PIK Peak Gold Ltd Com Npv

Admiral Bay Resources Inc. (TSX VENTURE:ADB) ("Admiral Bay" or the "Company")
today announced record production and proved reserves for the fiscal year ended
July 31st, 2009. The Company also announced it had sold a 50% interest in its
Bourbon County, Kansas gas gathering system and agreed to amendments to its
current credit facility.


Record Production and Reserves

Production before royalty averaged 3,556 Mcfpd compared to 2,376 Mcfpd in the
prior fiscal year. Production costs were $ 2.70/mcf, a decrease of 25% from the
prior year and G&A expense was $ 1.30/mcf, a decrease of 37%. Revenues (after
royalties) plus hedge impact were $5.5 million, an increase of 5% over fiscal
year 2008 as the Company's hedge position and higher production volumes offset
sharply lower commodity prices. During fiscal 2009, natural gas prices averaged
$3.66 per Mcf compared to $7.76 per Mcf in fiscal 2008.


Admiral Bay posted a net loss of $ 6.4 million in fiscal year 2009. That
compares to a net loss of $ 8.2 million in fiscal year 2008. The improvement was
due primarily to the non-cash change in the mark-to-market of the Company's
natural gas hedges and lower financing fees offset by higher amortization and
interest costs.


The annual reserve report prepared by Norwest Corporation reported gross Proved
reserves of 66.1 Bcf (49.3 BCF net after royalty) with pre-tax net present value
discounted at 10% ("PV-10") of $118.8 million. Reserves increased 15% and PV-10
value increased 1% from Fiscal Year 2008. The Company reported Probable and
Possible reserves of 14.3 and 100.2 Bcf respectively net after royalty.
Norwest's evaluation is based on multi-year forecast prices for natural gas
(NYMEX) ranging from $4.69 in 2009 to $7.11 in 2013.


Admiral Bay's fiscal year 2009 capital expenditures were $5.6 million, including
$1.8 million paid for the Thayer acquisition in May, 2009. Fiscal Year 2009
year-end reserves attributable to the Thayer acquisition were 10.9 Bcf net after
royalty.


Admiral Bay had proved finding costs of $0.93/Mcf in Fiscal Year 2009. That
compares to Admiral Bay's four year average all-in finding cost of $1.41/MCF,
based on overall capital expenditures for the four year period of $36.9 million,
including $7.1 million for acquisitions. The four year average full cycle
finding & development cost (including future development costs of $18.4 million)
was $2.12/Mcf.


"With record production, solid reserve growth and continued improvement in our
cost structure, Admiral Bay continues to grow as a leading player in the
Cherokee Basin," said Steve Tedesco, Admiral Bay's President and Chief Executive
Officer. "While seriously depressed natural gas pricing impacted the value of
our reserves, we were still able to post modest growth to overall reserve value.
Although we have faced price challenges as we enter the new fiscal year, we
remain focused on smart production and reserve growth and continued reduction in
our basin-leading finding and development cost metrics."


Cherokee Basin Gathering System Sale Provides Cash While Retaining Flexible Access

Admiral Bay also announced that the Company sold a 50% interest in its Bourbon
County Pipeline to a third party for $500,000. Admiral Bay will retain the
remaining 50% interest and will continue to operate the pipeline.


"The sale of an interest in the Bourbon County Pipeline provided Admiral Bay
with capital which is being used to boost production through workover work on
our core assets in the Cherokee Basin," added Tedesco. "At the same time, the
terms of the transaction provided continued access to capacity on the Bourbon
County system as well as operatorship of the pipeline. We will continue to look
for ways to maximize the value of all of our assets as we focus on our core
exploration and production business."


Amendments to Credit Facility

In addition, Admiral Bay announced it executed an amendment to its current
credit agreement that provides the Company with flexible interest payment terms.
In addition to other ministerial changes, the Amendment allows for a portion of
the interest due to be paid "in-kind" ("PIK") through December 2009. Under the
terms of the Amendment, the Company will pay a minimum of 5% of the interest due
in cash with the option to PIK the balance of interest due at a rate of 10% for
a total of 15%.


"We appreciate the continued support of our lenders in this period of
unprecedented declines in natural gas prices," said Robert Carington, Admiral
Bay Chief Financial Officer. "The ability to PIK a portion of our interest
payments provides the Company with capital to maintain and strategically grow
our production and reserve levels. Our lender's willingness to provide us with
financial flexibility is an indication of their perception of the long-term
value in our reserve base."


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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