Admiral Bay Resources Inc.
TSX VENTURE : ADB

Admiral Bay Resources Inc.

January 24, 2007 16:38 ET

Admiral Bay Receives Drilling Permits for its Revloc Project in the Appalachian Basin in Pennsylvania

- Operational Update

CENTENNIAL, COLORADO--(CCNMatthews - Jan. 24, 2007) - Admiral Bay Resources Inc. (TSX VENTURE:ADB) is pleased to announce that its five permits at the Revloc Project, in the Appalachian Basin have been approved by the State of Pennsylvania. The Company will now begin preparations to drill these wells. Steve Tedesco, Admiral Bay's President and C.E.O. stated, "We are pleased to now be able to proceed with this project. It has taken much longer than anticipated for these permits, but now that they are in place, we can begin to get bids for a drilling rig". He further stated, "We are excited about the future of this project as the published gas contents of the coals are considerably higher than our projects in Kansas and gas prices in the project area tend to be above NYMEX prices".

Operational Update

Since the beginning of the current Development Program in December 2005, the Company has focused its attention on the development of the Shiloh and Mound Valley projects. During that period the Company has spend an extensive amount of time researching how to optimize production at its Devon project.

As part of this program, the Company will be replacing all of the solar powered pumps on wells at the Devon project, as they proved not to be as efficient as originally anticipated. Beam and progressive cavity pumps are being installed on various wells at the project which along with the activation of a new disposal well and the reduction of line pressure in the gathering system, should increase production from existing wells.

The Company also announces that it has drilled the Oberst 10-27 well, the first new well at the Devon project in almost a year and a half. The well flowed 60 MCFGPD while drilling and was completed open hole, with five coal seams exposed. This completion method is being used successfully by several adjacent operators with similar results. The well is presently being connected to the pipeline and is expected to begin gas sales shortly.

At the Company's Shiloh and Mound Valley projects, the Admiral Bay has focused on optimizing production from existing wells in preparation of tying in some of the more than 60 wells that have been drilled, but not yet brought online. This optimization program has been able to increase production, despite the challenging winter weather in Kansas.

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".

The TSX Venture Exchange does not accept responsibility for the adequacy of this release.

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