Quebec - Bouchard-Hébert

The Bouchard-Hébert mine closed permanently in February 2005 in accordance with the life-of-mine plan.

Breakwater has 215 claims totaling 7,982 hectares surrounding Bouchard-Hébert’s two mining leases. For 2006 Breakwater has budgeted $2.9 million to carry out ground and airborne geophysics and diamond drilling along with downhole geophysical surveying. The Bouchard-Hébert property covers 18 kilometres of strike length within the Blake River Group of volcanic rocks which has hosted numerous world-class massive sulphide and gold deposits.

We expect to spend $3.8 million on reclamation in 2006, at which time it is anticipated reclamation activities will be 65% complete. The mill at Bouchard-Hébert will remain in place pending the outcome of the exploration program described above.