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Skyharbour Option Partner Azincourt Announces Upcoming Exploration Program at East Preston Uranium Property

Exploration Programs

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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

May 10th, 2017

NEWS RELEASE

Skyharbour Option Partner Azincourt Announces Upcoming Exploration Program at East

Preston Uranium Property

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

SC1P) (the “Company”) is pleased to announce the Company’s option partner Azincourt

Uranium (TSX -V: AAZ) (“Azincourt”) has announced details for an upcoming exploration

program at the East Preston Uranium Project. Their exploration program is slated to commence

this summer / early fall with the purpose of locating new drill targets that were previously

untested and refining other additional targets within the Swoosh corridor.

Preston Uranium Project Claims Map:

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

_hi_res.pdf

Skyharbour and Clean Commodities recently entered into Option Agreement (the “Agreement”)

with Azincourt which provides Azincourt an earn -in option to acquire a 70% working interest in

the East Preston Property (see news release dated March 28 th, 2017). Under the Agreement,

Azincourt has issued to Skyharbour and Clean Commodities each 2,250,000 common shares

and will contribute cash and exploration expenditure consideration totaling up to CAD

$3,500,000 in exchange for up to 70% of the applicable property area over three years. Of the

$3,500,000 in project consideration, $1,000,000 will be in cash payments to Skyharbour and

Clean Commodities. The Preston Uranium Project is a strategic, district -scale property with

robust exploration upside potential throughout and is located near recent high-grade discoveries

in the Patterson Lake area including NexGen Energy’s Arrow deposit, Fission Uranium’s Triple

R deposit, and the Spitfire discovery.

Skyharbour’s President and CEO, Jordan Trimble commented: “Skyharbour continue s to

execute on its business model by adding value to its project base in the Athabasca Basin

through focused mineral exploration at its flagship Moore Uranium Project, with final winter drill

results expected shortly, as well as utilizing the prospect gen erator model to advance its other

projects with strategic partners. The option agreement with Azincourt complements the other

recent option agreement we signed with industry -leader AREVA Resources Canada and

together the two option agreements combine for $ 9,800,000 in total exploration expenditures

over six years, as well as $1,700,000 in total cash payments and the issuance of 4,500,000

shares of Azincourt split between Skyharbour and Clean Commodities in return for 70%

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interests in the respective property areas. We are excited to have Azincourt commencing

exploration programs at East Preston shortly which will contribute to ample news flow for

Skyharbour over the next year including Azincourt and AREVA’s exploration programs at

Preston as well as the Compa ny’s upcoming summer drill program at the Moore Uranium

Project.”

Highlights:

● Azincourt may earn a 70% interest in East Preston totaling 25,329 hectares, which

represents the eastern region of the larger 107,278 hectare Preston Project through the

upfront issuance of 4,500,000 shares as well as $3,500,000 of total project consideration

over three years, including up to $2,500,000 of exploration work programs and

$1,000,000 of cash payments to Skyhabour and Clean Commodities to be split equally.

● If carried to completion, a tripartite joint venture would be formed being 70% as to

Azincourt and 30% as equally divided between Skyharbour and Clean Commodities.

● Azincourt’s initial exploration program is budgeted at $250,000 and is being planned for

completion by the fall of 2017 to allow for future winter drill target testing.

● The Preston Uranium Project is one of the largest tenure positions in the Patterson Lake

region and currently consists of 107,278 hectares strategically located near NexGen

Energy Ltd.’s hi gh-grade Arrow deposit hosted on its Rook -1 property and Fission

Uranium Corp.’s Triple R deposit located within their PLS Project area.

● In addition to the Azincourt Agreement on the Preston East Property, Skyhabour recently

announced that it signed an option agreement with AREVA Resources Canada whereby

AREVA may earn up to a 70% interest in a separate 49,635 hectare portion of the

Preston Project.

Upcoming East Preston Work Program Details:

The East Preston property had extensive regional exploration work completed in 2013 and 2014

including airborne electromagnetic (VTEM), magnetic and radiometric surveys. Three

prospective conductive, low magnetic signature corridors have been discovered on the property

area. The three distinct corridors have a total strike length of over 25 km, each with multiple EM

conductor trends identified. Ground prospecting and sampling work completed to date has

identified outcrop, soil, biogeochemical and radon anomalies, which are key pathfinder elements

for potential uranium deposit discoveries. Only one of the corridors has been drill tested to date,

intersecting structurally disrupted graphitic metasedimentary rocks at the Swoosh S6 target

using a combination of Horizontal Loop EM (HLEM) and gravity as primary targeting tools.

Following positive technical discussions between Azincourt and Skyharbour’s geological teams,

Azincourt is planning to complete a summer / fall exploration program aimed at generating new

drill targets within the previously untested corridors and refining additional targets along the

Swoosh corridor. The proposed work to be completed will include re -logging and sampling of

the seven diamond drill holes (1,571 m) drilled in 2014, with additio nal ground electromagnetic

survey work (HLEM) and ground gravity planned along the airborne conductive trends.

Additional ground geochemical sampling work is also being considered, but will be used to

enhance any target areas identified from the geophysical surveys.

The exploration work program planned is budgeted at $250,000 and is being planned for

completion by the fall of 2017 to allow for future winter drill target testing.

Overview of East Preston:

The significant potential of the Western Athabasc a Basin has been highlighted by recent

discoveries in the area by NexGen Energy Ltd. (Arrow), Fission Uranium Corp. (Triple R) and a

joint-venture consisting of Cameco Corporation, AREVA Resources Canada Inc. and Purepoint

Uranium Group Inc. (Spitfire). Mo re than $4.7 -million in expenditures on the entire Preston

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Uranium Project have been incurred to date, including over $2 million at East Preston. This

exploration has consisted of ground gravity, airborne and ground electromagnetics, radon, soil,

silt, biogeochem, lake sediment, and geological mapping surveys, as well as two exploratory

drill programs. Several high -priority drill target areas associated with multiple prospective

exploration corridors have been successfully delineated through this methodical , multiphased

exploration initiative, which has culminated in an extensive, proprietary geological database for

the project area.

Preston Uranium Property Map and Regional Exploration Corridors:

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

Furthermore, on March 9th, 2017, Skyharbour announced an option agreement with AREVA

Resources Canada which prov ides AREVA an earn -in option to acquire up to a 70% working

interest in a 49,635-hectare portion of the total 121,148 hectares Preston Uranium Project (see

News Release dated March 9th, 2017). Under the agreement, AREVA can contribute cash and

exploration program consideration totaling up to CAD $8,000,000 in exchange for up to 70% of

the applicable project area over six years.

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 to acquire 100% of the Moore Uranium Project which is located 20 kil ometres

east of Denison’s Wheeler River project and 39 kilometres south of Cameco’s McArthur River

mine. Moore is an advanced stage uranium exploration property with a high grade uranium zone

known as the Maverick Zone returning drill results of up to 6.0% U3O8 over 5.9 metres including

20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. Skyharbour and its partner

Clean Commodities recently signed option agreements with AREVA Resources Canada and

Azincourt Uranium whereby AREVA and Azincourt can e arn 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 Uraniu m’s Triple R deposit 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

discoveries, 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

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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]

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 i ncludes 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 sta tements. 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 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 mat erially

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.