Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

August 17, 2006 09:28 ET

Skye Announces Filing Technical Report for Resource Estimates

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2006) - Skye Resources Inc. ("Skye") (TSX:SKR) is pleased to announce that the technical report in support of its July 4, 2006 press release on new resource estimates is available for download at www.sedar.com. The technical report has been prepared by independent qualified persons from Snowden Mining Industry Consultants Inc. and Golightly Geoscience Ltd. in accordance with National Instrument 43-101 and CIM Standards on Mineral Resources and Mineral Reserves Definitions.



FENIX MINERAL RESOURCES

Feasibility Study Other Deposits
Estimates(1) Estimates(2) Total

--------------------------------------------------------------------------
Tonnes Nickel Cobalt Tonnes Nickel Cobalt Tonnes Nickel Cobalt
(mil) % % (mil) % % (mil) % %

Saprolite
Measured 6.6 2.01 (i) 8.7 1.79 (i) 15.3 1.88 (i)
Indicated 20.9 1.80 (i) 27.1 1.82 (i) 48.0 1.81 (i)
---- ---- ----- ---- ---- ---- ---- ---- -----
Measured &
Indicated 27.5 1.85 (i) 35.8 1.81 (i) 63.3 1.83 (i)

Inferred 7.0 1.65 (i) 48.2 1.64 (i) 55.2 1.64 (i)

Limonite
Measured 32.3 1.18 0.119 (i) (i) (i) 32.3 1.18 0.119
Indicated 0.8 1.12 0.112 (i) (i) (i) 0.8 1.12 0.112
---- ---- ----- ---- ---- ---- ---- ---- -----
Measured &
Indicated 33.1 1.18 0.119 (i) (i) (i) 33.1 1.18 0.119
Inferred(+) 7.4 1.10 0.095 17.3 1.30 0.099 (+) (+) (+)

(1) 1.50% Ni cut-off saprolite; 1.25% Ni equivalent cut-off limonite
where Ni equivalent equals Ni + 3 Co.

(2) 1.60% Ni cut-off saprolite; 1.60% Ni equivalent cut-off limonite
where Ni equivalent equals Ni + 3 Co.

(i) Not reported

(+) Not totalled due to large difference in cut-off grades


The technical report corrects a minor error made in the press release for the indicated resources in previous estimates of other Fenix deposits not evaluated by Snowden. The corrected resource table is re-produced above for additional clarity.

Cautionary Notices

This news release and the technical report referred to in it may contain forward-looking information and statements including but not limited to mineral resource estimates and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Fenix Project is at an early stage and all estimates and projections are based on limited, and possibly incomplete, data. More work is required before the mineralization and the Project's economic aspects can be confidently modeled. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the Project will otherwise prove to be economic. 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 the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

Inco Limited, the former 70% owner of the facilities and mineral rights that comprise the Fenix project, takes no responsibility for nor makes any representation or warranty of any kind relating to any information contained in this news release.

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 is currently undertaking a feasibility study for a 50 million pound per year ferro-nickel operation using proven conventional smelting technology.

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