Skyline Gold Corporation is pleased to highlight the Company's 2011 exploration efforts and to announce the commencement of a diamond drill program that will test the most advanced targets examined this season.

Three primary target areas were explored this year; they are the Snip-Bronson Trend, the Bug Lake Area and the Gorge-Gregor Area. The location of these areas, in relation to the entire property, can be found on the map included in this release; this map is also available on the Company website through the link 2011 Exploration - Primary Target Areas.

Extensive exploration work has been completed in 2011 at both the Snip-Bronson Trend and the Bug Lake Area. Work permits for the Gorge-Gregor Area are pending; therefore, activities in this area have been limited to grid line and helicopter pad rehabilitation as well as some minor sampling of historic trenches.

Assay results have been received for approximately half of the more than 1,100 rock, chip, panel and channel samples collected to date in the 2011 exploration program. Assays from approximately three-quarters of 2,000 soil samples have also been received. A 1,200 line kilometre airborne geophysical program has been successfully completed and the final leveled geophysical data is expected to be provided to Skyline by late October.

Skyline contracted an independent third party geophysical consultant, Michael Zang from Zang Geophysical Consultants, to audit the quality of the airborne data and to provide Skyline with a preliminary geophysical interpretation. This interpretation, which is now complete, has provided an inventory of high quality geophysical anomalies that warrant aggressive follow-up work and was received early enough in the field season to be factored into the 2011 drill target selection process.

The exploration team at Skyline has reviewed all historical exploration data available for the Bug Lake Area and the Snip-Bronson Trend, as well as all data received from the 2011 exploration program and has determined the best targets for this fall's drill program are within the Snip-Bronson Trend.

The structural controls on the high-grade gold mineralization on the Snip-Bronson Trend are well understood and Skyline is convinced that an effective drill program has been initiated to deliver the highest return on investment in the search for high-grade gold mineralization. All drill targets selected this year are within a corridor coincident with, and on strike with, the structure that hosts the high-grade Snip Gold Mine. Snip was mined from 1991 to 1999 and produced nearly 1.03 million ounces of gold at an average grade of 25 grams per tonne.

Skyline has selected three high quality drill targets within the Snip-Bronson Trend and has initiated an action plan to complete four drill holes that have multiple purposes. Drill holes have been laid out to test an area with multiple geophysical anomalies and a coincident gold-in-soil geochemical anomaly. Skyline will also drill test a new discovery called the Fuchsite Zone.

Key drill holes completed in this program will also undergo Borehole Pulse Electro-Magnetic (BPEM) geophysical surveys, which are surveys particularly well suited to locate the style of mineralization associated with the gold-bearing structures found in the Iskut Property. It is anticipated that the BPEM surveys will allow Skyline to vector towards highly conductive sulphide horizons often associated with gold-bearing mineralization.

The compilation work that Skyline has recently completed and used in drill target selection is being prepared for presentation and will be the source of information in near future news releases. 2011 assay results for the Bug Lake Area as well as Snip-Bronson Trend will be released as well as the details of each of the three drill targets. Skyline will update and revise the Company's website as assay results and other data become ready for distribution.

For further information please contact:

Skyline Gold Corporation

John Zbeetnoff
Chief Executive Officer
Tel: 604-681-3989

Cautionary Statements

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.

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.