Skyharbour and Cypress announce the completion of Phase 1 of their ongoing mineral exploration program

October 3, 2002

Skyharbour and Cypress are pleased to announce the completion of Phase 1 of their ongoing mineral exploration program in the heart of the Red Lake gold camp. The companies' McKenzie Island property consists of approximately 2600 hectares and is situated on the western extension of the Balmer assemblage that hosts the prolific Goldcorp Red Lake Mine and the Placer Dome Campbell Red Lake Mine. The island itself is approximately 8 km long and 2 km wide.

A grid was established on the property in the spring of 2002. A follow up geophysical program consisting of magnetometer and an electro-magnetic surveys was conducted over the entire property. The geology of the property consists of acid to metavolcanics composed of porphyritic quartz-latite, flanking the Dome Stock and associated intrusives. A number of sulphide bearing zones (pyrite and pyrrhotite), containing carbonated zones, have been located on the property.

The company has now completed an extensive till sampling survey of its McKenzie Island property. Strong gold-in-till anomalies have been identified. The anomalies are typified by a high proportion of fine visible gold grains in the till samples. This is a feature that is common to a number of gold dispersion trains found in the Red Lake gold camp area. The dominant south shore anomaly consists of 7 anomalous sites. Samples have returned significant calculated gold values of up to 3200 ppb. that correlates with a strong zone of shearing, carbonitization, and veining in the general UP ICE area of the till anomaly. The zone is exposed on the southeastern side of the property and is at least 3 meters wide. The trend of the shearing and alteration is east-west, corresponding to the general shear direction found in the Goldcorp and Placer Dome mines.

An MMI (Mobil Metal Ion) geochemical survey is now in progress to detail the up-ice portion of the anomaly now delineated on the south shore of the property. All geochemical data and geological information received from the just completed work program is now being compiled and processed .The Skyharbour exploration team is very encouraged by the positive data that is being generated on the McKenzie Island Project. Skyharbour and Cypress are confident of the delineation of drill targets by the end of this program.

These results have been prepared under the 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 this data. All till samples were analyzed by Overburden Drilling Management Ltd., Nepean,Ontario.

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