Skye Resources Inc.

Skye Resources Inc.

July 14, 2006 09:14 ET

Skye Provides Update on Shareholder Rights Plan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 14, 2006) - Skye Resources Inc. ("Skye") (TSX:SKR) announced today that in connection with its recently announced shareholder rights plan, the Toronto Stock Exchange (TSX) has determined to defer its consideration of acceptance for filing of the Rights Plan until August 29, 2006, or until such time as the TSX is satisfied that the OSC will not intervene pursuant to National Policy 62-202 in any take-over bid for the Corporation. A condition of acceptance of notice of the Rights Plan by TSX after the aforementioned time, among other things, would be that requisite shareholder approval be obtained within six months of the adoption of the Plan by the Corporation's board of directors on June 22, 2006.

In the meantime, the rights plan remains effective in accordance with its terms.

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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