Skye Resources Inc.

Skye Resources Inc.

August 18, 2005 15:22 ET

Skye Files Patent Applications for Atmospheric Leaching Process for Nickel Laterites

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 18, 2005) - Skye Resources Inc. ("Skye") (TSX VENTURE:SKR) announces it has filed US and international non-provisional patent applications for the atmospheric sulphuric acid leaching process of lateritic nickel ores, which it has been developing over the past 18 months.

Skye is currently preparing a feasibility study for a ferronickel operation using conventional smelting technology at its Fenix project in Guatemala. While doing this it is also undertaking a pilot plant program to test its proprietary atmospheric leach process utilizing bulk samples taken from the Fenix project. Skye is encouraged by the initial results of this test work, which is being carried out by SGS Lakefield Research Ltd. The program, which was initiated in February 2005, is scheduled for completion in November this year. The pilot plant has a capacity of 0.3 tonnes per day.

Skye's proprietary process is capable of recovering nickel and cobalt from both limonite and saprolite nickel laterites which occur together in many deposits such as Fenix. The process takes place at atmospheric pressure and at relatively low temperatures, meaning that the conditions are quite benign relative to other process technologies. It also utilizes unit operations which are conventional and well tested at other operations.

If further test work confirms the results to date, it would be hoped that the application of this process would lead to a substantial reduction in both the capital intensity and the operational complexity of processing nickel laterites.

Skye is currently in discussions with major nickel industry participants regarding their interest in working with Skye to further develop this process through the funding of a demonstration plant.

Cautionary Notices:

This press release may contain "forward-looking statements". The words "anticipate", "believe", "estimate", "expect", "hope", "intend" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's filing with the Canadian Securities regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. 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.

Inco Limited, the former 70% owner of the facilities and mineral rights that comprise the Fenix project, takes no responsibility for nor makes any representation or warranty of any kind relating to any of the estimates or any other information contained in this news release.

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

Contact Information