Skyline Gold Corporation

Skyline Gold Corporation

October 11, 2011 09:00 ET

Skyline Gold Corporation: High Grade Gold Confirmed at Bug Lake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2011) - Skyline Gold Corporation (TSX VENTURE:SK) ("Skyline" or the "Company") is pleased to release the first set of analytical data from the 2011 exploration program. Extensive exploration has been carried out at both the Bug Lake Area ("Bug Lake") and along the Snip-Bronson Trend during the 2011 field program. The data presented in this news release details some of the more significant historical Bug Lake results as well as assay data received to date from the 2011 exploration program.

Figure 1 illustrates the relative location of the Bug Lake Area within the Iskut Property (to view click on:

Historical exploration work at Bug Lake revealed more than 17 showings, some of which report very high gold grades. Chip samples collected in 1987 at the Swamp Vein showing assayed 213.7 gold grams per tonne ("Au g/t") and 72.80 silver grams per tonne ("Ag g/t") over a true width of 1.3 metres. The mineralization in this trench was reported to be open to the northeast. Assay results from two of the better historical showings at Bug Lake are shown in Table 1.

Table 1: Historical chip sample assays from a 1987 trenching program at Bug Lake.

Location Length,
Width (m)
Au (oz/t) Au (g/t) Ag (oz/t) Ag (g/t)
No.7 Vein / Tr9 1.00 2.088 71.59 2.61 89.49
Swamp Vein /
Tr7 (open)
0.75 10.072 345.33 3.38 115.89
0.55 0.998 34.22 0.41 14.06
Swamp Vein Tr7
Weighted Average
1.30 213.70 72.80

No quality control data is available for these historical analytical data and as such these data are not National Instrument ("NI") 43-101 compliant and should not be relied upon until verified. Conversion for 1 Troy ounce per ton ("oz/t") equals 34.28571 grams per tonne ("g/t").

The work carried out at Bug Lake in 2011 focused on detailed prospecting to locate and confirm the grades reported at the numerous historical gold showings. This work included sampling as well as structural and geological mapping carried out in order to gain a better understanding of the controls and the style of mineralization. The 2011 program also completed extensive soil sampling to better define and extend soil anomalies.

Assay results have been received for roughly half of the rock samples collected this year; assays are pending for over 560 rock, chip, and channel samples. Several of these early assays from Bug Lake report exceptionally high grade gold values including 0.89 metres of 105.5 Au g/t and 128.0 Ag g/t - the four highest grade assays received so far from the 2011 work at Bug Lake are shown in Table 2.

Table 2: Four highest grade samples reporting for first half of samples collected at Bug Lake in 2011 exploration program.

Sample Length (m) Au (g/t) Ag (g/t)
0.89 105.5 128.0
Grab Sample 80.0 60.9
0.25 67.9 72.1
0.45 59.8 47.4

These initial 2011 rock sample assay results for Bug Lake confirm the presence and trends of the high-grade mineralization reported by previous operators.

A geological compilation of the Bug Lake data is underway and a more extensive release on Bug Lake assay results will be reported as the data is received. Skyline will also detail a new interpretation on the structural controls that host the mineralization at Bug Lake. It is anticipated that these data and the interpretation will be available within three to four weeks.

Quality Assurance and Quality Control

Skyline Gold Corporation utilizes standard industry practices in quality assurance and quality control ("QAQC") with insertion of blind standards, blanks and duplicates, in addition to the QAQC practiced by the assay laboratory. Sample preparation and analysis are conducted by ALS Chemex Laboratories with sample preparation in Terrace, BC and analyses of pulps in North Vancouver, BC. The geologist and Qualified Person under the terms of NI 43-101 responsible for the verification of work and data acquisition at Skyline's Bronson Project is John Zbeetnoff, P.Geo.

The Qualified Person responsible for this news release under the terms of NI 43-101 is John Zbeetnoff, P.Geo.

On Behalf of the Board of Directors

Skyline Gold Corporation

John Zbeetnoff, Chief Executive Officer

Cautionary Statements

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual events to differ materially from those projected. There are no assurances the Company can fulfil such forward-looking statements and the Company undertakes no obligation to update statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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