Skye Resources Completes $92.1M Public Offering

On December 13, 2006, Skye Resources Inc., an international mining company focused on becoming a new mid-tier nickel producer, completed a public offering of 7,450,000 units of Skye at a price of $10.75 per unit for total gross proceeds of approximately $80 million. In addition, the underwriters were granted an over-allotment option to purchase up to an additional 1,117,500 units at $10.75 per unit, which they exercised in full on January 11, 2007, bringing the total value of the offering to $92.1 million. Each unit consists of one common share of Skye and one-half of one common share purchase warrant of Skye, with each whole warrant entitling the holder thereof to acquire one common share at an exercise price of $12.36 until March 13, 2008.

The underwriting syndicate was led by TD Securities Inc. and included BMO Nesbitt Burns Inc., CIBC World Markets Inc., Paradigm Capital Inc., National Bank Financial Inc. and Orion Securities Inc.

Skye Resources was represented by its general counsel, Brooke MacDonald, and by Fasken Martineau DuMoulin LLP with a team that included Georges Dubé, Nancy Eastman, Michael Bourassa and Brad Freelan.

The underwriters were represented by Stikeman Elliott LLP with a team that included Jay Kellerman, Rob Assal, Vivian Leung and Erin Zipes.