SKYLINE GOLD CORPORATION

NEWS RELEASE

TSX-V Trading Symbol ?SK?

FOR IMMEDIATE RELEASE                                           

September 17, 2009             

SKYLINE GOLD APPLAUDS NORTHWEST TRANSMISSION LINE PROJECT FINANCING COMMITMENT BY FEDERAL AND BC GOVERNMENTS

Richmond, BC - Skyline Gold Corporation a company engaged in the exploration and development of its 2.6 million ounce Bronson Slope gold deposit in north western British Columbia?s ?Golden Triangle?, is pleased to announce that on September 16, 2009 the Government of Canada and the BC Government announced that the Northwest Transmission Line would proceed with the Government of Canada committing $130 million of the $404 million total budget.

Not only will the provision of grid power to the future Bob Quinn Lake substation, 70 km west of Bronson Slope, provide a connection point to the future Bronson Slope gold mine?s project power source, it also will provide a market connection for the 7 hydro licenses totalling 73 Mega Watts of power for which Skyline Gold has received Notification of Sufficiency of Application from BC. 

The construction of the Northwest Transmission Line provides the Company the option of developing the hydro assets with a partner as profit generating assets or selling the assets to help finance development of the Bronson Slope Gold Project.

Skyline Gold?s President, David Jensen, P.Eng. comments ?We are gratified to hear the decision by the federal and provincial governments that they will be proceeding with the Northwest Transmission Line project.  The development of the Northwest Transmission Line is vital for mining and energy development in the region and will be key to advancing our project as well as bringing vast quantities of untapped hydro power potential in the region to the North American market.  

Current metals prices, underpinned by factors likely to drive them higher, give very attractive returns to the Bronson Slope Gold Project and securing of grid power provides market certainty of economic project power essential for development of this and other mining assets in the region.  The scheduled completion of the line in 2011 confirms the project power source allowing a feasibility study for the Bronson Slope Project to be undertaken.

The March 2009 Preliminary Economic Assessment Technical Report for the Bronson Slope Project identified a $251 million total project capital expenditure, including construction of a 70 km. spur power line to the Bob Quinn Lake substation site, with a low project capital intensity to bring this gold mining project into production.  We look forward to advancing the project and anticipate that, with the provision of BC grid power to the Bronson Slope, the Bronson Slope Gold Project will likely be the first new major gold mine brought into production in the area.?

ON BEHALF OF THE BOARD OF DIRECTORS

SKYLINE GOLD CORPORATION.

Per:

?David Jensen?

David Jensen, P.Eng.

President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information contact Skyline Gold Corporation.

Ph. 604.270.3878