Committee Bay Resources Ltd.
TSX VENTURE : CBR

Committee Bay Resources Ltd.

August 28, 2006 09:00 ET

Committee Bay Announces 8,000 Metre Drill Program at Coolgardie Project, Western Australia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 28, 2006) - Committee Bay Resources Ltd. (TSX VENTURE:CBR), announces a CDN$1.5 million exploration program comprised of over 8,000 m of drilling, airborne magnetic and electromagnetic surveys, geological mapping, and surface soil sampling at the Coolgardie Project, located in Western Australia.

Highlights of the exploration and development program for the next 3-4 months include:

- CDN$1.5 million budget for exploration and development program

- Surface and airborne magnetic and electromagnetic surveying on entire property

- Exploration and infill drilling focused on key project areas: Dreadnought, Perseverance, and The Mount

- Continuation of feasibility studies and optimizations at Dreadnought and Greenfields project areas

- Ongoing resource estimate upgrades at seven key project areas

Since the inception of the Joint Venture (JV) in August 2005, a total of over AUS$4.2 million has been spent on exploration at Coolgardie, including resource evaluations and optimizations, some 8,500 m of RC drilling, 6,000 m of surface and underground core drilling, surface geochemistry and extensive geological compilation and target development. To date, the JV has identified five types of mineralization at Coolgardie, with each type having multiple projects at various stages of development.

In the next few months, the Company plans to conduct nearly 5,000 m of RC drilling and over 3,000 m of core drilling on four target areas. RC drilling will consist of approximately 1,875 m at Dreadnought, 1,500 m at Perseverance, 1,400 m at The Mount, and 200 m on the low grade stock piles. The drill program will also include core drilling of 800 m at Dreadnought, 1,000 m at Perseverance, 400 m at The Mount and 1,000 m at additional areas.

The exploration program will be carried out in parallel with the ongoing feasibility study on the proposed early recommencement of gold production at Coolgardie through initial treatment of existing low-grade stockpiles. This feasibility study is scheduled to be completed in September 2006. "The Joint Venture is also focusing efforts on identifying possible resource acquisition opportunities in the Coolgardie area with the potential for toll treatment and custom milling," Mr Williamson said.

The current resource inventory for the Redemption Joint Venture at Coolgardie as at 30 June 2006 is summarized below:



2006 Resources (1)
------------------------------------------------------------------------

Tonnage Grade Contained
Resource Area Category (t) (g/t) Ounces Au Status
------------------------------------------------------------------------
Dreadnought Indicated 970,000 2.5 77,966 Infill
Drilling (2)
------------------------------------------------------------------------
Dreadnought Inferred 2,570,000 1.9 156,992 Infill
Drilling (2)
------------------------------------------------------------------------
Perseverance Unclassified NA NA NA Infill
Drilling (2)
------------------------------------------------------------------------
The Mount Inferred 2,090,000 5.5 369,573 Revised resource
estimate
pending
------------------------------------------------------------------------
Empress/Alicia Inferred 550,000 3.3 27,320 Revised resource
estimate
pending
------------------------------------------------------------------------
West Tindals Unclassified NA NA NA Resource
estimate
pending
------------------------------------------------------------------------
Cyanide Unclassified NA NA NA Resource
estimate
pending
------------------------------------------------------------------------
Greenfields Inferred 1,450,000 1.4 65,266 Revised
------------------------------------------------------------------------
Stock Piles
(Low grade) Unclassified 1,600,000 0.8 Revised
------------------------------------------------------------------------

(1) This table does not include all resource locations of the Coolgardie
Project.

(2) Infill drilling will be used for upcoming feasibility study work.


Coolgardie Project, Western Australia

Committee Bay Resources Ltd., through the Redemption Joint Venture (Committee Bay in a 50% partnership with Focus Minerals Ltd. ASX: FML), has the mineral rights to more than 210 km2 of under-explored greenstone tenements, located in one of the world's most significant gold and nickel mining regions. These tenements contain Indicated resources of 315,720 ounces gold(a) (5.32 million tonnes at 1.8 g/t gold) and Inferred resource of 1,080,825 ounces gold(a) (13.7 million tonnes at 2.5 g/t gold). The RJV also has a 100% interest in the fully permitted, 1.2mtpa, Three Mile Hill Mill processing plant.

(a) For more information on the stated gold resources of Committee Bay Resources Ltd., please refer to the detailed NI 43-101 compliant technical reports filed on SEDAR by Committee Bay on December 20, 2004, and by Matador Exploration Inc. (now a wholly owned subsidiary of Committee Bay Resources Ltd.) on July 18, 2005.

Committee Bay Resources Ltd. maintains an extensive quality control program in the preparation, shipping and checking of all samples from the property as detailed in Committee Bay Resources Ltd. 'Technical Report for the Coolgardie Gold Project, Coolgardie, Western Australia' by Mike Dufresne - May 27, 2005 pp. 76-80. The program is supervised by Peter Kleespies, M.Sc. P.Geol., Vice President of Exploration (Australia), who is the Qualified Person as defined by NI 43-101.

Non-Brokered Private Placement

Committee Bay Resources Ltd. also announces a non-brokered private placement of up to 54,545 non-flow-through units (the "Units") at a price of $0.55 per Unit and up to 200,000 flow-through shares ("Flow-Through Shares") at a price of $0.60 per Flow-Through Share for total gross proceeds of up to CDN$150,000.

Each Unit will consist of one common share of the Corporation ("Common Share") and one-half of a non-transferable common share purchase warrant (a "Warrant"). Each whole Warrant may be exercised for one additional Common Share at a price of $0.75 per Common Share for a period of two (2) years from the closing of the Offering. The Units and Flow-Through Shares will be offered to qualified purchasers in reliance upon exemptions from the registration and prospectus requirements of applicable securities legislation.

About Committee Bay

Committee Bay controls major greenstone belts in Nunavut and Western Australia and has the opportunity to conduct year-round exploration on three continents in order to build on its existing gold resources.



On behalf of the Board
Committee Bay Resources Ltd.
/s/"John Williamson"
John Williamson, P.Geol.
President


Certain disclosures in this release, including management's assessment of Committee Bay's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Committee Bay's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Committee Bay expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Committee Bay Resources Ltd.
    Derek Iwanaka
    Investor Relations
    (604) 331-2269 or Toll-Free 1-888-331-2269
    or
    Committee Bay Resources Ltd.
    Jim Paterson
    Investor Relations
    (604) 331-2269 or Toll-Free 1-888-331-2269
    Website: www.committeebay.com