Mountain Lake Resources - Little River Gold-Antimony Project

Valentine Lake Project

Glover Island Project

Little River Project

Bobby's Pond Project

Little River

Optioned for its numerous gold showings, work by Mountain Lake has also encountered antimony showings over 21 kilometres (km) on the Little River Property; and the northern end of the Property is 80 km by road from the Beaver Brook Mine, one of the largest antimony deposits in the world outside China.

The 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.

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Project Status

On August 18, 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."

Beaver Brook is the only primary antimony mine in North America. The alteration assemblage associated with the Sb veins at both Beaver Brook and the Le Pouvoir Zone is sericite and chlorite, with significant fuchsite. The mineralization at Beaver Brook is found in narrow veins and breccia zones. The nature of the narrow, high grade mineralized intervals in some of the early drill holes at the Beaver Brook property can be viewed on the Newfoundland and Labrador Department of Natural Resources (NLDNR) website.

Property Access

The Property is 70 km from a deep water port, close to local population centres, cross cut by major power lines, and can be accessed by way of the Bishop Falls to Harbour Breton highway and secondary roads and trails that exist on the Property.

Ownership

To maintain the Option in good standing and earn its 100% interest in the Property, Mountain Lake must make scheduled payments to the Optionors of $ 240,000 and 250,000 Mountain Lake shares over a four year period. The Optionors will retain a 2.0% net smelter royalty (“NSR”), and have granted the Company the exclusive right and option to acquire a 1.0% NSR for C$ 1,500,000.

Geological Setting

The area is underlain principally by the Isle Galet Formation which comprises felsic volcanics and sediments that are equivalent in age and tectonic setting to New Brunswick’s Bathurst Mining Camp massive sulphide (VMS) deposits. A small Pb – Zn VMS deposit known as Barasway de Cerf is located immediately southwest of the optioned ground and narrow zones of massive pyrite trend onto the claims. Interestingly, in the northeastern portion of the claims, this felsic tuff unit exhibits features characteristic of epithermal alteration associated with gold deposits with zones of quartz, sericite, dumortierite, and pyrophyllite.

Outlook

Mountain Lake's objective is to maximize shareholder value from all projects and is currently reviewing its next step at Little River, which includes the evaluation of various opportunities to joint-venture future exploration on the Property.

About Antimony

Antimony can occur in its native form, but is usually found in other minerals and most commonly in the mineral stibnite. A silvery-white crystalline metal, antimony is used to increase hardness and strength of metal alloys. Antimony and its compounds are widely used in the production of batteries, bullets, cable sheathing, flame-proofing compounds, glass, ceramics, paints, pottery and in the semiconductor industry.

According to the USGS's Mineral Commodity Summaries 2011, China was the world’s leading producer of antimony again in 2010 having produced 88.88% or 120,000 of the

estimated 135,000 tonnes of total global mine production output. This was down from mine production of 170,000 tonnes in 2009. Two actions caused the drop in Chinese production (1) the Government stated it would not approve any new projects for antimony before June 30, 2011; and (2) the Government shut down about 100 antimony smelters in China’s dominant antimony-producing region, an action aimed at closing illegal mines and curbing pollution.

The latest available (December 29, 2011) bid price for a tonne of antimony (99.6% pure ingot) is US$ 11,000 (source: MinorMetals.com), up 34% from the average price in 2010.