SKN Resources Ltd.

SKN Resources Ltd.

March 29, 2005 09:00 ET

SKN Resources Ltd.: Bonanza Grade S14, S16E, and S16W Veins Continue to Expand through Tunneling at the Ying Silver Project, Henan Province, China


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SKN RESOURCES LTD.

TSX VENTURE SYMBOL: SRL

MARCH 29, 2005 - 09:00 ET

SKN Resources Ltd.: Bonanza Grade S14, S16E, and S16W
Veins Continue to Expand through Tunneling at the Ying
Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2005) - SKN
Resources Ltd. ("SKN") (TSX VENTURE:SRL) is pleased to provide a
progress report on the Ying Silver Project, Henan Province, China for
the period from January to mid March, 2005, excluding the two week
Chinese New Year Holiday during February:

- A total of 1,050 metres ("m") of drifting, declines, and raises and
750 m of underground drilling were completed for a total of 3,550 m of
tunneling and 1,250 of underground drilling since late August 2004.

- The Second Main access tunnel CM103 has been widened for 390 meters,
providing motorized access which substantially increases hauling
capacity.

- Two declines on the S14 vein from the 518m to the 480m elevations and
one decline on the S16E and S16W veins from 555m to the 515m elevations
were developed to provide access for drifting along the three veins at
depth.

- 10 veins, S1, S2, S4, S5, S6, S14, S16E, S16W, S17 and S22 can be
accessed through main access tunnels CM103 and CM102 (see tunnel plan
map at www.sknresources.com).

- The most significant intervals encountered in the period include 0.2 m
grading 18,462 grams per tonne (g/t) or 593.57 ounces per tonne (oz/t)
silver, 58.04% lead and 0.83% zinc from a raise along S14 Vein and 0.4 m
grading 3,087 g/t or 99.25 oz/t silver , 79.6% lead and 1.61% zinc from
drift along S16W vein.

S14 Vein

The exploration work on the S14 vein during this reporting period
included 41m of drifting at the 518m elevation and 70m of raises from
the 518m elevation to test the continuity of massive galena sheets
("MGS") both horizontally and vertically. The MGS in S14 vein continues
to show excellent continuity with a 64.5% of Rate of Mineralization,
which is the length of exposed MGS versus total length of drifts or
raise completed along a vein. The accumulated average grades based on
135 channel samples from drifts, raises, and stopes of the S14 vein are
2,099 g/t silver, 47.27% Pb, and 3.61% Zn, or a silver equivalent grade
of 4,255 g/t or 136.79 oz/t with an average width of 0.36m (see "S14
vein longitude section" and photos at www.sknresources.com).

Continuing exploration work on the S14 vein includes drifting southward
at the 518 m elevation which is open in that direction, drifting at the
480m elevation and further underground drilling to further establish
down dip continuity.

S16E and S16W Veins

Tunneling along the S16E and S16W continues to show good continuity for
MGS, which in the S16E vein is exposed and confirmed by assay in 105m of
the 205m of drifting at the 555 m elevation - a 51.1% rate of
mineralization. For the S16W vein, MGS is exposed and confirmed by assay
in 545m out of 800m drifted, yielding a 68.3% rate of mineralization.
The massive galena sheets exposed by the new drifts along both veins
have shown a trend of improved grades and greater widths in comparison
to previous drifting. The accumulated average silver equivalent grade
for MGS in the S16E is 3,274 g/t (105.26 oz/t) over an average width of
0.40m, and for the S16W, is 2,832 g/t (91.07 oz/t) over an average width
of 0.43m (calculated on the basis of US$6.5/oz Ag, US$0.40/lb for Pb,
and US$0.45/lb for Zn).

Continuing exploration work on the S16E and S16W veins includes drifting
on the 555 m elevation through both main access tunnels, CM102 and CM103
(5 working faces) and drifting on the 515m elevation through two
declines.



Assay results from channel sampling completed during the recent work are
as follows:

------------------------------------------------------------------------
Distance
South
(North) Ag Ag
Minera- Eleva- of CM103 Equiv. Equiv.
lized tion Inter- Width Ag Ag Pb Zn (i) (i)
Veins (m) section (m) (g/t) (oz/t) (%) (%) (g/t) (oz/t)
------------------------------------------------------------------------
S14 570 420.5 0.80 2326 74.78 63.75 2.01 5112 164.34
568 413.0 0.20 1520 48.87 67.12 1.29 4414 141.90
567 421.0 0.10 9973 320.64 57.32 7.74 12759 410.22
565 303.5 0.10 3454 111.05 34.01 2.32 4999 160.73
563 415.0 0.10 2812 90.41 60.82 2.62 5503 176.92
560 442.0 0.10 2004 64.43 55.33 4.63 4559 146.56
555 190.1 0.10 1164 37.42 41.22 3.44 3067 98.60
553 239.5 0.40 1304 41.92 53.65 1.00 3615 116.24
549 243.0 0.30 2516 80.89 64.35 1.82 5318 170.97
543 245.0 0.30 2252 72.40 57.56 1.14 4735 152.23
539 248.5 0.40 1425 45.82 67.49 1.08 4324 139.03
538 316.0 0.10 711 22.86 8.16 7.51 1412 45.39
538 62.0 0.40 2667 85.75 73.20 0.62 5785 186.00
538 32.5 0.40 2728 87.71 52.44 2.14 5042 162.12
535 578.0 0.20 1403 45.11 19.78 2.76 2369 76.16
534 64.0 0.50 664 21.35 10.60 3.96 1299 41.77
533 418.0 0.50 628 20.19 26.50 0.57 1773 57.01
533 34.5 0.25 2087 67.10 60.65 1.55 4720 151.75
531 588.5 0.60 2055 66.07 67.60 1.90 4998 160.68
528 37.0 0.40 4682 150.53 56.53 3.21 7220 232.12
528 420.0 0.20 1430 45.98 63.03 1.45 4159 133.70
527 577.0 0.20 18462 593.57 58.04 0.83 20951 673.58
526 591.0 0.10 3010 96.77 49.96 3.37 5278 169.70
524 421.5 0.20 2540 81.66 71.11 1.80 5626 180.88
524 559.5 0.50 2282 73.37 49.26 1.14 4415 141.94
518 88.5 0.40 796 25.59 12.19 22.62 2384 76.65
518 176.8 0.50 844 27.14 54.83 6.11 3448 110.85
518 179.0 0.30 1064 34.21 49.49 8.57 3559 114.43
518 181.6 0.20 1406 45.20 52.07 3.30 3760 120.88
518 182.6 0.10 2289 73.59 50.93 0.27 4451 143.10
518 184.7 0.25 2136 68.67 46.76 0.67 4141 133.13
518 191.3 0.20 3489 112.17 54.52 3.92 5976 192.12
518 196.1 0.55 2336 75.10 58.19 1.17 4847 155.84
518 197.2 0.20 1393 44.79 54.02 0.71 3706 119.16
518 199.0 0.32 8332 267.88 32.10 8.66 10098 324.65
518 204.3 0.35 1378 44.30 39.66 1.46 3121 100.34
518 211.4 0.10 3570 114.78 52.73 2.55 5916 190.21
518 214.4 0.25 2150 69.12 58.58 2.11 4722 151.82
518 427.5 0.60 3079 98.99 59.25 3.14 5728 184.17
------------------------------------------------------------------------
Accumulated Weighted
Average of 135 Samples S14
vein 0.36 2099 67.48 47.27 3.61 4255 136.79
------------------------------------------------------------------------
S16E 580 515.0 1.10 488 15.69 8.14 11.26 1366 43.92
575 513.0 0.30 171 5.50 0.11 30.62 1629 52.38
555 674.2 0.40 1661 53.40 28.97 9.17 3319 106.70
555 676.0 0.40 2095 67.36 63.64 9.83 5247 168.70
555 681.0 0.20 538 17.30 8.65 8.94 1327 42.68
555 685.0 0.15 9564 307.49 10.03 4.63 10207 328.17
555 660.0 0.10 849 27.30 33.60 9.29 2708 87.06
------------------------------------------------------------------------
Accumulated Weighted
Average of 22 Samples from
S16E vein 0.40 1310 42.13 30.33 14.41 3274 105.26
------------------------------------------------------------------------
S16W 555 133.4 0.30 144 4.63 51.33 11.11 2837 91.23
160.7 0.70 1049 33.73 59.84 3.15 3724 119.72
165.0 0.40 784 25.21 25.90 4.84 2107 67.73
366.0 0.90 3359 107.99 38.08 5.30 5217 167.74
371.5 0.70 1692 54.40 68.76 1.69 4674 150.26
376.0 0.80 1242 39.93 25.92 7.62 2697 86.73
385.8 0.50 1241 39.90 57.56 4.60 3888 125.01
386.0 0.70 677 21.77 30.77 2.03 2072 66.61
391.0 0.40 3087 99.25 79.60 1.61 6522 209.70
396.0 0.40 643 20.67 6.53 15.10 1635 52.58
401.0 0.30 2193 70.51 25.60 7.07 3609 116.03
406.9 0.10 823 26.46 50.70 3.89 3147 101.18
431.5 0.40 2327 74.82 0.67 9.75 2818 90.61
437.4 0.25 1589 51.09 51.93 17.37 4605 148.05
442.0 0.60 669 21.51 12.58 10.27 1687 54.25
443.3 0.40 601 19.32 7.77 8.39 1327 42.67
665.0 0.80 2532 81.41 56.54 10.29 5406 173.82
670.0 0.80 2337 75.14 58.92 6.30 5122 164.69
715.6 0.30 859 27.62 11.62 28.53 2704 86.93
717.7 0.20 1392 44.75 65.31 8.42 4548 146.21
720.0 0.50 457 14.69 6.45 15.77 1478 47.51
722.3 0.30 2978 95.75 8.08 17.95 4171 134.10
723.3 0.50 1637 52.63 13.10 9.30 2631 84.60
726.0 0.20 1227 39.45 13.53 8.11 2183 70.18
729.0 0.30 442 14.21 9.60 10.91 1365 43.90
757.4 0.15 942 30.29 11.08 11.39 1950 62.70
761.0 0.80 2212 71.12 23.90 4.35 3427 110.18
771.0 1.40 603 19.39 6.44 23.40 1986 63.84
775.0 0.40 958 30.80 10.40 18.24 2263 72.75
776.0 1.10 843 27.10 36.50 7.76 2752 88.47
781.0 0.90 1757 56.49 51.30 6.21 4217 135.57
------------------------------------------------------------------------
Accumulated Weighted
Average of 101 Samples from
S16W vein 0.43 1171 37.79 28.93 11.68 2832 91.07
------------------------------------------------------------------------
(i) Silver equivalent grade is calculated on the basis of US$6.5/oz Ag,
US$0.40/lb for Pb, and US$0.45/lb for Zn


Independent Review

SKN has engaged an independent, qualified person, Mr. Chris Broili, C.P.
Geo. & L.P. Geo., to review the recent exploration progress made on the
Ying Silver project. Mr. Broili has recently re-visited the Ying
Property and will update his April 21, 2004 NI43-101 report on the Ying
project, which will include a new resource estimate based on exploration
work completed by SKN.

Quality Control

Rock samples were collected by channel sampling the face of the undercut
drifts. The channels were usually cut 10 cm in width and 5 cm in depth
producing a sample weighing approximately 2 kg to 10 kg for each 0.10 to
1.00 m interval depending on the thickness of mineralization.

The Company has implemented a quality control program to ensure best
practice in sampling and analysis of the tunnel samples. The samples are
shipped directly in security sealed bags to two labs: Analytical Lab of
No. 6 Team of Henan Non-Ferrous Metals Geological and Mineral Resources
Bureau in Luoyang located 125km by road northeast of the Ying Project
Area and the Langfang Institute of Geochemical and Geophysical
Exploration (Certification ISO 9001), a well-regarded analytical
laboratory in Langfang, Hebei Province, approximately 60 km from Beijing.

The sample preparation consists of drying, crushing and splitting of the
sample to 150 grams, then the sample is pulverized to 200 mesh. Ag, Pb
and Zn were analyzed by a 3 hour hot aqua regia digestion on 30 gram
samples with an AA finish. Check samples including field duplicates and
pulps are routinely sent to ALS Chemex Laboratories in Vancouver Canada
for assay accuracy and sample contamination.

Myles Gao, P.Geo, President of SKN, is overseeing the exploration
program at the Ying Silver project, and is the Qualified Person on the
Project.

Statements in this press release other than purely historical
information, including statements relating to the Company's future plans
and objectives or expected results, constitute forward-looking
statements. Forward-looking statements are based on numerous assumptions
and are subject to all of the risks and uncertainties inherent in the
Company's business, including risks inherent in mineral exploration and
development. As a result, actual results may vary materially from those
described in the forward-looking statements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    SKN Resources Ltd.
    Rui Feng
    Chairman & CEO
    (604) 669-9397
    (604) 669-9387 (FAX)
    info@sknresources.com
    www.sknresources.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.