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Breakwater Employees Strike as Labour Negotiations Fail

Breakwater Resources Ltd. (TSX:BWR)(TSX:BWR.WT.A) Employees at Breakwater's Toqui mine in southern Chile commenced a strike at the beginning of the day shift today after labour negotiations broke off late yesterday. Agreement could not be reached on several issues. At this time no estimates can be provided as to the effect, if any, this will have on production.

Should negotiations recommence we will provide an update. The contract governing employees at Toqui expired September 30, 2010.

At Mochito, in Honduras we expect to commence negotiations with the union representing Mochito's employees on Wednesday, October 6, 2010. Once a settlement is reached we will provide an update. The contract governing employees at Mochito expired September 30, 2010.

Source: Breakwater Resources Ltd.

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