SKYLINE PROVIDES SAMPLING RESULTS AND EXPLORATION UPDATE

NR: 12-01

Skyline Gold Corporation (TSX.V: SK) ("Skyline" or the "Company") is pleased to release the final results of the 2011 exploration surface sampling program from the Iskut Property and an exploration update.

Detailed prospecting along the Snip-Bronson Trend was completed late in the 2011 exploration season as part of a geophysical ground-truthing program. Assay results of these samples include a block chip sample that assayed up to 5.03 gold grams per tonne ("Au g/t") and 398 silver grams per tonne ("Ag g/t"). A total of seven samples were collected and their assays are summarized in Table 1. The attached map shows the location of these newly discovered occurrences.

Table 1. Snip Bronson Prospecting Samples

Occurrence Name	Au g/t	Ag g/t	Pb %	Zn %	Length cm	Width cm	Depth cm
Mary-Ann	0.10	63.6	0.92	3.37	15	10	5
Mary-Ann	0.47	138.0	1.95	5.77	40	30	20
Mary-Ann	1.35	289.0	3.34	11.10	10	5	5
Mary-Ann	5.03	398.0	3.42	9.62	15	10	10
Leam	0.06	1.3	<0.01	0.09	20	15	10
David Arthur	2.85	76.8	0.67	22.90	20	20	10
David Arthur	2.02	195.0	1.30	13.80	20	10	15

The objective of this detailed prospecting effort was to ground-truth weak conductive responses located by an airborne electro-magnetic ("EM") survey flown in September 2011. The EM responses selected for validation were coincident and on strike with the Snip Mine structure. The prospecting was further aided by a detailed very low frequency ("VLF") ground geophysical survey.

The VLF survey was completed over the axis of the EM anomalies and any response was hand trenched to locate the underling bedrock. This focused prospecting effort lead to the discovery of the Mary-Ann, Leam and David Arthur occurrences. The attached map displays the 90 metre strike length investigated in this program.

Mr. Zbeetnoff, CEO, comments, "I am very pleased that we are able to confirm that the EM surveys are capable of locating Snip-style mineralization. The effective use of the EM surveys will greatly assist our exploration crews to vector-in to high-grade gold mineralization."Exploration Update:

The assay results for the 2011 drill program have been received and the mineralized intervals are being interpreted in conjunction with both the airborne EM and the borehole pulse electro-magnetic ("BPEM") geophysical survey data. The interpreted results for all three drill holes will be released next week.

The Skyline exploration team is in the early stages of planning an aggressive 2012 exploration program with work expected to start as early as March this year. The Company invites all interested parties to have an early introduction to the work planned by visiting the Skyline booth at the Cambridge Conference in Vancouver, booth number 2031. The Cambridge Conference will be held at Vancouver Convention Centre on January 22nd and 23rd, 2012.

Quality Assurance and Quality Control

Skyline utilizes standard industry practices in quality assurance and quality control ("QAQC") with insertion of blind standards, blanks and duplicates, in addition to the QAQC practiced by the assay laboratory. ALS Chemex Laboratories conducts sample preparation in Terrace, BC and analyses of pulps in North Vancouver, BC. The geologist and Qualified Person under the terms of National Instrument 43-101 ("NI 43-101") responsible for the verification of work and data acquisition at Skyline's Bronson Project is John Zbeetnoff, P. Geo.

The Qualified Person responsible for this news release under the terms of NI 43-101 is John Zbeetnoff, P.Geo.

On Behalf of the Board of Directors
Skyline Gold Corporation

John Zbeetnoff,
Chief Executive Officer

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.


Occurrence
NameAu g/tAg g/tPb %Zn %Length
cmWidth
cmDepth
cmMary-Ann0.1063.60.923.3715105Mary-Ann0.47138.01.955.77403020Mary-Ann1.35289.03.3411.101055Mary-Ann5.03398.03.429.62151010Leam0.061.3<0.010.09201510David Arthur2.8576.80.6722.90202010David Arthur2.02195.01.3013.80201015