TORONTO, ONTARIO -- (MARKET WIRE) -- 06/03/08 -- Breakwater Resources Ltd. (TSX: BWR) ("Breakwater") and CanZinco Ltd. ("CanZinco"), a subsidiary of Breakwater, have commenced a lawsuit against Blue Note Mining Inc. ("Blue Note").

CanZinco and Breakwater seek, among other things, an order in the Ontario Action (which is the Statement of Claim served by Blue Note against CanZinco and Breakwater on May 15, 2008) for the stay of the Ontario Action.

The lawsuit, brought before the Queen's Bench of New Brunswick, seeks:

- a declaration that Blue Note is obligated to indemnify CanZinco and Breakwater with respect to all liabilities, losses, claims, damages, judgments, fees, costs and expenses arising as a result the Ontario Action and as a result of an action commenced by Merlin Group Securities ("Merlin"), trustee of The Fern Trust, in New Brunswick alleging, among other things, that Blue Note has repudiated the Net Profit Interest ("NPI"). Merlin's action follows the issuance of an application by Blue Note in New Brunswick requesting the advice and direction of the Court as to whether the NPI is enforceable as against Blue Note and whether the Fern Trust is entitled to any benefits pursuant to the NPI. The application was subsequently converted to an action, with leave granted to Merlin to assert its claim by way of counterclaim (the "New Brunswick Action"). CanZinco and Breakwater were added as defendants by counterclaim in the New Brunswick Action.

- a declaration that CanZinco and Breakwater have no obligation to indemnify Blue Note with respect to the New Brunswick Action or with respect to any and all liabilities arising from the NPI.

- an interlocutory order for the consolidation or trial or hearing together of this action and the New Brunswick Action, or for leave to permit this action to be asserted by way of counterclaim or cross-claim in the New Brunswick Action.

- a judgment, in the full amount that Blue Note is obligated to indemnify CanZinco and Breakwater as of the date of judgment, plus pre-judgment compound interest.

- the costs of this action on a solicitor and client basis, plus harmonized sales tax.

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) 363-4798 Ext. 267