ADB Admiral Bay Resources Inc.

CENTENNIAL, COLORADO is pleased to announce that it expects to begin drilling operations at its 16,000 acre Revloc Project in the Appalachian Basin, in Pennsylvania in December. Pursuant to its previously announced farm out agreement, Admiral Bay will operate the drilling of 7 test wells with its 25% WI partner paying 100% of the costs. Four of the wells will be cored over 500 feet to collect coals for desorption, adsorption and mechanical properties to determine gas content and the best method to complete the wells. Five of the wells form a pilot project that is located next to an existing pipeline. Upon evaluation of the test results, the Company's partner will have an opportunity to increase its working interest in the project. Future operations will be heads up thereafter, with Admiral Bay remaining operator.

Update of Operations

The following is an update of Admiral Bay's operations since completion of its expanded credit facility, as announced in the news release of September 7, 2007.

Currently the majority of the Company's production continues to come from the Shiloh project, with the Mound Valley project beginning to show meaningful increases in production due to new wells coming online and older wells being optimized. Current gross daily production from all projects has been averaging 2.7 MMCFPD.

At the Shiloh project, the Company has placed 10 new wells on line with an average initial production (IP) of 20 MCFGPD, which is in line with previous completions results. In addition, the Company has been working to improve its gathering system, including upgrading certain booster compressors and looping lines to lower field pressure, and catching up on well maintenance that was neglected earlier in the year due to funding issues. In addition, the Company has lowered lease operating costs by replacing its contract field personnel with Company employees and improved the field supervision with the previously announced hiring of Steven Littell as Operations VP. Gross production in Shiloh has been below previous peak levels, due to the gathering system and maintenance issues mentioned above, but is currently at approximately 2.1 MMCFPD and climbing.

At the Mound Valley project, the Company has put on 11 new wells on line that are averaging over 15 MCFGPD which is a significant improvement over the average for existing wells. Gross production at Mound Valley has increased to almost 400 MCFGPD and should continue to increase as 11 additional wells that are awaiting completion are brought online.

At the Devon project, the Company is working on new gathering system upgrades that will open two new areas to development and allow three new wells that tested at with a combined rate of over 130 MCFGPD to come online. Total production through the Bourbon County Pipeline ("BCPL") is currently between 700-800 MCFGPD. The Company nets between 20-25% of the total production in the BCPL between its equity gas and its share of third party gas.

Testing of the Chattanooga Shale at the Santa Rita Project

In the first quarter of 2008, Admiral Bay plans to begin testing and completing wells in the Chattanooga Shale and the coals at the Santa Rita Project. The Company previously drilled and cored 2 wells at the project, in which the Company holds a 100% working interest. Admiral Bay is in the process of developing completion strategies based on the core results. Presently, there are two known wells producing out of the Chattanooga in the Cherokee Basin on the Oklahoma side which the Company believes have similar reservoir characteristics. The Chattanooga Shale is also actively being pursued by another operator just to the west of the Company's Project.

Updated Reserve Report

The Company recently received an updated independent reserve report from Norwest Questa Engineering Corporation of Golden, Colorado. The report covers the Company's unconventional gas projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. In keeping with the Company's focus of completing existing wells during the year, Proved Developed Producing Reserves (PDP) in Kansas increased by 45% to 11.6 Bcf, as at the Company's July 31, 2007 year-end. During this period, Total Proved Reserves and Probable Reserves remained constant at 42.0 Bcf (net of a reclassification of lease use gas) indicating that the locations that were brought online were replaced with new locations. Based on forecast prices, the PV-10 value of Proved plus Probable Reserves was US$108.9 million. All reserve numbers are net after royalties. The total 3P Reserves were 175.8 Bcf with Possible Reserves declining due to certain acreage, primarily in the Swordfish Project, expiring during the year. Leases on this acreage were not renewed as the Company chose to utilize its capital for development of its existing producing projects instead.

Capital Expenditures

For the 2007 fiscal year Admiral Bay had capital expenditures of $9.8 million, down from the previous year due to delays in receiving new funding while the Company was engaged in the strategic alternatives process during the second half of fiscal 2007. The Company had a three year average All-in Finding Cost of US$1.34/Mcf, based on an overall capital expenditure for the three year period of US$44.8 million (including US$14.4 million for new land acquisitions). The three year average full cycle Finding & Development cost (including future development costs of $16.5 million) was US$1.83/Mcf.

Borrowing Base Increased on Credit Facility

With the delivery of its reserve report, the borrowing base on the Company's credit facility has been increased by $2.5 million. When drawn, the funding will be used to continue development and drilling activities on up to 50 completion/re-frac/new drilling opportunities in the Shiloh, Mound Valley and Devon producing areas.

Steve Tedesco, President and CEO of Admiral Bay commented, "This reserve report and our recent completion activities show that we are taking steps to high grade our asset base. Our three year average finding costs are very competitive and the increase in Proved Developed Producing Reserves as well as the stable Proved + Probable Reserves demonstrates how we continue to high-grade our asset base. In addition, we are beginning activity on two promising new areas that hold significant upside potential for increasing the Company's proved reserve base. With our new credit facility in place, we are also pursuing acquisition opportunities to accelerate production growth in our core areas."

Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

The TSX Venture Exchange does not accept responsibility for the adequacy of this release.

Contacts: Admiral Bay Resources Inc. Steven Tedesco President & C.E.O. (303) 350-1255 (303) 617-8956 (FAX) Email: stedesco@admiralbay.com Admiral Bay Resources Inc. Curt Huber V.P. Corporate Development (604) 628-5642 or Toll Free: 1-866-217-1620 Email: info@admiralbay.com Website: www.admiralbay.com

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