HORNBY BAY EXPLORATION LIMITED

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

January 4, 2005 - Symbol: HBE (TSXV)
Shares Outstanding: 67,620,656
CLOSE: December 31, 2004: $0.415

HORNBY BAY EXPLORATION FILES A TECHNICAL REPORT ON ITS
HORNBY BAY BASIN URANIUM PROPERTIES

Hornby Bay Exploration (HBE-V) wishes to announce that it has filed a Technical Report in accordance with National Instrument 43-101 on SEDAR for its Asiak River Uranium Property (90 mineral claims) and its Coppermine River Uranium Property (124 mineral claims) covering 210,600 hectares in the Hornby Bay Basin of western Nunavut, Canada.

The Technical Report dated December 9, 2004 was prepared by Mr. Geoffrey S. Carter, P.Eng., Broad Oak Associates, Toronto, Ontario a "qualified person" as set out in National Instrument 43-101.

The Interpretation and Conclusion of the Technical Report are as follows:

"Since the start of uranium exploration programs on these properties, particularly Coppermine, the uranium model for unconformity type deposits has been refined and further understood. The fact that the Hornby Bay Basin is geologically similar to the Athabasca Basin, continues to be confirmed by successive exploration campaigns. The sandstone basin has been confirmed. The geophysics identified conductors, confirmed to be graphitic by drilling. The basement geology is now well mapped by geophysics indicating the correct structural environment in the basement geology.

The presence of anomalous uranium has been confirmed by drilling, and the existence of high grade boulders indicates the existence within the basin, of high grade uranium contained in pitchblende. Extensive lithogeochemical sampling, along with weakly anomalous uranium grades in regolith below the unconformity, continue to confirm that the geological setting is conducive to the formation of relatively high grade uranium deposits. Finally the clay-silica alteration encountered also confirms the prospective nature of the Hornby Bay Basin.

The setting is correct, the presence of high grade uranium is confirmed, and continued exploration will continue to define the targets more precisely, suggesting a high probability that continuing exploration should result in the identification of uranium resources."


The report can be found in its entirety on our website at: http://www.hornbybay.com/reports/technical_report_041209.pdf

Hornby Bay Exploration was incorporated in 1996 as a uranium exploration company and in the April/September 2005 period will continue its aggressive uranium exploration on its 100% owned 214 uranium claims covering 210,600 hectares (520,400 acres) in western Nunavut.


For further information contact:

George P. Bell, President & CEO
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.