Mr. Mike England reports

SKY GOLD CORP. OPTIONS HORNE AND LAURIE PROPERTIES TO DELTA RESOURCES LTD

Sky Gold Corp. has reached an agreement with Delta Resources Ltd. whereby Delta will have the option to acquire a 100-per-cent interest in the Horne and Laurie properties located west of Thunder Bay, Ont. Delta will assume all remaining obligations to the vendor other than the share component which will be issued by Sky upon closing of this agreement, totalling 1.2 million shares. Upon signing of the agreement, Delta will issue 1.4 million shares of the company to Sky and pay the sum of $75,000. Sky will retain a 1-per-cent net smelter return royalty (NSR). Delta will have the option to buy back a 0.5-per-cent NSR at any time for $1-million and will have a right of first refusal on the second 0.5-per-cent NSR. One million common shares are subject to a one-year transfer restriction and 400,000 shares are subject to a four-month-and-one-day hold period from the date of issuance in accordance with applicable Canadian securities laws.

The agreement is subject to regulatory approval.

"This agreement with Delta gives Sky exposure to Delta's impressive land packages covering two very high-potential gold and base metal projects near Thunder Bay, Ont., and also gives us the opportunity to focus on our Shebandowan Ni-Cu-Co-PGE-Au portfolio in Northwestern Ontario," stated Sky Gold chief executive officer Mike England.

Qualified person

Sky Gold's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Don Hoy, PGeo, who serves as a qualified person under the definition of National Instrument 43-101.

We seek Safe Harbor.