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

Exploration Programs

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

October 18th, 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 Energy

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

East Preston Uranium Project located in the western Athabasca Basin near NexGen Energy Ltd.’s

high-grade Arrow deposit hosted on its Rook -1 property and Fission Uranium Corp.’s Triple R

deposit located within their PLS Project area.

Preston Uranium Project Claims Map:

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

_hi_res.pdf

Skyharbour and Clean Commodities entered into an 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 28th, 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 p ayments to Skyharbour and Clean

Commodities.

East Preston Program Highlights:

 Extensive reinterpretation of historical helicopter -borne VTEM and ground geophysical

data by expert geophysical consultant highlights untested conductor systems and corridor

trends

 Ground geophysical program planned to refine drill targets over with grid establishment,

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

 Work to commence after freeze-up in November

 Azincourt may earn a 70% interest in East Pre ston totaling 25,329 hectares, which

represents the eastern region of the larger 74,965 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.

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 In addition to the Azincourt Agreement on the Preston East Property, Skyhabour also

announced an option agreement with AREVA Resources C anada whereby AREVA may

earn up to a 70% interest in a separate 49,635 hectare portion of the Preston Project.

East Preston Project 2017 Geophysical Program:

Skyharbour’s option partner Azincourt engaged a highly experienced geophysical consultant, Mr.

Lawrence Bzdel, PGeo, to interpret the extensive historical airborne and ground geophysical data

set and build on the already extensive previous work. The reinterpretation work has identified and

prioritized numerous conductor trends, with the highest priorities being the A, B and D trends,

respectively (see figure in link below).

East Preston Survey Grid Location Map:

http://skyharbourltd.com/_resources/maps/Low-res-Figure-2---East-Preston-Survey-Grid-

Location-Map-with-mid-time-channel-VTEM-440-us.pdf

Trend A is a very long, wide N to NE trending conductive corridor with an observed flexure bound

and crosscut by interpreted E-W cross-faults. Trend B is a long linear conductor system coincident

with an interpreted NE trending fault. Trend D is a NNW trending conductor system parallel to an

interpreted fault.

The East Preston geophysical program is expected to commence in November following freeze-

up in northwestern Saskatchewan. Grid establishment will precede the planned surveys. The grid

lines will be perpe ndicular to the interpreted VTEM conductive trends. The HLEM and Gravity

surveys will consist of 47 line km of each method.

The HLEM data will be collected with a 200 m Transmitter-Receiver separation, and 50 m station

intervals. The survey is designed to accurately identify multiple conductor systems in this shallow

depth to basement environment. Unconformity-related uranium deposits are often associated in

proximity to basement conductive trends, and represent a first order criteria for discovery.

The G ravity survey will record measurements at 50 m station intervals. Subtle gravity low

anomalies can highlight areas of alteration and structural disruption. Gravity highs may represent

basement topography, which are also associated with unconformity-related uranium deposits.

This initial ground geophysical program is expected to yield drill targets within previously untested

corridors. Skyharbour and its option partner Azincourt expect to generate enough targets for

several drill programs.

Overview of East Preston:

The significant potential of the Western Athabasca 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). More than $4.7 -million in expenditures on the entire Preston

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

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

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

interest in a 49,635 hectare portion of the total 74,965 hectare Preston Uranium Project (see

News Release dated March 9th, 2017). Under the agreement, AREVA can contri bute 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.

Qualified Person:

The technical information in this news release has been prepared in accordance with the

Canadian regulatory requirements set out in National Instrument 43 -101 and reviewed and

approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s Head Technical Adviso r and a

Director, as well as a Qualified Person.

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

property with high-grade uranium mineralization at the Maverick Zone with drill results 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 Resour ces Canada and

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

a com bined $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 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

For further information contact myself or:

Nick Findler

Corporate Development and Communications

Skyharbour Resources Ltd.

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Telephone: 604-639-3850 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 dev elopments

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 p erformance, 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 fact ors, 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.