Breakwater provides exploration update, El Toqui mine, Chile

As of August 29, 2007, 36,410 metres of diamond drilling has beencompleted with the objective of carrying out an in-fill and definitiondrilling program on the Concordia North, Concordia South and Porvenir depositsas well as exploring the Altazor and Melchor targets.

The 9,027m in-fill drilling program at Concordia North and ConcordiaSouth is now complete. Mining commenced during the third quarter in ConcordiaNorth and decline development is proceeding towards Concordia South. TheConcordia deposits will be an integral part of the production plans for ElToqui in 2008. Two recent holes from the current program include DCA-153 whichhad an intercept of 22.8 m (at) 2.8% Zn, 0.1% Pb, 81 g/t Ag, 0.13 g/t Au, and1.6% Cu and DCA-154 which returned an intercept of 8.49 m (at) 21.8% Zn, 0.3% Pb,172 g/t Ag, 0.21 g/t Au and 0.9% Cu.

A new exploration program has commenced to the east of Concordia Southand hole DCE-01 has intercepted strong mineralized manto. In a secondconsecutive hit, hole DCE-02 intercepted +7 metres of massive sulphidemineralization. DCE-03 hit barren coquina and DCE-04 has interceptedmineralized manto split by a porphyry sill. Assays are pending. This drillingis indicating that the Concordia East area may be connected to ConcordiaSouth, potentially increasing the overall resources at Concordia.

The 18,718m in-fill and extensional drilling program at Porvenir is nowcomplete and plans have been developed for access to and mining of thePorvenir deposit. A mining contractor has been selected for the development ofPorvenir with excavation work scheduled to commence by the end of September.It is expected to take 16 months to fully develop Porvenir with firstproduction expected sometime early in 2009.

A new diamond drill program is currently underway 250m south-west ofPorvenir, within the area known as Los Boldos. Recently, a compilation ofinformation that deals with the potential of this area has been carried out.According to older information and soil geochem anomalies, plus basicalteration zonation patterns, there is a potential repetition of the Porvenirmineralized system in this area.

George Pirie, President & CEO said, "We are very pleased with the resultsof the 2007 exploration program at El Toqui. These results continue to supportour recent decision to commence a pre-feasibility study for a 1.0 milliontonne per annum mill." The El Toqui operation is currently constrained by thecapacity of the mill which runs at 1,475 tonnes per day or a current maximumof 540,000 tonnes per annum.

Exploration drilling is a major component of a $10 million budget thatalso includes testing of some high-priority distal stratigraphic targetsoutside of the defined deposits within a defined NW-SE anomalous trend. Themore distal target drilling has proved the potential for continuity south-eastof the known mineralization within the favourable trend where the Toquimineralized system is hosted.

The exploration programs at El Toqui are under the supervision of RobertMcGuire, P.Eng. who is a qualified person as defined by National Instrument43-101. All core samples are split in half at the drill site, with one-half ofthe core sample sent to Andes Analytical Assay Ltda. in Santiago for samplepreparation and analysis by atomic absorption and fire assay for the goldvalues and high silver values. The other half of the core sample is retainedon site. The pulp samples are sent to Assayers Canada in Vancouver, BritishColumbia for further analysis by ICP methods.

Breakwater is a mineral resource company engaged in the acquisition,exploration, development and mining of base metal and precious metal depositsin the Americas and North Africa. Breakwater has four producing zinc mines:the Myra Falls mine in British Columbia, Canada; the Langlois mine in Quebec,Canada, the El Mochito mine in Honduras; and the El Toqui mine in Chile.

Certain information included in this press release, including anyinformation as to our future financial or operating performance and otherstatements that express management's expectation or estimates of futureperformance, constitute forward-looking statements". The words "expect","will", "intend", "estimate" and similar expressions identify forward-lookingstatements. Forward-looking statements are necessarily based upon a number ofestimates and assumptions that, while considered reasonable by management, areinherently subject to significant business, economic and competitiveuncertainties and contingencies. The Company cautions the reader that suchforward-looking statements involve known and unknown risks, uncertainties andother factors that may cause the actual results, performance or achievementsof Breakwater to be materially different from the Company's estimated futureresults, performance or achievements expressed or implied by thoseforward-looking statements and the forward-looking statements are notguarantees of future performance. These risks, uncertainties and other factorsinclude, but are not limited to, risks associated with the mining industrysuch as government regulation, environmental and reclamation risks, titledisputes or claims, success of mining activities, future commodity prices,costs of production, possible variation in ore reserves, resources, grade orrecovery rates, failure of plant, equipment or processes to operate asanticipated, accidents, labour disputes, the timing of estimated futureproduction, capital expenditures, financial market fluctuations, requirementsfor additional capital, conclusions of economic evaluations, limitations oninsurance coverage, risks associated with using third-party contractors,inflation as well as those factors discussed in the Company's most recent Form40-F/Annual Information Form on file with the US Securities and ExchangeCommission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise anyforward-looking statements whether as a result of new information, futureevents or otherwise, except as required by applicable law.

For further information

Torben Jensen, Vice President, Engineering,(416) 363-4798 Ext. 232
Ann Wilkinson, Vice President, Investor Relations,(416) 357-5511