Skye Resources announces second quarter results

    TSX Symbol: SKR

    VANCOUVER, Aug. 10 /CNW/ - Skye Resources Inc. ("Skye" or "the Company")
(TSX:SKR) today released its unaudited consolidated interim financial
statements for the three months and six months ended June 30, 2007. The
Company is reporting for the three and six months ended June 30, 2007 a loss
of $5,888,000 and $11,619,000 respectively (basic and diluted loss per share
of $0.13 and $0.27) compared to the 2006 comparative periods losses of
$5,792,000 and $12,853,000 (basic and diluted loss per share of $0.20 and
$0.46) for the three and six months ended June 30, 2006. The loss for the
quarter is principally related to exploration and indirect development costs
(the costs of Skye's Guatemalan subsidiary, Compania Guatemalteca de Niquel,
S.A. ("CGN")), for Skye's Fenix nickel laterite project in Guatemala and
general and administrative costs and non-cash stock-based compensation
expense. In the quarter the Company capitalized US$10,194,000 of Fenix Project
direct development costs (engineering, project management team and other
direct costs) bringing the total of capitalized expenditures for the six
months period to US$14,385,000.
    During the quarter CGN received approvals for the environmental impact
assessments relating to the processing plant and related activities at the
Fenix Project and received confirmation from the Ministry of Economy that
imports of equipment and materials will not be subject to import duties or
value added tax. CGN received the construction permit in July. Basic
engineering is almost complete subject to Skye's internal reviews and risk
analysis. Skye is on schedule to initiate production in late 2009.
    David A. Huggins, Chief Operating Officer, has advised the Board of
Directors that, after a forty-four year career in the mining industry, he
plans to retire by February 28, 2008 but expects to be available for a period
of time thereafter in an advisory capacity. In order to facilitate a smooth
succession, action is being taken to identify and secure an appropriate
candidate to fill that position.
    Skye's unaudited consolidated interim financial statements and
Management's Discussion and Analysis (MD&A) for the period ended June 30, 2007
will be filed on SEDAR and available for download at

    About Skye

    Skye is an international mining company focused on becoming a new
mid-tier nickel producer. Skye acquired the rights to its Guatemalan lateritic
nickel project (the Fenix project) in December 2004 and in October 2006
completed a feasibility study for a ferro-nickel project at Fenix using proven
conventional smelting technology. In June 2007 Skye received its environmental
permits for the project, and expects to initiate construction during the
second half of 2007 with initial production in late 2009.

    Cautionary Notices:

    This news release contains certain forward-looking statements that
involve risks and uncertainties, such as statements of Skye's plans,
objectives, strategies, expectations and intentions. The words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions, as they relate to Skye, or its management,
are intended to identify such forward-looking statements. Many factors could
cause Skye's actual results, performance or achievements to be materially
different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements. The forward-looking
statements included in this news release represent Skye's views as of the date
of this news release. While Skye anticipates that subsequent events and
developments may cause its views to change, it specifically disclaims any
obligation to update these forward-looking statements. These forward-looking
statements should not be relied upon as representing its views as of any date
subsequent to the date of this news release. All subsequent written and oral
forward-looking statements attributable to Skye or persons acting on its
behalf are expressly qualified in their entirety by this notice.

For further information:

For further information: Andrew Grant, Vice President, Public Affairs,
Tel: (604) 602-9500,; Martti Kangas, Investor
Relations, The Equicom Group, Tel: (416) 815-0700 x 243,; David Feick, Investor Relations, The Equicom Group,
Tel: (403) 538-4787,

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