Darnley Bay Resources Limited Announces Update on Property

Darnley Bay Resources Limited. (TSX VENTURE:DBL) (the "Company") announces that
it has applied for permits to conduct a magneto-telluric (MT) survey and a
geological survey on its main property near Paulatuk, Northwest Territories.
Magneto-telluric is a geophysical method of imaging the earth's subsurface by
measuring natural variations of electrical and magnetic fields at the Earth's
surface. In the 1990's, MT has been successfully used to locate mineral deposits
as deep at 1750 metres in the Sudbury nickel camp. In the last 10 years, the
technique has seen a number of improvements, particularly with the development
of modern 3D inversion. It is now routinely used in the oil industry to better
define deep drilling targets. Past gravity and magnetic surveys have outlined 22
targets on the Darnley Bay property and the MT results are expected to assist
the Company in prioritizing these targets for an upcoming drill program. At the
same time, the Company plans to conduct a geological survey over about 25% of
the property. The main areas that will be surveyed will be where the probability
of finding outcrops is greater: cliffs, canyons and rivers bed. The objective of
the survey is to find alteration zones and dykes/sills with special chemistry,
which could be indicators of metallic mineralization at depth. This summer field
program is estimated to cost $300,000, and is subject to financing and final
permitting. 


The Company further announces that it plans to issue a combination of
flow-through and non flow-through units, to raise up to $700,000. The
flow-through units are being offered at $0.07 per unit, and will consist of one
share and one half warrant to purchase one share at a price of $0.10 for two
years from the closing of the offering. The non-flow-through units are being
offered at $0.05 per unit and will consist of one common share plus one warrant
to purchase one common share at a price of $0.10 for two years from the closing
of the offering. In the event that the closing sale price of the Company's
common shares on the TSX Venture Exchange is greater than $0.25 per share for a
period of 20 consecutive trading days at any time after closing of the Offering,
the Company may accelerate the expiry date of the warrants by giving notice to
the holders thereof and in such case the warrants will expire on the 30th day
after the date on which such notice is given by the Company. 


The net proceeds from the Offering will be used to fund development of the
Company's mineral property in Northwest Territories and for general corporate
purposes. The Company may pay finder's fees on a portion of the Financing in
accordance with TSX Venture Exchange guidelines. All securities issued under the
Financing will be subject to a four-month hold period from the date of issuance.
The proposed Financing is subject to the approval from the Exchange. 


The Darnley Bay property hosts North America's strongest isolated gravity
anomaly, which has been favourably compared by the Geological Survey of Canada
(GSC) with other prominent gravity anomalies, such as those at the prolific
mining camps of Noril'sk in Russia and Sudbury basin in Ontario. It is located
near Paulatuk, NWT, on the Arctic coast. The Darnley Bay anomaly is larger and
stronger than any of these comparatives by a wide margin, measuring 100
kilometres long north to south and about 80 kilometres wide. The GSC discovered
the anomaly in 1969 and its source has never been explained. The company has
100-per-cent control of its exploration and potential development subject to
certain back-in and other rights of the Inuvialuit Regional Corporation, which
holds the land on which it occurs. 


Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address future production, reserve potential, exploration drilling,
exploitation activities and events or developments that Darnley Bay expects are
forward-looking statements. Although Darnley Bay believes the expectations
expressed in such statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the statements. There are
certain factors that could cause actual results to differ materially from those
in forward-looking statements. These include market prices, exploitation and
exploration successes, continued availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements. For more information on Darnley Bay, investors
should review registered filings at www.sedar.com.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release


FOR FURTHER INFORMATION PLEASE CONTACT: 
Darnley Bay Resources Limited.
Jamie Levy
President and CEO
[phone]
[phone] (FAX)
[e-mail]


Darnley Bay Resources Limited.
Greg O'Halloran
Investor Relations
[phone]
[e-mail]
www.darnleybay.com