Admiral Bay Resources Inc.
TSX VENTURE : ADB

Admiral Bay Resources Inc.

October 10, 2006 13:42 ET

Admiral Bay Begins Selling Gas at Its Mound Valley Project

Netback on gas sales increases by over 60%

DENVER, COLORADO--(CCNMatthews - Oct. 10, 2006) - Admiral Bay Resources Inc. (TSX VENTURE:ADB) is pleased to announce that as of Friday, October 6, the Company has begun selling gas through its own tap/compressor facility at its Mound Valley project. By now owning the tap/compressor facility, the Company has increased its netback on gas sales by over 60%.

As previously announced in the Company's news release of October 3rd, a number of the new wells drilled at the project had begun the dewatering process in preparation for being connected to the pipeline. As of October 6th, the first ten new wells drilled, plus the original four wells that had been in production previously at the project, began selling gas into the Southern Star system through this new facility. Initial gas production is approximately 200 MCFGPD (thousand cubic feet gas per day). The ten new wells are still producing frac water in addition to water from the dewatering process. The wells have been completed in some combination of the Riverton and Mineral coals and Excello Shale and are currently being held back in order not to damage the reservoirs. The amount of fluids being pumped at the wells will gradually be increased over 10 - 20 days in order to maximize initial production. Over the next thirty days the remaining 40+ wells that have been drilled at the project in 2006 will be connected to the pipeline and begin selling gas. Gas production from each of these new wells is initially expected to average 30 MCFGPD.

At the Devon Project, Admiral Bay's joint venture pipeline, the Bourbon County Pipeline LLC, has added an amine tower that can handle up to 2 MMCFGPD (million cubic feet gas per day). Present overall production of third party and Admiral Bay gas is approximately 800 to 900 MCFGPD. The new tower will allow the facility to handle additional gas and additional sales from the Devon Project, which is expected to rise to 1.2 MMCFGPD immediately.

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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