Skyharbour Announces UAV-MAGTM Airborne Geophysics Surveying on Moore Uranium Project as well as 2017 Highlights and 2018 Corporate Strategy

Suite 1610 – 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4

www.skyharbourltd.com

TSX-V Trading Symbol: SYH

Email: [email protected]

Telephone: (604) 687-3376

Facsimile: (604) 687-3119

January 10th, 2018

NEWS RELEASE

Skyharbour Announces UAV-MAGTM Airborne Geophysics Surveying on Moore Uranium

Project as well as 2017 Highlights and 2018 Corporate Strategy

Vancouver, BC - Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQB: SYHBF) (Frankfurt:

SC1P) (the “ Company”) is pleased to announce the commencement of an Unmanned Aerial

Vehicle Magnetometer Survey (“UAV-MAGTM Survey”) to be completed by Pioneer Aerial Surveys

Ltd. (“Pioneer”) on the Company’s flagship 35,705 hectare Moore Uranium Project, located

approx. 15 km east of Denison Mine’s Wheeler River project on the southeast side of the

Athabasca Basin, Saskatchewan . The survey will be flown over a 4.5 km by 1.6 km area that

covers the Maverick structural corridor host to several high grade uranium zones including the

Main Maverick Zone where drill results from last year returned 6.0% U 3O8 over 5.9 metres

including 20.8% U3O8 over 1.5 metres in hole ML-199.

Moore Uranium Project Claims Map:

http://skyharbourltd.com/_resources/maps/MooreLakeRegionalTenure.jpg

The survey will consist of approx. 402 line km at 20 metre spacing and will be used to help identify

high-priority, cross-cutting features, and structures along the Maverick conductor corridor. This

survey will help refine and identify current and additional drill targets for the upcoming winter 2018

diamond drill program at Moore as these cross -cutting features represent high-priority targets.

This innovative UAV-MAGTM survey is the first of its kind to be carried out at the Moore Project

and will provide for much tighter survey spacing to better identify drill targets at a lower cost using

drones. Only 1.5 km of the total 4 km long Maverick corridor have been systematically drill tested

leaving robust discovery potential along strike as well as at depth in the underlying basement

rocks which have seen limited drill testing historically. With this survey, Skyharbour continues to

unlock the discovery potential at Moore through value -add, systematic and cutting-edge

exploration techniques.

Moore Uranium Project Maverick Corridor:

http://skyharbourltd.com/_resources/maps/Moore-Lake-Maverick-Corridor-Map-v1.jpg

Pioneer has extensive experience flying Unmanned Aerial Vehicle (“UAV”) based magnetometer

and remote sensing surveys for the mining and exploration sector and has successfully flown over

12,000 line km in surveys across North America. Pioneer is leading the industry in UAV remote

sensing for mineral exploration, mine site surveys and safety inspections. Their UAV systems are

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some of the most advanced in the world, custom built in Canada and capable of long flights and

diverse sensor payloads.

Skyharbour’s 2017 Corporate Highlights:

Drill Programs and Results:

 In the winter/spring of 2017, Skyharbour completed its first diamond drilling program at

its flagship, high grade Moore Uranium Project consisting of 5,450 metres in 15 holes

 All of the holes drilled to target intersected uranium mineralization on the Maverick

corridor; shallow (250 metres to 280 metres depth), high grade mineralization was

intersected in seven of the fifteen holes with new high grade mineralized lenses being

discovered along strike at the Maverick corridor illustrating the robust discovery potential

along its 4 km strike length

 High grade results included 20.8% U3O8 over 1.5 metres within an interval returning

6.0% U3O8 over 5.9 metres in hole ML-199 as well as 9.12% U3O8 over 1.4 metres within

an interval returning 4.17% U3O8 over 4.5 metres in hole ML-202

 In the summer/fall of 2017, Skyharbour completed another diamond drilling program at

the Moore Uranium Project consisting of 4,035 metres in 11 holes

 Hole ML17-10 at the Main Maverick Zone returned 2.23% U3O8 over 9.3 metres

including 7.4% U3O8 over 1.8 metres, and hole ML17-09 returned 0.344% U3O8 over 7.5

metres including 1.41% U3O8 over 1.5 metres; this mineralization occurs below the

unconformity in the basement rocks illustrating the strong potential for high grade

uranium to be discovered in the relatively underexplored basement rocks at Moore

Moore Uranium Project Maverick Corridor Drilling Map:

http://skyharbourltd.com/_resources/projects/Moore-Lake-Maverick-Trend-w-geophys-

inset_20170515_v2.pdf

Strategic Partner Option Agreements:

 Skyharbour finalized an option agreement with industry-leader and strategic partner

AREVA Resources Canada whereby AREVA may earn up to a 70% interest in the

Company’s 49,635 hectare Preston Project through $8,000,000 of total project

consideration over six years, including up to $7,300,000 of exploration expenditures and

$700,000 of cash payments split equally between Skyharbour and Clean Commodities

Corp.

 As previously announced, AREVA is planning to carry out CDN $2,000,000 in

exploration and diamond drilling programs over the next year with an initial geophysical

program followed by a planned drilling program consisting of 15 to 20 drill holes for a

total of approximately 4,500 metres which is proposed in early 2018

 Skyharbour entered into an option agreement with Azincourt Energy Corp. whereby

Azincourt may earn a 70% interest in the Company’s 25,329 hectare East Preston

Project through the upfront issuance of 4,500,000 shares of Azincourt as well as

$3,500,000 of total project consideration over three years, including $2,500,000 of

exploration expenditures and $1,000,000 of cash payments split equally between

Skyharbour and Clean Commodities

 As previously announced, Azincourt is planning to commence geophysical programs

including Horizontal Loop Electromagnetic (HLEM) and Gravity surveys to be used to

yield drill targets

Preston Uranium Project Claims Map:

http://skyharbourltd.com/_resources/maps/SYH_Patterson_Lake_Area_Promo_20161212_blue

_hi_res.pdf

Financings:

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 The Company raised $2.7 million through non-brokered private placements as well as

$1.3 million through warrant exercise

Overview of 2018 Corporate Strategy and Outlook on Uranium Market:

Skyharbour has interest in five uranium projects totalling approx. 200,000 hectares strategically

located throughout the Athabasca Basin - a dominant project portfolio that offers significant

discovery potential in the number one mining jurisdiction globally as ranked by the Fraser Institute.

As an exploration company, Skyharbour plans to create shareholder value through new uranium

discoveries as well as expanding known mineralized zones at its various projects in the Athabasca

Basin. The Company is looking to emulate recent exploration successes in the Basin like that of

NexGen Energy at its Rook I Project, Fission Uranium at its PLS Project, and Hathor Exploration

at its Roughrider Project. Specifically, Skyharbour plans to carry out additional exploration and

drilling programs at its flagship Moore Uranium Project over the course of the upcoming year .

Given the success of the 2017 drilling programs at Moore, the Company is preparing for a

minimum 4,000 metre winter diamond drilling program to commence in February with additional

news and details forthcoming.

Skyharbour will continue to implement the prospect generator model by finding strategic partners

to option and joint venture its secondary projects to. This strategy ensures these projects are

advanced with exploration being funded by partner companies, and it allows Skyharbour to raise

additional capital with less equity dilution as the deals typically include cash and stock payments

in addition to exploration expenditures. Executing on this strategy in 2017, Skyharbour signed two

option agreements on its Preston Uranium Project with industry -leader AREVA Resources

Canada and Azincourt Energy whereby AREVA and Azincourt can earn up to 70% on the Preston

Project through a combined $9,800,000 in total exploration expenditures as well as $1,700,000

in total cash payments and 4,500,000 Azincourt shares. As previously announced, AREVA has

announced a $2 million exploration program at Preston and Azincourt is set to begin their

exploration programs soon as well. This will provide additional news flow for Skyharbour to

complement the news flow from its flagship Moore Uranium Project.

After a nine year bear market in the uranium market , and a volatile last few years, the market

appears to have turned the corner. Last year there were significant supply-side developments

consisting of production cuts by major uranium producers including Cameco's announcement to

suspend production at its McArthur River Mine, the world's largest producing uranium mine, for at

least ten months starting this month, which is expected to cut approximately 15-18 million pounds

of U3O8 in 2018. The world’s largest producer Kazatomprom then announced an additional

production cut of approximately 28.6 million pounds of U3O8 over the next three years, adding to

the 10% cut it had announced early in 2017. Uranium demand is forecast by the World Nuclear

Association to increase steadily to 2030 and beyond. There are estimated to be just under 60

nuclear reactors under construction, and hundreds of more nuclear reactors planned or proposed

to be constructed worldwide, with China leading the charge. Furthermore, Japan is restarting its

reactors with its recently reelected pro-nuclear government led by Shinzo Abe. With the increasing

demand, the recently announced production cuts from major producers, as well as the uranium

spot price currently trading below the average global all-in cost of production, the Ux Consulting

Company has changed their uranium market forecast from one of supply surplus to supply deficit

in 2018.

About Skyharbour Resources Ltd.:

Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's

Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals

with five drill-ready projects. In July 2016, Skyharbour acquired an option from Denison Mines, a

large strategic shareholder of the Company, to acquire 100% of the Moore Uranium Project which

is located approx. 15 kilometres east of Denison's Wheeler River project and 39 kilometres south

of Cameco's McArthur River uranium mine. Moore is an advanced stage uranium exploration

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property with high-grade uranium mineralization at the Maverick Zone with drill r esults returning

6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265

metres. Skyharbour recently signed option agreements with AREVA Resources Canada and

Azincourt Energy whereby AREVA and Azincourt can earn in 70% on the Preston Project through

a combined $9,800,000 in total exploration expenditures, as well as $1,700,000 in total cash

payments and 4,500,000 Azincourt shares. Preston is a large, geologically prospective property

proximal to Fission Uranium's Triple R d eposit as well as NexGen Energy's Arrow deposit. The

Company also owns a 100% interest in the Falcon Point Uranium Project on the eastern perimeter

of the Basin which contains an NI 43 -101 inferred resource totaling 7.0 million pounds of U3O8

at 0.03% and 5.3 million pounds of ThO2 at 0.023%. The project also hosts a high-grade surface

showing with up to 68% U3O8 in grab samples from a massive pitchblende vein, the source of

which has yet to be discovered. The Company's 100% owned Mann Lake Uranium project on the

east side of the Basin is strategically located adjacent to the Mann Lake Joint Venture operated

by Cameco, where high-grade uranium mineralization was recently discovered. Skyharbour's goal

is to maximize shareholder value through new mineral disco veries, committed long -term

partnerships, and the advancement of exploration projects in geopolitically favourable

jurisdictions.

Skyharbour’s Uranium Project Map in the Athabasca Basin:

http://skyharbourltd.com/_resources/SYH_Landpackage_2014.jpg

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 Development and Communications

Skyharbour Resources Ltd.

Telephone: 604-687-3850

Toll Free: 800-567-8181

Facsimile: 604-687-3119

Email: [email protected]

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER

ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS

NEWS RELEASE.

This release 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 fu ture performance, and actual results or

developments may differ materially from those in the forward-looking 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.