Committee Bay Resources Ltd.
TSX VENTURE : CBR

Committee Bay Resources Ltd.

July 17, 2007 09:00 ET

Committee Bay Secures Processing Capacity for Initial Coolgardie Gold Project Ore

Redemption Joint Venture Project, Western Australia

EDMONTON, ALBERTA--(Marketwire - July 17, 2007) - Committee Bay Resources Ltd. (TSX VENTURE:CBR) ("Committee Bay" or the "Company") and Australian Redemption Joint Venture ("RJV") partner Focus Minerals Ltd. (ASX:FML), today announced that it has secured priority toll treatment for initial Coolgardie Gold Project ore, through an agreement with a subsidiary of mining services group, Barminco Investments Pty Ltd.

The processing agreement, for the treatment of up to 480,000 tonnes of RJV ore per annum was negotiated as part of a sub-lease extension contract offered by the RJV to Higginsville Mining Pty Ltd.

Higginsville Mining owns and operates the Greenfields mineral processing plant located on the lease, which is adjacent to the RJV's fully-permitted 1.2mtpa Three Mile Hill processing facility. Under the terms of the lease agreement, Higginsville Mining will toll treat RJV ore at the Greenfields plant, at preferred prices and on an exclusive priority basis.

The lease agreement provides for the treatment of RJV ore at a fixed price based on direct cash processing costs, plus a 12.5% margin which will be indexed annually in accordance with a representative basket of processing consumables. Cost savings achieved through improved efficiencies will be passed on to the RJV.

Under the terms of the agreement, Higginsville Mining must obtain consent from the RJV prior to expanding processing capacity or existing contracts and prior to negotiating any new processing contracts. Further, Higginsville Mining has agreed not to compete for regional ore tolling contracts against the RJV.

Higginsville Mining will pay the RJV annual rent of A$100,000 and tailings discharge fees of A$0.40 per tonne.

The RJV's combined sub-lease extension and toll treatment agreement with Higginsville Mining facilitates the commencement of production from the Coolgardie Gold Project prior to the planned re-commissioning of the large Three Mile Hill facility.

CEO and President of Committee Bay, Mr. John Williamson, said the agreement was an example of effective industry co-operation during an extended period of cost and labour constraints.

"This lease agreement supports not only our plans to move into production, but also the continued success of existing regional gold operations, their service providers and the Coolgardie community as a whole," Mr Williamson said. "In addition, it underpins the future and much needed expansion of processing capacity within the region."

The RJV is completing a Bankable Feasibility Study for the priority development of high-grade Perseverance deposit (Inferred Resource of 296,000t @ 9.4g/t Au), which is centrally located within the Coolgardie Gold Project and in close proximity to the Three Mile Hill and Greenfields processing plants.

Final tender negotiations are underway for the construction of a decline from existing fully maintained underground infrastructure to facilitate access to the Perseverance lode, enabling further exploration and resource upgrade drilling programs and potential development.

Decline development work is scheduled to commence in August 2007, to enable the potential commencement of mining from as early as December 2007.

Simultaneously, the RJV is considering options to support an optimal re-commissioning of Three Mile Hill. These include toll treating in combination with RJV ore and treating 100%-derived RJV ore. Current resource estimates and development timelines indicate the Coolgardie Gold Project could potentially provide the plant's total 1.2mtpa capacity throughput from 2010.

The toll treatment agreement with Higginsville Mining follows the RJV's announcement earlier this month of the commencement (See Committee Bay news release dated July of drill testing of near-surface gold targets at the priority Bayleys and CNX mineralised zones within the 210sq km project.

Extensive existing underground infrastructure within the RJV's historically high-grade and prolific Bayleys area could be rehabilitated for additional potential near-term production.

About 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 Measured Resources of 31,014 ounces gold(i) (0.55 million tonnes at 1.77 g/t gold), Indicated Resources of 354,124 ounces gold(i) (6.03 million tonnes at 1.83 g/t gold) and Inferred Resources of 1,151,419 ounces gold(i) (13.50 million tonnes at 2.65 g/t gold). The RJV also has a 100% interest in the fully permitted, 1.2mtpa, Three Mile Hill Mill processing plant.

(i) For more information on the stated gold resources and historic drill results of Committee Bay Resources Ltd., please refer to the detailed NI 43-101 compliant technical reports filed on SEDAR by Committee Bay on February 26, 2007.

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. All programs and disclosure are supervised and reviewed by Peter Kleespies, M.Sc. P.Geol., Vice-President of Exploration, who is the Qualified Person as defined by NI 43-101.

On behalf of the Board

Committee Bay Resources Ltd.

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.

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