EL MOCHITO MINE

Breakwater Resources Ltd. announced its mineral reserve and mineral resource estimates.

Breakwater Resources Ltd announced second quarter 2010 financial and operating results. Highlights include: net earnings of Can$24.6 million or Can$0.35 per share in the second quarter of 2010 compared with a net loss of Can$4.5 million or Can$0.07 per share in the second quarter of 2009. The company also reported concentrate produced in the second quarter of 2010 increased 32% to 64,160 tonnes compared with the second quarter of 2009 due to 66%, 21% and 15% increases at Myra Falls, Toqui and Mochito respectively.

Breakwater Resources announced an increase to its mineral reserves and an extension to the mine life at Mochito mine, Honduras. The mineral reserves at December 31, 2009 were estimated to total 18.5 million tonnes grading 6.7% zinc resulting in an 8% increase year-over-year. Specifically, mineral reserves at Mochito increased by 56% due to gains from diamond drilling and the discovery of new deposits. Measured and indicated mineral resource estimates totaled 22.0 million tonnes grading 7.8% zinc, a 5% increase over 2009 primarily due to an increase at Mochito. Inferred mineral resources have been estimated to total 11.6 million tonnes, representing a 4% increase year-over-year.