Skye Resources Inc.

Skye Resources Inc.

September 20, 2005 18:31 ET

Skye Increases its Interest in Fenix

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) - Skye Resources Inc. ("Skye") (TSX VENTURE:SKR) announces that its indirect interest in the Fenix Project has increased to approximately 79.5% from 70% 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 which has elected not to contribute its proportionate share of this new funding.

This increase in Skye's proportional interest took place following the first of a series of cash calls which will be made periodically to the shareholders of Skye's Guatemalan subsidiary which owns the Fenix project. When these cash calls occur, shareholders are afforded the opportunity to receive additional shares in that company by funding their proportionate share and new shares are issued only to the shareholders which elect to provide such funding.

Ian Austin, CEO of Skye said: "The Government has been very clear in its support for the Fenix Project and wishes to ensure that the project moves forward quickly for the benefit of the people of Guatemala. However, the Government does not feel that it is appropriate to invest its funds in the project and, accordingly, Skye has been providing all of the funding for the project including the drilling program and the technical and environmental studies which are required for the feasibility study for a 50 million pound ferronickel project."

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.

Contact Information

  • Skye Resources Inc.
    Ian G. Austin
    Chief Executive Officer
    (604) 602-9500
    (604) 602-9510 (FAX)