TORONTO, ONTARIO -- (MARKET WIRE) -- 07/02/08 -- Management of NVI Mining Ltd. (owner of the Myra Falls mine and a wholly-owned subsidiary of Breakwater Resources Ltd. (TSX: BWR)) and the CAW Local Negotiating Committee, representing hourly employees at Myra Falls, met with the assistance of a provincially appointed mediator to exchange initial monetary proposals and as a result of those meetings, progress was made.

The CAW Local 3019 Executive elected to go back to their membership to conduct a strike vote before proceeding any further, which meetings were held June 29th and 30th. The parties are scheduled to meet again on July 4th and 8th and while the mediator is not able to attend those meetings he remains active on the file.

Breakwater is a mining, exploration and development company which produces and sells zinc, copper, lead and gold concentrates to customers around the world. The Company's concentrate production is derived from four mines. Two of Breakwater's mines are located in Canada, one is located in Chile and one is located in Honduras.

Contacts:
Breakwater Resources Ltd.
William M. Heath
Executive Vice-President
(416) 805-0776

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