Blue Sky is focusing its uranium and vanadium exploration efforts on southern Argentina, with 100% control of more than 450,000 hectares of mining tenures. The Company believes that the region is underexplored, with excellent potential for near-surface uranium and vanadium resources with rapid, low-cost development potential. The Company’s Amarillo Grande Uranium-Vanadium Project in Rio Negro is a new district-scale uranium discovery and includes the country’s largest NI 43-101 resource estimate for uranium, with a significant vanadium credit.

The Argentine Federal Government has made public its support for the development of a domestic uranium supply to support the plans for expanding the nuclear energy capacity of the country, providing an excellent potential first customer for any new operation. The World Nuclear Association reports that:

• Argentina has three nuclear reactors generating about one-tenth of its electricity.
• Its first commercial nuclear power reactor began operating in 1974.
• The construction of two additional reactors is planned.
• Construction has started on a small locally-designed power reactor prototype.
• Nuclear Energy requirements are expected to increase by 2.5 times by 2025, representing a potential consumption of approximately 1.25 million pounds of U3O8 annually.
• All uranium used by the Argentine nuclear industry is currently sourced from outside the country.

Blue Sky’s uranium projects were selected with the assistance of Dr. Jorge Berizzo for their potential to host economic uranium deposits. Dr. Berizzo has extensive experience in uranium exploration and production, obtained as a senior exploration geologist, and later as mine manager, for the Argentinean National Atomic Energy Commission ("CNEA"), as well as privately owned companies. Dr. Berizzo also played a leading role in the discovery of the Cerro Solo uranium deposit in Chubut province, Argentina.

Rio Negro Province

In the province of Rio Negro, there is broad support and experience with the nuclear energy industry. The province has a research nuclear reactor and a heavy water fuel plant, and provides incentives to the mining industry for uranium.

The focus of the Company's exploration activities is at the district-scale Amarillo Grande Uranium-Vanadium Project; which comprises approximately 300,000 hectares of 100% controlled mining properties. Within the Amarillo Grande project the Ivana deposit hosts the largest NI 43-101 uranium (+ vanadium) mineral resource in the country.The Preliminary Economic Assessment announced in February 2019 demonstrates robust economics for a surficial mining operation of Ivana, with 13 years of uranium and vanadium production.

Chubut Province

Situated directly south of Rio Negro, Chubut hosts several uranium deposits, however, none are currently in production and the provincial government has enacted restrictions against open-pit mining. The Company’s projects in this area, Sierra Colonia, Tierras Coloradas, Regalo and Cerro Parva, comprising more than 150,000 hectares of 100% controlled mining properties, are located in similar geologic environments to CNEA’s Cerro Solo uranium deposit. CNEA is developing feasibility studies for the mining of Cerro Solo. (source: World Nuclear Association Jul 2016).