Skye Resources exercises Fenix option

    TSX Symbol: SKR

    VANCOUVER, March 6 /CNW/ - Skye Resources Inc. ("Skye") (TSX:SKR) today
reported that it has exercised its option to make unconditional its 2004
acquisition of the CVRD Inco Limited ("Inco") interest in the Fenix nickel
laterite project in Guatemala. As consideration, Skye has delivered to Inco
1,746,463 Skye shares and US$3.5 million.
    "The formal exercise of the option is an important step in the
development of the world class Fenix project," said Ian Austin, President &
CEO, Skye Resources Inc. "Our project development team is advancing the
engineering while simultaneously we are moving forward with our financing plan
so that we can act quickly once we receive the environmental approvals from
the Guatemalan government."
    Inco has advised Skye that it has also exercised 250,000 Skye share
purchase warrants at a price of C$5.75. Following Skye's exercise of the
option and Inco's warrant exercise, Inco holds 5,615,714 Skye shares
representing approximately 13% of the outstanding shares in Skye.
    Inco has advised Skye that it will exercise its right to nominate a
director to the Skye Board at Skye's Annual Meeting.
    In 2004 Skye acquired Inco's shares in the Guatemalan company (CGN) that
owns the Fenix project, with the acquisition being conditional upon Skye
satisfying a number of conditions, culminating in the completion of the
feasibility study, which was announced late in 2006. Skye now owns 92.4% of

    About Skye
    Skye is an international mining company focused on becoming a new
mid-tier nickel producer. The Company acquired the rights to its Guatemalan
lateritic nickel project (the Fenix project) in December 2004 and in September
2006 received the results of a feasibility study for a ferro-nickel project at
Fenix using proven conventional smelting technology.

    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: Ian G. Austin, President & Chief Executive
Officer, 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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