Shareholder Updates

Update from the Field on Broulan Reef Drilling

Aug 14, 2009

BR09-01 mother hole is now at 1265 metres
Dip 77.2 degrees
Azimuth last @ 111 degrees
Gyro to determine exact azimuth being done with down hole probe this am
Hole is stable

We have had a great deal of difficulty in managing this hole to the direction (*azimuth) that we desire. There is a tremendous amount of pull on the drill rods always to the North. Rock formations, structures, etc. tend to be laid in a north-south direction (generally speaking), so the drill bit encounters / takes the least path of resistance. Perhaps the hard part is now past us.

I have asked for many opinions in the last couple of months as to what can Skyharbour expect to accomplish drilling this deep (and expensive). There is a very real belief (CYP/SYH Geo's, Goldcorp, independent Geo's) that the extension of the Gold Eagle ore body crosses our Broulan Reef property, and, with the knowledge we are developing of the geological structures here, are well within our grasp.

The more we drill, the more data we garner, the better our ability to assess this property becomes.

We now have a specific target area that we are attempting to drill into. This very real target area lives in the Balmer Assemblage rocks immediately underneath the known flat lying "thrust package" (cross cutting fault). It is now our job to drill into this area and see what is there.

There is no doubt that our business of exploration is high risk, but there is also NO DOUBT that the rewards can be tremendous.

We are NOT digressing from our task of properly and fully exploring this Broulan Reef Project. This property is, without a doubt, very well located, geologically speaking.

Goldcorp, et al, are also very aware of the potential the Broulan Reef property has to host an ore body. 

As to Cypress' latest announcement re: Lou Chastko, Regional Exploration Manager for Goldcorp in Red Lake, joining our Advisory Board, the Company believes his expertise in defining gold potential bearing zones within the Balmer Assemblage beneath the shallow waters of the Bruce Channel will be a major asset in exploring the Broulan Reef.

Regards,

Don Huston
President 
Skyharbour Resources Ltd.
dhuston@ninetyeight.com