Private Placement - Second Tranche Closing

August 31, 2004

Private Placement -- second closing

The Company announces that it has closed the second tranche of its private placement announced on July 6, 2004. The Company issued 900,000 Units with each Unit consisting of one share and one share purchase warrant entitling the holder to purchase an additional share of the Company at a price of $0.10 per share until August 26, 2005. The shares issued and any shares to be issued upon exercise of the warrants will be subject to a hold period and will not trade until December 27, 2004.

Additional Non-Brokered Private Placement Announced

The Board of Directors wishes to announce a non-brokered private placement of up to 1,000,000 Units at an offering price of $0.05 per Unit. Each Unit will consist of one Share and One Share Purchase Warrant entitling the holder to purchase an additional common share at a price of $0.10 for a period of one year. A finder's fee in the maximum amount allowable will be paid in connection with this private placement offering.

The Company intends to utilize the proceeds from the private placement for general working capital purposes.

About Skyharbour Resources Ltd.:

Skyharbour Resources is a mineral exploration company that focuses on the acquisitions of and exploration of gold projects in Northwestern, Ontario. It has options or interests in 7 mineral properties located in the Red Lake greenstone belt.


"Donald C. Huston"


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