Admiral Bay Resources Inc.

Admiral Bay Resources Inc.

February 25, 2005 14:37 ET

Admiral Bay Announces Gas Sales Have Re-Commenced at the Devon Project in Bourbon County, Kansas


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ADMIRAL BAY RESOURCES INC.

TSX VENTURE SYMBOL: ADB

FEBRUARY 25, 2005 - 14:37 ET

Admiral Bay Announces Gas Sales Have Re-Commenced at
the Devon Project in Bourbon County, Kansas

TORONTO, ONTARIO--(CCNMatthews - Feb. 25, 2005) - Admiral Bay Resources
Inc. (TSX VENTURE:ADB) is pleased to announce that gas sales have
re-commenced at the Devon Project, after being shut-in for the last 60
days due to excess carbon dioxide from the coals and problems with the
compressor. Admiral Bay has now installed a carbon dioxide stripping
plant to reduce the CO2 content of the gas to a level that is pipeline
quality and has fixed all compressor problems.

Twelve wells are now being dewatered and beginning to produce gas at the
project. The Company is in the process of drilling the next block of
twelve wells. Drilling is expected to be finished by March 4, 2005, with
the wells being completed and producing gas by the end of March. The
Martin 14-14, Rhodes 6-24, Rhodes 4-24, Young 8-9, Gobl 2-31 and Odell
2-26 have been drilled and pipe has been run. All of these wells have
encountered gas in at least three coals, along with conventional oil and
gas from the Bartlesville sandstone and Mississippian limestone.

At the Company's Swordfish Project in Chautauqua County, Kansas,
drilling of the House 3-26 is underway. The drill is presently below
1,700 feet, with drilling expected to be complete within 2 days. The
well is targeting the Mississippian carbonates at a target depth of
2,600 feet.

Admiral Bay has also completed a non-brokered private placement of
118,594 common shares at $1.47 per share. Each of the common shares is
subject to a hold period that expires on June 22, 2005.

Admiral Bay Resources Inc. (www.admiralbay.com) is a Canadian oil and
gas exploration and development company focused on developing its
producing projects in the Cherokee Basin in southeast Kansas.
Conventional gas and coalbed methane (CBM) production has begun at the
Company's Shiloh, Devon and Quest projects in Kansas and Utah. 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.
    Steven Tedesco
    President & C.O.O.
    (303) 350-1255
    (303) 617-8956 (FAX)
    stedesco@admiralbay.com
    www.admiralbay.com
    or
    Admiral Bay Resources Inc.
    Curt Huber
    Corporate Development
    (604) 628-5642
    Toll Free: 1-866-217-1620
    info@admiralbay.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    of this release.