BWR $20 Million Dollar Partnership Announced After The Bell

Breakwater Enters Into Qualifying Environmental Trust (QET)

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TORONTO, ONTARIO--(Marketwire - Dec. 21, 2007) - Breakwater Resources Ltd. (TSX:BWR) (Breakwater) is pleased to announce that it has entered into a joint venture with the limited partners of Myra Falls Mine Limited Partnership (Partnership) whereby the Partnership is entitled to a revenue interest of production from the Myra Falls mine consisting of a 3% net smelter royalty. The Partnership has deposited $20 million with a trustee into a "qualifying environmental trust" (QET) as security for a portion of the reclamation obligations of NVI Mining Ltd., a wholly-owned subsidiary of Breakwater, which owns the Myra Falls mine.


The $20 million in the QET is in addition to approximately $13 million held in a safekeeping account and will fully fund the currently estimated physical reclamation program required at Myra Falls. Breakwater worked closely with the Government of British Columbia to establish the QET.


Breakwater has the right to purchase the interests of the limited and general partners of the Partnership for approximately $18 million (90.9% of the contribution to the QET) payable at the option of Breakwater in cash or common shares of Breakwater at the "current market price". This right is exercisable from January 16, 2008 to April 15, 2008. The current market price is defined as the weighted average of the trading price on the Toronto Stock Exchange of Breakwater's common shares for the most recent 20 trading days ending the day before the exercise of the right.


If Breakwater does not exercise its right, the partners of the Partnership have the right to require Breakwater to purchase the interests of the limited and general partners of the Partnership for an amount equal to the fair market value of the revenue interest as determined by appraisal. The purchase price is payable at the option of Breakwater in cash or common shares of Breakwater at the "current market price" on the day before the partners exercise their right. The partners may exercise their right from April 16, 2008 until May 15, 2008.


Subject to the approval of the applicable regulatory bodies, if, upon the exercise of rights by either Breakwater or the partners of the Partnership, Breakwater issues common shares to satisfy its obligations, the shares issued will not be freely tradeable until April 21, 2008.


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.



FOR FURTHER INFORMATION PLEASE CONTACT:

Breakwater Resources Ltd.
Dave Langille
Vice President, Finance and Chief Execut