Admiral Bay Resources Inc.

Admiral Bay Resources Inc.

October 14, 2008 10:04 ET

Admiral Bay Begins Installation of Electric Compressor in Kansas

- Gas sales hit new records in last week and bids are being reviewed to extend gathering system in Mound Valley

CENTENNIAL, COLORADO--(Marketwire - Oct. 14, 2008) - Admiral Bay Resources Inc. (TSX VENTURE:ADB) Admiral Bay Resources Inc. ("Admiral Bay" or the "Company") is pleased to announce that it has begun installation of its first of two new electric compressors in the Shiloh Project in Kansas. Once installation is complete, the Shiloh Project will be capable of selling over 3.0 mmcfpd, an approximate 20% increase from current capacity. In addition, the electric compressors will not require fuel gas thus increasing sales immediately. Additional work will begin following the installation of the new compressors to increase gas production through a re-frac program in the Shiloh Project and then through additional drilling.

In the Mound Valley Project, the Company has begun reviewing bids to install approximately 5 miles of new gathering system that will allow for the immediate hook up of 12 wells that have been previously drilled and allow for more infill drilling during the remainder of the year.

President and CEO Steven Tedesco commented "With the previously announced advance of $3.75 million (U.S.) from our lender, we are in a strong liquidity position to execute on our plan to increase gross gas sales from the current approximately 3.3 mmcfpd to over 4.0 mmcfpd during the balance of 2008. The new electric compressors will allow us to increase sales at our Shiloh Project while reducing operating costs further on a per unit basis, thus increasing margins."

Admiral Bay Resources Inc. ( 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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