SKY GOLD CORP. announced that numerous high-quality targets have been defined by a recently completed VTEM airborne geophysical survey (Versatile Time Domain Electromagnetic), flown over its Shebandowan nickel-copper-cobalt-platinum group element property (the "Property"). The Property, comprising 5,894 hectares (includes Star Lake, KA, Greenwater Lake & Kekekuab Lake groups), is located 70 km west of the City of Thunder Bay and 5 km southwest of the past-producing Shebandowan Ni-Cu-Co- Cr-PGE mine, operated by Inco Ltd. during the period of 1970 to 1998.

The Shebandowan mine is a world-class example of a primary magmatic nickel sulphide deposit, with produced tonnage & grade of 8.7 MT at 2.0% nickel, 1.0% copper, 3.0 g/t platinum + palladium (cobalt and chrome grades unknown). Mackenzie (Mac) Several of the highly anomalous till sample sites are closely associated with the geophysical targets graded as high-priority. The geophysical targets and geochemical anomalies coincide with mafic and ultramafic rocks including peridotite, pyroxenite and gabbro flows and sill-like bodies - the same rocks that host the adjoining Shebandowan Ni- Cu-Co-Cr-PGE mines to the immediate north.

Collectively, the VTEM targets, geochemical anomalies and mafic and ultramAFic rocks are closely related to the Tinto Fault and related splays. The Tinto Fault is a deep-seated structure situated at a major terrain boundary, separating rocks of the Shebandowan greenstone belt and younger intrusions to the south. Such a setting is identical to that of the Shebandowan Ni-Cu -Co-PGE mines situated on the Crayfish Creek Fault, a crustal-scale fault situated on the north contact of the greenstone belt with younger intrusions.

These deep-seated crustal-scale faults permitted mafic and ultramabic magmas and associated nickel-copper- cobalt-platinum group element mineralization, to reach upper crustal levels to their eventual sites of deposition. In addition to the Ni-Cu-Co-PGE potential of the Property, there is excellent potential for the discovery of orogenic gold deposits as well. Historic geochemical work completed by Mingold in the 1990's, delineated an area in the SW part of the Property containing an elevated number of gold grains supplemented by anomalous geochemical assays in gold, at numerous sample sites (the "M Mingold Au anomaly).