Diamond drill Phase I to commence on Heyson Property, Red Lake, ON

June 16, 2003

Mr. Donald C. Huston reports:

The initial diamond-drilling phase on Skyharbour's Heyson property, which is under option from ITL Capital Corporation, is about to commence. The drilling program will initially comprise of approximately 1000 metres over 4 - 6 holes. The company has contracted Rodren Drilling (Winnipeg) to commence drilling the week of June 16, 2003.

The property is located 6 km south of Goldcorp's Red Lake Mine and Placer Dome's Campbell Red Lake Mine in the Red Lake mining division in northwestern Ontario. The land package consists of 15 unpatented claim blocks and covers 3220 hectares (8040 acres).

A detailed till sampling program with follow-up prospecting and a detailed MMI (Mobile Metal Ion) survey completed on the property in 2002 has effectively identified and delineated a large gold in till anomaly ("Sully Creek Till Anomaly") in the eastern portion of the property. Skyharbour believes the size and strength of the Sully Creek Till Anomaly indicates significant potential for bedrock gold mineralization

Gold values of up to .62 oz/t Au have been reported at the head of the Sully Creek Till Anomaly, and the extent of the anomaly highlights the scale and trend of possible bedrock mineralization. The head of the anomaly has a strike length of 1.5 kilometers in a north/northwest direction, with the pattern of anomalies indicating multiple bedrock sources along this trend. The property is underlain by a sequence of folded mafic/ultramafic to felsic volcanics.

The previously untested Sully Creek Anomaly will be the main focus of Skyharbour's summer drill program on the Heyson Property in Red Lake. Skyharbour Resources has an option to earn 51% of the Heyson property from ITL Capital Corp.

Skyharbour continues to await the completion of all assaying of core submitted to TSL Laboratories from the now completed drilling program on the Baird property. The Baird property is under option to Placer Dome, with Skyharbour continuing as the operator. Once all assays are received, a news release will be issued. A full and comprehensive geological report is to follow allowing the Companies to determine the size and extent of the Phase 2 work program on the Baird Property.

Both of the above projects are being coordinated under the direct supervision and guidance of David Busch, H.B.Sc., P.Geo, chief geologist, who is designated as a qualified person with the ability and authority to verify the authenticity and validity of all geological data received.

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