July 9, 2003… (BWR – TSX)

Breakwater Resources Ltd. is pleased to announce that it has made a principal

prepayment of US$5.0 million of its US$22.6 million Term Credit Facility. The payment

brings the outstanding balances on Breakwater’s Term Credit Facility and Supplemental

Term Facility to US$17.6 million and US$6.5 million respectively. The payment was

made from a portion of the proceeds from the sale of Breakwater’s interests in the

Tonawanda and Lapa properties, as previously announced.

Breakwater Resources Ltd. is a mineral resource company engaged in the acquisition,

exploration, development and mining of base metal and precious metal deposits in the

Americas and North Africa. Breakwater has four producing zinc mines: the Bouchard-

Hébert mine in Québec, Canada; the Bougrine mine in Tunisia; the El Mochito mine in

Honduras; and the El Toqui mine in Chile.

For further information please contact:

Colin K. Benner

President and Executive Vice-President

(416) 363-4798 Ext. 269

René Galipeau

Chief Executive Officer and Chief Financial Officer

 (416) 363-4798 Ext. 260

Email: investorinfo@breakwater.ca Website: www.breakwater.ca