Admiral Bay Resources Inc.

Admiral Bay Resources Inc., Centennial, Colo., (Toronto Venture: ADB) has retained FIG Partners LLC Energy Research & Capital Group to seek strategic alternatives, including a possible merger. The company has executed an amendment to its credit agreement with Gasrock Capital LLC and DK Acquisition Partners LP that allows for partial payment-in-kind interest for four months ended October 2009. Admiral Bay holds interests in the Cherokee Basin in southeastern Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is developing 5 gas projects in the Cherokee Basin assets include five gas projects, Shiloh, Devon, Thayer, Mound Valley, Swordfish and Santa Rita Projects, involving more than 150,000 acres. In Cambria County, Pennsylvania, Admiral Bay has a 50% working interest in the Revloc Project, a coalbed-methane project in 6,000 acres in the Marcellus shale. Proved reserves are approximately 49.4 billion cubic feet equivalent (180 billion proved probable and possible). Production is approximately 4.4 million cubic feet per day. Admiral Bay president and chief executive Steven Tedesco says, "While we continue to have the support of our lenders as evidenced by the recent amendment, we are looking to evaluate potential alternatives in the current gas price environment to restructure the balance sheet to allow for continued growth of the company while improving our cost structure and liquidity."