Skygold Ventures Ltd. is pleased to announce an updated resource estimate (NI 43-101 compliant) for the Main Zone at the wholly owned Spanish Mountain Project (the “Project”) in central British Columbia.  The updated measured and indicated gold resource is 102.26 million tonnes at an average grade of 0.785 g/t (2.58 million ounces gold) and an inferred resource of 11.65 million tonnes at an average grade of 0.787 g/t (290,000 ounces gold), in each case based on a cut-off grade of 0.50 g/t gold. This updated resource represents an increase of 47% when compared to the initial resource estimate for the Project previously disclosed on April 3, 2008.  The expansion of the Main Zone was driven by the extensive 2008 diamond drilling program which, in the opinion of the Company, has yet to define the limits of the deposit to the north and south and at depth.  The Company is currently planning a follow-up program aimed at resource expansion and optimization. The Company anticipates that this program will begin this summer.  Independent resource estimate consultants Gary Giroux MASc, P. Eng (of Giroux Consultants Ltd) and Dr. Giles Peatfield Ph.D., P.Eng have authorized the release of this estimate. 

Brian Groves, President and CEO of Skygold Ventures stated:  “The large drilling program completed in 2008 and the development of robust geological and grade models for the Main Zone have resulted in the significant increases in each category of the updated resource estimate.”

The updated resource at selected gold cut-off grades is as follows:

Spanish Mountain updated resources (at a 0.50 g/t gold cut-off)

An increase of 45% was realized in the expansion of the higher grade component of the Main Zone at a cut-off grade of 0.70g/t as portrayed in the following table.

Spanish Mountain updated resources (at a 0.70 g/t gold cut-off)

The Main Zone updated resource estimate at a cut-off grade of 0.3 g/t gold is as follows:

Readers are cautioned that mineral resources, which are not mineral reserves, do not have demonstrated economic viability.

The updated resource estimate is based on a detailed three dimensional geologic model produced by Company geologists and incorporates recently identified structural controls to the mineralization on the Project.  This model separates stratigraphic controlled and structurally controlled mineralized domains and will be important for the ongoing program on the Property. A north-south trending structural corridor may be traced for over two kilometres and is thought to be a key factor in localizing gold mineralization within the Main Zone at Spanish Mountain.

A total of 323 diamond drill holes completed by Skygold from 2005 to 2008 was the basis for the updated resource.  This represents a total of 74,797 metres of drilling and 67,468 individual gold assays determined by standard metallic screen analysis.  Analysis of the gold grade distribution resulted in individual sample assays from stratigraphic controlled domains being capped at 36 g/t gold which affected only 7 assays.  Assays from structurally controlled domains were capped at 19.5 g/t gold which affected only 3 assays.  Additional factors included in the resource estimate are as follows:

• Three dimensional solids constraining the mineralization were produced from cross sections and level plans by Skygold geologists.
• Uniform 5 metre down hole composites were produced within the constraining solids.  Intervals less than 2.5 metres (at the solid boundaries) were combined with adjoining intervals.
• A block model, with blocks 20 x 20 x 10 metres was superimposed over the three dimensional solid.
• 181 specific gravity measurements were taken (using the weight in air – weight in water method) from core samples across the mineralized zone and from multiple lithologies.  The resource update used the average value of 2.78.
• Grade interpolation was done using ordinary kriging using search ellipses determined by variography.

The complete NI 43-101 compliant report will be filed on Sedar within 45 days as required under NI 43-101.

Scott Weekes, VP Exploration stated:  “This updated resource estimate again highlights the size of the gold system at Spanish Mountain.  At a 0.3 g/t cutoff, there are 3.9 million ounces in material averaging just under 0.6 g/t gold in the Measured and Indicated category and an additional 460,000 ounces in the Inferred category.  The resource model also indicates a relatively cohesive block of near surface material that averages over 1.0 g/t gold.  Ongoing engineering and economic studies will quantify this near surface mineralization and help define economic parameters for the deposit.  The close proximity to existing infrastructure (roads, power, work force etc) and the geometry of the Spanish Mountain deposit are expected to have a positive impact on project economics.”

Discussion of results

Geological modeling based on data from the 2008 drill program, has identified a key structural control to the gold mineralization and geology in the Main Zone.  This controlling feature can be traced for approximately 2km.  The recognition of this structure and its influence on the gold distribution in key stratigraphic horizons has allowed Skygold to create a detailed geological and mineralization model.  This model has identified additional targets to the north and south of the Main Zone as well as at depth.  The model will also serve as an exploration aid in identifying additional targets elsewhere on the Property. Reconnaissance drilling in these areas has already intersected gold mineralization in structures. The Company will focus on identifying favourable stratigraphy elsewhere along these structures.

Future Plans

Further diamond drilling is planned in 2009.  Diamond drilling will focus on continued expansion of the Main Zone to the north, south and at depth. Drilling will also focus on targets away from the Main Zone that are derived from the current geological model.

The Company will explore the possibility of a bulk sampling program to provide material to optimize metallurgical recoveries.  Initial work indicates gold recover in excess of 88% utilizing bulk flotation followed by Carbon in Leach (CIL) recovery.  As the Main Zone outcrops in a number of areas the bulk sampling program will have access to a variety of mineralizing styles and grades.

Economic and engineering studies will focus on defining preliminary economic parameters for the Spanish Mountain deposit.  This will include potential operating costs, capital expenditures and scale of production.  One of the primary goals of these studies will be to determine realistic cut-off grades for the deposit.

Mr. Gary Giroux, MASc, P. Eng (BC) is a geological engineer working for Giroux Consultants Ltd. and is the Qualified Person as defined by NI 43-101 for the resource estimate.  Mr. Giroux has over 35 years of experience in mineral exploration, development and production.  He specializes in computer applications in resource estimation and has authored numerous papers related to that field.  He has practiced as a geological engineer since 1970 and has provided geostatistical services to the industry since 1976.  Mr. Giroux and Giroux Consultants Ltd. are independent of Skygold under NI 43-101.

Dr. Giles Peatfield, P.Eng. is an independent geological engineer.  He has over 40 years experience in mineral exploration as an employee of a major mining company and latterly as an independent consultant.  He specializes in project evaluation and quality control issues, including design of sampling protocols and on-going monitoring of assay data.  Dr. Peatfield is independent of Skygold under NI 43-101.

R. Bob Singh P.Geo, the Company’s Exploration Manager for the Project, is a qualified person (as defined under NI 43-101) and has reviewed the contents of this news release.

On Behalf of the Board of Directors,