Skye Resources announces receipt of construction permit for Fenix project
    TSX Symbol: SKR

    VANCOUVER, July 3  - Skye Resources Inc. ("Skye") today announced
that its Guatemalan subsidiary, Compania Guatemalteca de Niquel, S.A. (CGN),
has received the construction permit for its Fenix ferro-nickel project. With
receipt of this permit, and having received approval of the Environmental
Impact Assessments for the project earlier in the quarter, and confirmation
from the Ministry of Economy that imports of equipment and materials will not
be subject to import duties or value added tax, CGN has now initiated work on
the project site, including rehabilitation of the camp and office facilities
for use during construction.
    Basic engineering is already more than 50% complete and it is intended to
place orders for key equipment during the third quarter. Currently over 400
people are employed at the project and this is expected to increase to about
600 by the end of 2007.

    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.
www.skyeresources.com

    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: Andrew Grant, Vice President, Public Affairs,
Tel: (604) 602-9500, agrant@skyeresources.com; Martti Kangas, Investor
Relations, The Equicom Group, Tel: (416) 815-0700 x 243,
mkangas@equicomgroup.com; David Feick, Investor Relations, The Equicom Group,
Tel: (403) 538-4787, dfeick@equicomgroup.com

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