Skyline Announces Closing of $6 Million Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/26/11 -- Skyline Gold Corporation (TSX VENTURE: SK) ('Skyline' or the 'Company') is pleased to announce that the Company has closed the final tranche of its $6 million non-brokered private placement. The Company was most gratified by the market response as even after the increase in the total amount the offering was fully subscribed.

The first tranche consisted of a total of 10,751,000 units (8,211,000 flow-through and 2,540,000 non-flow-through) for net proceeds of $2,908,680. The final tranche includes both flow-through and non-flow-through units for total proceeds of $3,091,320 and are allocated as follows:

--  6,022,070 flow-through units priced at $0.28 per unit. Each unit
    consists of one flow-through common share and one half of a flow-through
    share purchase warrant which can be exercised at a price of $0.40 per
    whole warrant for a period of two years from date of issue.

--  5,494,750 non-flow-through units priced at $0.24 per unit. Each unit
    consists of one common share and one half of a share purchase warrant
    which can be exercised at a price of $0.35 per whole warrant for a
    period of two years from date of issue.

All units have a hold period that expires 4 months from the date of issue. Finders' fees have been paid in accordance with TSX Venture Exchange policies.

3,571,428 of the flow-through units were placed with MineralFields Group ('MineralFields') from Toronto, Ontario. The Company is very pleased to be continuing its relationship with MineralFields and looks forward to working with MineralFields as we continue to develop our mineral properties.

This financing allows the Company to continue with its data compilation and interpretation, as well as current field programs to locate and verify historic soil anomalies, trench locations and results, and to confidently locate historical drill hole collars using high precision GPS units. Having exact coordinates will significantly enhance the confidence level of our on-going interpretation of mineralization trends and structures. Exploration teams are in the field confirming locations of historical showings; as well as completing infill soil geochemical lines and extending soil geochemical coverage where historical sampling left open-ended anomalies. Crews are also completing detailed prospecting, as well as geological and structural mapping, with trenching also planned as part of the program. All exploration efforts will be focused on acquiring the necessary information, from either existing showings or newly discovered mineralization, to undertake a well planned drill program starting in the fall of 2011. Skyline is very appreciative of the market reception and support for the Company's much expanded land base and for the approach that the new exploration management team is taking on the exploration of these properties.

Skyline Gold Corporation is a Canadian company engaged in the exploration of precious and base metals in mining friendly British Columbia. The Company is committed to building an experienced technical team with seasoned management equipped to understand the geological controls on mineralization known to exist in the Golden Triangle of British Columbia. The Skyline land package has consolidated some of the most prospective ground Canada has to offer, hosting both high grade structural systems and lower grade large tonnage porphyries. Further details on Skyline Gold Corporation and its high quality precious and base metal exploration targets can be found at www.skylinegold.com.

Skyline Gold Corporation

Bob Matthews, Chairman of the Board

Cautionary Statements

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual events to differ materially from those projected. There are no assurances the Company can fulfil such forward-looking 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.

NR - SK-11-11

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

Bob Matthews

Chairman of the Board

604-681-3989

604-681-3557 (FAX)
www.skylinegold.com