Toronto, Canada, October 8, 2004...BREAKWATER RESOURCES LTD. (TSX – BWR) is

pleased to announce that it and its wholly-owned subsidiary CanZinco Ltd. have signed a letter of

intent with Forest Gate Resources Inc. to sell the Caribou mine.

The general terms of the proposed sale to Blue Note Metals Inc., a wholly-owned subsidiary of

Forest Gate, is for Blue Note to issue to Breakwater 600,000 treasury shares and to assume

Breakwater’s and CanZinco’s rights and obligations regarding the Caribou mine.

Completion of the transaction is subject to a number of conditions including, amongst other

things, completion of due diligence by Forest Gate, execution of a definitive agreement, approval

of the respective boards of directors and receipt of all required regulatory and third party

approvals and consents. The transaction is expected to close on or before January 15, 2005.

The Caribou mine consists of an underground mine and mill located in Restigouche County in

northeastern New Brunswick, 50 kilometres west of Bathurst, New Brunswick and an open pit

mine (formerly known as the Restigouche property) located approximately 80 kilometres west of

Bathurst and 30 kilometres from the Caribou mill. The Caribou mine property covers an area of

3,106 hectares and is held under a mining lease.

Breakwater 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 five producing zinc mines: the Myra Falls mine in British Columbia and 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. The Company also owns the Langlois mine in

Canada, which is currently on a care and maintenance and being prepared for the development

program that is to bring the mine back into production.

This news release contains forward-looking statements within the meaning of the United States

Private Securities Legislation Reform Act of 1995. When used in this news release the words

“anticipate”, “believe”, “intend ”, “estimate”, “plans”, “projects”, “expect”, “will”, “ budget”,

“could”, “may”, and similar expressions are intended to identify forward-looking statements.

Such forward-looking statements involve known and unknown risks, uncertainties and other

factors which may cause actual results, performance or achievements of the Company to be

materially different from any future results, performance or achievements expressed or implied by

such forward-looking statements. The Company disclaims any obligation to update or revise any

forward-looking statements whether as a result of new information, events or otherwise.

For further information please contact:

Colin K. Benner

President and Chief Executive Officer

(416) 363-4798 Ext. 269

E. Ann Wilkinson

Corporate Secretary and IRO

 (416) 363-4798 Ext. 277