Mountain Lake Resources – Newfoundland Gold

Overview

Mountain Lake Resources Inc. (TSXV:MOA) is a growth oriented company focused on gold exploration. The Company boasts a diversified portfolio of large scale projects ranging from discovery stage exploration to advanced stage exploration and resource development. All projects are located on the mining-friendly island of Newfoundland on Canada’s east coast and collectively offer multi-million ounce gold potential.

Active projects include: a 50% interest in the Valentine Lake Property (advanced stage gold exploration & resource development – two drills currently turning); a 100% interest in the Glover Island Property (gold exploration & resource development – one drill currently turning); and an option to earn a 100% interest in the Little River Property (discovery stage antimony-gold exploration – seeking joint venture partner).

Investment Highlights

• Working capital – ~$ 3 million
• Low share float – 50.4 million shares issued
• Diversity – three projects with large scale potential
• Institutional ownership ~40% - Sprott Funds hold ~13%
• Currently drilling two properties - over 45,000m planned for 2012
• Management – accomplished in project exploration and development
• Political stability – Newfoundland’s mining policy encourages investment

Forthcoming Milestones

• Open pit resource estimate- Valentine Lake Project (Leprechaun Gold Deposit)
• Initial resource estimate- Glover Island Project (Lunch Pond South East Prospect)

Most Advanced Project

Valentine Lake Gold Property

Located in central Newfoundland, the Valentine Lake Property is 30 kilometers (”km”) long with the Leprechaun Gold Deposit situated at the south-western end and the Sprite Zone and Valentine East Zone located 700 m and 13 km respectively along strike running in a north-easterly direction.  These gold deposits form part of a 23 km long, highly prospective gold-bearing mineralized corridor.

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The 2012 drilling campaign commenced in early January and 40,000 metres (m) are planned. Resource expansion remains the objective this year with drilling starting in the Leprechaun Deposit area and working southwest to the J. Frank Zone and northeast toward the Sprite Zone.

The release of the first open pit resource estimate for the Leprechaun Deposit, which will incorporate the results from ~20,000m of resource expansion drilling (130 holes) completed in 2011, is expected in the later part of Q1 of 2012.

The current National Instrument NI 43-101 compliant resource estimate for the Leprechaun Deposit was announced on December 16, 2010. The estimate includes the first Measured and Indicated resource that has been developed within the Property and is a major advance for the Project. Approximately 74% (2,400,000 tonnes) of the Measured and Indicated resource, containing 205,000 ounces (ozs) of gold, is located within 150m of the surface and is potential open pit material.

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The NI 43-101 compliant gold resource on the Leprechaun Deposit includes:

• Measured (M) Resource of 2,104,000 tonnes at 2.768 g/t for 187,000 Au ozs;

• Indicated (I) Resource of 1,180,000 tonnes at 2.363 g/t for 90,000 Au ozs;

• M & I combined total of 3,284,000 tonnes at 2.622 g/t for 277,000 Au ozs

• Inferred Resource of 4,409,000 tonnes at 2.007 g/t for 285,000 Au ozs

The above mineral resource estimate was prepared by Sam Shoemaker, MAusIMM, of Micon International, the independent qualified person (QP) for the mineral resource estimate and is based on a 0.5 g/t gold minimum cut-off. For more detailed information see the associated NI 43-101 Technical Report on the Resource Estimate (link at bottom of page).

On Jan 25, 2011, Marathon Gold Corp. (TSX: MOZ) (“Marathon”) completed its earn-in obligation under the sub-option and joint venture agreement (“OJVA”) and Mountain Lake and Marathon now own 100% of the Valentine Lake Property on a 50/50 joint venture basis.  Marathon is the operator of the project, and the companies have agreed to jointly fund a $11.5 million budget in 2012 that will include 40,000m of drilling.  The first open pit resources for the Leprechaun Gold Deposit is forthcoming and results from ~20,000m of 2011 drilling are expected to add significant ounces to the December 2010 resource estimate.

For more information on the Project and to see a summary of highlights from both the 2011 and 2010 drilling campaigns visit the Valentine Lake page of the Mountain Lake website.

Glover Island Gold Property

Mountain Lake acquired a 100% interest in the Glover Island Gold Property in October 2010.  The Property, referred to as “the most overlooked exploration property on the island of Newfoundland”, hosts several significant gold prospects over an 11 kilometre (km) strike length with historical gold resources on three of the prospects.

The Property is located on the south-central portion of Glover Island in west-central Newfoundland.  More than 20 prospects have been identified on the Property to date over a strike length of approximately 7.5 km and excellent potential exists for further discoveries and the development of high tonnage, bulk-mineable gold deposit(s).  Several of the prospects represent high priority, near surface, targets that are undrilled.

A review of historic drilling results indicates that all areas, including those with historic resources, are open in all directions and that significant upside exists for adding additional resources.

Historical Resources

Historic resources have been reported for three prospects on the Property as follows:

• Kettle Pond South – 450,000 tonnes at 2.3 g/t Au for 33,276 ozs
• Lunch Pond South Main Zone – 2,730,000 tonnes at 2.1 g/t Au for 184,321 ozs
• Lunch Pond South West Zone – 900,000 tonnes at 1.6 g/t Au for 46,297 oz s

Dave Barbour P.Geo., Dave Barbour, P.Geo., an independent geological consultant and Qualified Person in compliance with National Instrument 43-101 who was involved with the Valentine Lake Gold Project going back to the discovery phase, recently commented, “In addition to working on the Glover Island Property the gold mineralization formed the basis of my Master of Science studies and in my opinion it’s the most overlooked project on the island of Newfoundland and second only to the Valentine Lake Property for its gold exploration potential.”

A NI 43-101 resource estimate is forthcoming that will combine the 2011 drill results with the historical resources from the Lunch Pond South East Prospect (LPSE) area.

Drilling is also underway in 2012 with an initial 2,500 metre winter program in the LPSE area to follow-up the 7,227 metre program completed in December, which returned thick intervals of gold mineralization near surface and undercut holes demonstrated that gold mineralization continues and remains open at depth.

2011 drill program highlights include the following intervals (all core widths):

• Step-out drill hole LPSE-11-44 intersected 0.7 grams per tonne (g/t) gold (Au) over 130.9 metres (m) from a vertical depth of 135m and in an area outside of the historical LPSE Prospect resource boundary
• Step-out hole LPSE-11-48, adjacent to and 40m west of hole LPSE-11-44, intersected 1.34 g/t Au over 99.3m from a vertical depth of 131m
• Step out hole LPSE-11-49, drilled 50m west of LPSE-11-48, intersected 0.54 g/t Au over 40.7m from a vertical depth of 160m, in addition to a deeper interval of 1.53 g/t Au over 7.5m from a vertical depth of 215m
• Step-out hole LPSE-11-50, drilled 80m updip from LPSE-11-49, intersected 1.76 g/t Au over 26.6m from a vertical depth of 115m
• Hole LPSE-11-53 intersected 1.27 g/t Au over 16.0m, and is located 100m below LPSE-11-41 that contained 11.3m of 1.54 g/t Au, plus 3.5m of 1.49 g/t Au and 5.8m of 2.2 g/t Au over a 32m interval
• Hole LPSE-11-55 intersected 1.74 g/t Au over 53.5 m, and is situated 50m updip from LPSE-11-41
• Drill hole LPSE-11-57, the deepest hole on the section and situated 100m below the above mentioned LPSE-11-53, intersected a 44.7m zone of 1.67 g/t Au as well as a 3.2m zone of 2.06 g/t Au

Mountain Lake’s plan includes a twofold approach to the Property:

• upgrade and expand the historical resources to NI 43-101 compliance, which will bring about an upward revaluation of the in-ground gold asset to multiples of the ~$7 per ounce project acquisition cost;
• drill testing of several highly prospective, undrilled targets where near surface mineralization has been identified.

For more information visit the Glover Island Project page on the Mountain Lake website.

Discovery Stage Project

Little River Antimony+/-Gold Property

Originally optioned in 2008 for its numerous gold occurrences, Mountain Lake continues to encounter interesting antimony (“Sb”) values on the Little River Property and antimony bearing veins having now been identified intermittently over a 20 km strike length.  Grab samples from a vein exposed in shallow pits during the 2010 prospecting campaign returned values from 27.6 % to 50 % Sb with gold (“Au”) values up to 24.1 grams per tonne (“g/t”).

On August 18, 2011, Mountain Lake announced results from the latest drilling program on the Little River Property, which focused on the South Zone (SW area) and the Le Pouvoir Zone (NE area).  Gary Woods, president and CEO of Mountain Lake, summed up the program as follows:

“Results from the South Zone are encouraging as the length of the antimony zone indicates that a significant mineralizing system has been active in the area.  It will take more drilling to determine the extent of the mineralization and whether there is a high-grade plum nearby. Our deepest hole is currently only 90 metres vertical so there’s a lot of potential both along strike and at depth.”

“Although the Le Pouvoir drilling did not encounter any additional high grade antimony intercepts such as the 1.0 metre zone of 30.1% Sb intersected in drill hole LR-10-16 last year, these results are preliminary and in no way diminish the potential to source a significant antimony deposit on the Property.  The northern end of the Property is 80 km from the Beaver Brook Mine, one of the most significant antimony deposits in the world, and we now have numerous antimony showings over a 21 kilometre distance.  All we need to do is find a more permissive structure suitable for deposition of antimony from the far travelled hydrothermal fluids that we know are capable of depositing massive stibnite in the area.  While the Le Pouvoir massive stibnite vein turned out to be limited in size, it is situated at the southernmost portion of an antimony soil anomaly that extends for 1.1 kilometers to the northeast.”

The best intercept to date occurred in drill hole LR-10-16, which contained a 0.92 m interval (true width) of 30.6% Sb at a vertical depth of 18m.  The intervals of high grade antimony are significant and are typical of the material being mined at the Beaver Brook Mine situated 80 km to the north of the Property.  Beaver Brook is one of the world’s largest antimony deposits outside China, and the only primary antimony mine in North America.

The Little River Property consists of 382 mining claims comprising 9,550 hectares over a strike length of ~31 km in the Baie D’Espoir area of southern Newfoundland, where infrastructure is excellent.  Mountain Lake is on plan to earn a 100% interest in the Property in August 2012 and is considering joint venture opportunities to fast track the exploration effort on the Property.

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For more information, visit the Little River Project page on the Mountain Lake website.

Bobby’s Pond Deposit (base metals) – Central Newfoundland

Mountain Lake has entered into a definitive agreement with SG Spirit Gold Inc. (TSXV:SG) to sell its 100% interest in its Bobby’s Pond base metals project (“Bobby’s Pond”) in exchange for common shares of SG, a cash payment of $100,000 and a 0.5% Net Smelter Royalty, pursuant to certain terms and conditions as outlined in the news release of January 26, 2012.  The transaction will see Bobby’s Pond and other significant base metals assets in the Buchans Area consolidated into one publicly traded company.

Based on the latest NI 43-101 compliant mineral resource estimate was completed on the Bobby’s Pond deposit in July 2008, by Scott Wilson Roscoe Postle Associates.  The deposit contains:

• an indicated resource of 1,095,000 tonnes of 0.86% Cu, 4.61% Zn, 0.44% Pb, 16.6 g/t Ag, and 0.2 g/t Au; and,
• an inferred resource of 1,177,000 tonnes of 0.95% Cu, 3.75% Zn, 0.27% Pb, 10.95 g/t Ag and 0.06 g/t Au

For more information visit the Bobby’s Pond page on the Mountain Lake website.

Management

Allen Sheito – President & Chief Executive Officer, Chairman & Director

Allen, a geologist with over 40 years of experience in mineral exploration, was responsible for the acquisition of the Company’s key mineral assets. He was President & CEO of Mountain Lake from Nov 1994 through May 2007, and re-appointed to the positions in March of 2012. Allen’s prior experience includes a 30 year career (1966 to 1996) with Inco.

During his tenure with Inco, Allen held the position of president of Inco Gulf E.C. (1979-1984) and later became regional manager for Eastern Canada (1984-1996). Allen also worked for De Beers from 1960 to 1966 in their London, UK office, then as Chief Geologist in West Africa. Allen has a Bachelor of Science in Geology from Mount Allison University.

Paul Smith – Exploration Manager

Paul joined the Mountain Lake team in February 2011 as Exploration Manager and was appointed COO in March 2012.  He holds a BSc in geology and a MSc in structural geology from Acadia University; and brings to the Company a unique skill set that stems from both public and private sector experience having spent over 30 years with the Nova Scotia Department of Natural Resources as a Senior Research Gold Geologist for the Mineral Resources Section and finally as Liaison Geologist for the Mineral Resources Branch.

Paul has strong communication skills having travelled extensively throughout Canada, the United States, Australia, and New Zealand to deliver scientific presentations and collaborate with colleagues.

William Rogers – Director

Bill is a mining engineer who brings 35 years of operational, project and mine management experience to the Company. His career began in the mid-1970s and has included positions with: Inco as project engineer, mine planning engineer and mine foreman at Stobie, Ontario;  Potash Company of America as chief mine engineer of their operation near Sussex, New Brunswick; Hudson Bay Mining & Smelting Co as chief mine engineer of the Ruttan Mine, Manitoba, and as chief engineer of mines and manager of small mines/capital projects in Flin Flon, Manitoba; Noranda / Falconbridge / Xstrata as project manager- greenfield operations and mine acquisitions, mine operations of the Brunswick Mine, New Brunswick, and most recently as mines manager responsible for the operation and maintenance of their underground Ni-Cu mines located near Sudbury, Ontario.

Bill is a member of the Professional Engineers Association of the province of Ontario.  He has an Applied Science Certificate from Acadia University and received his Bachelor of Engineering – Mining from the Technical University of Nova Scotia.

Robert Harris-Director

Bob joined Mountain Lake In February 2010, bringing over 20 years of experience in project evaluation, feasibility and development to the Company.  He began his career with Gulf Canada Resources Inc as a process engineer after which he held senior technical positions with the Province of New Brunswick (Mines Division) and the Federal Center for Mineral and Energy Technology (CANMET).

Prior to joining Mountain Lake, Bob worked for Etruscan Resources Inc. for 12 years as technical director then VP operations where his responsibilities included many feasibility studies and project evaluations mainly in Africa.  And the development of the Youga Gold Mine for Etruscan, which is currently in production in Burkina Faso.  Bob is a member of the Association of Professional Engineers of Nova Scotia.  He has a Bachelor Degree in Science (Honours) and a Masters in Science in Engineering from the University of New Brunswick, and a business diploma from Saint Mary’s University.

Paul Bowes- Secretary & Corporate Lawyer, Director

Paul is a corporate and securities lawyer in British Columbia and serves as the Company’s secretary-treasurer. He is a member of the Law society of British Columbia, and the Vancouver and Canadian Bar Associations. He has been practicing in the areas of corporate, mining and securities law since 1983 and holds a Bachelor of Commerce and Bachelor of Law degrees from the University of British Columbia. Paul has been with the Company since its incorporation in 1986, serves on the Company’s audit committee. He also oversees the preparation of required continuous reporting disclosures and is responsible for liaising with the regulatory administrators.

Frank Metcalf- Director

Frank is a lawyer with over 25 years in the areas of corporate and commercial law, with emphasis on the marine and transportation industries.  He has been a director of the Company since 1994, served as the Company’s management committee member in a previous joint venture, and also serves on Mountain Lake’s audit committee.  Frank has a Bachelor of Laws Degree from Dalhousie University and is a member of the Nova Scotia Barristers’ Society, the Canadian Bar Association, the Canadian Maritime Law Association, the Association of Average Adjusters (United Kingdom) and the Canadian Association of Marine Arbitrators.  He is also the Honorary Consul for Finland in Nova Scotia.

Ms.Terri Anderson- Chief Financial Officer & Treasurer

Teri joined the Company in August 2007 and has been providing financial consulting services to public and private companies since 1999.  Prior to that she spent five years as a senior financial manager at Nova Scotia Power, a TSX-listed energy company, and five years in public accounting practice with Ernst & Young.  Teri is responsible for the timely preparation and delivery of financial statements and quarterly reports, and for liaising with the regulatory administrators and the independent auditors. Teri holds an MBA from Dalhousie University, a Chartered Accountant designation, and a BSc. from Acadia University.

Greg Lytle- Corporate Communications

Greg joined the Company in 2006 and is responsible for corporate, media and investor communications, leads corporate financing initiatives and assists management with business development.  He has been a corporate communications consultant assisting both public and private venture companies in various aspects of finance and business development for over 20 years.  Greg has been instrumental in raising more than $50 million for client companies over the past 10 years. His previous endeavors on behalf of client companies include consummating business and financial relationships with majors such as General Electric, Intel Capital and Morgan Stanley.

Gary Woods- Consulting Geologist

Gary, a geologist and Qualified Person under Nattional Instrument 43-101 with over 35 years of exploration experience, was President and CEO of Mountain Lake from May 2007 to March 2012. Prior to joining the Company, Gary was based in Hermosillo, Mexico for four and a half years as country manager for Falconbridge/Noranda.

Prior to Mexico, he was the exploration manager for Noranda in both New Brunswick and Newfoundland, and was actively involved in exploring the volcanic belts of northern New Brunswick and central Newfoundland where Mountain Lake is primarily focused today. Gary has a Bachelor of Science in geology from the University of Western Ontario and has taken several geology and management related courses as well as the Canadian Securities Course.

For more information visit the Management page on the Mountain Lake website.