September 08, 2008

Breakwater Resources buys Myra Falls zinc mine

Breakwater Resources Ltd has exercised its right to purchase the interests of the limited and general partners of the Myra Falls Mine Limited Partnership for approximately USD 18 million.

The release said that Breakwater has elected to purchase the interest by issuing 13,518,739 common shares of Breakwater at USD 1.3448 which, pursuant to the agreement, is the 20 day weighted average trading price of Breakwater's common shares on the Toronto Stock Exchange.

Pursuant to the joint venture entered into with the limited partners of the Myra Falls Mine Limited Partnership in December 2007, the Myra Falls Mine Limited Partnership was entitled to a 3% net smelter royalty from the Myra Falls mine. The Myra Falls Mine Limited Partnership deposited USD 20 million with a trustee into a QET as security for a portion of the reclamation obligations of NVI Mining Ltd a wholly owned subsidiary of Breakwater, which owns the Myra Falls mine.

The common shares of Breakwater to be issued as part of the exercise of its rights are not freely trade able until April 21st 2008.

Breakwater is a mining, exploration and development company which produces and sells zinc, copper, lead and gold concentrates to customers around the world. The Company's concentrate production is derived from four mines. Two of Breakwater's mines are located in Canada, one is located in Chile and one is located in Honduras.