Skyharbour Divests Non-Core 24.5% Interest in Baird Project to Focus on Uranium Projects in the Athabasca Basin, Saskatchewan

Suite 1610 – 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4 www.skyharbourltd.com

TSX-V Trading Symbol: SYH Telephone: (604) 687-3376 Email: [email protected] Facsimile: (604) 687-3119

September 29, 2016

NEWS RELEASE

SKYHARBOUR DIVESTS NON-CORE 24.5% INTEREST IN BAIRD PROJECT TO FOCUS ON URANIUM PROJECTS IN THE ATHABASCA BASIN, SASKATCHEWAN

Skyharbour Resources Ltd. has signed a definitive agreement to sell its 24.5-per-cent interest in the Baird gold project to TomaGold Corp. In consideration for the property interest, TomaGold will issue 600,000 common shares to Skyharbour. The Baird property is owned by operator Goldcorp (51 per cent) and New Gold (24.5 per cent) and lies in the central Red Lake gold belt six kilometres north of the Madsen mine and 14 kilometres southwest of the Goldcorp Red Lake mine.

Jordan Trimble, president and chief executive officer of Skyharbour, stated: "This divestiture of a non-core, legacy property interest is consistent with Skyharbour's goal of building a pre-eminent uranium exploration and development company. Furthermore, our shareholdings in TomaGold will give us investment exposure to the strong portfolio of gold projects as well as the dynamic management and technical team at TomaGold. We are rapidly advancing our portfolio of uranium projects in the basin, and we are in the planning stages of an initial drill program at the recently optioned Moore Lake uranium project from Denison Mines."

The closing of the acquisition by TomaGold is subject to standard conditions, including regulatory and TSX Venture Exchange approval. A cash finder's fee will be paid in conjunction with this sale.

Skyharbour recently announced an option to acquire 100 per cent of the Moore Lake uranium project from Denison Mines. The 35,705-hectare Moore Lake project is an advanced uranium exploration property strategically located in the eastern portion of the Athabasca basin region, which is known for its large-scale and high-grade uranium deposits and producing uranium mines. Previous exploration efforts on the property discovered high-grade uranium mineralization highlighted by drill hole ML- 61, which intersected 4.03 per cent triuranium octoxide equivalent (eU3O8) over 10 metres at the Maverick zone. The depth to the unconformity on the property is relatively shallow and significant additional discovery potential remains over several conductive trends. Denison is now a large, strategic shareholder of Skyharbour and David Cates, Denison president and chief executive officer, has joined Skyharbour's board of directors. The company is currently planning an initial drill program at the flagship Moore Lake project with details and news forthcoming.

Skyharbour is also currently pursuing other option agreements and joint venture partners to value add and monetize some of its other non-core assets as the company remains focused on building its uranium project portfolio and exploration business. Skyharbour holds a 100-per-cent interest in the approximately 1,000-acre copperzinc-silver South Bay project 80 kilometres northeast of Red Lake, Ont. The property area hosts the former Selco South Bay copper-zinc-silver mine which produced approximately 1.6 million tons of 2.3 per cent copper, 14.5 per cent zinc and 3.5 ounces per ton silver to a vertical depth of 410 metres, and was explored to a vertical depth of 600 metres, between 1970 and 1982. The South Bay deposit was a classic Archean volcanic-associated massive sulphide (VMS) deposit that was hosted in an area known as the Confederation belt. Skyharbour believes that with current geophysical survey methods allowing exploration to depths in excess of 1,000 metres, there is strong potential to identify new, highly prospective precious and base metal settings on the South Bay property. For more information on the property please go to the Skyharbour South Bay website.

Skyharbour also announces that pursuant to its stock option plan, the company has granted incentive stock options to its various directors, officers, employees and consultants to purchase up to an aggregate of two million common shares in the capital stock of the company, exercisable for a period of five years, at a price of 30 cents per share. These options are subject to a four-month hold period.

About Skyharbour Resources

In July, 2016, Skyharbour acquired an option from Denison Mines to acquire 100 per cent of the Moore Lake uranium project, which is located 20 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River mine. Moore Lake is an advanced-stage uranium exploration property with over $30million in historical exploration, 370 drill holes and a high-grade zone known as the Maverick zone with drill results including 4.03 per cent eU3O8 over 10 metres at a depth of 265 metres. The company owns a 100-per-cent interest in the Falcon Point (formerly Way Lake) uranium project on the eastern perimeter of the basin which hosts a National Instrument 43-101 inferred resource totalling seven million pounds of U3O8 at 0.03 per cent and 5.3 million pounds of thorium dioxide (ThO2) at 0.023 per cent. The project also hosts a high-grade surface showing with up to 68 per cent U3O8 in grab samples from a massive pitchblende vein, the source of which has yet to be discovered.

To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com.

SKYHARBOUR RESOURCES LTD.

“Jordan Trimble”

Jordan Trimble President and CEO

For further information contact myself or: Nick Findler Corporate Communications Skyharbour Resources Ltd.

Telephone: 604-687-3376 Toll Free: 800-567-8181 Facsimile: 604-687-3119 Email: [email protected]

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This Shareholder Update includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forwardlooking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.