Skygold Ventures Ltd.

Skygold Ventures Ltd.

July 18, 2005 08:00 ET

Skygold Arranges $2.09 Million Private Placement to Continue Drilling on Spanish Mountain

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 18, 2005) - Skygold Ventures Ltd. ("Skygold") (TSX VENTURE:SKV) is pleased to report that it has arranged both a brokered and a non-brokered private placement to raise total gross proceeds of up to $2,090,000. The Company will issue 2,250,000 flow through shares at a price of $0.40 per share and 3,400,000 non-flow through units at a price of $0.35 per unit. Each non-flow through unit will consist of one common share and one-half transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for a period of two years at a price of $0.50.

Pacific International Securities Inc. and Leede Financial Markets Inc. (the "Agents") will act as the Agents on a portion of this offering. The Agents will receive a commission equal to 8% of the gross proceeds from the sale of their portion of the offering and they may elect to receive the commission in either cash and/or units at a deemed price of $0.35 per common share unit. The Agents will also be granted a non-transferable warrants equal in number to 12% of the number of units sold by them. The Agent's Warrants will entitle them to purchase one additional common share for a period of two years from the closing at an exercise price of $0.40 in year one and $0.55 in year two. Proceeds from the offering will be used to finance further exploration on the Spanish Mountain property and for general working capital. An 8% finders fee in cash and/or shares may be paid on the non-brokered portion of this private placement.

The Company has also negotiated a private loan for the amount $200,000 from three separate investors. The loans are for a period of one year bearing an interest rate of 12% per annum. Pursuant to TSX Venture Exchange policies, the Company has also agreed to pay the lenders an aggregate of 100,000 bonus shares at a deemed price of $0.40 per share as consideration for the loan.

Exploration crews have now mobilized to the Spanish Mountain property to begin the next phase of work. Mr. Chris Lee of SRK Consultants has been contracted to carry out a structural interpretation on the property and LDS Drilling is expected to mobilize the diamond drill to the property within the next ten days. The Spanish Mountain project is a joint venture with Wildrose Resources Ltd. in which Skygold has a 70% participating interest and Wildrose has a 30% participating interest.

This news release, required by applicable Canadian laws, is not for distribution to U.S. news wire services or for dissemination in the United States, and does not constitute an offer to sell or a solicitation of an offer to sell any of the 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. The foregoing arrangements are subject to regulatory acceptance.

On Behalf of the Board,


Doug Fulcher, President

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. 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.

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