Skye Resources Provides Update on Fenix Project and Announces 2007 Financial Results

Skye Resources Inc. ("Skye" or "the Company") (TSX:SKR) today released an update
on its Fenix project and its audited consolidated financial statements for the
year ended December 31, 2007.


2007 Highlights

Skye achieved several important milestones in 2007, significantly advancing the
Fenix ferro-nickel project:


- Met the option conditions in the master agreement with Vale Inco Limited to
make unconditional the 2004 acquisition of 70% of Compania Guatemalteca de
Niquel, S.A. ("CGN"), which owns the Fenix project.


- Received formal approvals from the Guatemalan Government of the environmental
impact assessments for Fenix and the construction permit. All major permits
required for the development of the ferro-nickel project are now in place.


- Signed a letter of intent with the Government of Guatemala in which CGN agreed
to the payment of additional royalties on a sliding scale at prices above
US$7.00 per pound of nickel. Skye increased its interest in CGN to approximately
98.2% as the Company met cash calls of CGN to fund Fenix project costs.


- Filed an updated technical report in September updating the feasibility study,
including updated capital and operating costs based on the completion of basic
engineering by Hatch Ltd. ("Hatch").


- Signed agreements for the supply of electrical power and construction of a new
power transmission line for the Fenix project with Guatemalan subsidiaries of
Duke Energy International LLC. Approval has been received from Guatemalan
regulatory authorities for the interconnection of the Fenix project with the
Guatemalan grid.


- Signed engineering, procurement and construction management contracts with
Hatch. Detailed engineering commenced and orders for critical major equipment
were placed.


- Renewed the Niquegua Montufar II exploration license for two years, to the end
of 2009.


- Carried out an exploration program on Area 216 resulting in an increase in the
measured and indicated mineral resources. Area 216 is in the region of the
mineral reserves for the Fenix ferro-nickel project.


- Completed pilot plant testing of a high pressure acid leaching ("HPAL")
process to treat limonite from the Fenix deposits early in 2008. The Company
believes that this successful test work demonstrates the technical viability of
recovering nickel and cobalt from Fenix limonite with a HPAL process.


2007 Financial Results (all amounts are in U.S. dollars unless otherwise indicated)

The Company is reporting a loss of $31,206,000 for the year (basic and diluted
loss per share of $0.70) compared with a loss of $29,654,000 (basic and diluted
loss per share of $1.02) for the year ended December 31, 2006. The loss for the
year is principally due to exploration and indirect development costs (the costs
of Skye's 98.2% owned Guatemalan subsidiary, CGN for the Fenix ferro-nickel
project in Guatemala), general and administrative expense, project financing
costs and non-cash stock-based compensation expense. In the year the Company
capitalized $46,521,000 of Fenix ferro-nickel project direct development costs
(engineering, project management team and other direct costs) and $25,187,000 of
mineral properties (principally the cost of exercising the Fenix option in
March, 2007 which completed the purchase of CGN shares).


Project Update

On January 30, 2008 Skye announced that it was deferring financing of the Fenix
ferro-nickel project due to difficult credit market conditions. Hatch is
continuing with detailed engineering and has arranged with the vendors of major
equipment to defer placing sub-contracts and fabrication but to continue with
engineering in support of Hatch's efforts. Hatch's construction management team
remains at site to complete early works contracts that are underway. The
Company's project management team is working with Hatch to assess the impact of
this on the project schedule and capital cost and to develop a plan to retain
the value of the work done to date. Skye remains confident that the project can
be financed in more normal credit markets and will monitor the markets closely
with the intention to act quickly once they improve. Skye is also pursuing other
financing options for the Fenix ferro-nickel project.


At the end of the year, Skye had $107,000,000 of unrestricted cash, principally
from the $78,117,000 gross proceeds, including the over-allotment option,
received in the unit offering in October 2007. The Company intends to manage
this cash to advance the detailed engineering and existing early works contracts
and to maintain the corporate and project teams in North America and Guatemala.


On February 29, 2008 Skye announced the appointment of Colin K. Benner as its
new Chief Executive Officer and Vice Chair effective March 1, 2008. Ian Austin,
previously President and Chief Executive Officer, continues in his role as a
director of the Company. Mr. Benner is an experienced mining executive and
professional mining engineer with more than 40 years experience in the mining
industry.


Skye's audited consolidated financial statements, Management Discussion and
Analysis and Annual Information Form for the year ended December 31, 2007 will
be filed on SEDAR and available at www.sedar.com.


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 2007 Skye received its environmental permits for the
project, completed basic engineering and filed a Technical Report. Skye is
preparing to initiate construction once financing is in place.


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. Forward-looking statements may include mineral
reserve and resource estimates, commodity prices, estimates of future
production, unit costs, construction schedules and construction cost estimates,
costs of capital projects and timing of commencement of operations, and are
based on current expectations and beliefs concerning future developments and
their potential effects on Skye. Factors that could cause actual results to
differ materially from any forward-looking statement include, but are not
limited to failure to construct the mine facilities in the time frame and within
estimated costs as currently planned; variations in capital and operating costs
from estimated costs; unavailability of key personnel, skilled labor, supplies,
equipment, machinery, parts, contractors and necessary components of Skye's
project; variations in the grade and recovery of ore from estimated amounts;
fluctuations in global demand, supply of and price for nickel; inability to
obtain financing on commercially suitable terms; delays in obtaining or failures
to obtain required governmental, environmental or other project permits,
licenses or approvals; failure to build and maintain good relationships with the
local community; illegal land occupations; civil disturbances; changes in the
regulatory environment; unforeseen geological, physical or meteorological
conditions; natural disasters; labor shortages or stoppages; industrial
disputes; inflation; changes in exchange rates; political factors; fluctuations
in commodity prices; and other factors including those described under the
heading "Risk Factors" in Skye's most recent Annual Information Form filed on
Sedar. 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.