Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

December 07, 2006 15:03 ET

Inco Notifies Skye It Will Not Exercise Pre-Emptive Right

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) -

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Skye Resources Inc. ("Skye") (TSX:SKR) today announced that it has received notice from Inco Limited ("Inco"), a subsidiary of CVRD Canada Inc., that Inco will not be exercising its pre-emptive financing right to participate in Skye's $80 million financing announced yesterday (see news release dated December 6, 2006 entitled Skye Sets Terms of Financing and Signs Underwriting Agreement).

About Skye

Skye is an international mining company focused on becoming a new mid-tier nickel producer. Skye acquired the rights to its Guatemalan lateritic nickel project (the Fenix Project) in December 2004 and in September 2006 received the results of a feasibility study for a ferro-nickel operation project at Fenix using proven conventional smelting technology.

Cautionary Notices:

This news release contains certain forward-looking statements that involve risks and uncertainties, such as statements of Skye's plans, objectives, strategies, expectations and intentions. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to Skye, or its management, are intended to identify such forward-looking statements. Many factors could cause Skye's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forwardlooking statements. The forward-looking statements included in this news release represent Skye's views as of the date of this news release. While Skye anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing its views as of any date subsequent to the date of this news release. All subsequent written and oral forward-looking statements attributable to Skye or persons acting on its behalf are expressly qualified in their entirety by this notice.

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