Skye Resources Inc.

Skye Resources Inc.

October 19, 2005 09:00 ET

Skye Announces Further Increase in its Interest in Fenix

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 19, 2005) - Skye Resources Inc. ("Skye") (TSX VENTURE:SKR) announces that its indirect interest in the Fenix Project has increased to approximately 86% from 80% as a result of Skye's funding all of the costs associated with the Fenix project. The remaining interest is owned by the Government of Guatemala. This increase in Skye's proportional interest took place following the second of a series of cash calls which will be made periodically to the shareholders of Skye's Guatemalan subsidiary which owns the Fenix project.

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. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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