Skygold Ventures Ltd.
TSX VENTURE : SKV

Skygold Ventures Ltd.

March 20, 2006 14:08 ET

Skygold Announces $9.9 Million Financings

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 20, 2006) -

NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Skygold Ventures Ltd. (TSX VENTURE:SKV) (the "Company") is pleased to announce that it has entered into an agreement with a syndicate of agents led by Pacific International Securities Inc., and including Salman Partners Inc. (the "Agents") to raise, on a commercially reasonable efforts basis, up to $6,450,000 (the "Offering"). The Offering will consist of the issuance of up to 2,500,000 flow-through units (the "FT Units") and up to 2,000,000 non-flow-through units (the "Units") of the Company.

The Company will concurrently offer, on a non-brokered basis, up to 500,000 flow-through units and up to 2,000,000 non-flow-through units, having the same terms as the FT Units and Units of the Offering, for gross proceeds of up to $3,450,000.

Doug Fulcher, President of Skygold states, "This financing allows the Company to aggressively explore the Spanish Mountain property. Starting in April, we plan to drill over 30,000 metres at the main zone with the intent to significantly expand the known area of mineralization. In addition, the funds will also allow the Company to explore other areas of the property which historically have received little attention."

Each FT Unit will be offered at a price of $1.50 and will consist of one flow-through common share and one half of one common share purchase warrant, with each whole warrant exercisable at a price of $1.60 per common share for a period of 18 months following the close of the Offering. Each Unit will be offered at a price of $1.35 and will consist of one non-flow-through common share and one half of one common share purchase warrant, with each whole warrant exercisable at a price of $1.60 per common share for a period of 18 months following the close of the Offering.

As consideration for acting as agent, the Company has agreed to pay to the Agents a commission of 8%, payable, at the election of the Agent, in any combination of cash or units having the same terms as the Units of the Offering. In addition, the Company will pay the Agents compensation options equal in number to 10% of the aggregate number of Units and FT Units sold under the Offering, which will entitle the Agents to purchase, at an exercise price equal to $1.60, one common share for a period of 18 months following the closing.

Finders fees on the same terms as the Agents' compensation may be payable on part of the non-brokered portion of the private placement.

The flow-through funds raised from the issuance of the FT Units will be used for general exploration expenditures on the Company's Spanish Mountain project, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2006 taxation year.

Proceeds arising from the sale of the Units will also be used for exploration of the Spanish Mountain property and for general working capital purposes. The offering is subject to TSX Venture Exchange approval. All securities issued in connection with this offering will be subject to a four-month hold period in accordance with securities regulation.

About Skygold Ventures Ltd.:

Skygold Ventures is a Vancouver-based resource company exploring for precious metals in North America. Skygold's Spanish Mountain property, located near the historic town of Likely in south-central British Columbia, is one of the top gold prospects of the Cariboo region. The Spanish Mountain project is a joint venture between Skygold and Wildrose Resources Ltd. Skygold owns a 70% interest and Wildrose holds a 30% participating interest. For more information visit: www.skygold.ca.

On Behalf of the Board,

SKYGOLD VENTURES LTD.

Doug Fulcher, President

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.


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

Contact Information