James Bay Resources Closes $9.3 Million IPO Financing and Commences Trading on the TSX Venture Exchange

TORONTO, ONTARIO, Jul 31 (MARKET WIRE) --
James Bay Resources Limited (TSX VENTURE: JBR) ("James Bay" or the
"Company") today announced the successful closing of its IPO financing on
July 24, 2008 and the listing today of its common stock on the TSX
Venture Exchange under the symbol "JBR".

James Bay has accumulated 95 royalty-free, 100-percent owned claims
totaling 19,700 hectares in the James Bay Lowlands of Northern Ontario
(the "Property") near significant discoveries by Noront Resources Ltd.
("Noront") and others (see maps below). Drill core from Noront's "Eagle
One" discovery has returned assays of up to 117.4 meters averaging
4.1-percent nickel, 2.2-percent copper, 9.2 grams per tonne (g/t) PGM,
demonstrating the potential of the "Ring of Fire" to develop into
Canada's next major base metal mining camp.

Exploration at the James Bay Property is focused on locating magmatic
Ni-Cu-PGE and/or VMS base metal deposits. Last winter, three airborne
geophysical surveys (magnetic and EM) revealed 28 significant anomalies
on the Property. Additional airborne geophysical surveys then refined a
sizable EM conductor on the C-Block and C-Extension zones, including a
strong 5 km long EM conductor that appears to be on the flank of a
potential layered intrusion or domal feature that is 7 km in length. It
is these large features that exhibit geophysical responses similar to the
Noront and WSR Gold Inc. discoveries that will be the primary focus of
the Company's Phase I drill program. To date, all VMS and Ni-Sulphide
discoveries in the 'Ring of Fire' have been made using similar airborne
geophysics techniques.

James Bay President & CEO Stephen Shefsky stated, "We have identified
compelling drill targets based on several geophysical interpretations
which, we believe, underscore the excellent potential for the discovery
of significant mineral deposits on our property. We are currently
advancing exploration activities in preparation for a planned 5,000-meter
drill program starting this September."

James Bay also announced the closing of a $9.3-million IPO financing (the
"Offering") led by IBK Capital Corp (IBK Capital). IBK Capital is a
Toronto-based limited market dealer focused on raising capital for junior
mining companies and has been the leading financier to several
exploration companies in the James Bay Lowlands. A total of 7,447,850
units were placed (each a "Unit") at the price (the "Offering Price") of
$1.25 per Unit for gross proceeds of approximately $9,300,000. Each Unit
consists of one common share (each a "Common Share") and one half one of
one purchase warrant (each a "Warrant") with each whole Warrant being
exercisable to acquire one further Common Share at a price of $2.00
expiring on July 24, 2010.

The Company has granted to IBK Capital an over-allotment option
exercisable within 30 days following closing of the Offering to purchase
up to an additional 1,000,000 Units on the same terms set out above (the
"Over-Allotment Option"). The Agents were paid a cash commission of up to
9% of the gross proceeds raised and the Company also issued compensation
options to acquire up to a total of 731,835 Units at the Offering Price
expiring July 24, 2010.

James Bay also announced that the TSX Venture Exchange has been provided
with final documentation and that posting and listing for trading of the
Common Shares will occur as of open of markets on July 31, 2008 under the
symbol "JBR".

Mr. Shefsky added, "We are excited to have completed the IPO process and
commence trading. We would like to thank IBK Capital for their efforts as
this financing has positioned us to proceed with an aggressive
exploration program at our property."

Brad Leonard,M.Sc., P.Geo., Exploration Manager with Caracle Creek
International Consulting Inc.(CCIC), is the project manager and is also
the Company's Qualified Person as defined by National Instrument 43-101.
Mr. Leonard has reviewed and approved the scientific and technical
content of this release.

About James Bay Resources

James Bay is a Canadian mineral exploration company with 19,700 hectares
of 95 royalty-free, 100-percent owned claims in the McFauld's Lake area
of the James Bay Lowlands. The Property is located roughly 30 kilometres
west-southwest of the "Eagle One" Ni-Cu-PGE discovery made by Noront
along the "Ring of Fire", an emerging and potentially world-class base
metal camp. The Company currently has 27,872,850 shares outstanding and
trades on the TSX Venture Exchange under the symbol "JBR".

For more information please visit the James Bay website at
www.jamesbayresources.com

Disclaimer

Certain statements contained in this news release may contain
forward-looking information within the meaning of Canadian securities
laws. Such forward-looking information is identified by words such as
"estimates", "intends", "expects", "believes","may", "will" and include,
without limitation, statements regarding the company's plan of business
operations (including plans for progressing assets), estimates regarding
mineral resources, projections regarding mineralization and projected
expenditures. There can be no assurance that such statements will prove
to be accurate; actual results and future events could differ materially
from such statements. Factors that could cause actual results to differ
materially include, among others, metal prices, risks inherent in the
mining industry, financing risks, labour risks, uncertainty of mineral
resource estimates, equipment and supply risks, title disputes,
regulatory risks and environmental concerns. Most of these factors are
outside the control of the company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the company
expressly disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new information,
future events or otherwise.

Maps are available at the following address:
http://media3.marketwire.com/docs/jamesb.pdf

THE TSX VENTURE
EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.

Contacts:
Stephen Shefsky
President & CEO
Tel: (416) 366-4200
Email: cancap@on.aibn.com

Lenny Foreht
Corporate Development
Tel: (416) 364-2266
Email: lforeht@linearcapital.com

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