2004

Results of Seven Drill Holes and Two Tunnels Tuobuka Gold Project-Yunnan Province, China

VANCOUVER, BRITISH COLUMBIA, CANADA – August 31, 2004 – SKN RESOURCES LTD. ("SKN") reports that assay results have been received for the last seven holes and two tunnels at the Tuobuka Gold Project located in Yunnan Province, Southwest China. The drill and tunnel program was designed to test two parallel gold-in-soil anomaly zones, each approximately 3 km long , which correlate with the two projected gold mineralization zones. Drill holes X01-01, X08-01, X25-01, X41-01 & 02 and tunnels PD0101 and PD3901 focused on the Lower Mineralization Zone while holes S23-01 and S24-01 together with previously released hole S15-01 targeted the upper Mineralization Zone. Each of the holes was designed to examine gold mineralization in the peak gold-in-soil anomaly areas on northeasterly-striking, 100-meter spaced section lines. The program aimed to intersect potential gold mineralization at the different elevations from north to south of the property.

Assay results for the holes and tunnels are summarized in the following table. For the drill hole and tunnel locations and sections, please visit SKN's website at www.sknresources.com.

Section Line	Drill/Tunnel	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Interval (m)	Gold (grams/tonne)	Copper (%)
1	PD0101 (tunnel)	240	0	130	62	68	6	0.526
	X01-1A (drill)	240	80	296	196.4	202.4	6	0.433
					242.8	246.8	4	1.013
8	X08-01 (drill)	230	65	322	No significant mineralization intersected
23	S23-01(drill)	240	65	464	No significant mineralization intersected
	X25-01 (drill)	250	80	250	No significant mineralization intersected
24	S24-01(drill)	240	80	298	No significant mineralization intersected
41-1	PD3901(tunnel)	290	0	150	No significant mineralization intersected
	X41-01(drill)	295	70	312	219.95	220.95	1	0.446	2.01
					225.85	232.75	6.9	0.077	0.265
41-2	X41-02(drill)	265	69	336	No significant mineralization intersected

On section line 1, both Tunnel PD0101 and Hole X1A-01 intersected a 6 meter, 0.4 to 0.5 g/t gold zone at the 1,433 meter and 1,515 meter elevations respectively, representing a low grade gold mineralization extending over 120 meters (m) downdip within Lower Mineralization Zone.

Four holes drilled on section lines 8 (X01-01), 23 (S23-01 and X25-01), and 24 (S24-01) did not intersect significant gold mineralization.

On section line 41, which is 2,000m south of section line 1, hole X41-01 intersected a 1m wide gold-copper zone grading 0.446 g/t Au and 2.01% Cu and a 6.9m wide low grade copper zone containing 0.265% Cu at approximate 1,575 meters elevation. The zones can be correlated to 8m wide gold mineralization intercept (2.03 g/t Au) in an artisanal tunnel (LD13) at 1,868 meters elevation. However, Tunnel PD3901, excavated at 1,650 meters elevation between X4-01 and LD13, did not intersect the zone.

Currently three tunnels are in progress. Tunnel PD0901, approximately 100m south of the Boka property boundary, is advancing at the 1,975 meter elevation to examine whether the Upper Mineralization Zone swings further to the east, thereby not being intersected by the completed drill holes. The other two tunnels, PD0501 on section line 5 and PD1501 on section line 15, are being excavated on the Lower Mineralization Zone to infill gaps between existing drill holes and tunnels in the strike direction of the projected gold mineralization.

Any further exploration work on the property will be determined after the three on-going tunnels are completed.

The Company will now focus on its high grade Ying Silver project with the intention of bringing it to production to generate potential cash flow. SKN is also in the process of staking and acquiring several base and precious metals projects in Yunnan and other provinces in China.

With $6.5 million in the treasury and a brand new Atlas Copco drill rig, SKN is well positioned to continue exploring and developing the Ying project and acquire additional mineral projects in China.

Quality Control
SKN maintains a quality control program to ensure best practice in sampling and analysis of tunnel and drill core samples.

All samples are shipped directly in security sealed bags to the assay lab of No. 10 Division of Gold Headquarter of Armed Police in Kunming located 280 kilometres by road southwest of the Tuobuka Project Area. The lab is certified by Yunnan Provincial Bureau of Quality Control and Quality Assurance.

Drill core samples and tunnel samples are prepped to -10 mesh at the Armed Police lab. Five hundred gram split samples are air-freighted to ALS Chemex Laboratories, Vancouver, BC for assay. The samples are analysed for g old by fire-assay with AA finish while copper is analyzed using an aqua regia acid digestion with AA finish.

Field duplicates and pulp duplicates are inserted and are analyzed for precision at ALS Chemex Laboratories. Assay results for all seven holes and the two tunnels were received approximately at the same time in different batches.

Myles Gao, P.Geo, President of SKN, is overseeing the Tuobuka exploration program, and is the Qualified Person on the project.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


SKN RESOURCES LTD.
For further information: Rui Feng, Chairman & CEO, Phone: (604) 669-9397, Fax: (604) 669-9387, Email: info@sknresources.com, Websites: www.sknresources.com, www.newpacificmetals.com.
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