Skye Resources Inc.

Skye Resources Inc.

January 07, 2005 16:44 ET

Skye Resources Inc.: Share Issuance to Geostar Metals Inc.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SKYE RESOURCES INC.

TSX VENTURE SYMBOL: SKR

JANUARY 7, 2005 - 16:44 ET

Skye Resources Inc.: Share Issuance to Geostar Metals
Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 7, 2005) - Skye
Resources Inc. (the "Corporation") (TSX VENTURE:SKR) announces that in
connection with the completion of its acquisition from Inco Limited of a
70% interest in Exploraciones y Explotaciones Mineras Izabal S.A.
(Exmibal) on December 15, 2004, it has issued 500,000 common shares of
the Corporation to Geostar Metals Inc. ("Geostar"). The agreement for
the issuance of the shares to Geostar was disclosed by the Corporation
in a news release on December 9, 2003. All of the shares are subject to
a statutory hold period expiring April 16, 2005, and 409,650 of the
shares are subject to an additional contractual resale restriction
expiring December 16, 2005.

On October 14, 2004 the Corporation issued 27,500 common shares to a
creditor, pursuant to an agreement disclosed in a news release on
November 10, 2003.

This News Release may contain forward-looking statements including, but
not limited to, comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, and other related matters.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. The Exmibal project
is at an early stage and all estimates and projections are based on
limited, and possibly incomplete, data. More work is required before the
mineralization and the project's economic aspects can be confidently
modelled. Actual results may differ materially from those currently
anticipated. No representation or prediction is intended as to the
results of future work, nor can there be any promise that the estimates
and projections herein will be sustained in future work or that the
project will otherwise prove to be economic.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Skye Resources Inc.
    Ian Austin
    Chief Executive Officer
    (604) 602-7534
    (604) 682-3941 (FAX)
    Website: www.skyeresources.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.