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Those commands should work:

apt-get install -y ubuntu-cloud-keyring
echo "deb http://ubuntu-cloud.archive.canonical.com/ubuntu precise-updates/grizzly main" >> /etc/apt/sources.list.d/cloud-archive.list
apt-get update

Which Ubuntu version you are using?

Those commands should work:work (Ubuntu 12.04 LTS):

apt-get install -y ubuntu-cloud-keyring
echo "deb http://ubuntu-cloud.archive.canonical.com/ubuntu precise-updates/grizzly main" >> /etc/apt/sources.list.d/cloud-archive.list
apt-get update

Which Ubuntu version you are using?

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integrated the answers from the comments

Those commands should work (Ubuntu 12.04 LTS):

apt-get install -y ubuntu-cloud-keyring
echo "deb http://ubuntu-cloud.archive.canonical.com/ubuntu precise-updates/grizzly main" >> /etc/apt/sources.list.d/cloud-archive.list
apt-get update

Which Ubuntu version you are using?If that is not enough, clean the apt cache:

 rm -r /var/lib/apt/lists/partial/*

and then try to upgrade again:

  apt-get update && apt-get upgrade

You may want to remove also the files from /etc/apt/sources.list.d/ and run apt-get update again.