NEWS RELEASE

Monday, October 04, 2010
Blue Sky Identifies Three New Uranium Targets with Rio Negro Regional Airborne Survey

Blue Sky Uranium Corp. (TSX-V: BSK, WKN: AOMKXP) is pleased to announce it has completed a 22,214 line km regional airborne radiometric and magnetic survey in the prospective Rio Negro basin, one of the largest known private geophysical surveys ever completed in Argentina. Three very large new uranium channel anomalies were identified by the airborne survey and Blue Sky has applied for 8 licenses, (71,765 hectares) to cover these new targets. The new uranium targets include:

� Paso Cordoba: 15 km long by 1 km wide uranium channel airborne anomaly.

� Evelina: 11 km long by 2 km wide uranium channel airborne anomaly.

� Norma: 7 km long by 1 km wide uranium channel airborne anomaly.

Blue Sky's objective in the Province of Rio Negro is to evaluate the regional potential to host additional new uranium deposits and capitalize on the Company's first mover advantage. Management is very excited by the discovery of these new large uranium targets and is currently working to expedite granting of the concessions in order to commence detailed ground exploration and evaluation of these new targets concurrent with the ongoing exploration at the Company's ANIT project. These new discoveries highlight the regional potential within the previously unexplored San Jorge basin in Rio Negro province.

For comparison purposes, when airborne data over the Company's previously-discovered ANIT and Santa Barbara zones is processed using the same parameters, ANIT forms a 16 km long by 1.5 km wide anomaly and Santa Barbara consists of three 1km wide zones with combined strike length of 20km. Maps of these radiometric anomalies are available to view on Blue Sky's web site (www.blueskyuranium.com).

Rio Negro Regional Airborne Geophysics

In April of this year Blue Sky was granted a special airborne geophysics license covering 2.265 million hectares which included all of the prospective areas for Uranium in the San Jorge sedimentary basin of Rio Negro Province, Argentina. The license allowed Blue Sky to fly high resolution airborne radiometric and magnetic surveys and Blue Sky had the exclusive rights to stake new exploration licenses on the targets identified in the survey. The contractors who completed the 22,214 line km airborne survey were global specialists APG Geophysics who used a fixed wing aircraft loaded with 3 large crystal detection packs to search for ANIT-style uranium mineralization over almost all the prospective sedimentary basin within Rio Negro. At the same time as Blue Sky was flying the regional airborne survey, the Company flew infill flight lines over Blue Sky's ANIT and Santa Barbara targets to provide back ground data for comparison purposes and to develop a validation process for analyzing and prioritizing new targets.

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

About Blue Sky Uranium Corp.

Blue Sky has, through its membership with Grosso Group Management, has signed and 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


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. 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. 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.