May 26, 2010
Skeena Proposes $1,000,000 Private Placement Financing

News Release #10-07

Skeena Resources Limited (TSX.V: SKE) proposes to raise up to $1,000,000 through a non-brokered private placement financing which will be sold at $0.05 CAD per Unit. Each Unit will be comprised of one common share and one non-transferable share purchase warrant. Each full warrant will be exercisable into one common share of the Company at an exercise price of $0.10 per share in year 1 and $0.20 per share in year 2. Subsequent to the conclusion of the initial 4-month hold period, the remaining expiry period of the warrants may be reduced, upon notice to holders and at the election of the Company, if the shares trade at a price equal to or greater than $0.40 per share for 10 consecutive trading days. If this condition is met and the Company so elects, the exercise period will be reduced to 25 business days from the date notice is provided by the Company to the warrant holders.

Insiders of the Company have committed to $374,000 of this placement. This financing is subject to regulatory approval and finders' fees may be paid to accredited agents on that portion of the funds raised by third parties. The shares issued under this financing will be subject to a hold period of four months plus one day from the date of closing of the offering. The funds will be directed to advancing the Tropico copper-platinum-palladium-gold project in Sinaloa State, Mexico, the acquisition of additional projects and to general working capital.

To date, nine sulphide occurrences have been identified at Tropico, consisting of variable amounts of chalcopyrite, cubanite, chalcocite, bornite, pyrrhotite, pyrite and minor pentlandite. Some of the better mineralized trenches at the Maricela Occurrence were reported to assay 0.50 to 1.00 % copper (Cu) and up to 1 gram/tonne combined platinum (Pt) + palladium (Pd) + gold (Au) (generally with a platinum to palladium ratio in the order of 0.75:1) over widths of 15 to 160 metres. Some 39 drill holes totaling approximately 6,550 metres are reported in the 2002-2003 Santoy-Almaden Joint Venture ("the JV") summary report (28 core holes by the JV). The best reported drill intercepts were 0.5% Cu and 0.75 g/t Pt+Pd+Au over 38.9 metres (hole M-02-08) and 0.39 % Cu and 0.55 g/t Pt+Pd+Au over 128.1 metres (hole M-01-03) at Maricela; and 0.54% Cu and 0.52 g/t Pt+Pd+Au over 47.0 metres and 0.82% Cu and 0.70 g/t Pt+Pd+Au over 15.5 metres at San Pablo (hole SP-02-01). For trench and drill results, the reader is referred to nine news releases filed under Virginia Energy on the SEDAR website between Jan. 19/01 and Dec. 20/02.

The Company also wishes to announce that it has negotiated a Shares-For-Debt Settlement in order to extinguish $136,181.26 of accounts payable with 6 of the Company's arm's length creditors, subject to regulatory approval, by the issuance of 2,723,625 common shares at a deemed value of $0.05 per share and 2,723,625 2-year, non-transferable Share Purchase Warrants exercisable at $0.10 in year 1 and $0.20 in year 2. Subject to the conclusion of the initial 4-month hold period, both on the shares and the warrants, the remaining expiry period of the Share Purchase Warrants may be reduced, upon notice to warrant holders and at the election of the Company, if the shares trade at a weighted average price equal to or greater than $0.40 per share for 10 consecutive trading days. If this condition is met and the Company so elects, the exercise period of the warrants will be reduced to 25 business days from the date notice is provided by the Company to the warrant holders.

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