Skye Resources Inc.

Skye Resources Inc.

March 24, 2005 13:19 ET

Skye Announces Closing of $32 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SKYE RESOURCES INC.

TSX VENTURE SYMBOL: SKR

MARCH 24, 2005 - 13:19 ET

Skye Announces Closing of $32 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 24, 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") is pleased to announce that it has closed,
subject to final TSX-V approval, the financing transaction announced on
March 7, 2005 and March 9, 2005 of 7,820,000 units at a price of $4.10
per unit, representing aggregate proceeds of approximately $32 million.
Each unit consists of one common share and one-half of one common share
purchase warrant. Each whole warrant entitles the holder to purchase one
additional common share at a price of $5.75 per share until March 24,
2007.

7,320,000 units were purchased by a syndicate of underwriters led by TD
Securities Inc., and including Canaccord Capital Corporation and Sprott
Securities Inc. A commission of 6% of the gross proceeds raised from
this portion of the offering will be paid to the underwriters. An
additional 500,000 units were purchased by Inco Limited, as announced on
March 9, 2005. All of the securities issuable in the financing are
subject to restrictions on resale until July 25, 2005.

The net proceeds of the offering will be used to fund further
development of Skye's Fenix nickel project in Guatemala, including a
feasibility study, an environmental impact study, exploration as more
particularly described in Skye's news release dated February 28, 2005
(Feasibility Study to Commence Immediately; 45,000 Meter Drill Program
Commences) reporting the receipt of a preliminary assessment from Hatch
Ltd. that can be viewed on sedar.com, and for general corporate
purposes.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Skye Resources Inc.
    Ian G. Austin
    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.