TORONTO, ONTARIO -- (MARKET WIRE) -- 10/26/07 -- Breakwater Resources Ltd. ("Breakwater") (TSX: BWR) - On October 18, 2007, Breakwater announced that it had discovered a discharge of water from the newly commissioned Soledad tailings impoundment area which necessitated a suspension of milling at its Mochito mine, located in Honduras. A preliminary evaluation of the situation has determined that recommissioning the Pozo Azul tailings impoundment area, for which permitting remains in place, will be the quickest method of returning Mochito to full production. The Company has now restarted milling operations on a trial basis and is currently depositing tailings in Pozo Azul.

The Company is conducting a test in the mill to determine the optimum reagent mix required to control the levels of copper in the effluent of Pozo Azul. If the reagent test is successful, as determined by the production of saleable concentrates, then the mill will be able to run at full capacity while the ultimate capacity of Pozo Azul is being increased. If the test is not successful, then Mochito will only be able to mill intermittently, dependent on water levels in Pozo Azul. Enlargement of the Pozo Azul tailings impoundment area is expected to provide up to 24 months of storage. The Company is currently unable to estimate the construction time to enlarge Pozo Azul, as it is largely weather dependent.

At Soledad, the water level was lowered and the discharge of water has stopped. Based on monitoring conducted to date, there are no indications of any adverse impacts on receiving waters including Lake Yojoa. No structural damages have been located at Soledad and none are thought to exist. Plans are still being formulated to determine the nature of the repairs required for Soledad.

The Company will provide updates as additional information becomes available. The Company is not in a position to provide updated guidance on production.

This news release contains certain statements which constitute forward-looking information. These forward-looking statements are not descriptive of historical matters and refer to management's expectations or plans. These statements include, but are not limited to, statements concerning the Company's business objectives and plans; future production costs and volumes; sales volumes and realized prices; capital spending plans; expected plant availability; success of process changes; and production of base metal concentrates by the Company's operations.

Inherent in forward-looking statements are risks and uncertainties beyond the Company's ability to predict or control, including risks that may affect the Company's operating or capital plans, including risks generally encountered in the development and operation of mineral properties and processing facilities such as unusual or unexpected geological formations, unanticipated metallurgical difficulties, ground control problems, process upsets and equipment malfunctions; risks associated with environmental compliance and permitting, including those created by changes in environmental legislation and regulation; social and political risks associated with operations in foreign countries; and risks associated with legal proceedings.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: that there is no material deterioration in general business and economic conditions; that the Company receives regulatory and governmental approvals for its development projects and other operations on a timely basis; that there is no unforeseen deterioration in the Company's costs of production or production and productivity levels; that the Company is able to procure mining equipment and operating supplies (including tires) in sufficient quantities and on a timely basis; that engineering and construction timetables and capital costs for the Company's development and expansion projects are not incorrectly estimated or affected by unforeseen circumstances; that costs of closure of various operations are accurately estimated; that environmental and other proceedings or disputes are satisfactorily resolved; and that Breakwater maintains its ongoing relations with its employees and with its business partners and joint venturers.

Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Readers should also carefully consider the matters discussed under "Risk Factors" in the Company's Annual Information Form. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise, except as may be required under applicable laws.

Contacts:
Breakwater Resources Ltd.
Torben Jensen
Vice President, Engineering
(416) 363-4798 Ext. 232
Email: TJensen@breakwater.caBreakwater Resources Ltd.
Ann Wilkinson
Vice President, Investor Relations
(416) 363-4798 Ext. 277
Email: AWilkinson@breakwater.ca