Skyline Announces Closing of First Tranche of Private Placement

RICHMOND, BRITISH COLUMBIA -- (Marketwire) -- 10/15/10 -- Skyline Gold Corporation (TSX VENTURE: SK) ('the Company') a company engaged in the exploration for high-grade gold deposits and development of its Bronson Slope project at the Snip Gold Mine camp in north western British Columbia's 'Golden Triangle', is pleased to announce that further to our news release of October 5, 2010, the Company has closed the first tranche of its non-brokered private placement of 612,500 units at a price of $0.40 per unit for net proceeds of $245,000.

Expressions of interest in the financing exceeding $1,500,000 have been received by the Company. There will be further closings.

Proceeds will be used to explore the high-grade gold zone on the Snip-1 tenure and the Snip Gold Mine / Bronson Creek gold basin.

Each unit ('Unit') consists of one flow-through common share and one-half of a flow-through common share purchase Warrant. Each Warrant will entitle the holder to purchase one additional flow-through share of the Company at a price of $0.60 per share for a period of 18 months from date of issue. The Units have a hold period that expires 4 months from the date of issue.

The Warrants contain an accelerator clause where, if the closing price of the Company's common shares is at a price equal to or greater than $0.90 for a period of 10 consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written Notice to the holders of the Warrants. Warrant holders can then, at the Company's discretion, be given written Notice that the Warrants will expire on the date that is not less than 30 days from the date notice is provided by the Company to the Warrant holders. No finder's fees are being paid on this first tranche.

ON BEHALF OF THE BOARD OF DIRECTORS

SKYLINE GOLD CORPORATION.

David Jensen, P.Eng., President & Chief Operating Officer

Cautionary Statement

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfil such forward-statements and the Company undertakes no obligation to update statements. Such forward looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Skyline Gold Corporation

David Jensen, P.Eng.

President & Chief Operating Officer

604 270 3878

604 270 3858 (FAX)
www.skylinegold.com