Admiral Bay Resources Inc.
TSX VENTURE : ADB

Admiral Bay Resources Inc.

May 15, 2009 18:00 ET

Admiral Bay Resources Announces Initial Closing of Private Placement

CENTENNIAL, COLORADO--(Marketwire - May 15, 2009) - Admiral Bay Resources Inc. ("Admiral Bay" or the "Company") (TSX VENTURE:ADB) announced today the initial closing on May 15, 2009 of its previously announced private placement of up to $2,000,000 (CDN). The initial closing is in an amount of $1,662,111 (CDN) with a second closing expected on or before May 30, 2009.

The placement, priced at $0.064 (CDN) per unit, will raise up to $2,000,000 (CDN). Each unit will consist of one common share of Admiral Bay and one-half warrant which will entitle the holder to purchase one additional common share at $0.09 (CDN) per share for a term of twelve (12) months and one-half warrant which will entitle the holder to purchase one additional common share at $0.128 (CDN) per share for a term of twenty-four (24) months. Further details of the offering can be found in the official Subscription Agreement available to accredited investors from the Company. The Company paid a finder's fee of $60,065 and warrants to purchase that number of shares of the Company equal to 5% of the warrants issued to purchasers introduced to the Company by the finder, which finder's warrants have the same terms as the private placement warrants.

All shares and warrants issued in connection with the private placement are subject to a four month hold period expiring on September 16, 2009. If any of the warrants are exercised before September 16, 2009, the shares issued on exercise will be subject to a four month hold period expiring on September 16, 2009.

Net proceeds of the offering will fund the previously announced LV Neodesha (Thayer) acquisition of natural gas assets in the Kansas Cherokee Basin and for general corporate purposes.

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".

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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