Skye Resources Inc.

Skye Resources Inc.

November 06, 2007 19:00 ET

Skye Announces EPCM Contract with Hatch

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 6) - Skye Resources Inc. ("Skye") (TSX:SKR) today announced that it has entered into contracts with Hatch Ltd. (Hatch) for the provision of engineering, procurement and construction management (EPCM) services to the Fenix ferro-nickel project.

The EPCM contracts are a continuation of Hatch's extensive involvement in the Fenix project. Since finalizing the feasibility study for the ferro-nickel project in late 2006, Hatch has completed the basic engineering, prepared the control estimate, made significant progress with detailed engineering, placed orders for major critical components and initiated site preparation with a view to mobilizing the construction crews on site early in 2008.

In addition to its detailed knowledge of the Fenix project, Hatch brings a proven expertise in nickel smelting technology, and a record of successful execution of EPCM assignments of this type, with plant upgrades and retrofits representing a major part of Hatch's history.

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 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.

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