Skye Resources Inc.

Skye Resources Inc.

March 09, 2005 17:51 ET

Inco to Participate in Skye Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SKYE RESOURCES INC.

TSX VENTURE SYMBOL: SKR

MARCH 9, 2005 - 17:51 ET

Inco to Participate in Skye Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 9, 2005) - Skye
Resources Inc. (TSX VENTURE:SKR)

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES.

Skye Resources Inc. ("Skye") announces that Inco Limited ("Inco") has
notified Skye that it intends to acquire 500,000 Units as part of its
pre-emptive right to participate in Skye's $30 million financing
announced on March 7, 2005. Each Unit consists of one Skye common share
and one half of a common share purchase warrant, with a full warrant
entitling the holder to acquire one common share from Skye for a price
of C$5.75 for a period of 24 months from closing. The Units issued to
Inco will increase the size of the offering to C$32 million. Inco will
own 10.3 % of the total issued and outstanding common shares of Skye
calculated after the closing of the offering.

All of the securities issuable in the financing are subject to
restrictions on resale for a period of four months from closing. Closing
of the financing is subject to regulatory approval.

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Contact Information

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