2004

SKN received Business License and Defines Bonanza Ag-Pb Zone on the High Grade Ying Silver-Gold Project -Henan Province, China

VANCOUVER, BRITISH COLUMBIA— October 6, 2004, SKNResources Ltd. ("SKN") is pleased to announce that the business license has been issued for Henan Found Mining Co. Ltd. ("HFMC") , the joint venture company between SKN Resources' wholly owned subsidiary, Victor Mining Ltd., and a subsidiary company of the Henan Provincial Governmental Geological Bureau (HPGGB). SKN has the right to earn a 77.5% interest in HFMC, which holds the high grade Ying Project in Henan Province, China. SKN's interest can be increased to 90% if HPGGB elects not to make cash contributions after SKN earns its 77.5% interest.

As reported August 16, 2004, an exploration program of 5,000 meters (m) of underground tunnels was started in early August through two existing southeast oriented access tunnels, CM102 and CM103 (see "Tunnel Plan Map" on www.sknresources.com). HFMC has tunneled a further 557 meters (mainly drifting along veins) over 4 faces, advanced 165 meters of declines over 2 faces , and has widened 705 m eters of tunnel CM102 to provide motorized access. At present, veins S1, S2, S4, S5, S6, S14, and S17 can be accessed through CM103 or CM102. By widening CM102 for a further 110 meters, vein S16 will be open to motorized access . Veins S7 and S8 will be reached by extending CM102 for a further 200 meters. Through CM103 and CM102, HFMC has surveyed and mapped the entire underground workings.

Tunnel Plan Map

To date the majority of the existing and newly developed tunnels have focused on exploring the S14 vein. The S14 vein , as defined by surface trenching, tunneling and drilling, consist s of a number of massive galena sheets and Pb+Zn and quartz veining along a narrow structure which extends over 1.4 km long and 300m in the down dip direction. While carrying out underground mapping, HFMC has focused on the massive galena sheet ranging in thickness from 0.1 m to 1.0 meters as it is easily mapped out and has extremely high values – sufficient to enable direct shipment to smelter once mined. This massive galena sheet has been traced by tunnel on three levels continuously over 50 meters of vertical distance (570m to 518m elevation) and over a 700 meter length (see "S14 Vein Longitude Section" and photos at www.sknresources.com). Assay results for the initial sampling program on the massive galena sheet of the S14 vein from three levels of tunnel are listed in the following table , which shows extremely high silver and lead grades.

S14 Vein Longitude Section

Massive Galena Sheet

Elevation (meters)	Distance South of CM103	Intervals (meters)	Silver (grams/tonne)	Silver (oz/tonne)	Lead (%)	Zinc (%)	Value* (US$/Tonne) (in situ)
560	70.0	0.16	1885	60.60	61.12	5.39	957.17
	86.5	0.20	1065	34.24	64.77	5.38	817.95
	92.0	0.30	1560	50.16	35.76	13.26	701.03
	126.0	0.30	1955	62.86	56.26	9.09	945.59
	137.5	0.30	1265	40.67	42.32	5.42	661.95
	255.0	0.17	1345	43.24	46.24	2.16	698.57
	258.0	0.18	1520	48.87	53.25	1.85	795.56
	267.5	0.20	1410	45.33	41.3	7.24	691.45
	275.0	0.16	1650	53.05	47.57	3.76	781.23
	279.5	0.30	1710	54.98	35.12	2.09	676.47
	378.0	0.20	5620	180.69	47.46	3.9	1610.55
	412.0	0.20	3050	98.06	50.34	3.21	1095.76
	455.0	0.20	1758	56.52	49.62	3.75	821.84
539	339.0	0.20	1235	39.71	37.47	3.93	606.21
	391.0	0.15	2975	95.65	67.41	1.45	1222.70
	401.5	0.10	2560	82.31	64.28	3.54	1117.77
	412.0	0.17	2310	74.27	74.12	1.92	1145.01
	422.0	0.20	3440	110.60	66.88	0.59	1311.33
518	348.0	0.40	2065	66.39	72.14	1.45	1074.24
	445.0	0.20	1415	45.49	42.3	7.29	701.53
Average		0.21	2036	65.46	52.14	4.58	905.94
* Calculated on the basis of US$6.5/oz Ag, US$0.40/lb for Pb, and US$0.45/lb for Zn.

An early diamond drill hole completed by HPGGB intersected the same massive galena sheet at the approximate 360m elevation below existing tunnels. Check assaying returned 1785 g/t Ag, 35.43% Pb and 3.96% Zn over 0.30 meter ( see "S14 Vein Longitude Section" at www.sknresources.com ). This indicates the galena sheet may continue for at least 150 metres further down dip from the lowest tunnel elevation. An underground drill program will start to test down dip continuity of the massive galena sheet.

On the S16 vein a massive galena sheet of up to 1.6m wide has also been mapped out for the entire tunnel lengths along two levels. This will be our next focus of exploration once widening of CM102 is completed. Elsewhere, massive galena sheets have been found at all 22 veins identified in the area. Veins S2, S7, and S8 are of particular interest due to the existence of previous local mining tunnels. It is expected that after the proposed 5,000m tunneling program is completed, more of these extremely high grade massive galena sheets will be defined.

The high grade massive galena sheet material appears to be easily separable from its host lower grade material or waste by gravity separation or manually, for direct shipment to smelter. Management therefore intends to use current tunnels to extract the massive galena sheet, with high grade materials crushed and bagged on site for direct sale to a lead smelter about 300 km away without significant capital cost. The diluted and lower grade materials will be piled for custom milling by any of several existing flotation mills nearby. Current mining costs for the massive galena sheet is about US$15 per tonne, based on the mining contract in place signed with our contractors.

Direct Shipping Materials

The high grade YING Silver-Gold Project comprises five exploration permits covering 52.4 square kilometers. About 40 mineralized veins with about one to two meter average width were identified by surface and underground channel sampling. In the western part of the Project (SGX permitting area), quartz-carbonate veins with silver-lead-zinc mineralization are manifested as 22 mapped vein-alteration zones. As reported April 26, 2004, six of the better explored veins at the SGX permitting area have resource estimates containing the equivalent of 15,194,024 Indicated ounces of silver and 114,577,968 Inferred ounces of silver, calculated on the basis of US$6.0/ Oz Ag, US$0.28/lb for Pb, and US$0.35/lb for Zn.

Quality Control
Rock samples were collected by channeling back of the undercut drifts. In mined out stopes, samples were collected either from pillars or floor where trenches were dug. The channels were usually cut 10 cm in width and 5 cm in depth producing a sample weighing approximately 3 to 10 kg for each 0.15 to 1.00 meter intervals depending on the thickness of mineralization.

The company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel samples. All samples are shipped directly in security sealed bags to the assay lab of No. 6 Team of Henan Non-ferrous Metals Geological and Mineral Resources Bureau in Luoyang located 125km by road northeast of the Ying Project Area. The lab is certified by Henan Provincial Bureau of Quality Control and Quality Assurance.

The sample preparation consists of drying, crushing, splitting of the sample to 150 grams, then the sample is pulverized to 200 mesh. Silver, lead and zinc were analyzed by a 3 hour hot aqua regia digestion on 30 gram samples with an AA finish.

Check samples including field duplicates and pulps are routinely sent to ALS Chemex Laboratories in Vancouver Canada for assay accuracy and sample contamination.

Myles Gao, P.Geo, President of SKN, is overseeing the YING 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: SKN RESOURCES LTD., Rui Feng, Chairman & CEO, Telephone: (604) 669-9397, Fax: (604) 669-9387, Email: info@sknresources.com, Website: www.sknresources.com.
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