JBR James Bay Resources Ltd

James Bay Resources Limited (TSX VENTURE:JBR) ("James Bay" or the "Company") is
pleased to announce that it has entered into its first Joint Operating Agreement
(JOA) with an oil and gas field owner in Nigeria. The JOA and Deed of Assignment
(DOA) has been filed with the Department of Petroleum Resources (DPR). James Bay
is also completing its due diligence work on the acquisition.


"This is a significant achievement for James Bay," stated Mr. Stephen Shefsky,
President & CEO. "The project represents the first oil and gas near term
producing assets acquired by James Bay and will form the backbone of our
development strategy in 2012. The immediate aim is to re-enter the well later
this year with the goal of commercial production by mid-2013."


The field was discovered in the early 90's by Chevron and auctioned by the
Nigerian government in the 2003 marginal field auction.


The Company is retaining Sproule International Limited in Calgary, Alberta to
prepare a National Instrument 51-101 Report, to follow up the historical oil and
gas resource estimates based on technical work previously completed by Chevron
staff who worked on the asset after the discovery. It is expected the 51-101
Report will be completed by the end of July, 2012.


The structural framework of the field has been well delineated by the
interpretation of the available 3D seismic dataset and the well control logs
which James Bay and its technical consultants have reviewed. Some shallow and
intermediate depth reservoirs exhibit good amplitude reflections that act as
direct hydrocarbon indicators (DHIs) on the seismic reports.


The petrophysical data evaluation by James Bay confirmed four main hydrocarbon
bearing intervals, consisting of both oil and gas with one bottom hole oil
sample. James Bay has prepared reserve estimates and production forecasts which
are based upon wire-line logs evaluation, well drilling reports and analogue
experience from comparable data from nearby producing and development fields
within 5 - 10 kms of the field.


"We are excited about the opportunity for the asset and look upon this as a good
building block in establishing a balanced portfolio of assets in Nigeria,"
stated Mr. Knut Sovold, President & CEO of the Nigerian entity. "The asset will
most probably be developed through a tie-back to either of the neighbouring
fields however if the next well confirms the upside case, a stand-alone
development will be considered."


After re-entry of the discovery well and an expected Long Term Test (LTT), a new
well will be drilled as an appraisal well to define the in-place volumes.


The terms of the agreement include the acquisition by JBR of a 47% direct
interest in the property by paying a farm in fee of US$2,500,000 as follows:




--  The sum of US$100,000 in five months installments from the conclusion of
    the Company's successful completion of its due diligence. 
--  The sum of US$500,000 will be put into an escrow account to be disbursed
    as follows; 
    --  US$200,000 shall be released upon approval of the assignment of the
        Company's participatory interest by the Federal Government
        Authorities and the issuance of all necessary documents including
        the Deed of Assignment. 
    --  US$300,000 will be released upon the arrival of the drill rig to re-
        enter and drill the farm-out area following approval by relevant
        Government Authorities. 



The sum of US$1,000,000 shall be paid upon the completion of a final independent
report of P1 reserves of 7 million proved recoverable barrels of oil, appraised
in a manner satisfactory to the Company. Provided that failure to reach the
above amount of proved recoverable barrels of oil, an alternative payment
structure of US$0.10 (equal to 10 cents) royalty per barrel shall be made on oil
produced and sold over the term of the Award to an amount not exceeding
US$1,000,000.00.


The final sum of US$900,000 shall be paid upon the completion of 60 days
commercial production. The Company will be entitled to a preferential cash flow
of 80% of the available crude oil until all costs of the joint operation by the
Company have been fully realized. The remaining 20% shall be shared between the
parties in proportion to their participatory interest. James Bay shall be the
operator of the Project for the life of the Project.


About James Bay Resources

James Bay is a well-financed Canadian resource company with 28,040,350 shares
outstanding and trades on the TSX Venture Exchange under the symbol "JBR". The
Company is currently pursuing agreements to acquire oil and gas assets with the
objective of becoming a near-term producing company.

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