Mr. Jordan Trimble of Skyharbour reports

SKYHARBOUR EXECUTES OPTION AGREEMENT WITH AREVA RESOURCES CANADA TO OPTION UP TO 70% OF A PORTION OF THE PRESTON URANIUM PROJECT FOR $8 MILLION IN PROJECT CONSIDERATION

Skyharbour Resources Ltd., in conjunction with Preston uranium project partner Clean Commodities Corp., have executed an option agreement with AREVA Resources Canada Inc. which provides AREVA an earn-in option to acquire up to a 70-per-cent working interest in a portion of the Preston uranium project (see also news release dated Dec. 15, 2016). Under the agreement, AREVA will contribute cash and exploration program consideration totalling up to $8-million in exchange for up to 70 per cent of the applicable project area over six years with a first option where AREVA may acquire an initial 51-per-cent working interest in the Preston segment for a period of three years by financing exploration expenditures in the total amount of $2.8-million and making cash payments totalling $200,000 to Skyharbour and Clean Commodities.

Skyharbour's president and chief executive officer, Jordan Trimble, commented: "The signing of this option agreement with industry leader AREVA is a significant milestone for Skyharbour. We are thrilled to have the opportunity to work with a new strategic partner to further advance the central portion of the Preston uranium project with up to $7.3-million in exploration funded by AREVA in addition to the cash payments. AREVA has a very knowledgeable geological team with a long and productive history in the Athabasca basin so we are keen to see the commencement of exploration programs at Preston this year. The Preston uranium project is a strategic, district-scale property with robust exploration upside potential throughout and is located near recent high-grade discoveries in the Patterson Lake area including NexGen Energy's Arrow deposit, Fission Uranium's Triple R deposit and the Spitfire discovery. Skyharbour continues to execute on its business plan by adding value to its project base in the Athabasca basin through focused mineral exploration at its flagship Moore Lake project as well as utilizing the prospect generator model to advance its other projects with strategic partners."

Highlights of the option agreement:

• AREVA may earn up to a 70-per-cent interest in the Preston segment totalling 49,635 hectares of the total 121,148-hectare Preston project through $8-million of total project consideration over six years, including up to $7.3-million of exploration work programs and $700,000 of cash payments.
• If carried to completion, a tripartite joint venture would be formed being 70 per cent as to AREVA and 30 per cent as equally divided between Skyharbour and Clean Commodities.
• Skyharbour and Clean Commodities will continue to retain 100-per-cent ownership of the balance of the Preston uranium project consisting of a further 71,513 hectares of minerals claims contiguous to the Preston segment optioned to AREVA. AREVA shall hold a right of first refusal with respect to this tenure should Skyharbour or Clean Commodities elect to involve additional parties.

The Preston uranium project is one of the largest tenure positions in the Patterson Lake region and currently consists of 121,148 hectares strategically located near NexGen Energy Ltd.'s high-grade Arrow deposit hosted on its Rook-1 property and Fission Uranium Corp.'s Triple R deposit located within their PLS project area.

The significant potential of the Western Athabasca basin has been highlighted by recent discoveries in the area by NexGen Energy Ltd. (Arrow), Fission Uranium Corp. (Triple R) and a joint venture consisting of Cameco Corp., AREVA Resources Canada Inc. and Purepoint Uranium Group Inc. (Spitfire). Through its involvement in the Western Athabasca syndicate and the Preston uranium project, the company has been involved in a large regional exploration program in the relatively underexplored southwestern side of the Athabasca basin since 2013. In excess of $4.7-million in expenditures on the Preston uranium project have been incurred to date including ground gravity, airborne and ground EM and magnetics, radon, soil, silt, biogeochem, lake sediment, and geological mapping surveys, as well as two exploratory drill programs. Fifteen high-priority drill target areas associated with six prospective exploration corridors have been successfully delineated through this methodical, multiphased exploration initiative which has culminated in an extensive, proprietary geological database for the project area.

The option agreement is dated March 7, 2017, and represents an arm's-length transaction with no finder's fees being paid.

Qualified person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, PGeo, MSc, Skyharbour's head technical adviser and a director, as well as a qualified person.

About Skyharbour Resources Ltd.

Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's Athabasca basin and is well positioned to benefit from improving uranium market fundamentals with five drill-ready projects. In July, 2016, Skyharbour acquired an option from Denison Mines to acquire 100 per cent of the Moore Lake uranium project which is located 20 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River mine. Moore Lake is an advanced stage uranium exploration property with over $30-million in historical exploration, 370 diamond drill holes and a high-grade uranium zone known as the Maverick zone with drill results including 4.03 per cent triuranium octoxide over 10 metres at a vertical depth of 265 metres. The company owns a 100-per-cent interest in the Falcon Point (formerly Way Lake) uranium project on the eastern perimeter of the basin which hosts an NI 43-101 inferred resource totalling 7.0 million pounds of U3O8 at 0.03 per cent and 5.3 million pounds of thorium dioxide at 0.023 per cent.

We seek Safe Harbor.