Admiral Bay Reports Record Production for Third Quarter 2009

* Reuters is not responsible for the content in this press release.

Tue Jun 30, 2009 10:42am EDT

  CENTENNIAL, COLORADO, Jun 30 (MARKET WIRE) -- 
Admiral Bay Resources Inc. (TSX VENTURE: ADB) ("Admiral Bay" or the
"Company") is pleased to report record production for the second quarter
ended April 30th, 2009. Average daily production (before royalty) was
3,516 MCFEPD, a 37% increase over 3rd quarter of 2008 and 2% increase
over the 2nd quarter of 2009. Production costs, excluding the Thayer
acquisition completed at the end of the quarter, were $2.40/mcf, a
decrease of 10% when compared to Q3 2008 and G&A expense was $1.22/mcf, a
decrease of 31% from Q3 2008. Revenues (before royalties and hedging
impact) were $0.9 million, a decrease of 50% year over year due to a 64%
decrease in natural gas prices partially offset by the increase in
production volumes. Including the impact of hedging, revenues were $1.4
million or a 23% decrease from the prior year. Earnings for the quarter
were a loss of ($ 2.2 million) versus ($ 2.5 million) in the prior period.

    President and CEO Steven Tedesco commented "Despite the sharp reduction
in natural gas prices, we have been able to grow production while
reducing overall costs in response to these challenging times. We are
continuing to grow the Company as evidenced by the recent acquisition of
the Thayer project in Kansas that will allow us to show further growth in
production going forward while we continue to aggressively lower costs in
all our project areas and corporately. We continue to look for additional
ways to take advantage of the current environment to grow the Company
while improving our cost structure and liquidity".

    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".


 
 Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.

Contacts:
Admiral Bay Resources Inc.
Steven Tedesco
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
stedesco@admiralbay.com

Admiral Bay Resources Inc.
Robert Carington
CFO
(303) 350-1255
(303) 708-1861 (FAX)
rcarington@admiralbay.com
www.admiralbay.com

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