The Board of Sky Metals Limited (`SKY' or `The Company') is pleased to provide an update on the commencement of drilling at the Tallebung Tin Project and the results of the latest RC drilling campaign at the Doradilla Tin Project. Tallebung project: TIN (EL 6699, SKY 100%) Tallebung Target - RC Drilling Weather dependent, an RC drilling program of 14 RC holes for a total of approximately 2,100m will commence this week at the Tallebung Tin Target to continue to extend and infill the consistent, strong results achieved in the previous programs. The planned program will primarily be focused on extending the Tallebung mineralisation to the south where strong potential for extensions to the bulk tonnage tin mineralisation were shown, notably in TBRC034, results included: TBRC034: 43m @ 0.20% tin from 5m, including; 6m @ 0.43% tin from 5m. The large extension and infill RC drilling program has now been completed at 3KEL.

The program began on the north-eastern end of the 3KEL Target before stepping to the south-west, testing along a 2.8km strike. Thirty holes have been drilled in this program for a total of 4,532m with assay results received for the first 17 of the 30 holes. The first holes of this program (holes 3KRC013-019) were designed to extend the potential strike of tin and zinc mineralisation and also test underneath the rock chip results from the large 200m x 150m undrilled gossanous area 200m further to the northeast of 3KDD013.

Rock chips from this gossanous area assayed up to 0.7% tin and represented a +700m extension of the 3KEL Target. The extension has now been tested with this drilling program. Holes 3KRC013-019 successfully intercepted the target skarn, host to tin and zinc mineralisation at 3KEL.

This establishes that mineralisation is still open to the northeast along strike at 3KEL. The most north-eastern hole, 3KRC015, of this program intercepted broad, strong tin mineralisation, showing the strong potential for additional extensions to the 2.8km strike at 3KEL. Follow up exploration work is planned to build on these strong results.

Promising mineralisation was intercepted in all of these north-eastern RC holes, results included: 3KRC013: 6m @ 0.42% zinc from 131m. 3KRC014: 84m @ 0.46% zinc from 32m, including; 5m @ 1.04% zinc from 102m. 3KRC015: 55m @ 0.10% tin from 16m, including; 3m @ 0.41% tin & 56.9g/t Indium from 146m.

3KRC016: 25m @ 0.12% tin from 47m. 3KRC017: 22m @ 0.13% tin from 0m, including; 3KRC018: 45m @ 0.10% tin from 83m, including; 7m @ 0.28% tin & 0.05% copper from 116m. 3KRC019: 10m @ 0.19% zinc from 85m 3m @ 0.35% zinc from 114m.

Following the successful strike extension of the 3KEL target, the drilling program continued stepping to the southwest along strike with holes 3KRC020-024, infilling between previous drilling by SKY, namely holes 3KDD013 3KRC012. The drilling of holes 3KRC020-024 intercepted further tin mineralisation with associated polymetallic zinc, copper, indium and silver mineralisation. Results included: 3KRC020: 13m @ 0.09% tin & 0.61% zinc from 93m, including; 4m @ 0.09% tin & 1.62% zinc from 95m.

3KRC021: 3m @ 0.08% tin & 0.12% copper from 13m, 17m @ 0.11% tin from 133m. 3KRC022: 96m @ 0.18% tin from 2m, including; 69m @ 0.22% tin & 32.7g/t Indium from 29m. 9m @ 0.36% tin, 0.10% copper & 73.1g/t Indium from 58m 3KRC023: 26m @ 0.17% tin, 0.14% copper & 32.7g/t Indium from 71m, including; 8m @ 0.26% tin, 0.31% copper and 55.1g/t Indium from 80m.

3KRC024: 14m @ 0.31% tin & 0.05% copper from 213m, including; 3m @ 0.63% tin, 0.21% copper & 28.5g/t Indium from 222m. The program continued to further infill previous results by SKY with holes then drilled between and beyond 3KRC012 - 3KRC002. These RC holes, 3KRC025-28 intercepted strong tin mineralisation while 3KRC029 was abandoned due to excessive groundwater downhole.

3KRC025, 26 and 28 intercepted very encouraging high-grade copper results. Further work is ongoing to better understand the distribution of the polymetallic mineralisation at 3KEL to better assess the potential scale and tenure of the polymetallic mineralisation (Figure 3). Results for holes 3KRC025-28 include: 3KRC025: 44m @ 0.17% tin, 0.34% copper & 9.62g/t silver from 76m, including; 7m @ 0.55% tin, 1.65% copper, 26.8g/t Indium & 50.2g/t silver from 96m.

3m @ 0.99% tin, 3.29% copper, 36g/t Indium & 105g/t silver from 99m. 3KRC026: 15m @ 0.13% tin, 0.42% copper, 15.3g/t Indium & 20.3g/t silver from 57m, including; 6m @ 0.17% tin, 0.84% copper, 18.1g/t Indium & 43.9g/t silver from 60m. 17m @ 0.50% tin, 0.52% copper, 27.7g/t Indium & 19.1/t silver from 84m.

6m @ 1.09% tin, 1.33% copper, 56.7g/t Indium & 47.8g/t silver from 85m. 3KRC027: 11m @ 0.14% tin & 15.9g/t Indium from 87m, including; 28m @ 0.13% tin & 12.3g/t Indium from 114m. 13m @ 0.19% tin & 16.6/t Indium from 114m.

5m @ 0.32% tin & 22.0g/t Indium from 118m. 3KRC028: 17m @ 0.25% tin 0.76% copper, 14.6g/t Indium & 30.7/t silver from 87m, including; 5m @ 0.60% tin, 2.52% copper, 26.5g/t Indium & 103g/t silver from 88m. 1m @ 0.88% tin, 10.9% copper, 53.6g/t Indium & 437g/t silver from 89m.

The RC program continued stepping to the southwest with another 13 holes drilled to infill along the rest of the 3KEL strike between 3KRC029 to 3KRCD007. All samples from this drilling are currently at the assay lab. Visual logging of these holes indicates that all holes have intercepted the calc-silicate skarn, the host of the tin mineralisation at 3KEL.

This drill program has effectively extended the strike of the 3KEL target to approximately 2.8km and remains open in all directions with the target skarn horizon intercepted in all completed holes and over 300 metres of strike extension added by the drilling on the north-eastern extent of the 3KEL target. The remaining assays for this program are eagerly anticipated, and are expected in the next few weeks, to continue to grow this promising prospect.