Admiral Bay Resources --USA-- Inc. Enters Into an Option Agreement.

Business Editors

RENO, Nev.--(BUSINESS WIRE)--March 6, 2000

Admiral Bay Resources (USA) Inc. (VSE:ADB.V) enters into an Option Agreement with Quantum Dynamics Group Inc. on March 3, 2000.

Admiral Bay Resources Inc. is hereby pleased to announce that it has entered into an Option Agreement to purchase a majority of the shares of Quantum Dynamics Group, Inc., a private energy service company (ESCO) headquartered in Reno, that specializes in providing full service power and gas, turnkey packages in strategic on-site generation and co-generation to industrial and commercial clientele with a targeted market primarily in the western United States, Mexico and South America.

Quantum Dynamics has been involved in the private non-regulated side of the energy utility business for over four years. During that time the company has formed strong working alliances and affiliations with Vericor Power Systems (formerly known as Allied Signal Inc. and now known as Honeywell), ALT Energy Inc., a Texas-based largest transporter of LNG (Liquid Natural Gas), and Coral Energy, a subsidiary of Shell Oil (America) to name a few.

Recently, the company has executed a contract with Quebecor Printing Nevada Inc., a division of Quebecor World Inc., the largest printing company in the world, headquartered in Montreal, Canada, to install, operate and own a 6MW co-generation and heat recovery power plant located in Fernley, Nev. The first phase of the project cost the company (QDI) $5 million to implement, whereby providing 3 MW's of generation.

The plant shall begin operation as of August 2000. In addition to selling the generated power to Quebecor, QDI will be providing all the natural gas under a ten-year contract. Phase two for the additional 3 MW's will begin in 2001 for this facility.

Quantum has a diversified portfolio of projects and clientele that are in process of negotiating agreements for on-site strategic power generation and wholesale gas services. Currently, Quantum has agreed to purchase from ALT Energy a liquid natural gas compressor plant built in 1994 for $24 million.

ALT has agreed to sell it to QDI at a reduced price and QDI has agreed to build a 6 MW power generation facility to be added to the LNG plant for one of ALT's existing gas distributor's for utilization with industrial clients in Mexico. The plant will be moved from its current location and installed near Nogales, Ariz. under a take or pay contract for a term of 15 years.

Quantum is currently in process of auditing its company financials for the last fiscal year end and the company's net present value (including projects currently under contact and projects that will be under contract in 2000).

Upon conclusion of the audit and filing of tax returns, Quantum has agreed to provide the financial information to the Board of Admiral Bay for determining the price to purchase the offered shares of QDI and for agreement by both Admiral Bay and QDI in exercising the option announced above.

For further information contact 604/685-0766.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.