Guatemala

[Tackler]

Skye not yet concerned by squatters at Fenix

2006-09-19 15:04 ET - News Release

Mr. Ian Austin reports

SKYE'S PROJECT UNAFFECTED BY LAND OCCUPATION

Skye Resources Inc.'s lands associated with its Fenix project have been occupied by a number of Mayan Indian families with the intention of establishing subsistence farming communities. The three parcels of land they have occupied lie in a valley a considerable distance from the Fenix nickel deposits. The situation on the ground is peaceful and is not affecting project activities, including the drill program. The company has attempted to hold discussions with representatives of the groups but was not successful. The company will continue to seek dialogue and is also pursuing legal avenues.

Over the past two years, Skye commenced a number of on-the-ground activities including participation in the Center for Social Responsibility within Guatemala, and the formation of a formal community relations team. This team includes seven native Q'eqchi' members who visited 30 communities in the region to assess local concerns. Skye has also helped form Raxche, an organization that is focused on improving local health and education. Among the early accomplishments of Raxche are farming projects and the refurbishment of a local school and hospital.

The Fenix project will meet all key international benchmarks in particular the equator principles. The project will comply with all relevant Guatemalan laws and the International Finance Corp. performance standards.