Admiral Bay Resources Inc.

Admiral Bay Resources Inc.

January 10, 2005 09:00 ET

Admiral Bay Announces $12 Million Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ADMIRAL BAY RESOURCES INC.

TSX VENTURE SYMBOL: ADB

JANUARY 10, 2005 - 09:00 ET

Admiral Bay Announces $12 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Admiral Bay Resources
Inc. (TSX VENTURE:ADB) announced today that it plans to raise up to
$12,000,000 by way of a non-brokered private placement through the
issuance of Units priced at $1.00. Each Unit will consist of one common
share and one half common share purchase warrant. Each whole warrant
will entitle the holder to purchase one common share at the price of
$1.35 for a period of eighteen months from the closing date. The private
placement offering is subject to regulatory approval.

Proceeds of this placement will be used to continue the aggressive
development of the Company's oil & gas projects in the United States.
The proceeds are budgeted for drilling, well completion, the building of
infrastructure and the acquisition of additional acreage.

Admiral Bay Resources Inc. (www.admiralbay.com) is a Canadian oil and
gas exploration and development company focused upon its producing
projects in the Cherokee Basin in south-east Kansas. Production has
begun at the Company's U.S. conventional and coalbed methane (CBM) gas
projects located in the Uintah, Cherokee and Appalachian Basins. The
Company's Moose River Basin property is being explored for coalbed
methane on over 250,000+ acres in the James Bay lowlands of northern
Ontario. The Company is listed on the TSX Venture Exchange.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Admiral Bay Resources Inc.
    Mark Brennan
    President & C.E.O.
    (416) 861-5886
    (416) 861-8165 (FAX)
    Email: mbrennan@admiralbay.com
    or
    Admiral Bay Resources Inc.
    Curt Huber
    Corporate Development
    (604) 628-5642 or Toll Free: 1-866-217-1620
    Email: info@admiralbay.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    of this release.