2005

US$5 million Exploration and Development Program for 2005 at the Ying Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--SKN Resources Ltd. ("SKN") is pleased to report that is has budgeted US$5 million for the 2005 Exploration and Development Program on the Ying Silver Project, Henan Province, China. The work is being carried out through the Chinese subsidiary joint venture company, Henan Found Mining Co. Ltd. ("Found"), in which SKN is earning a 77.5% interest. Found holds 100% of the Ying Silver Project and Mr. Myles Gao, President of SKN, is the General Manager of Found. The program is designed to extend the significant progress that has been made on the project by SKN since August 2004 and to establish mineral resources and reserves suitable for future mining operations. The Program is now underway.

The extensive Exploration and Development Program for 2005 includes:

1) Sinking three shafts, with hoist installation: US$1.25 million
Three 3.6 meter(m) diameter shafts have been designed and will be sunk, each to a depth of 300m, from the 550m elevation to the 250 m elevation in the SGX area where veins S14, S16E & S16W, S6, S2 and S7 (SGX Veins) are being explored and developed. Two of the shafts are designed for hauling ore and waste while the third shaft will provide ventilation. The shafts are estimated to have combined hauling capacity of 300,000 to 400,000 tonnes per year. The total cost for three shafts with hoists installed is budgeted at US$1.25 million based on pricing in several bids which are currently under review by Found.

2) Tunneling a total of 13,000m: US$1.55 million (based on the existing tunneling costs under contract)
a) tunneling 3,000m from the three shafts, to carry out cross-cutting and drifting along the SGX Veins at 50 m vertical intervals to test the continuity of massive galena sheets (MGS) at depths below existing tunneling at the 518m elevations.
b) 6,000m of additional access tunnelling and drifting along veins, using current main access tunnels CM103 and CM102, to extend exploration and development of the SGX Veins at the 550m and 518m elevations.
c) tunnelling 4,000m on 3 to 4 veins outside of the SGX area where encouraging silver and lead grades were found (see February 7, 2005 press release).

3) Underground drilling: 10,000 m at a cost of US$0.5 million
The underground drilling program is designed to continue testing downdip continuity and extension of the MGS veins in the SGX area, in furtherance of increasing and upgrading the existing mineral resources estimated by Mr. Chris Broili in his NI 43-101 report (see April 26, 2004 press release), in which Mr. Broili reported the in situ metals on the SGX Property are the equivalent of 15,194,024 Indicated ounces of silver and 114,577,968 Inferred ounces of silver, calculated using US$6.0/oz Ag, US$0.28/lb for Pb, and US$0.35/lb for Zn.

4) Pilot test mining of massive galena sheets in the SGX Veins: US$0.6 million
In order to select the best mining method to extract high grade MGS ores with minimum dilution and maximum recovery, Found has budgeted US$0.6 million to conduct pilot test mining. Mining methods, such as cut-and-fill and short-hole-shrinkage, will be used to perform the test. In 2005, Found expects to produce 20,000 tonnes of high grade MGS ore from the test mining at a cost US$15 per tonne. With approximately 50 to 60% dilution, the total mining cost is expected to be US$30 per tonne. By-products from 13,000m of tunnelling are expected to amount to another 10,000 tonnes of MGS ore at no cost for a total of 30,000 tonne production.

5) Technical reports for mining permit: US$0.5 million
As required by Chinese regulations, comprehensive geology reports, engineering and environmental studies are essential in order to obtain mining permits over the SGX area. A qualified Chinese engineering firm will also be retained to design two parallel 300 tonnes per day flotation circuits housed in one mill to go into operation once the Mining Permits are issued. It is anticipated that completion of all requirements and issuance of the mining permits will take approximately 6 to 12 months.

6) Assaying, data compilation, qualifying reports, management and administration, camp construction, government relations and contingency costs are estimated at about US$0.6 million

The US$5 million budget will be partly financed by SKN (US$1.5 million) as part of its required capital contribution to earn its 77.5% interest in the Project. The remainder of the budget is projected to be covered by cash flow generated from the planned pilot test mining operation.

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.


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

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