Mr. Jordan Trimble reports

ORANO CANADA INC. ("ORANO") COMPLETES FIRST EARN-IN OPTION AND FORMS JOINT VENTURE WITH SKYHARBOUR AT THE PRESTON URANIUM PROJECT

Skyharbour Resources Ltd. says that Orano Canada Inc. has completed the first earn-in option of a 51-per-cent interest in the Preston uranium project, located in the western Athabasca basin, Saskatchewan, Canada. Orano previously held an option to acquire the interest through an option agreement entered into with Skyharbour and Dixie Gold Inc.

Orano has fulfilled its first earn-in option interest in the project by completing $2.8-million in staged exploration expenditures and making a total of $200,000 in cash payments over the previous three years, divided evenly between Skyharbour and Dixie Gold. Orano has spent a total of $4.8-million on the project to date.

Following acquisition of the interest, Orano has formed a joint venture with Skyharbour and Dixie Gold for the future advancement and development of the project. Orano now holds a 51-per-cent interest in the joint venture, with the remaining interest split evenly between Skyharbour and Dixie Gold with each company retaining a 24.5-per-cent interest in the joint venture.

About Preston

In March, 2017, Skyharbour signed an option agreement with Orano (formerly AREVA Resources Inc.) that provided Orano an earn-in option to acquire a majority working interest in the 49,653-hectare Preston uranium project (see also news release dated Dec. 15, 2016). Under the option agreement, Orano could 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.

The significant potential of the project 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., Orano and Purepoint Uranium Group Inc. (Spitfire). Exploration at the project has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochem, lake sediment, and geological mapping surveys, as well as exploratory drill programs. Over a dozen high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through these methodical, multiphased exploration initiatives, which have culminated in an extensive, proprietary geological database for the project area.

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 exploration projects in Canada's Athabasca basin and is well positioned to benefit from improving uranium market fundamentals with six drill-ready projects covering over 240,000 hectares of land. 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 that returned drill results of up to 6 per cent U3O8 over 5.9 metres including 20.8 per cent U3O8 over 1.5 metres at a vertical depth of 265 metres. The company has plans for coming drill programs at the project.

Skyharbour has now entered into a joint venture partnership with industry-leader Orano Canada Inc. and has a joint venture partnership with Azincourt Energy. Orano recently earned-in 51 per cent of the Preston project and Azincourt recently earned-in 70 per cent of the East Preston project through exploration expenditures, cash payments and Azincourt share issuance. Preston and East Preston are large, geologically prospective properties 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 NI 43-101 inferred resource totalling seven million pounds of U3O8 at 0.03 per cent and 5.3 million pounds of ThO2 at 0.023 per cent. Furthermore, Skyharbour has recently signed a definitive agreement with Australian-Securities-Exchange-listed Valor Resources on the Hooke Lake (previously North Falcon Point) uranium project whereby Valor 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.