Skygold Ventures Ltd.
TSX VENTURE : SKV

Skygold Ventures Ltd.

August 10, 2005 18:37 ET

Skygold Closes $2.18 Million Dollar Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Skygold Ventures Ltd. (the "Company") (TSX VENTURE:SKV) announces that both the brokered and non-brokered private placement, previously announced on July 15, 2005, have closed. The Company has issued 2,260,250 flow through shares at a price of $0.40 per share and 3,673,285 non flow through units at a price of $0.35 per unit to raise gross proceeds of $2,189,750. Each non flow through unit consists 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") acted as Agents with respect to a portion of the private placement. The Company paid cash commissions of $64,250 and issued 132,634 commission units (having the same terms as the private placement units) at a deemed price of $0.35 per unit. The Company also issued 448,594 Agents Warrants pursuant to the agency agreements. The Agent's Warrants will entitle the holder to purchase one common share for a period of two years from the closing date 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.

The shares and any shares issued pursuant to the exercise of the warrants are subject to a hold period expiring December 10, 2005.

The Company has also issued 100,000 shares as a bonus for loans to the company. These shares are subject to a hold period expiring on December 10, 2005.

On Behalf of the Board,

SKYGOLD VENTURES LTD.

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. 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.

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