TORONTO, ONTARIO -- (MARKET WIRE) -- 12/31/07 -- Breakwater Resources Ltd. (TSX: BWR) is pleased to announce that it has raised $12.0 million by issuing 6,122,449 flow-through common shares at a purchase price of $1.96 per common share. The shares were issued by way of a private placement to a wholly-owned subsidiary of Dundee Corporation and have a four month hold period. Dundee Corporation currently holds approximately 24% of the issued and outstanding shares of Breakwater.

The proceeds of the flow-through financing will be used for an exploration program in Quebec in 2008 which Breakwater has budgeted in excess of $13 million. Additional exploration expenditures may be incurred in Quebec depending on exploration success.

Contacts:
Breakwater Resources Ltd.
Ann Wilkinson
Vice President, Investor Relations
(416) 363-4798 Ext. 277