The Board of Sky Metals Limited provided an update on the Tallebung Tin Project regarding the recent advances in the metallurgical testwork program and the latest RC drilling campaign at the Doradilla Tin Project. Tallebung project: TIN (EL 6699, SKY 100%) Tallebung Target - BULK ORE SORTING TESTWORK The exceptional results from the bulk testwork conducted by TOMRA Ore Sorting Solutions have demonstrated the extremely suitable nature of the Tallebung tin mineralisation for ore sorting. The results show that, of the sample sorted, the product was only 33% of the sorted mass and contained 98% of the tin in the sorted sample, increasing the tin grade over 3 times from 0.29% tin to 0.89% tin and decreasing the mass by a third.

Furthermore, these results show that ore sorting at Tallebung has the potential to reduce the total plant feed by over 50%,indicating a significant reduction in plant size and associated capital expenditure for any potential future mining at Tallebung. Additionally, ore sorting can substantially reduce operating costs as less than half of the material will be processed to produce a saleable tin concentrate. These results were generated from representative samples of the Tallebung tin mineralisation collected from the wide-diameter diamond drillhole TBD002 (60.2m @ 0.54% tin from 12.8m) from 2m - 92m for a total 542kg.

This sample was sent to TOMRA Ore Sorting Solutions in Sydney and was crushed to down into -50mm grains. The sample was then split into 25-50mm and 8-25mm fractions for sorting and a <8mm fines fraction which was too fine to be sorted effectively. The 25-50mm and 8-25mm fractions were then sorted with TOMRA's XRT ore sorter into a product and waste.

(NB: TOMRA'sXRT sensor measures the relative density of the samples, as tin is almost 3 times denser than the waste material, denser-tin-bearing sample is ejected as the product and less dense-tin-poor sample is the waste). These bulk testwork results are extremely encouraging for the application of ore sorting at Tallebung. Further work will be conducted with TOMRA to continue to build on these very exceptional results in the future.

Tin mineralisation at Tallebung is hosted as coarse cassiterite (tin-oxide) indicating favorable concentration by traditional gravity methods, most likely to be after preconcentration via the ore sorting process shown above. A simple gravity flow sheetis being developed and tested at ALS Burnie using the products provided from the TOMRA ore sorting work. The results of this metallurgical testwork are anticipated to be received this month.Tallebung Target - RC Drilling An RC drilling program of 14 RC holes for a total of approximately 2100m is planned to commence in two weeks at theTallebung 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.

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 large RC drilling program of the 3KELTarget begun on the north-eastern end of the 3KEL Target before moving to the south-west, testing along a 2.8km strike.

The drill program has effectively extended the strike of the 3KEL target to approximately 2.8km with the target skarn horizon intercept in all completed holes and an over 300m strike extension added by the drilling on the north-eastern extent of the3KEL target. This RC program has extended to the potential strike of tin mineralisation and the zinc mineralisation and also test underneath the rock chips results from the large 200m x 150m undrilled gossanous area 200m further to the northeast of 3DKK013. Rock chips from this gossanous area assayed up to 0.7% tin and represent a +700m extension of the 3KEL Target.

The first assays are anticipated to be received for this program over the coming weeks.