The company has received permits from the Rio Negro Government for mechanized exploration on the concessions covering the ANIT target and planning is underway for a Phase I drilling and trenching program in early 2010.

To date on the ANIT project the company has identified a 6km long zone of near surface uranium-vanadium mineralization through a series of 83 hand-excavated pits. These pits had an average grade of 0.045% U3O8 with an average thickness of the mineralized interval 1.7m and were dug within a 15km long uranium channel airborne radiometric anomaly. The target remains open to depth and along strike.

At this early stage of exploration, Blue Sky Uranium interprets the ANIT anomaly to be a paleochannel- or surficial-type uranium occurrence similar in style to known deposits in Western Australia (Lake Maitland NI 43-101 compliant inferred resource of 23.7 million lbs U3O8 at an average grade of 0.033% U3O8, and in Namibia (Langer Heinrich deposit with Measured and Indicated Resources of 56.4Mt grading 0.06% containing 72.4 million pounds lbs of U3O8 and Inferred Resources of 70.7Mt grading 0.06% containing 91.6 million lbs of U3O8.

ANIT Radon Results

Blue Sky Uranium’s exploration team recently completed a 65 line kilometre radon gas survey on the ANIT 1 and 2 properties that cover the main ANIT anomaly. A total of seven lines spaced around 2,200m apart were completed with radon cups placed every 100m (see Figure). About 650 discrete radon gas detection points were measured.

Radon gas is produced by the decay of uranium minerals and can migrate through porous covering sediments. With a half life of roughly three days, detection of anomalous radon gas is a strong indicator of uranium mineralization concealed beneath shallow cover, which cannot be detected by radiometric surveys.

Of the seven north-south radon lines completed, three lines crossed over and extended up to 7km on either side of the known east-west orientated ANIT uranium-vanadium mineralized paleochannel. As expected, where the radon lines crossed the known mineralization, anomalous radon values of 6,000 to 8,000 picocuries per litre (cp/l) were detected. The survey detected at least nine other similar scale anomalies in new areas with values ranging between 5,000 to 9,000 cp/l. Background values over the property are below 1,000 and typically 100 to 400 cp/l. One of the most significant radon anomalies is contiguous to and extends 800m to the south of ANIT West mineralization where 8 continuous radon samples have average values of 5,000 and maximum value 6,600 cp/l. In this area recent hand auger drilling (described below) discovered buried uranium-vanadium mineralization.

Testing of these newly identified radon targets will be incorporated into the planning for a Phase I drill program planned for early 2010 which will primarily focus on the ANIT West and Central targets.

ANIT Auger Results

Recent hand auger drilling at ANIT West and Central from the base of previously-completed hand excavated pits discovered both depth extensions to previously reported mineralized pits and potential new mineralized zones. Of the 41 pits selected for augering, 29 had previously encountered mineralization greater than 1m at 0.005% (50 ppm) U. In 20 of these pits (34 samples) the mineralization was extended between 0.5 and 2.8m with average extension of 0.85m at 0.032 % U3O8 (270 ppm U) and 0.046% V. Of 12 pits with no previous mineralization, uranium mineralized material was encountered in the last sample of 3 auger extensions.

Augering from the base of Pit 225 (the highest-grade and thickest previously-reported mineralized interval with 3m averaging 0.849 % U3O8 (7200 ppm U) and 0.20% V) extended the mineralization a further 2.8m at an average grade of 0.033 % U3O8 (280 ppm U) and 0.04% V for a combined interval of 5.8m thickness averaging 0.436 % U3O8 (3700 ppm U) and 0.12% V.

In the area south of ANIT West where new radon anomalies indicate buried mineralization, previous pits 212 and 213 had no mineralization greater than 0.005% (50 ppm) U. Augering from the base of these pits has encountered U and V mineralization in the deepest auger samples. Pit 212 has 0.011% U3O8 (90 ppm U) and 0.124% V between 2.3 and 2.7m and pit 213 has 0.019% U3O8 (160 ppm U) and 0.037% V between 3.5 and 4m depth.

Analysis of samples reported herein were performed by Alex Stewart Assayers, in Mendoza Argentina, an internationally recognized analytical services provider, by means of Inductively Coupled Plasma Mass Spectrometry following a four acid digestion (ICP-AR). The samples collected from the pits and auger were 0.5m samples. Blank, duplicate, and internal company standard samples were inserted into the sample sequence sent to the lab for quality assurance/quality control (QA/QC) purposes. Blue Sky Uranium detected no significant QA/QC issues during review of the data. Note that 10,000 ppm = 1% and 1% = 1.1792% U3O8.