Sky Gold Corp. Grants Options and Updates Financing Plans

Vancouver-based Sky Gold Corp. (TSX.V:SKYG)(US:SRKZF) has announced the issuance of 2,300,000 options at an exercise price of $0.05, valid for two years. These options are allocated to directors, officers, and consultants as per the company's stock option plan.

The company also confirmed it will not proceed with the third tranche of its previously announced financing. Sky Gold Corp. raised a total of $366,400 through two tranches, issuing 6,600,000 non-flow-through units at $0.05 per unit and 520,000 flow-through units at $0.07 per unit.

Each non-flow-through unit consisted of one common share and one share purchase warrant, with each warrant allowing the holder to buy a share at $0.07 within 36 months. Each flow-through unit included one common flow-through share and one non-flow-through share purchase warrant, enabling the purchase of a share at $0.10 within 24 months.

Securities issued are subject to a statutory hold period of four months plus one day. As part of the private placement, Sky Gold Corp. paid $23,680 in cash commissions and issued 464,000 warrants, exercisable at $0.07 per share for 12 months.