RAB Special Situations L.P.

Admiral Bay Resources Inc.

Admiral Bay Resources Inc.

January 31, 2005 15:40 ET

RAB SPECIAL SITUATIONS L.P./Admiral Bay Resources Inc.-Announcement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RAB SPECIAL SITUATIONS L.P.

AND ADMIRAL BAY RESOURCES INC.

TSX VENTURE SYMBOL: ADB

JANUARY 31, 2005 - 15:40 ET

RAB SPECIAL SITUATIONS L.P./Admiral Bay Resources
Inc.-Announcement

LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 31, 2005) - RAB Special
Situations L.P. ("Special Situations") announces that it subscribed for
a total of 660,000 units (the "Units") of Admiral Bay Resources Inc.
(TSX VENTURE:ADB)(the "Company") at a price of Cdn.$1.00 per Unit. Each
Unit consists of one (1) common share in the share capital of Admiral (a
"Share") and one-half (1/2) of one (1) Share purchase warrant (a
"Warrant"). Each one (1) whole Warrant shall entitle Special Situations
to purchase one (1) Share (a "Warrant Share") at a price of Cdn.$1.35
per Share for a period of eighteen (18) months from the Closing Date.
The transaction took place off the market by way of private placement
and closed on January 21, 2005.

Special Situations has ownership of and control over the securities
purchased in the Private Placement. The purchased securities represent
approximately 2.31% of the issued and outstanding Shares on a partially
diluted basis (assuming exercise of its Warrants) ("Partially Diluted
Basis").

Immediately after the Private Placement, Special Situations owned
1,782,900 Shares and 1,330,000 Warrants representing approximately 7.11%
of the issued and outstanding Shares on a Partially Diluted Basis.

Special Situations purchased Units for investment purposes only and not
with the purpose of influencing the control or direction of the Company.
Special Situations together with joint actors, if any, may, subject to
market conditions, make additional investments in or dispositions of
securities of the Company in the future, including additional purchases
of Shares. Special Situations and its joint actors, if any, do not,
however, intend to acquire 20% of any class of the outstanding voting or
equity securities of the Company.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RAB Special Situations L.P.
    Mr. Neil Warrender
    (44) 20-7389-7000
    nw@rabcap.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.