Skye Resources Inc.
TSX : SKR

Skye Resources Inc.

December 12, 2007 14:57 ET

Skye Resources Appoints Morgan Stanley to Finance Fenix Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 12) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Skye Resources Inc. ("Skye") (TSX:SKR) is pleased to announce that it has retained Morgan Stanley & Co. Incorporated ("Morgan Stanley") as the lead arranger for all financing relating to the development of Skye's Fenix ferro-nickel project in Guatemala. Morgan Stanley and Skye are advancing the debt financing arrangements for the project, with the objective of having the project fully funded in early 2008. Morgan Stanley also will work closely with Skye's other financial advisors, TD Securities Inc. and Cutfield Freeman & Co. There is no assurance that the exploration of financing alternatives will result in a transaction and Skye does not expect to disclose additional details unless and until its Board of Directors has approved a specific transaction.

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 first quarter of 2008 with initial production in late 2009. www.skyeresources.com.

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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