SKY CAPITAL HOLDINGS LIMITED: Credit & Loan Facilities

For immediate release: 24 November 2006

                           Sky Capital Holdings, Ltd                           

                          Credit and Loan Facilities                           

On 25 May 2006 Sky Capital Holdings Ltd announced that it had entered into a
secured revolving credit facility of up to £2,000,000 (the "Facility") with Sky
Capital Enterprises, Inc (the "Lender").

The Company announces that the Lender has agreed to extend the amount of the
Facility by a further amount of £1,000,000 bringing the total amount available
to the Company under the Facility to £3,000,000. The additional amount made
available under the Facility may be drawn down by the Company at its
discretion. All other terms and conditions of the Facility and the related
security arrangements remain unchanged. The total amount drawn down by the
Company under the Facility (as extended) as at the date of this announcement is
£2,000,000.

The Company also announces that Gary Fromm, a director of the Company, has
today loaned the Company the sum of US$300,000 (the "Loan"). The full terms of
the Loan and any security in relation thereto remain the subject of negotiation
between the Company and Mr Fromm and until such terms have been finalised the
Loan is unsecured, repayable on demand and does not attract interest. The
Company expects the final terms of the Loan to be agreed shortly and will make
an appropriate announcement once they are agreed.

The purpose of the Facility and the Loan is to meet the general working capital
of the Company and, in particular to enable Sky Capital LLC, a wholly owned
subsidiary of the Company, to meet certain capital adequacy requirements set
down by counterparties with which Sky Capital LLC transacts. The Facility and
the Loan together enable the Company to meet its immediate working capital
requirements but the Company expects to need to procure further debt or equity
funding prior to 31 May 2007 in order for the Company to be able to meet its
then ongoing working capital requirements.

The Company also announces that on 22 November Sky Capital UK Limited ("Sky
UK"), a wholly owned subsidiary of the Company, has agreed to vary the
permissions granted to Sky UK by the FSA and has as a result ceased to carry on
its regulated activities in the UK. All monies held on behalf of clients of Sky
UK will be returned to those clients and Sky UK is in the process of effecting
such return.

The extension of the Facility is a substantial transaction of the Company and a
transaction with a related party of the Company as a result of Ross Mandell, a
director of the Company and substantial shareholder of the Company, being a
substantial shareholder of the Lender. Gary Fromm, being the sole other
Director of the Company (Ross Mandell being involved in the transaction as a
related party) considers the terms of the Facility and on which the Facility
has been extended to be fair and reasonable insofar as the shareholders of the
Company are concerned. In reaching this view Mr Fromm has not been able to
consult with a nominated adviser as the Company does not currently have a
nominated adviser. None of the Directors of the Company can be regarded as
being wholly independent of the Lender.

The Loan is a substantial transaction of the Company and a transaction with a
related party of the Company as a result of Gary Fromm being a director of the
Company. Ross Mandell, being the sole other Director of the Company (Gary Fromm
being involved in the transaction as a related party) considers the terms of
the Loan to be fair and reasonable insofar as the shareholders of the Company
are concerned. In reaching this view Mr Mandell has not been able to consult
with a nominated adviser as the Company does not currently have a nominated
adviser.



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