Skye Resources Inc.
TSX : SKR

Skye Resources Inc.

December 13, 2006 09:45 ET

Skye Announces Closing of Previously Announced Unit Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 13, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Skye Resources Inc. ("Skye") (TSX:SKR) is pleased to announce that it has closed its offering of 7,450,000 units ("Units") of Skye at a price of $10.75 per Unit for total gross proceeds of Cdn$80,087,500 (the "Offering"). Each Unit consists of one common share (each, a "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 $12.36 per share until March 13, 2008.

TD Securities Inc. acted as the lead underwriter in connection with the Offering, with BMO Nesbitt Burns Inc., CIBC World Markets Inc., Paradigm Capital Inc., National Bank Financial Inc. and Orion Securities Inc. comprising the remainder of the syndicate (collectively, the "Underwriters"). The Underwriters have also been granted an option to purchase up to an additional 1,117,500 Units for market stabilization and over-allotment purposes. This option may be exercised in whole or in part until January 12, 2007.

About Skye

Skye is an international mining company focused on becoming a new mid-tier nickel producer. The Company 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 project at Fenix using proven conventional smelting technology.

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 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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