Mr. Jordan Trimble reports

SKYHARBOUR PARTNER COMPANY AZINCOURT ANNOUNCES DRILL RESULTS AT EAST PRESTON PROPERTY AND UPCOMING SUMMER/FALL FIELD PROGRAM

Skyharbour Resources Ltd.'s partner company, Azincourt Energy Corp., has released results from its winter 2020 phase 2 drill program at the East Preston uranium project, located in the western Athabasca basin, Saskatchewan, Canada. A summer/fall 2020 work program is already being planned to follow up on the drill program.

Skyharbour and Dixie Gold Inc. entered into an option agreement with Azincourt whereby Azincourt has an earn-in option to acquire a 70-per-cent working interest in a portion of the Preston uranium project known as the East Preston property. Under the agreement, Azincourt has issued common shares and will contribute cash and exploration expenditure consideration totalling up to $3.5-million in exchange for up to 70 per cent of the applicable property area over three years. Of the $3.5-million in project consideration, $1-million will be in cash payments to Skyharbour and Dixie Gold, as well as $2.5-million in exploration expenditures over the three-year period. Skyharbour and Dixie Gold agreed to extend the deadline for the remaining obligations owing to complete the acquisition of a 70-per-cent interest in the project, which include incurring a small portion of the exploration expenditures remaining on the project and completion of a final cash payment of $400,000 (see news release dated April 16, 2020). The deadline for these obligations has been extended through until March 31, 2021, and in consideration for the extension, Azincourt issued five million common shares to Skyharbour and Dixie Gold.

The 2020 winter drill campaign continues to advance and enhance the prospectivity of the East Preston project. Three main target areas were drill tested with promising basement lithologies and graphitic structures intersected along with associated, anomalous rare-earth-element mineralization and favourable alteration. The basement lithologies and litho-tectonic setting at East Preston are very similar and appear analogous to the Patterson Lake South-Arrow-Hook Lake/Spitfire uranium deposits' host rocks and setting, and the recognition of REE mineralization setting appears to represent abasement mineralizing system similar to sandstone-hosted REE mineralization associated with uranium deposition observed at the Wheeler River project in eastern Athabasca.

Nine diamond drill holes totalling 2,431 metres were completed in three zones within a seven-kilometre-by-two-kilometre area. All drill holes targeted combined electromagnetic plus or minus gravity geophysical and geochemical anomalies in concert with structural/topographic discontinuities. East Preston hosts multiple closely spaced discreet graphitic conductor trends with coincident gravity low anomalies often indicative of alteration or thicker overburden due to enhanced glacial scouring over altered or structurally disrupted basement.

"We are very encouraged with the results from the 2020 winter drill program at East Preston," said Ted O'Connor, director and technical adviser for East Preston. "We continue to see the right basement unconformity uranium setting -- rocks, structure and alteration from drilling on the project. The recognition of what is believed to be a basement analogue to uranium deposit related REE mineralization and alteration suggests that mineralizing fluid systems were active on the project at the right time. The winter results, combined with the number and strike extent of the existing, untested prospective conductor corridor system target areas, ensures that the East Preston project is advancing as we continue to vector towards our discovery goal," continued Mr. O'Connor.

"Drilling continues to show us we are on the right track at East Preston," said Azincourt president and chief executive officer Alex Klenman. "The presence of rare earth element mineralization, similar to Wheeler River, adds to the growing prospectivity of the project. This data is a positive development that demonstrates East Preston continues to reveal it has the necessary environment for uranium deposition," continued Mr. Klenman.

Numerous untested graphitic conductive corridor trends remain on the project for additional drill testing. A summer 2020 ground geophysical targeting program is currently being planned and scoped to support future drill programs based on the existing property-wide heli-borne VTEM (versatile time-domain electromagnetic) survey interpretation and results.

Drilling details

The 2020 winter diamond drilling program at the Five Island Lakes area comprised a total of 2,431 metres drilled in nine holes. The drilling tested three zones within a seven km by two km area, with targets prioritized on basis of combined geophysical and geochemical anomalies in concert with structural/topographic discontinuities. All drill holes were analyzed downhole with a Mt. Sopris 2SNA gamma probe. Representative lithologies and anomalous core samples were collected and shipped to SRC Geoanalytical laboratories in Saskatoon for complete geochemical analysis.

The East Preston project lies immediately south of the interpreted southern edge of the Athabasca basin, so no Athabasca sandstone was expected. Overburden thickness ranged from 15 to 33 m thick and, as expected, no Athabasca sandstone was intersected.

Results of the drilling confirms interleaved sequences of moderately to strongly deformed orthogneissic basement rocks with compositions ranging from granodiorite to diorite, monzonite to syenite and gabbro with rare anorthosite. Most areas of the property have been further intruded by minor 0.5 m to two m simple pegmatite and/or mafic (plus/minus lamprophyre) dikes, generally at or near major lithologic contacts. Cohesive deformation fabrics abound, with ductile mylonitic fabrics the most common, along with occasional more brittle-cohesive cataclastic fabrics and rare brittle fault gouge. In general, the more strongly deformed zones are associated with increased alteration intensity, with mafic host rocks exhibiting elevated chlorite-garnet-biotite plus/minus hematite plus/minus epidote and rare clay, and intermediate to felsic host rocks altered with elevated sericite-(illite)-chlorite-hematite plus/minus garnet.

Graphite-rich (1 per cent to 25 per cent) intervals are notable in most holes with thicknesses ranging from 0.5 m to 10 m. Not surprisingly, they are generally found within the most strongly deformed rock sequences and are invariably associated with vein and disseminated pyrite (1 per cent to 20 per cent), and broad halos of moderate to strong blue and grey quartz alteration. Although graphite-bearing deformation zones may be found in any lithology, they are inordinately associated with darker (more mafic) schistose host rocks. Collectively, these strongly altered and variably deformed graphitic orthogneisses and schists constitute what Saskatchewan government geologists coined pseudopelite (that is, mimicking altered metasedimentary (semi-pelite) paragneiss). This rock type is one of the main uranium-hosting units along the Patterson Lake uranium deposit trend.

A zone

The A zone was tested by three holes (EP20001 to 003) all of which intersected two or more parallel graphite plus pyritic horizons mantled by strong bluish quartz-chlorite alteration over intervals of tens of metres. Drilling in the A zone confirms the presence of a basement-hosted north to northeast trending cohesive fault zone, associated with strong hydrothermal fluid interactions centred around graphite-rich strata. Anomalous probe radioactivity was detected bracketing the graphite-rich horizons in two out of three of the A zone holes and is also associated with anomalous REE contents.

B zone

The B zone was tested by holes EP20006 to 009, with all four holes intersecting similar sequences of graphite-rich rocks mantled by strong quartz-chlorite alteration. Hole EP20007 encountered significant radioactivity at 281 m depth, with a best count of 2,202 counts per second (cps) over a two m intercept averaging 816 counts per second. Analytical results for this interval returned 3.5 parts per million U and 587 ppm thorium over 4.25 m with associated trace element enrichment (copper, zinc, lead, REEs). Drilling in the B zone confirms the presence of a second basement-hosted northeast-trending cohesive fault zone with a history of strong hydrothermal fluid interactions, which includes the presence of anomalous radioactivity.

The strong chlorite-silica alteration zones noted at both the A and B zones that mantle the graphitic rocks display ductile older structures with later semi-brittle to brittle reactivation associated with anomalous radioactivity also display highly anomalous REE contents. At the B zone, heavy REE (HREE) contents are far more enriched than light REE (LREE). HREE examples include cerium (up to 8,660 ppm), lanthanum (up to 4,800 ppm) and neodymium (up to 2,720 ppm) that are up to 100 times enriched relative to normal background basement values, whereas LREE examples, such as samarium, dysprosium and holmium, are enriched five to 10 times background. The anomalous intervals, sampled over several metres, have associated enrichment in sulphur, boron, phosphorus pentoxide, zirconium and Th interpreted, from chemical element associations, to represent some combination of sulphide, apatitite-xenotime-zircon REE-bearing mineralizing fluids in silicified and reactivated fault zones. This structural mineralizing system is interpreted to be post-Athabasca sandstone deposition and could represent a basement-hosted analogue to the sandstone-hosted Maw zone REE mineralization on Denison Mines' Wheeler River project in Saskatchewan's eastern Athabasca.

The Maw zone is a sandstone-hosted HREE-yttrium-dominant mineralized system without uranium, associated with silica-chlorite-dravite alteration, located directly along strike five km southeast of the Phoenix uranium deposit. The Maw zone is also surrounded by multiple uranium-mineralized zones and uranium deposits along strike and along subparallel graphitic-structural corridors, which are similar to the East Preston basement litho-tectonic setting. According to historical researchers, the Maw zone REE phosphate mineralization could represent the distal, near-surface expression of the diagenetic-hydrothermal system above developing unconformity-type uranium deposits.

The presence of similar HREE mineralization in basement structures displaying silica and boron enrichment at East Preston confirms mineralizing basement fluid systems were active and, although this system is not uranium bearing, the litho-tectonic setting and conditions remain highly prospective for basement-host uranium mineralization discovery in the vicinity. Follow-up drilling is warranted at both A zone and B zone conductor trends as both infill drilling and strike extension testing.

Swoosh zone

Two holes (EP20004 and 005) tested the Swoosh zone, which is a target of interest due to especially strong surface geochemical and radon anomalies over a four km long drainage lineament. Neither hole intersected significant radioactivity or graphitic strata, but a number of rubbly sections bounded by quartz-chlorite plus/minus hematite alteration indicates the presence of late brittle fault structures in this sparsely tested zone. This zone returned the best hydrothermal sulphide pathfinder results with up to 1.5 ppm silver over one m and 673 ppm Zn over one m in hole EP20005. No immediate follow-up drilling is presently warranted for the Swoosh area.

Follow-up summer 2020 program

Based on the recent drilling results and the similar geological and structural setting to the prolific Patterson Lake trend, detailed follow-up drilling is recommended for the existing A and B zones, along with stepout drilling to the northeast and south along the B zone trend to the South zone along the southwest strike extension of the A zone. The additional target areas that have yet to be drill tested are also recommended for target refinement and future drill testing.

A summer 2020 work program is currently being planned. Helicopter-supported ground geophysical surveys including horizontal loop electromagnetic (HLEM) and/or ground gravity methods are being scoped for completion later this summer/fall 2020. The surveys will be utilized to refine, prioritize and better locate conductive corridors more precisely in several of the currently untested areas. Survey planning, layout and specifications will be started ideally this month; however, with the current COVID-19 travel restrictions into and out of northwestern Saskatchewan in particular, there is presently no indication of potential survey execution timing.

Three prospective conductive, low-magnetic signature corridors have been discovered on the property. The three distinct corridors have a total strike length of over 25 km, each with multiple electromagnetic conductor trends identified. Ground prospecting and sampling work completed to date has identified outcrop, soil, biogeochemical and radon anomalies, which are key pathfinder elements for unconformity uranium deposit discovery. The East Preston project has multiple long linear conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault lineaments -- classic targets for basement-hosted unconformity uranium deposits. These are not just simple basement conductors; they are clearly upgraded/enhanced prospectivity targets because of the structural complexity. The targets are basement-hosted unconformity related uranium deposits similar to NexGen's Arrow deposit and Cameco's Eagle Point mine. East Preston is near the southern edge of the western Athabasca basin, where targets are in a near-surface environment without Athabasca sandstone cover -- therefore they are relatively shallow targets but can have great depth extent when discovered. The project ground is located along a parallel conductive trend between the PLS-Arrow trend and Cameco's Centennial deposit (Virgin River-Dufferin Lake trend).

Quality assurance, quality control and data verification

Drill core samples were interval grab samples of interesting lithologies from 0.7 m to two m in length, split in half longitudinally, with one-half of the core retained, and the other half placed in sealed bags and shipped to SRC Geoanalytical Laboratories (SRC) in Saskatoon, Sask., for sample preparation, processing and inductively coupled plasma mass spectrometry multielement analysis using total and partial digestion, gold by fire assay and boron by fusion. SRC is an ISO/IEC 17025/2005 and Standards Council of Canada certified analytical laboratory. The company's qualified persons for the drill program, Jarrod Brown, PGeo, of TerraLogic Exploration Inc., and Mr. O'Connor, PGeo, have verified the data disclosed, including drilling, sampling and analytical data. The program is designed to include analytical quality assurance and control routines comprising the systematic use of standards, blanks and duplicate samples.

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 six drill-ready projects. Skyharbour has acquired from Denison Mines, a large strategic shareholder of the company, a 100-per-cent interest in the Moore uranium project, which is located 15 km east of Denison's Wheeler River project and 39 km south of Cameco's McArthur River uranium mine.

We seek Safe Harbor.