Toronto, Ontario: January 31, 2006 – Breakwater Resources Ltd. announced today that it has obtained a loan facility of US$12.0 million (the “Facility”) from Standard Bank PLC, an English and Welsh bank.

The Facility bears an interest rate of LIBOR plus 2.0% per annum and has been secured by, and will be repaid from, deliveries of concentrate to a customer between now and July 31, 2007.

The funds were used to satisfy certain obligations to the government of British Columbia in connection with environmental bonding requirements for the Myra Falls mine.

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, a phrase such as “will be” is intended to identify a forward-looking statement. 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:

Richard Godfrey

Chief Financial Officer

(416) 363-4798 Ext. 276

Ann Wilkinson

Vice President, Investor Relations

(416) 363-4798 Ext. 277