October 18, 2000. Breakwater Resources Ltd. (TSE-BWR)

Breakwater Resources Ltd. and Jascan Resources Inc. have agreed to a change to the terms of the previously announced arrangement pursuant to which Breakwater will acquire all of the outstanding shares of Jascan. With the change, shareholders of Jascan who are entitled to receive common shares of Breakwater under the arrangement will now receive, for each common share of Jascan, a fraction of a common share of Breakwater determined within a prescribed range by dividing $1.15 by the weighted average trading price of the common shares of Breakwater on The Toronto Stock Exchange from October 13 to 19, 2000. The fraction of a common share of Breakwater to be received for each common share of Jascan, which was previously fixed at 0.424, will now be a minimum of 0.424 and a maximum of 0.55, determined on the basis set forth above.

The change to the terms of the arrangement was made as a result of a decline in the trading price in the common shares of Breakwater since the original announcement regarding the arrangement. As a result of the change to the terms of the arrangement, the maximum number of common shares of Breakwater to be issued under the arrangement will now be between 7,420,000 and 9,625,000, depending on the exchange ratio. Holders of common shares of Jascan have until November 3, 2000 to deposit letters of transmittal and election forms electing from the consideration options available to them under the arrangement. All other terms of the arrangement remain unaffected by the change.

This press release includes certain forward-looking statements. All statements, other than statements of historical fact included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Should you require further information please contact:

René R. Galipeau

Executive Vice President and Chief Financial Officer

416-363-4798 Ext. 260

Gordon F. Bub

Chairman and Chief Executive Officer

416-363-4798 Ext. 264