Skye Resources is committed to open and transparent communication on all issues and concerns related to the Fenix Project. We believe transparency and extensive continuing public consultation will lead to the creation of a World Class project in El Estor, Guatemala that will provide wide-ranging benefits to the people of that region. We are taking whatever steps we can to build trusting relationships with our neighbors and to respond to their concerns.

The Fenix Project is operated by Compañía Guatemalteca de Niquel S.A. (CGN), whose major shareholder is Skye Resources.

We acquired INCO’s interest in the project at the end of 2004 and since then we have initiated a Social Environmental Assessment (SEA) – also described as an Environmental and Social Impact Assessment (ESIA) - that will meet international standards for best practices. This has already involved extensive consultation in El Estor and its surrounding communities with regards to the study’s terms of reference.

The SEA involves detailed research on the current state of the environment in areas the Project may affect, as well as cultural and social studies of potential impacts the Project may have. This research is being conducted by a combined team of Guatemalan and international experts. Once the scientific and social baseline studies have been completed, CGN will conduct a further round of consultations with the community to review the potential impacts the mine and processing facility might have. A summary of the SEA will then be published on Skye’s web site and will be made available to all local communities in both Spanish and in their own native language. The full documents will also be available for stakeholders and other interested people to examine.