HORNBY BAY EXPLORATION LIMITED

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


February 24, 2005 - Symbol: HBE (TSXV)
Shares Outstanding: 69,418,373
CLOSE: February 24, 2005: $0.93

HORNBY BAY ANNOUNCES $4.9 MILLION FLOW-THROUGH PRIVATE PLACEMENT

Hornby Bay Exploration Limited (TSX VENTURE:HBE) has agreed to issue, on a private placement basis, up to 4,700,000 flow-through common shares at a price of $1.05 per share for gross proceeds of approximately $4.9 million. Desjardins Securities Inc. will act as agent for the private placement on a best efforts basis.

Hornby Bay Exploration will pay Desjardins Securities Inc. a cash fee equal to 7% of the gross proceeds and will issue compensation options equal to 7% of the total number of securities sold under the offering. Each compensation option will be exercisable at a price of $1.15 for one common share and will have a term expiring twelve months from the closing date.

The proceeds of this private placement will be used by the company to fund its $7 million April-September 2005 uranium exploration program on the Coppermine River and Asiak River properties in the Hornby Bay Basin, Coronation Gulf area, western Nunavut.

The private placement is subject to regulatory approval.

Hornby Bay Exploration is a mineral exploration company focused on uranium and holds a 100% interest in 214 mineral claims covering 210,600 hectares (520,400 acres) in western Nunavut, Canada.


For further information contact:

George P. Bell, President & CEO
Phone: (416) 368-0114
Fax: (416) 368-0198
or
Jennifer Smith
VP Finance & CFO
Phone: (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.