Toronto, Ontario: September 1, 2005 – Breakwater Resources Ltd. (the “Corporation”)

announced today that it has secured a 23,200 ounce gold loan which has been converted to

approximately US$10 million (the “Facility”) from Natexis Banques Populaires, a French bank

(the “Lender”).

The funds will be utilized to satisfy certain reclamation obligations as well as other working

capital requirements and general corporate purposes at the Myra Falls mine owned by NVI

Mining Ltd. (the “Subsidiary”), a wholly owned subsidiary of the Corporation.

The Facility bears an interest rate of 2.9% per annum and will be repaid in six equal amounts, in

the form of gold, over the next 13 months from the Corporation’s gold production. The Lender

has been given security over the copper, zinc and gold concentrate inventories and related

accounts receivables from the Myra Falls mine owned by the Subsidiary as well as unsecured

guarantees of the Corporation and, its wholly owned subsidiary, NVI Holdings Ltd.

Cautionary Note on Forward Looking Statements

Certain statements included in this news release are forward-looking statements, which are made

pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform

Act of 1995. They include statements that describe the Company’s future plans, objectives and

goals, including words to the effect that the Company or management expects a stated condition

or result to occur. When used herein, words such as “will”, “would” and other similar

expressions are intended to identify forward-looking statements. For a more comprehensive

review of risk factors, please refer to the Company’s most recent annual report under

“Management’s Discussion and Analysis of Financial Results” and Form 40-F under “Risk

Factors” on file with the Canadian provincial securities regulatory authorities and the U.S.

Securities and Exchange Commission filed on SEDAR at www.sedar.com. The Company

disclaims any obligation to update or revise any forward-looking statements whether as a result

of new information, events or otherwise. Readers are cautioned not to put undue reliance on

these forward-looking statements

For further information please contact:

George E. Pirie

President and Chief Executive Officer

(416) 363-4798 Ext. 231

Richard Godfrey

Vice President, Finance

And Chief Financial Officer

(416) 363-4798 Ext. 276