Sky Gold’s Spring Exploration Program Well Underway, Targeting Orogenic Gold, Copper and Magmatic Nickel Sulphide Deposits on Its Consolidated Shebandowan Property, Northwestern Ontario

Highlights:

• Exceptional exploration opportunity for orogenic Au and magmatic Ni-Cu-Co-Cr-PGE deposits
• Mingold Au soil anomaly (2 km by 2 km) is a high-priority orogenic gold target
• Large Ni-Cu-Co-Cr-PGE anomaly (5 km by 7 km) highly prospective for Ni-sulphide deposits
• Detailed till geochemistry sampling program well underway at Consolidated Shebandowan

VANCOUVER, BC / ACCESSWIRE / June 5, 2024 / SKY GOLD CORP. ("Sky' or the "Company") (TSX.V:SKYG)(OTC PINK:SRKZF) is pleased to announce that the spring exploration program on its Consolidated Shebandowan nickel-copper-cobalt-chrome-platinum group element-gold property (the "Property") has commenced. The exploration program, involving detailed geochemical sampling with subsequent geological mapping and prospecting, will focus on 2 high-quality exploration targets known as the Mingold Au Soil anomaly (orogenic gold target) and a strong, extensive Ni-Cu-Co-Cr-PGE anomaly (magmatic nickel-sulphide target).

The Property, comprising 5,894 hectares, is situated 70 km west of the City of Thunder Bay and 6 km southwest of the past-producing Shebandowan Ni-Cu-Co-Cr-PGE mine, operated by Inco Ltd during the period of 1970 to 1989. The Shebandowan mine is a world-class example of a primary magmatic nickel sulphide deposit with production tonnage and grade of 8.7 MT at 2.0% nickel, 1.0% copper & 3.0 g/t platinum + palladium (cobalt & chrome grades are unknown).

Current Exploration Program:

ALS Global has commenced detailed soil and till geochemistry surveys over the Mingold Au soil and the main Ni-Cu-Co-Cr-PGE anomalies, to provide detail on the size, strength and extent of the prime target areas. Historical geochemical sampling completed over both target areas was regional in extent, featuring widely-spaced sample sites; detailed sampling is required to localize and more tightly define targets.

In the coming weeks, geological mapping and prospecting will be completed over both target areas, in view of the abundance of outcrops and shallow overburden conditions prevalent on the Property.

Additionally, modelling of the high-priority EM conductors yielded by the VTEM airborne survey will also be undertaken, to assist in nickel sulphide deposit targeting. Such modelling in combination with the detailed till and soil geochemistry for Ni-Cu-Co-Cr-PGE, will help prioritize targets in preparation for follow-up work involving trenching and diamond drilling.

It is anticipated that the detailed geochemical work will be completed within 2 weeks-time, following which they will be submitted for analyses. Results will be released as they become available.

Sky's Prime Exploration Targets:

The primary gold target on the Property comprises a 2 km by 2 km gold-in-soil anomaly, defined by Mingold, a previous explorer in the Shebandowan area in 1990. Heavy mineral concentrates obtained from widely-spaced sampling returned values of up to 5,250, 1,580, 1,370 & 1,050 ppb gold, with some samples yielding pristine and delicate gold grains, suggesting a local bedrock source for the gold.

The gold anomaly is contained within a regional-scale, 7-kilometre-long multi-element anomaly containing arsenic, antimony, zinc as well as nickel, copper, cobalt, chrome and platinum-group-elements obtained in regional-scale glacial till and lake sediment sampling.

The soil and multi-element anomalies coincide in large part, with the Tinto Lake fault, a major ENE trending crustal-scale fault and with outcrops characterized by strong hydrothermal alteration.

Secondly, an extensive 5 km by 7 km area characterized by highly anomalous values in nickel, copper, cobalt, chrome, platinum and palladium in glacial till sampling, comprises a high-priority target prospective for nickel sulphide deposits. Contour plots depicting elevated levels of Ni, Cu, Co, Cr as well as Pt and Pd are coincident and are intimately associated with a large magnetic high as well as several strong electromagnetic conductors, yielded by a recent VTEM airborne survey.

The large anomaly appears to be bounded by the ENE-trending Tinto Lake fault and an unnamed parallel fault situated to the NW of it, suggesting that the anomaly as a whole is related to deep, crustal-scale faulting. The Shebandowan mine is hosted within ultramafic rocks (komatiites) proximal and within the crustal-scale Crayfish Creek fault. The Ni-Cu-Co-Cr-PGE anomaly is underlain by mafic and ultramafic rocks, similar to the host rocks containing mineralization at the Shebandowan mine.

The strong extensive Ni-Cu-Co-Cr-PGE geochemical anomaly is associated with mafic-ultramafic rocks, as well as a large magnetic feature (magnetic high) and strong EM conductors yielded by the VTEM survey. Collectively, this strongly suggests a local bedrock source for the subject geochemical anomaly.

The Mingold Au soil anomaly and the Ni-Cu-Co-Cr-PGE anomaly offer high discovery potential, in view of their structural, stratigraphic and geochemical similarities with the neighboring Eureka gold discovery and the Shebandowan Ni-Cu-Co-Cr-PGE mine. Additionally, the presence of strong extensive Ni-Cu-Co-Cr-PGE and Au geochemistry anomalies coupled with strong hydrothermal alteration within highly deformed lithotypes present at both target areas, clearly enhances this potential.

Flow Through Financing

Sky Gold further announces it has arranged a non-brokered private placement of 5,000,000 flow-through units (the "FT Units") at a price of $0.07 per FT Unit (the "FT Offering"), for aggregate gross proceeds of $350,000.

The FT Units will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).

Each flow-through unit shall be comprised of one common share of the company issued on a flow-through basis and one common share purchase warrant to be issued on a non-flow-through basis. Each whole warrant shall entitle the holder thereof to acquire one common share of SKYG at a price of $0.10 for a period of 24 months following the closing of the offering. The proceeds from the sale of the FT Units will be used to advance the Company's various exploration projects in Ontario. Finders' fees may be payable.

This financing is subject to TSXV approval.

Qualified person

Sky Gold Corp.'s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Don Hoy, P. Geo., who serves as a qualified person under the definition of National Instrument 43-101.

ON BEHALF OF THE BOARD
Mike England
CEO & DIRECTOR

FOR FURTHER INFORMATION PLEASE CONTACT
Tel: 1-604-683-3995
Toll Free: 1-888-945-4770

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the matters described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance, or developments to differ materially from those contained in the statements, including with respect to the completion of the Consolidation or the identification or acquisition of additional mineral assets. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.

SOURCE: Sky Gold Corp.