Skye Resources Inc.

Skye Resources Inc.

September 19, 2006 14:40 ET

Skye's Project Unaffected by Land Occupation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 19, 2006) - Skye Resources Inc. (TSX VENTURE:SKR) ("Skye") confirms that a number of Mayan Indian families have occupied lands associated with Skye's Fenix project, with the intention of establishing subsistence farming communities. The three parcels of land they have occupied lie in a valley a considerable distance from the Fenix nickel deposits. The situation on the ground is peaceful and is not affecting project activities, including the ongoing drill program. The Company has attempted to hold discussions with representatives of the groups but was not successful. The Company will continue to seek dialogue and is also pursuing legal avenues.

Over the past two years, Skye commenced a number of on-the-ground activities including participation in the Center for Social Responsibility within Guatemala, and the formation of a formal community relations team. This team includes seven native Q'eqchi' members who visited 30 communities in the region to assess local concerns. Skye has also helped form Raxche (Green tree of hope) an organization that is focused on improving local health and education. Among the early accomplishments of Raxche are farming projects and the refurbishment of a local school and hospital.

The Fenix project will meet all key international benchmarks in particular the Equator Principles. The project will comply with all relevant Guatemalan laws and the International Finance Corporation (IFC) Performance Standards.

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