HORNBY BAY EXPLORATION LIMITED

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


October 27, 2004 - Symbol: HBE (TSXV)
Shares Outstanding: 65,937,366
CLOSE: October 26, 2004: $0.50

GRANTING OF OPTIONS

Hornby Bay Exploration Limited (TSXV:HBE) wishes to announce that it has granted 150,000 options to purchase common shares of the Company exercisable at a price of $0.55 per share for a period of five years, to an employee of the Company. The common shares issuable upon exercise of the options are subject to a four month hold period from the original date of grant.

The grant of options is subject to regulatory approval, including the approval of the TSX Venture Exchange.


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.