ADB Admiral Bay Resources Inc.

Admiral Bay Resources Inc. (TSX VENTURE:ADB)  Admiral Bay Resources Inc.
("Admiral Bay" or the "Company") today provided an update on its strategic
review process announced in October of 2009. 


As a result of the review process, the Company is currently in discussions with
a third party regarding a possible strategic combination. While discussions are
ongoing there is no guarantee that such talks will result in an agreement
between the parties. In addition, as a result of sustained, low realized natural
gas prices, the Company believes that consideration paid for any combination is
likely to be below the current enterprise value of the Company. Any transaction
would be subject to approval by shareholders as required under British Columbia
corporate and securities laws and consent of the Company's lenders. 


Should the Company not reach an agreement for a strategic combination, the
Company's current lenders may choose to exercise their right to foreclose on
certain assets of the Company that were pledged as security under the current
credit facility. As a result, the Company is discussing potential options to
restructure its debt with current lenders. The outcome of such discussion is
uncertain. Should the Company not reach an amicable agreement with its current
lenders, the lenders may choose to initiate foreclosure proceedings.


From February 2009 to November 2009, the Company entered into five amendments to
the credit facility that have allowed the Company to capitalize certain interest
amounts. Such capitalized interest is added to the loan balance. Those
amendments allowed the Company to pay a minimum of 5% cash interest and
capitalize 10% interest on a monthly basis. The current amendment allowing the
capitalization of interest was extended through January 2010 and included an
extension on the maturity of the Neodesha Loan for approximately $1.8 million
through January 2010. The lenders did not provide additional extensions.


In anticipation of the possibility of foreclosure action by Admiral Bay's
lenders, the Company has retained counsel to review possible responses to any
action which range from continued negotiations to more formal, court-supervised
reorganization of the Company and its subsidiaries. 


The Company will provide additional information as appropriate.

About Admiral Bay Resources

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".

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