Mr. Jordan Trimble reports

SKYHARBOUR SIGNS LETTER OF INTENT WITH PITCHBLENDE ENERGY TO OPTION 80% OF THE NORTH FALCON POINT URANIUM PROPERTY

Skyharbour Resources Ltd. has executed a letter of intent with Australian-registered Pitchblende Energy Pty. Ltd., which provides Pitchblende an earn-in option to acquire an 80-per-cent working interest in the North Falcon Point uranium project, to be renamed the Hook Lake uranium project.

Under the letter of intent and subject to completion of the acquisition of Pitchblende by Australian Securities Exchange-listed Valor Resources Ltd., Pitchblende will contribute cash and exploration expenditure consideration totalling $3,925,000 over a three-year period. Of the project consideration, $425,000 will be in cash payments to Skyharbour as well as $3.5-million in exploration expenditures. Valor will also issue a total of 250,000,000 shares, which will be subject to a voluntary escrow agreement and released over a period of three years.

Skyharbour's president and chief executive officer, Jordan Trimble, commented: "Skyharbour continues to execute on its business model by adding value to its project base in the Athabasca basin through strategic partnerships and focused mineral exploration. This LOI with Pitchblende at North Falcon Point effectively utilizes our prospect generator model to advance the company's other projects with partner companies. We are excited to have the opportunity to work with new partners in Pitchblende and Valor led by experienced and dynamic management and technical teams. Furthermore, Skyharbour will maintain a 100-per-cent interest in the southern portion of the Falcon Point project, retaining ownership of the Frasers Lakes uranium and thorium deposit. This LOI complements the option agreements signed with Orano Canada and Azincourt Energy, which, collectively, will generate steady news flow over the next several years in addition to the continued exploration at our flagship Moore uranium project."

North Falcon Point project summary

Pitchblende will have the right to earn an 80-per-cent working interest in the North Falcon Point project (to be renamed the Hook Lake uranium project) located 60 kilometres east of the Key Lake uranium mine in Northern Saskatchewan. Covering 25,846 hectares, the 16 contiguous mineral claims host several prospective areas of uranium mineralization including:

• Hook Lake/zone S -- high-grade surface outcrop with reported grades in grab samples up to 68 per cent U3O8 (triuranium octoxide); a biogeochemical survey carried out over the trenches in 2015 responded positively with along-strike anomalies two kilometres to the northeast;
• Nob Hill -- fracture-controlled vein-type uranium mineralization on surface outcrop with up to 0.130 per cent to 0.141 per cent U3O8 in grab samples; diamond drilling intersected anomalous uranium in several drill holes with values up to 422 parts per million uranium over 0.5 metre;
• West Way -- vein-type uranium mineralization within a northeast-trending shear zone; grab samples taken from the surface showing contained variable uranium values, including up to 0.475 per cent U3O8, and drilling of the structure intersected the altered shear zone at depth, along with anomalous copper, nickel, cobalt, arsenic, vanadium, uranium and lead;
• Grid T -- fracture-hosted secondary uranium mineralization in sheared calc-silicates and marbles in a 100-metre-by-20-metre zone of anomalous radioactivity with grab samples having up to 800 parts per million uranium;
• Alexander Lake boulder field -- 30 biotite/quartz/potassium feldspar pegmatite boulders northeast of Alexander Lake; the best results include 360 parts per million uranium, 1,400 parts per million uranium and 1,600 parts per million uranium, respectively;
• Thompson Lake boulder field -- numerous radioactive boulders and blocks of pegmatized meta-arkose, pegmatite and granite; the best value obtained was 738 parts per million uranium from a granite boulder;
• NE Alexander Lake -- several calc-silicate, plagioclase-quartz granulite, quartzite and meta-arkose boulders with up to 4,800 parts per million uranium, 7,600 parts per million molybdenum and 1,220 parts per million nickel.

The project area is in close proximity to two all-weather northern highways and grid power. Historical exploration has consisted of airborne and ground geophysics, multiphased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting, culminating in an extensive geological database for the project area. Compilation and reinterpretation of previous exploration work results are already under way. It is anticipated that the initial phase of exploration work by Pitchblende will include further biogeochemical surveys, detailed UAV (unmanned aerial vehicle) magnetics, ground gravity and resistivity surveys, as well as detailed geological and structural mapping. Based on this work, drill targets will be selected. If carried to completion, a joint venture would be formed being 80 per cent to Pitchblende and 20 per cent to Skyharbour.

Option agreement terms for the North Falcon Point project

Under the terms of the letter of intent, Pitchblende may acquire up to an 80-per-cent interest in the property by incurring an aggregate of $3.5-million in exploration expenditures, paying a total of $425,000 and issuing an aggregate 250 million Valor shares to Skyharbour as shown in the attached table.

Pitchblende's obligations to contribute the project consideration and complete the 80-per-cent earn-in is conditional on it choosing to proceed with the transaction following the expenditure of up to $400,000 (Australian) over the next six to nine months for the purposes of satisfying a preliminary assessment and a portion of the first-year exploration expenditures on the property. In the event that Pitchblende elects not to proceed with the option after this period, the remainder of the project consideration will not be payable, including the cash payments after year 1 through year 3, and 150 million of the consideration shares will be cancelled. The letter of intent will be formalized by a definitive agreement between Skyharbour, Pitchblende and Valor in due course.

The transaction is subject to various conditions precedent, including Valor shareholder approval as well as ASX and regulatory approval.

About Pitchblende Energy Pty. Ltd.

Pitchblende is the subject of a binding term sheet pursuant to which, subject to Valor shareholder approval, it will become a wholly owned subsidiary of Valor.

About Valor Resources Ltd.

Valor Resources is an exploration company listed on the ASX focused on creating shareholder value through acquisitions and exploration activities. The company is acquiring uranium projects in the Athabasca basin of Northern Saskatchewan, Canada, through the acquisition of Pitchblende Energy, which is subject to shareholder approval.

George Bauk is the executive chairman of Valor and has over 30 years of experience within the resource industry in both production and exploration with assets in Australia and internationally. Mr. Bauk holds a bachelor of business (accounting and finance) from Edith Cowan University, he is a fellow of the CPA, and he has an MBA from the University of New England. He has held global operational and corporate roles with WMC Resources and Western Metals. Mr. Bauk has a strong background in strategic management, business planning and capital raising, and he has experience with a variety of commodities. Mr. Bauk is a member of the Western Australia resources industry, having previously held a number of senior governing positions with the Chamber of Minerals and Energy, including vice-president.

Mr. Bauk has overseen several uranium exploration projects in the United States, Tanzania and Western Australia, partnering with Areva in Western Australia whilst being managing director of Northern Uranium prior to transitioning to Northern Minerals. In 2006, Mr. Bauk was focused on the southern Tanzanian region, which was the region known for the successful Mkuju River discovery by Mantra Resources. During his time as managing director of Northern Minerals, he led its rapid development from a greenfield heavy rare earth explorer to one of a few global producers of high-value dysprosium outside of China.

Gary Billingsley, a resident of Saskatoon, has also recently joined Valor as a non-executive director and brings over 48 years of experience in the resource industry. Mr. Billingsley holds a bachelor of science (advanced) in geology from the University of Saskatchewan in Canada. He also obtained his chartered accountant designation and currently also holds designations as both a professional engineer and professional geoscientist. Mr. Billingsley has held several operational and corporate roles from chief mine geologist to president and chief executive officer of both small and large public companies. Besides a strong technical background, he has extensive experience on the corporate and capital markets side of the industry. He has served on board committees, including audit, compensation, corporate governance and environment, and health and safety committees. His public company experience covers commodities, including oil and gas, base metals, gold, diamonds, uranium, potash, and rare earths.

Some highlights of Mr. Billingsley's career include leading the team that put Saskatchewan's largest gold mine into production, still producing after 29 years; discovering several diamond-bearing kimberlites in Saskatchewan, one of which has now completed final feasibility; playing a major role in taking a junior potash company public, which was subsequently purchased by BHP; and establishing one of the first companies to recognize the importance of developing rare earth projects outside of China, including downstream capacity.

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 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River uranium mine. Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization at the Maverick zone, with drill results returning up to 6.0 per cent U3O8 over 5.9 metres, including 20.8 per cent U3O8 over 1.5 metres, at a vertical depth of 265 metres. Skyharbour has signed option agreements with Orano Canada Inc. and Azincourt Energy, whereby Orano and Azincourt can earn in up to 70 per cent of the Preston project through a combined $9.8-million in total exploration expenditures as well as $1.7-million in total cash payments and Azincourt shares. Preston is a large, geologically prospective property proximal to Fission Uranium's Triple R deposit as well as NexGen Energy's Arrow deposit. The company also owns a 100-per-cent interest in the Falcon Point uranium project on the eastern perimeter of the basin, which contains an NI 43-101 inferred resource totalling 7.0 million pounds of U3O8 at 0.03 per cent and 5.3 million pounds of ThO2 (thorium dioxide) at 0.023 per cent. The company's 100-per-cent-owned Mann Lake uranium project on the east side of the basin is strategically located adjacent to the Mann Lake joint venture operated by Cameco, where high-grade uranium mineralization was recently discovered. Skyharbour's goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships and the advancement of exploration projects in geopolitically favourable jurisdictions.

We seek Safe Harbor.