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Gold/Mining/Energy : Breakwater Resources (T.BWR) -- Ignore unavailable to you. Want to Upgrade?

To: BC who wrote (607)	3/29/1999 10:31:00 AM
From: Stephen O	Read Replies (1) \| Respond to of 962

March 26, 1999...Breakwater Resources Ltd. (TSE-BWR) announced today that it has retained Dundee Bancorp Inc. to assist in arranging alternate long-term inventory and receivable financing to ultimately increase its working capital banking facility from $30 million to $45 million. The increase in working capital financing is required to bridge the significant zinc inventory build-up related to Breakwater's Nanisivik and El Toqui mining operations which require large tonnage shipping and which, in Nanisivik's instance, is also seasonal. To facilitate the process, Dundee Bancorp will participate for up to $5 million, as a syndicate member in Breakwater's current banking arrangements, and has agreed to provide a short-term working capital guarantee, limited to $10 million, which will enable Breakwater to draw up to an additional $10 million from its existing banker. These arrangements will be completed on or about March 31, 1999, the timing of which, given the purpose and nature of the arrangements, Breakwater considers to be reasonable. Dundee's participation as a lender and guarantor will cease when the new working capital facility is finally arranged, which is expected to occur prior to June 30, 1999. Breakwater Resources Ltd. is a mineral resource company engaged in the acquisition, exploration, development and mining of base metal deposits in the Americas and North Africa. Breakwater has four producing zinc mines: the El Mochito mine in Honduras; the El Toqui mine in Chile; the Nanisivik mine on Baffin Island, Canada; and the Bougrine mine in Tunisia. Breakwater also owns the Caribou mine in New Brunswick, Canada that is currently closed pending the results of technical and economic studies currently being conducted and higher metal prices. Dundee Bancorp owns directly and indirectly approximately 35.9% of the outstanding common shares of Breakwater. For further information please contact: Colin K. Benner President and Chief Operating Officer (416) 363-4798 Ext. 269 E. Ann Wilkinson Corporate Secretary and Investor Relations Officer (416) 363-4798 Ext