Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

November 22, 2006 11:32 ET

Skye Announces Filing of Preliminary Prospectus

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 22, 2006) -

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

Skye Resources Inc. ("Skye") (TSX:SKR) today announced that it has filed a preliminary short form prospectus with Canadian securities regulators relating to a proposed public offering of units, each unit to comprise one common share and one-half of a common share purchase warrant of Skye.

TD Securities Inc. is acting as lead underwriter and bookrunner of the offering. The underwriting syndicate also includes BMO Nesbitt Burns Inc., CIBC World Markets Inc., Paradigm Capital Inc., National Bank Financial Inc. and Orion Securities Inc. Skye expects to raise gross proceeds of at least Cdn. $80 million from the marketed offering.

Net proceeds from the offering will be used by Skye to initiate the development of the Fenix Project; for exploration at Fenix and other nickel properties, for further engineering studies on the hydromet expansion at Fenix, including work on Skye's proprietary sulphation atmospheric leaching process, and for general corporate purposes.

Pursuant to the terms of a share purchase master agreement between Skye and Inco Limited ("Inco"), a subsidiary of CVRD Canada Inc., Inco has the right to participate in this financing to maintain its pro rata equity interest in Skye (currently, approximately 11.96%). Inco must exercise this right within 24 hours after being notified of the specific terms of this financing.

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 operation 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 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 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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