BREAKWATER CLOSES TRANSACTION TO EXTEND CREDIT FACILITIES

03/27/2003

March 27, 2003… (TSX-BWR) Breakwater Resources Ltd. announces the completion of the

documentation of the agreement, reached with its banking syndicate and Dundee Bancorp Inc.

(“Dundee”), to extend the due date of its existing credit facilities to January 2, 2004.

In the agreement, the banking syndicate agreed to extend the due date to January 2, 2004. Due

to the closing of the Nanisivik mine in 2002, the US$45.0 million revolving facility was reduced

to US$30.0 million. This amount is adequate to support the operations at the remaining mines.

The interest rate on the term loan of US$22.6 million was increased to LIBOR plus 2.75% from

2.375%. Dundee also agreed to extend its US$6.5 million letter of credit supporting the

supplemental term facility of the same amount for the same period.

For the extension, the syndicate received two million share purchase warrants and Dundee

received one million warrants. The exercise price for the three million share purchase warrants

of $0.19 was based on the weighted average trading price of the common shares of the Company

for the five trading days following the effective date of the amended credit agreement, which

was March 19, 2003.

For further information please contact:

C. K. Benner

President and Executive Vice President

(416) 363-4798 Ext. 269

R. R. Galipeau

Chief Executive Officer and Chief Financial Officer

(416) 363-4798 Ext. 260