Skyharbour Resources Ltd. ("Skyharbour") and Cypress Development Corp. ("Cypress") announce that subject to TSX Venture Exchange ("TSXV") acceptance, they have entered into a Letter of Intent with Orko Gold Corporation ("Orko"), pursuant to which Skyharbour and Cypress have granted Orko an option to acquire a 60% interest in the McKenzie Island Property, comprised of approximately 5,200 acres located in the Dome, Heyson and Fairlie Townships, Red Lake, Ontario (the "Property").
In order to exercise the option Orko must pay Cypress $35,000, issue Cypress and Skyharbour collectively 300,000 shares (100,000 shares upon TSXV acceptance of the option, 100,000 shares upon TSXV acceptance of a Phase 2 property report recommending either a further work program or commercial production on the Property, and 100,000 shares upon TSXV acceptance of a Phase 3 property report recommending either a further work program or commercial production on the Property) and incur exploration expenditures of $500,000 on the Property by December 31, 2003. The Property is subject to a 2% net smelter return royalty. Skyharbour will continue to be the operator and supervise the work program on the Property.
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