Toronto, Canada, January 19, 2005… BREAKWATER RESOURCES LTD.

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

wholly-owned subsidiary of Breakwater, has been informed by Local Union 3019 of the

Canadian Auto Workers that they concluded their ratification vote, as scheduled, on

January 18, 2005. A majority of the union members casting votes has agreed to accept

the revised terms and conditions of employment set out in the Memorandum of

Settlement dated January 13, 2005. The ratified collective agreement, effective as of

July 01, 2004, will expire on March 31, 2008 and provides for increases to employee

wages, benefits and pensions as well as enhanced benefits for retirees. Local Union

3019 represents approximately 350 unionized employees at NVI’s Myra Falls mine

located near Campbell River, British Columbia.

The conclusion of this labour agreement, in concert with the recent conclusion of threeyear

labour agreements at Breakwater’s El Mochito and El Toqui operations ensures a

period of prolonged labour stability for Breakwater’s key operating mines. More

specifically, El Mochito recently entered into a three-year agreement with its labour union

that will expire on October 01, 2007 and El Toqui recently concluded a three-year

agreement with its labour union that will expire on September 30, 2007.

Breakwater would like to thank its trade unions at these locations, and the unionized

employees they represent, for their support and cooperation during collective bargaining.

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 forwardlooking

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

Vice President, Administration

William M. Heath

 (416) 363-4798 Ext. 267