Mr. Jordan Trimble reports

SKYHARBOUR SIGNS DEFINITIVE AGREEMENT WITH PITCHBLENDE ENERGY AND VALOR RESOURCES TO OPTION 80% OF THE NORTH FALCON POINT URANIUM PROPERTY

Skyharbour Resources Ltd. has executed a definitive agreement with Australian-registered Pitchblende Energy Pty. Ltd. and Valor Resources, 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 definitive agreement, and subject to completion of the acquisition of Pitchblende by Australian Stock Exchange-listed Valor Resources Ltd., Pitchblende will contribute cash and exploration expenditure consideration totalling $3,975,000 over a three-year period. Of the project consideration, $475,000 will be in cash payments to Skyharbour as well as $3.5-million in exploration expenditures. Valor will also issue a total of 233,333,333 shares upfront.

Skyharbour's president and chief executive officer, Jordan Trimble, commented: "We are thrilled to have this definitive agreement signed as we continue to execute on our business model by adding value to our project base in the Athabasca basin through strategic partnerships as well as focused mineral exploration at our flagship Moore Lake project. We are excited to have the opportunity to work with new partners in Pitchblende and Valor led by experienced management and technical teams at our North Falcon Point project while maintaining a 100-per-cent interest at the Frasers Lakes uranium and thorium deposit at the South Falcon Point project. News will be forthcoming on exploration plans and the timing is excellent given the recent upward momentum in the uranium market."

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; a biogeochemical survey carried out over the trenches in 2015 responded positively with along-strike anomalies two km 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 U over 0.5 m;
• West Way -- vein-type U 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 m by 20 m zone of anomalous radioactivity with grab samples having up to 800 ppm U;
• Alexander Lake Boulder field -- 30 biotite-quartz-k-feldspar pegmatite boulders northeast of Alexander Lake; the best results include 360 ppm U, 1,400 ppm U and 1,600 ppm U, respectively;
• Thompson Lake boulder field -- numerous radioactive boulders and blocks of pegmatized meta-arkose, pegmatite and granite; the best value obtained was 738 ppm U from a granite boulder;
• NE Alexander Lake -- several calc-silicate, plagioclase-quartz granulite, quartzite and meta-arkose boulders with up to 4,800 ppm U, 7,600 ppm Mo and 1,220 ppm Ni.

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 definitive agreement, 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 $475,000 and issuing an aggregate 233,333,333 Valor shares to Skyharbour as displayed in the table.

Date                                             Cash payments   Exploration expenditures   Valor shares issued

On closing                                        $50,000                              $0           233,333,333    
On or before the first anniversary of closing     $75,000                        $750,000                     0         
On or before the second anniversary of closing   $175,000                      $1,000,000                     0         
On or before the third anniversary of closing    $175,000                      $1,750,000                     0         
Total                                            $475,000                      $3,500,000           233,333,333  

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

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 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 owns a 100-per-cent interest in the South Falcon uranium project on the eastern perimeter of the basin which contains a National Instrument 43-101 inferred resource totalling 7.0 million pounds of U3O8 at 0.03 per cent and 5.3 million pounds of ThO2 at 0.023 per cent. Skyharbour has signed a definitive agreement with Australian company Pitchblende Energy, which is being acquired by ASX-listed Valor Resources, on the North Falcon uranium project whereby Pitchblende can earn in 80 per cent of the project through $3.5-million in total exploration expenditures, $475,000 in total cash payments over three years and an initial share issuance.

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.