Admiral Bay Resources Inc.
TSX VENTURE : ADB

Admiral Bay Resources Inc.

August 30, 2007 10:17 ET

Admiral Bay Announces Completion of US$100,000,000 Credit Facility

CENTENNIAL, COLORADO--(Marketwire - Aug. 30, 2007) - Admiral Bay Resources Inc. (TSX VENTURE:ADB)("Admiral Bay" or the "Company") is pleased to announce the completion of a US$100,000,000 Amended and Restated Advancing Term Credit Facility provided by GasRock Capital LLC ("GasRock").

Admiral Bay and GasRock have entered into a US$100,000,000 Amended and Restated Advancing Term Credit Facility dated August 29, 2007. Under the terms of the credit facility, the Company has initial availability of US$22,500,000, with a further US$2,500,000 available upon delivery of a new reserve report, which is anticipated to be complete by September 30, 2007. Further advances will be subject to a borrowing base calculation including proved reserves from new wells drilled or acquired. The facility will have an interest rate that will float based on LIBOR and will initially be approximately 13%. The maturity date under the credit agreement is August 29, 2010 and provides for the grant of various security interests, including a first lien on substantially all of the assets held by the Company. GasRock has also been granted a royalty interest of between 2% and 4% in the oil and gas interests of Admiral Bay.

The Company will use the proceeds of this new credit facility to pay off the outstanding debt on its existing credit facility of approximately US$18,400,000 and to expedite the development of its unconventional gas projects in the Cherokee Basin in southeastern Kansas and the Appalachian Basin in Pennsylvania. This will include connecting wells that have been drilled from last year's development program that have not been completed, continuation of the well optimization program at the Shiloh, Mound Valley and Devon projects, additional pipeline work to connect a number of new areas to the sales line and new development well drilling.

As part of the credit agreement terms, the Company has entered into a costless collar on 40,000 mcf per month for 24 months at a realized floor price of $5.50 per mcf and a ceiling price of $7.95 per mcf (approximately $6.65 to $9.10 implied NYMEX price).

"We are pleased that after a lot of hard work we have reached a favorable conclusion to the "strategic alternative" process, stated Steve Tedesco, President of Admiral Bay. With the funding from this facility we can now aggressively move forward to connect all wells that have been awaiting tie-in from the 2006 Development Program and then get back to drilling new wells in the fourth quarter of the year".

RBC Capital Markets acted as financial advisor to Admiral Bay.

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.

About GasRock

GasRock Capital LLC is the investment affiliate of Weisser, Johnson & Co. specializing in direct mezzanine debt and project equity investments. The Houston-based fund makes investments in oil and gas development drilling and midstream natural gas energy projects in sizes ranging between $5 million and $100 million, or larger. GasRock was founded in June 2005 and has over $450 million of facilities in place.

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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