Skye Resources provides update on Fenix project

Skye Resources Inc. released an update on its Fenix project and its audited consolidated financial statements for the year ended December 31, 2007.

2007 Highlights

Skye achieved several important milestones in 2007, significantly advancing the Fenix ferro-nickel project:

- Met the option conditions in the master agreement with Vale Inco Limited to make unconditional the 2004 acquisition of 70% of Compania Guatemalteca de Niquel, S.A. (“CGN”), which owns the Fenix project.

- Received formal approvals from the Guatemalan Government of the environmental impact assessments for Fenix and the construction permit. All major permits required for the development of the ferro-nickel project are now in place.

- Signed a letter of intent with the Government of Guatemala in which CGN agreed to the payment of additional royalties on a sliding scale at prices above US$7.00 per pound of nickel. Skye increased its interest in CGN to approximately 98.2% as the Company met cash calls of CGN to fund Fenix project costs.

- Filed an updated technical report in September updating the feasibility study, including updated capital and operating costs based on the completion of basic engineering by Hatch Ltd. (“Hatch”).

- Signed agreements for the supply of electrical power and construction of a new power transmission line for the Fenix project with Guatemalan subsidiaries of Duke Energy International LLC. Approval has been received from Guatemalan regulatory authorities for the interconnection of the Fenix project with the Guatemalan grid.

- Signed engineering, procurement and construction management contracts with Hatch. Detailed engineering commenced and orders for critical major equipment were placed.

- Renewed the Niquegua Montufar II exploration license for two years, to the end of 2009.

- Carried out an exploration program on Area 216 resulting in an increase in the measured and indicated mineral resources. Area 216 is in the region of the mineral reserves for the Fenix ferro-nickel project.

- Completed pilot plant testing of a high pressure acid leaching (“HPAL”) process to treat limonite from the Fenix deposits early in 2008. The Company believes that this successful test work demonstrates the technical viability of recovering nickel and cobalt from Fenix limonite with a HPAL process.