Skye Resources announces third quarter results and updates Fenix Project

    TSX Symbol: SKR

    VANCOUVER, Nov. 13 /CNW/ - Skye Resources Inc. ("Skye" or "the Company")
(TSX:SKR) today released its unaudited consolidated interim financial
statements for the three months and nine months ended September 30, 2007. The
Company is reporting for the three and nine months ended September 30, 2007 a
loss of $7,656,000 and $19,275,000 (all amounts are in U.S. dollars unless
otherwise indicated) respectively (basic and diluted loss per share of $0.17
and $0.45) compared to the 2006 comparative periods losses of $8,673,000 and
$21,526,000 (basic and diluted loss per share of $0.29 and $0.76) for the
three and nine months ended September 30, 2006. The loss for the quarter is
principally related to exploration and indirect development costs (the costs
of Skye's 98.2% owned 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 $8,609,000 of Fenix Project
direct development costs (engineering, project management team and other
direct costs) bringing the total of capitalized expenditures for the nine
months period to $22,994,000.
    During the third quarter, Skye filed a technical report (the "Updated
Technical Report") which provides an update of the results of the feasibility
study previously announced on September 25th, 2006. The Updated Technical
Report incorporates a revised power supply strategy, all-road transportation
and updated capital and operating costs reflecting the completion of basic
engineering. The basic engineering for the Fenix ferro-nickel project has been
completed by Hatch Ltd ("Hatch") and with the receipt of the construction
permit in the third quarter, Skye has received all major permits required for
the development of the Fenix ferro-nickel project.
    As part of the 2007 exploration program, drilling has been completed on
Area 216, which lies between Areas 215 and 217, both of which contain deposits
included in mineral reserves. The Company expects to receive resource
calculations for Area 216 in November which will increase mineral resources of
the Fenix project. The Company is also conducting exploration on the Montufar
exploration licence and has submitted a request for a two years extension of
the licence, which extension will be received automatically as the submission
was made before the December 2007 expiration date.
    In preparation for continuous pilot plant testing of Fenix limonite ore
by High Pressure Acid Leaching, an extensive bench-scale testing program was
completed at SGS Lakefield Research with excellent results, including nickel
extraction up to and exceeding 97%. The bench program has included development
of a new process for converting dissolved nickel to an intermediate product
suitable for smelting to ferro-nickel. Results to date for this new process
are very encouraging and testing continues. Hot commissioning of the
continuous pilot plant, designed to process about 250 kg per day of limonite,
commenced the week of October 22nd and several test campaigns are planned
through the first quarter of 2008.

    Subsequent Events

    On October 26th, 2007 Skye completed an offering of 6,210,000 units,
including the exercise of the underwriters' over-allotment option, for gross
proceeds of C$75,141,000. Each unit consists of one common share of Skye and
one-half of one common share purchase warrant of Skye, with each whole warrant
entitling the holder to acquire a further common share at an exercise price of
C$15.13 per share until January 26, 2009. The net proceeds of this financing
will be used by Skye to continue to advance the refurbishment and expansion of
the Fenix ferro-nickel project in Guatemala, to fund exploration on the Fenix
licenses, and for test work and engineering studies on the hydromet expansion
at Fenix as well as for general corporate purposes. In the fourth quarter, the
Company continues to advance its plans to complete the financing of the
project in early 2008, either through a capital markets transaction or an
agreement with potential partners.
    On October 29, 2007 Skye took the first step in implementing the revised
power supply strategy with the execution of agreements with Guatemalan
subsidiaries of Duke Energy International LLC for the supply of electrical
power and construction of a new power transmission line for the Fenix
ferro-nickel project. Approval of Guatemalan regulatory authorities for the
interconnection of the Fenix project with the Guatemalan grid is expected to
be received by the end of 2007.
    On November 6, 2007 Skye and CGN executed engineering, procurement and
construction management agreements with Hatch and the parties have commenced
detailed engineering and the placing of orders for long lead major equipment.
Site preparation, including the refurbishment of the construction camp,
continues and Skye expects to initiate full scale construction activities in
the first quarter of 2008.
    Skye's unaudited consolidated interim financial statements and
Management's Discussion and Analysis (MD&A) for the period ended September 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 first
quarter of 2008 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: Media Inquiries: Andrew Grant, Vice President,
Public Relations, Tel: (604) 602-9500,; Investor
Inquiries: David Bryson, Vice President, Finance & Treasurer, 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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