Skye Resources Inc.

Skye Resources Inc.

August 30, 2006 18:37 ET

Skye Resources Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 30, 2006) - Skye Resources Inc. (TSX:SKR) ("Skye") today confirmed that it expects to complete the feasibility study for a 50 million pound per year ferronickel operation at its Fenix nickel project in Guatemala by late September 2006, and to be in a position to make a decision to begin construction in the fourth quarter. The Company, with its project finance advisor Cutfield Freeman & Co Ltd., is continuing discussions with project financiers and is encouraged by the response. However, prior to making a financing decision the Board wishes to have considered all strategic options and has requested its financial advisor TD Securities Inc. to review, among other options, the potential sale or merger of the Company.

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. 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 the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

Contact Information

  • Skye Resources Inc.
    Ian G. Austin
    President & Chief Executive Officer
    (604) 602-9500