Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

January 20, 2006 09:00 ET

Skye Receives Fenix Mine Eia Approval

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 20, 2006) - Skye Resources Inc. (TSX VENTURE:SKR) today announced that the Guatemalan Ministry of Environment (MARN) has approved the mine environmental impact assessment (Mine EIA) for the Fenix Project. This is one of two principal requirements in order for an exploitation license to be issued for the project, a 50-million pound ferro-nickel mine in north-eastern Guatemala.

"This step is a significant milestone in our steady progress towards the restart of the mine in 2008 and offers the promise of additional opportunities for the community of El Estor and for Guatemala," said Ian Austin, President and CEO. "This validation by the Ministry is part of a continuing process with the people of Guatemala to ensure our project meets their requirements."

MARN approval of the Mine EIA satisfies one of two principal conditions to the granting by the Ministry of Energy & Mines (MEM) of the exploitation license for the Fenix Project. The other condition is the completion by MEM of a consultation process designed to comply with the requirements of International Labour Organization Convention 169 on Indigenous & Tribal Peoples (ILO 169). These consultations are in progress.

In 2005, Skye commissioned an environmental and social impact assessment (ESIA) for the Fenix Project that will comply with World Bank and Equator Principles. The ESIA is being presented in two parts at the request of MARN to comply with Guatemalan environmental regulations. The second part of the ESIA, which will cover the proposed ferro-nickel processing plant and related infrastructure, is expected to be submitted to MARN by the end of the first quarter of 2006.

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.

This News Release contains certain forward-looking statements that involve risks and uncertainties, such as statements of the Company'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 the Company, or its management, are intended to identify such forward-looking statements. Many factors could cause the Company'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. 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.

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