Skye Resources Inc.

Skye Resources Inc.

October 26, 2007 08:55 ET

Skye Announces Closing of Previously Announced Unit Offering and Exercise of Over-Allotment Option

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2007) -


Skye Resources Inc. ("Skye") (TSX:SKR) is pleased to announce that it has closed its offering of 5,400,000 units ("Units") of Skye at a price of $12.10 per Unit and that the over-allotment option for a further 810,000 Units has been exercised. Total gross proceeds were $75,141,000. Each Unit consists of one common share of Skye and one-half of one common share purchase warrant of Skye, with each whole warrant entitling the holder thereof to acquire a further common share at an exercise price of $15.13 per share until January 26, 2009.

TD Securities Inc. acted as the lead underwriter in connection with the offering, with CIBC World Markets Inc., UBS Securities Canada Inc., Merrill Lynch Canada Inc., BMO Nesbitt Burns Inc., Canaccord Capital Corporation, Scotia Capital Inc., Orion Securities Inc., and Paradigm Capital Inc., comprising the remainder of the syndicate.

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 October 2006 completed a feasibility study for a ferro-nickel project at Fenix using proven conventional smelting technology. In June 2007 Skye received its environmental permits for the project, and expects to initiate construction during the first quarter of 2008 with initial production in late 2009.

Cautionary Notices:

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities mentioned herein in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable securities laws or an exemption from such registration is available.

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 forward-looking 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 the 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.

Contact Information