Forest Gate-Breakwater Letter of Intent Amended

DECEMBER 3, 2004, MONTREAL, QC. – Forest Gate Resources Inc. reports that the Letter of Intent that it signed with Breakwater Resources Ltd., Toronto, with respect to the acquisition of Breakwater’s Caribou and Restigouche Mines (the “Mines”), has been amended.

Under the terms of the amended agreement, Forest Gate has until January 15, 2005 to complete its due diligence and until March 15, 2005 to close on the transaction.

As previously reported, Forest Gate has formed a wholly owned subsidiary, Blue Note Metals Inc. to undertake the acquisition. 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.

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.

In addition to the two Mine sites, the acquisition includes associated infrastructure as well as a number of exploration claims in the vicinity of the Mines. The Caribou Mine site is located 50 km west of Bathurst, New Brunswick and includes an underground mine currently being kept under care and maintenance, a 3000-tonne per day concentrator and a permitted tailings facility.