Skye Resources Inc.
TSX : SKR

Skye Resources Inc.

November 20, 2006 14:45 ET

Skye Files Technical Report for Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 20, 2006) - Skye Resources Inc. (TSX:SKR) ("Skye") announces that it has filed on SEDAR, www.SEDAR.com, a technical report (the "Technical Report") required under National Instrument 43-101 in respect of the Feasibility Study for the ferro-nickel smelting project at its Fenix nickel property in Guatemala. The Technical Report also covers the Preliminary Assessment for an expansion project using hydrometallurgical processing, which is incorporated into the Feasibility Study. The results of the Feasibility Study and Preliminary Assessment were announced in Skye's September 25, 2006 news release. The Feasibility Study and incorporated Preliminary Assessment are available in full at Skye's website, www.skyeresources.com.

The Preliminary Assessment includes an assumption concerning the upgrading of inferred resources, but such inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the projections for these inferred mineral resources will be realized. The Preliminary Assessment is preliminary in nature and assumes that some inferred mineral resources can be used in the ferro-nickel process to replace the measured and indicated resources re-assigned to the hydro-metallurgical process. Skye estimates that it will take a minimum of two to three years to construct and evaluate a pilot plant and complete a pre-feasibility study and a feasibility study, within the meaning of those terms in NI-43-101, before Skye can make any decision to implement the hydro-metallurgical process outlined in the Preliminary Assessment and the Preliminary Assessment assumes that the hydro-metallurgical process will not commence until year four of the operations of the ferro-nickel process. The hydro-metallurgical process outlined in the Preliminary Assessment and the ferro-nickel process outlined in the Feasibility Study are at this stage separate, stand-alone mineral processing scenarios, and the mine plan and schedule in the Feasibility Study would have to be revised if a decision were made to combine the two processes; therefore the results of the economic analyses on the two processes are not additive.

The Canadian Securities regulatory Authorities have provided exemptive relief from certain provisions of National Instrument 43-101 with respect to the filing of the Technical Report.

The feasibility study and incorporated preliminary assessment (the "study") 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 the study represent Skye's views as of the date of the study. 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 study. 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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