Heyson Project Update

October 7, 2003

A total of 2018 meters (6620 feet) of diamond drilling has now been completed by Skyharbour Resources' and ITL Capital's jointly held gold property in Red Lake, Ontario. 13 holes on the Heyson / Byshe project have been drilled on targets within a "large gold-in-till" anomaly that was identified in the 2002 work season. A 45 line kilometer grid was established on the property in the summer of 2003 with total field and vertical gradient magnetometer surveys completed over the head of the till anomaly.

Phase 1 of the 2003 drill program on the Heyson property was completed in June 2003, and intersected several zones of gold mineralization on the "Sully Creek Till Anomaly". Significant gold values (59.4 grams / ton over .4 meters) were encountered in H03 - #3. This intercept was in a vein within a 15-meter thick "hematite-epidote-silica" alteration zone in a quartz porphyry. The hemitization (destruction of magnetite) has resulted in a distinct magnetic low over the geologically altered zone, and this data is now being used in identifying potential drill targets. Drilling in Phase 2, which was completed in September 2003, has identified significant widths of this favorable alteration along a strike length of 280 meters. Additional anomalous gold intercepts have been encountered within the alteration system including a 2-meter intercept of anomalous gold values in H03 -12 which was collared 50 meters to the southeast of H03-3.

Diamond drilling to date has tested only a small portion of the large "gold-in-till" anomaly that exists of the Heyson / Byshe property and has explained only a small part of the anomaly. The type and style of the mineralization encountered to date is encouraging but the head of the till anomaly is contained in a large system of more than 2 kilometers in length, and has shown very good anomalous gold numbers in the previous till sampling program.

A detailed "base of till" sampling program is scheduled to start immediately, to identify additional drill testable targets within the head of the large "gold-in-till" anomaly. This will be done with overburden drilling equipment. The sampling will be conducted over the established grid in a tightly spaced collection pattern, in an attempt to establish continuity of the geological system.

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