Forest Gate Subsidiary To Acquire Caribou Mines

OCTOBER 8, 2004 – MONTREAL, QC. – Forest Gate Resources Inc. announces it has signed a Letter of Intent to acquire the Caribou and Restigouche Mines (the “Mines”) from Breakwater Resources Ltd., Toronto.

To undertake the acquisition, Forest Gate has formed a wholly owned subsidiary, Blue Note Metals Inc. It is Forest Gate’s intention to transfer its existing New Brunswick mineral properties to Blue Note Metals and to have Blue Note complete the acquisition of the Mines. The existing New Brunswick properties are the California Lake silver property, Rio Road gold property and the Canoe Landing Lake polymetallic deposit.

Once this is completed, it is Forest Gate’s intention to spin out Blue Note Metals by way of a plan of arrangement under the Canada Business Corporations Act and consequently list Blue Note as a separate entity on the TSX Venture Exchange.

This proposed transaction, which is subject to shareholder and regulatory approval, will give Forest Gate shareholders shares in a separate public company that will own the Mines and the New Brunswick exploration properties.

Under the terms of the Letter of Intent, Blue Note Metals will pay Breakwater Resources Ltd. 600,000 treasury shares and assume Breakwater’s obligations under several existing agreements. Blue Note will also become responsible for the environmental reclamation of the Mines.

Blue Note Metals has a period of 60 days to conduct due diligence on the Mines and a subsequent 45 day period to close the transaction.