GORGE-GREGOR AREA EXPLORATION:

The Gorge-Gregor area is part of the Iskut River Joint Venture land acquisition expected to be completed soon. Permit applications are in progress and as such, limited work was completed at these showings this year. Work will be limited to rehabilitating historical helicopter access sites as well as rehabilitating key grid base lines and cross lines in the vicinity of the best showings. The expectation is to also locate some of the better outcrops tested by historical programs.

Skyline is particularly interested in the exploration potential at the Gorge-Gregor showings. This area has also been historically underexplored because the best high-grade gold trend, the Gorge, was never held by a single company. This trend is located at the historical property boundary between the Iskut River Joint Venture and the Snip North property acquired from Newcastle Minerals Ltd. in 2010. Skyline will hold both of these historical properties and has all exploration data from all parties. This area is a high priority target for the winter compilation work.

Exploration permits for the Gorge and Gregor areas are expected late this fall, but will likely be too late for any meaningful exploration to be carried out this year. Skyline expects to carry out an ambitious and exciting exploration program at the Gorge in 2012.