HORNBY BAY EXPLORATION LIMITED

SUITE 700 - 357 BAY STREET,
TORONTO, ONTARIO M5H 2T7
PHONE: (416) 368-0114         FAX: (416) 368-0198


June 30, 2004 - Symbol: HBE (TSXV)
Shares Outstanding: 59,448,355
CLOSE: June 29, 2004: $0.47

HORNBY BAY ANNOUNCES FLOW-THROUGH PRIVATE PLACEMENT

Hornby Bay Exploration is pleased to announce effective June 25, 2004 a private placement of 2,300,000 flow-through common shares at a price of 40 cents per common share for aggregate gross proceeds of $920,000. McFarlane Goldon Inc. was retained as agent in connection with the private placement and will be paid a fee of 7% of the gross proceeds of the offering. HBE plans to use the proceeds of this financing to fund part of its 2004 exploration program in Nunavut. Closing of the private placement is subject to regulatory approval.

Hornby Bay Exploration Limited is a uranium exploration company based in Toronto with active uranium exploration programs focused on its 211 mineral claims covering 209,000 hectares (516,000 acres) of the Hornby Bay Basin in the Coronation Gulf area of Nunavut.

For further information contact:
George P. Bell
President & CEO
Hornby Bay Exploration Limited
Tel: 416-368-0114
Fax: 416-368-0198
Website: www.hornbybay.com


THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS RELEASE.