ and1.55 % V₂O₅, 0.61 % U₃0₈ and 0.80 % V₂O₅, 0.53 % U₃0₈ and 1.32 % V₂O₅, 0.25 % U₃0₈ and 0.65 % V₂O₅, and 0.20 % U₃0₈, 0.09 % V₂O₅
90 samples were higher than 0.01% U₃0₈
177 samples were lower than 0.01% U₃0₈

Uranium mineralization is hosted in sandstones, conglomerates and tuffs of Lower to Upper Cretaceous age of the Chubut Group located in an erosional window at the Mirasol Chico Creek. Petrified wood is commonly associated with uranium mineralization. Anomalous molybdenum values have been detected at Cerro Solo and are also present at Sierra Colonia, including 21 samples ranging from 113 to 671 ppm Mo.

The Sierra Colonia project was selected following recommendations by Dr. Jorge Berizzo, Blue Sky's geological consultant, based on the proximity of the CNEA's Mirasol uranium occurrence and similar geological setting. Blue Sky has applied for three exploration licenses totaling 300 km2. One exploration license has been fully granted with an environmental impact study approved for prospecting. The approval of the two remaining exploration licenses is pending. Blue Sky is confident that the exploration potential of the Sierra Colonia justifies drilling. Prior to drilling, Blue Sky will complete detailed geological mapping to better define the mineralized horizons and a geophysical survey to establish the depth of the Cretaceous sedimentary rocks.

Analyses of samples reported herein were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized analytical laboratory, by means of Inductively Coupled Plasma Mass Spectrometry following a four acid digestion. Blank, duplicate, and standard samples were inserted into the sample sequence sent to the laboratory for quality assurance and quality control ("QA/QC") purposes. In total, 12 quality control samples were analyzed. No significant QA/QC issues were detected.

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, Country Manager for Minera Cielo Azul S.A., a 100% owned subsidiary of Blue Sky, and Qualified Person.

¹ Source: CNEA web site with information dated June 5, 2009. The resource statement is not compliant with National Instrument 43-101.

About Blue Sky Uranium Corp.

Blue Sky is a member of the Grosso Group, a resource management group with over 18 years of exploration experience in South America. Blue Sky, through its membership with the Grosso Group, signed an agreement in principle for a strategic alliance with the Government of Rio Negro, Argentina, 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. Blue Sky is one of the country's leading uranium exploration companies with more than 6,000 km2 of tenements. 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 Blue Sky's public disclosure documents for a more detailed discussion of factors that may impact expected future results. Blue Sky 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.

The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable

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