Mr. Jordan Trimble reports

SKYHARBOUR SIGNS OPTION AGREEMENT WITH NORTH SHORE ENERGY METALS FOR SOUTH FALCON URANIUM PROPERTY IN THE ATHABASCA BASIN, CANADA

Skyharbour Resources Ltd. has entered into an option agreement with North Shore Energy Metals Ltd. which provides North Shore an earn-in option to acquire an initial 80-per-cent interest and up to a 100-per-cent interest in the South Falcon property located in Saskatchewan, Canada. The property contains 11 mineral claims, comprising approximately 42,908 hectares. The agreement provides North Shore an opportunity to earn an initial 80-per-cent interest in the claims over a three-year period by fulfilling combined cash, share issuance and exploration expenditure commitments of $5.3-million, with an option to purchase the remaining 20 per cent for an additional $10-million in cash and shares.

Jordan Trimble, president and chief executive officer of Skyharbour, stated: "We are thrilled to be working with the North Shore team as they advance the South Falcon project going forward. We continue to execute on our strategy by adding value to our uranium project base in the Athabasca basin through strategic partnerships and prospect generation, as well as focused mineral exploration at our co-flagship Russell and Moore projects. News will be forthcoming on exploration plans at South Falcon and North Shore is well positioned to unlock value at the project with a strong management and technical team."

South Falcon uranium project

The South Falcon property contains 11 mineral claims comprising approximately 42,908 hectares approximately 50 kilometres east of the Key Lake mine. Nine of the claims are from the original South Falcon Point (previously Way Lake) uranium project and the remaining two claims are from Skyharbour's Foster River project. Historical uranium mineralization discovered at South Falcon is shallow and is hosted in several geological settings, including classic Athabasca-style basement mineralization associated with well-developed EM (electromagnetic) conductors. At the EWA target, up to 0.492 per cent U3O8 (triuranium octoxide) and 1,300 parts per million (ppm) lead was encountered in outcrop grab samples (Saskatchewan mineral deposits index (SMDI) 5038). Historical grab sampling at Knob Lake (SMDI 1014) also encountered up to 0.01 per cent U3O8 in an outcrop of pegmatite, while anomalous nickel, copper and molybdenum were found in historical grab samples from the Fraser North target area (SMDI's 1125 and 1126).

A well-defined northeast-trending, locally folded, electromagnetic conductor system runs throughout the property, which was defined by airborne and ground geophysical surveys by JNR Resources in the 2000s. In 2008, JNR conducted a drill campaign at Way Lake. Of the 47 holes drilled that year, 28 holes (totalling 7,348 metres) were drilled on the South Falcon uranium property at the Walker (14 holes), Walker South (seven holes) and EWA target areas (six holes). At the Walker and South Walker targets, which lie along the aforementioned EM conductor system, structurally disrupted and variably altered metasediments (including graphitic pelitic gneisses) with anomalous boron, copper, molybdenum, nickel, cobalt, arsenic and vanadium were encountered in several drill holes. During this same drill campaign, the Fraser Lakes Zone B uranium deposit was discovered approximately four kilometres east of the Walker South target on a refolded extension of the EM conductor system. At the EWA target, which lies along a separate northeast-trending EM conductor, anomalous uranium, boron, lead and molybdenum were encountered in structurally disrupted pegmatites -- the best result was 0.235 per cent U3O8 over 0.5 m (within a 3.5 m interval of 0.113 per cent U3O8) in hole WYL-08-501 (Saskatchewan mineral assessment file 74H02-0045).

Furthermore, in 2022, Skyharbour completed a Falcon airborne gravity gradiometer and magnetic survey over nine of the 11 claims at the South Falcon property. These new geophysical data will assist North Shore in prioritizing areas along the EM conductor system for drilling. Approximately 28 kilometres of the EM conductor system remain untested on the South Falcon property. North Shore's initial focus will be on the two claims formerly part of the Foster project (geophysics) and on the southeastern end of the EM conductor system at Knob Lake (prospecting and/or drilling), which shows similarities to the Fraser Lakes Zone B deposit approximately six km to the northeast, and several other high-priority targets elsewhere along the main EM conductor system. Significant potential exists on the project for basement-hosted, unconformity-related uranium deposits like those father to the north in the Wollaston domain (that is, Eagle Point, Rabbit Lake, Key Lake and others), as well as for pegmatite/granite-hosted (that is, alaskite-type) U-Th-REE (uranium-thorium-rare earth element) mineralization like at the Fraser Lakes Zone B deposit on Skyharbour's adjacent South Falcon East property, currently under option to Tisdale Clean Energy.

The option agreement

Pursuant to the agreement, North Shore may acquire an initial 80-per-cent interest in the property by (i) issuing common shares of North Shore having an aggregate value of $1,225,000; (ii) making aggregate cash payments of $525,000 and (iii) incurring an aggregate of $3.55-million in exploration expenditures on the property over a three-year period.

The schedule to earn an initial 80-per-cent interest is shown in the associated table.

Once North Shore has earned an initial 80-per-cent interest in the property, North Shore may acquire the remaining 20-per-cent interest in the property within 90 business days by (i) issuing shares having a value of $5-million, and (ii) making a cash payment of $5-million to Skyharbour. If North Shore does not elect to acquire the remaining 20-per-cent interest, a joint venture will be formed with Skyharbour holding a 20-per-cent participating interest.

North Shore will be the operator of the exploration programs during the earn-in stage and for the joint venture, if formed. Two claims, totalling 10,673 hectares, that form part of Skyharbour's Foster River property are subject to a 1-per-cent NSR royalty payable to Skyharbour. The remaining nine claims, totalling 32,235 hectares, that comprise Skyharbour's South Falcon Point property are subject to a 2-per-cent NSR royalty payable to Denison Mines Corp., with North Shore having the right to purchase 1 per cent of the royalty from Denison at anytime by paying $1-million.

All shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. No finder's fees or commissions are owing by Skyharbour in connection with entering into the agreement. Completion of the transactions contemplated by the agreement, and the issuance of the shares, remains subject to the approval of the TSX Venture Exchange. The obligations of the optionee under this agreement are subject to and conditional upon the optionee completing a qualifying transaction, as such term defined under the policies of the TSX Venture Exchange, and equity offering.

About North Shore Energy Metals Ltd.

North Shore is currently a private mineral exploration company focused on uranium exploration at the eastern margin of the Athabasca basin through its Falcon property, which will increase from 12,800 hectares to 55,700 hectares with the addition of the claims subject to the agreement, and the West Bear property located 90 kilometres to the northeast.

As announced on May 3, 2023, Clover Leaf Capital Corp. received conditional acceptance from the TSX Venture Exchange to close its acquisition of North Shore by way of a one-for-one share exchange agreement, as described in the Clover Leaf's press release dated Dec. 23, 2022. This transaction will constitute a qualifying transaction pursuant to the policies of the TSX-V. It is a condition to the completion of the qualifying transaction that North Shore complete a concurrent equity offering prior to the closing date of the transaction for minimum gross proceeds of $5-million. Upon completion of the transaction, the name of the combined company will be North Shore Uranium.

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 David Billard, PGeo, a consulting geologist for Skyharbour 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 24 projects, 10 of which are drill-ready, covering over 504,356 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. Adjacent to the Moore uranium project is Skyharbour's recently optioned Russell Lake uranium project from Rio Tinto, which hosts historical high-grade uranium drill intercepts over a large property area with robust exploration upside potential. The company is actively advancing these projects through exploration and drill programs.

Skyharbour has joint ventures with industry-leader Orano Canada Inc. and Azincourt Energy at the Preston and East Preston projects, respectively, whereby Orano and Azincourt earned majority interests in the projects through exploration expenditures, cash payments and share issuances. Skyharbour also has several active earn-in option partners, including: Australian Securities Exchange-listed Valor Resources at the Hook Lake uranium project; Canadian Securities Exchange-listed Basin Uranium Corp. at the Mann Lake uranium project; CSE-listed Medaro Mining Corp. at the Yurchison project; Yellow Rocks Energy, a private Australian entity, at the Wallee and Usam Island projects; North Shore Energy Metals at the South Falcon project; and TSX-V-listed Tisdale Clean Energy at the South Falcon East project, which is host to the Fraser Lakes Zone B uranium and thorium deposit.

Collectively, Skyharbour has now signed earn-in option agreements with partners that total to over $37-million in partner-financed exploration expenditures, over $28-million worth of shares being issued and over $19-million in cash payments coming into Skyharbour, assuming that these partner companies complete their entire earn-ins at the respective projects.

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.