Mr. Mike England reports

SKY GOLD CLOSES FINANCING INCLUDING STRATEGIC INVESTMENT BY ERIC SPROTT

Sky Gold Corp, further to its press releases dated July 10 and July 13, 2020, has closed the non-brokered private placement. The company issued 20 million units at a price of 10 cents per unit for aggregate gross proceeds of $2-million. Each unit will comprise one common share and one-half of one transferable common share purchase warrant of the company. Each whole warrant will entitle the subscriber to purchase one warrant share for a 24-month period after the closing date at an exercise price of 15 cents per share. The warrants issued with the units sold will be subject to an acceleration provision. After four months have elapsed from closing, if Sky's shares trade above 35 cents for 10 consecutive trading days, the company has the option to provide notice to the warrantholders that their warrants will expire if they are not exercised within 30 days.

Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 10.5 million units pursuant to the private placement. As a result, Mr. Sprott beneficially owns and controls 10.5 million shares of the company and 5.25 million warrants, representing approximately 18.5 per cent of the issued and outstanding common shares on a non-diluted basis.

The units were acquired by Mr. Sprott through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment, and may acquire or sell additional securities of the company, including on the open market or through private transactions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Proceeds raised will be used for advancing the company's Newfoundland properties as well as for general working capital.

Finders' fees of $61,920 were paid to arm's-length parties.

The private placement is subject to TSX Venture Exchange final approval.

About Sky Gold Corp.

Sky Gold is a junior mineral exploration company engaged in acquiring and advancing mineral properties in Canada and the United States. In addition to the company's Newfoundland properties, the company also owns the Evening Star property, located 12 kilometres southeast of Hawthorne, Nev., United States, which is prospective for gold mineralization, and CRD (carbonate replacement deposit) base and precious (silver and gold) mineralization.

We seek Safe Harbor.