Admiral Bay Resources Inc.
TSX VENTURE : ADB

Admiral Bay Resources Inc.

October 06, 2009 12:23 ET

Admiral Bay Engages FIG Partners as Financial Advisor to Evaluate Strategic Alternatives

Company Amends Credit Facility to Allow for Additional PIK Period

CENTENNIAL, COLORADO--(Marketwire – Oct. 6, 2009) - Admiral Bay Resources Inc. (TSX VENTURE:ADB) Admiral Bay Resources Inc. ("Admiral Bay" or the "Company") announces that its board of directors is exploring strategic alternatives to increase shareholder value. The Company has engaged FIG Partners LLC Energy Research & Capital Group ("FIG") as its financial advisor to assist in the strategic alternatives process. FIG will assist the Company in identifying and analyzing various alternatives, including merger alternatives or possible restructuring of the Company's credit facility.

The Company executed an amendment to its credit agreement with Gasrock Capital LLC and DK Acquisition Partners, LP that allows for partial payment-in-kind ("PIK") interest for four months ended October 2009. The Company will pay a minimum 5% cash interest and have the option to PIK the balance for a total maximum cash plus PIK interest of 15%.

The Company also stated that it does not expect to disclose developments with respect to the exploration of strategic alternatives unless and until its Board of Directors has approved a definitive transaction or strategic option. There can be no assurance that any transaction will occur or, if a transaction is undertaken, there can be no assurance as to its terms or timing.

President and CEO Steven Tedesco commented "While we continue to have the support of our lenders as evidenced by the recent amendment, we are looking to evaluate potential alternatives in the current gas price environment to restructure the balance sheet to allow for continued growth of the Company while improving our cost structure and liquidity".

Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.

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".

Neither the 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

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