Bougrine

The Bougrine mine closed permanently in September 2005 in accordance with the life-of-mine plan. Breakwater is currently reviewing options to utilize its existing infrastructure.

Closure of the tailings facility and reclamation commenced in the fourth quarter, 2005. Breakwater expects to spend $1.6 million on reclamation in 2006, at which time it is anticipated reclamation activities will be 90% complete with the remainder of the work to be completed in 2007.

The Bougrine mill will be left in place pending the results of a $0.5 million exploration program on a land package located in northern Tunisia, which bears lead zinc mineralization.