Ms. Ann Wilkinson reports

BREAKWATER RESOURCES ANNOUNCES FILING OF FINAL PROSPECTUS IN CONNECTION WITH PREVIOUSLY ANNOUNCED $40 MILLION BOUGHT DEAL

Breakwater Resources Ltd. has filed a final short-form prospectus in connection with its previously announced $40-million bought-deal public offering of 6.35 million common shares with the securities regulatory authority in all provinces of Canada except Quebec, and with the Toronto Stock Exchange.

The offering of common shares is subject to obtaining all required approvals, and the satisfaction of all terms and conditions of the underwriting agreement of the company with the underwriting syndicate, led by Dundee Securities Corp. and GMP Securities LP, and including Canaccord Genuity Corp., Credit Suisse Securities (Canada) Inc., TD Securities Inc., Cormark Securities Inc. and Octagon Capital Corp. The offering is expected to close on or about Dec. 30, 2010.

The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 650,000 common shares at the issue price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering, to cover overallotments, if any, and for market-stabilization purposes.

If the overallotment option is fully exercised, the gross proceeds from the offering will be $44.1-million.

Further details of the offering, including the anticipated use of proceeds, are set out in the prospectus of the company dated Dec. 20, 2010, available on SEDAR or from one of the members of the underwriting syndicate.

We seek Safe Harbor.