Skye Resources Inc.

Skye Resources Inc.

July 03, 2007 09:00 ET

Skye Resources Announces Receipt of Construction Permit for Fenix Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2007) - Skye Resources Inc. ("Skye") today announced that its Guatemalan subsidiary, Compania Guatemalteca de Niquel, S.A. (CGN), has received the construction permit for its Fenix ferro-nickel project. With receipt of this permit, and having received approval of the Environmental Impact Assessments for the project earlier in the quarter, and confirmation from the Ministry of Economy that imports of equipment and materials will not be subject to import duties or value added tax, CGN has now initiated work on the project site, including rehabilitation of the camp and office facilities for use during construction.

Basic engineering is already more than 50% complete and it is intended to place orders for key equipment during the third quarter. Currently over 400 people are employed at the project and this is expected to increase to about 600 by the end of 2007.

About Skye

Skye is an international mining company focused on becoming a new mid-tier nickel producer. Skye acquired the rights to its Guatemalan lateritic nickel project (the Fenix project) in December 2004 and in October 2006 completed a feasibility study for a ferro-nickel project at Fenix using proven conventional smelting technology. In June 2007 Skye received its environmental permits for the project, and expects to initiate construction during the second half of 2007 with initial production in late 2009.

Cautionary Notices:

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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