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HORNBY BAY EXPLORATION LIMITED
October 7, 2003 - Symbol: YHB (TSXV) HORNBY BAY AGREES TO AMEND TERMS OF CONVERTIBLE PROMISSORY NOTE Hornby Bay Exploration Limited (TSX Venture: YHB) announces that it has reached an agreement with a creditor for the extension of the maturity date of a $150,000 convertible promissory note. The convertible note was originally due on July 23, 2002 which has been extended until July 31, 2004. The promissory note which was issued on July 23, 1999, bears interest at an annual rate of 11% and is convertible into units of the Company. In consideration of the extension of the maturity date of the convertible promissory note the Company has agreed to reduce the conversion price of the promissory note from $0.20 per unit to $0.10 per unit. Each unit is comprised of one common share and one-half of a common share purchase warrant, each whole warrant entitling the holder to acquire a common share for a period of two years from the date of issuance at an exercise price of $0.15. Interest accrued on the convertible promissory note may be satisfied through the issuance of units at a price of $0.10 per unit.Amendment of the convertible note is subject to regulatory approval, including the approval of the TSX Venture Exchange.
For further information contact:
James. M. Brady,
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