Admiral Bay Acquires More Acreage Near its Devon CBM Project

Admiral Bay Resources has completed the acquisition of an additional 13,196 net acres at the Devon Project in Bourbon County, Kansas, for US$494,867 (US$37.50 per acre) from a private Colorado company. Admiral Bay now holds approximately 47,600 net acres in the Devon project area. The new acreage is adjacent to the Company's existing Devon acreage and has four wells that have been drilled and have had casing run. It is anticipated that these wells will be completed in the month of April. Admiral Bay is now close to achieving its goal of having 50,000 acres for development in the Devon project area. Management feels confident that the Company now has sufficient acreage to control the project area and will over time, see local land owners approach the Company to provide lease opportunities to in-fill many of the remaining acreage blocks not currently held.

The Devon Project is a shallow (less than 600 feet) coal bed methane project that is presently producing from the first 13 wells drilled at the project. An additional 12 wells are awaiting hook up to the sales line. The coals are presently going through a dewatering phase and production is expected to ramp up of over time. Admiral Bay is currently drilling six wells per month at the project.

Admiral Bay's Acreage Position

Admiral Bay is focused on developing six projects in Kansas and Pennsylvania. The Company currently holds over 119,000 acres in these project areas and will continue to aggressively acquire additional acreage in the project areas. Admiral Bay's target for the end of 2005, is to hold in excess of 150,000 acres.

         Project             Acreage Position
         Devon                   47,600
         Shiloh                   8,000
         Swordfish               34,000
         Mound Valley            10,000
         Santa Rita              13,400
         Revloc                   6,900
         TOTAL                  119,900


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