The Breakwater Special Dividend of C$0.50 per common share of Breakwater will be paid on August 30, 2011 to shareholders of record on August 24, 2011 (the "Record Date"). 

For the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation, Breakwater has designated the Breakwater Special Dividend as an "eligible dividend". Shareholders should consult their tax advisor for advice with respect to the income tax consequences of such a designation.

Holders of Breakwater warrants who have not yet exercised their warrants are encouraged to do so sufficiently in advance of the Record Date in order to be eligible to receive the Breakwater Special Dividend.

About Breakwater

Breakwater is a mining, exploration and development company which produces and sells zinc, copper, lead and gold concentrates to customers around the world. The Company's concentrate production is derived from three mines in Chile, Honduras and Canada. Breakwater is preparing the Langlois mine in Quebec, Canada for production in the first quarter of 2012.

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