Toronto, Canada, January 14, 2005… BREAKWATER RESOURCES LTD.

(“Breakwater”) (TSX-BWR) is pleased to announce that NVI Mining Ltd. (“NVI”), a

wholly-owned subsidiary of Breakwater, has reached a tentative agreement with

Local Union 3019 of the Canadian Auto Workers (the “Union”) which represents

the 350 unionized employees at the Myra Falls mine of NVI. Although the

previous collective agreement expired on June 30, 2004, the Myra Falls mine

continued to operate without disruption and without a collective agreement in

place during the intervening months. On January 13, 2005, NVI and the Union

reached a tentative agreement, which provides for a replacement collective

agreement that will expire on March 31, 2008. Further details of the tentative

agreement will be released after a ratification vote of the Union in Campbell

River, British Columbia, which is scheduled for January 17 and 18, 2005. The

Myra Falls mine, located in Campbell River, British Columbia, produces zinc and

copper concentrates containing significant gold and silver as well as a goldbearing

gravity concentrate.

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, Canada; 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 program and is

being prepared 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:

Garth A.C. MacRae

President and Chief Executive Officer

(416) 363-4798 Ext. 231

William M. Heath

Vice President, Administration

 (416) 363-4798 Ext. 267