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Substantial Increase in Blue Gum Resource and Stronger Diamond Prices Bode Well for Public Offering Planned for Etruscan Diamonds

Posted on: Tuesday, 5 February 2008, 09:00 CST

Mountain Lake Resources Inc. (TSX-V: MOA) ("Mountain Lake" or the "Company") is pleased to announce that Etruscan Diamonds Ltd. ("Etruscan Diamonds") has received a National Instrument 43-101 compliant independent resource update on its Blue Gum Diamond Project in South Africa which substantially increases the resource on the project. The independent resource update, prepared by Dr. Tania Marshall (Qualified Person) of Explorations Unlimited, estimates that the Blue Gum Diamond Project contains 20.5 million cubic meters of indicated diamond resource and 17 million cubic meters of inferred diamond resource as follows:

 ---------------------------------------------------------------- -                  Indicated     Inferred       Grade     Value                  Resources     Resources                (Million m(3)) (Million m(3))(ct/100m(3))(USD/ct) ----------------------------------------------------------------- Upper Gravel Package             12.762        9.175          1.77      466 ----------------------------------------------------------------- Lower Gravel Package              7.752        7.824          2.85      466 ----------------------------------------------------------------- TOTAL               20.514       16.999                    466 ----------------------------------------------------------------- 

Volume calculations are based on 2,305 boreholes which have been drilled on the property, totalling 51,542m. The deepest drilling indicates that the lower gravels extend down at least to 117m (without intersecting bedrock). Geophysical interpretation, however, indicates that final depths of the sinkholes may be in excess of 120m and, potentially, up to 200m in places.

Eleven bulk-samples (Pits 1, 2 (A, B, and C), 3, 3A, 5C, 6, 7, 8 and 9) processed 159,797.81m3 of Lower Gravels (LGP), including Transition Zone gravels (TZP) and recovered 4,555.04 carats for a global grade of 2.85ct/100m3 (bottom cut-off of 1.6mm) and US$466/ct. In addition, 129,557.46m3 of Upper Gravels (UGP) was processed to recover 2,292.00 carats at an average grade of 1.77ct/100m3. The average value of US$466/ct for the Blue Gum diamonds is somewhat lower than what may now be expected from this deposit. The last 6 months sales have achieved an average of US$545/ct and it is thought that this reflects recent significant increases in diamond prices. It is expected that this increase will continue and will influence the value of the 2008 diamond parcels.

A 43-101 compliant technical report (which includes data from 2006-2007) on the Blue Gum Resource Update will be filed on SEDAR within 45 days.

Kevin MacNeill, President of Etruscan Diamonds, stated: "We are extremely pleased with the increase in the resource on the project. We believe the potential exists to expand the resource even further with additional bulk sampling and continued exploration on other portions of the Blue Gum property. We will continue infill drilling in the inferred blocks to upgrade these areas to indicated resource ahead of mining.

"Over the past six months, our sales of diamonds have achieved an average price of $545 per carat and we believe this increase will continue and further improve prices of our 2008 diamond sales. This will obviously enhance the economics of an already robust project."

The Blue Gum Diamond Project consists of three adjacent diamond properties (Nooitgedacht, Hartbeestlaagte and Zwartrand) covering over 10,000 hectares located in the Ventersdorp Alluvial Diamond District of South Africa with the Tirisano Diamond Mine being located on the Nooitgedacht property. Etruscan Diamonds is presently undertaking a pre-feasibility study on the Blue Gum Diamond Project which is scheduled to be completed in April 2008. The pre-feasibility study is being led by MDM of South Africa. Upon successful completion of the pre-feasibility study, a public offering is planned together with an application for a stock exchange listing in order to advance the Blue Gum Diamond Project to full scale production.

While the pre-feasibility study is underway, Etruscan Diamonds has recommenced mining at the Tirisano Diamond Mine. The gravel from the mine is being processed at the Tirisano plant, which can efficiently treat 50,000 cubic meters of gravel per month. Etruscan Diamonds is currently commissioning four 16 foot pan plants, which will add an additional 50,000 cubic meters per month capacity to the Tirisano operations by the end of February.

Mountain Lake holds a 16.2% ownership interest (5,250,000 shares) in Etruscan Diamonds, Etruscan Resources Inc. holds a 53.7% interest, and other third parties hold a 30.1% interest. Etruscan Diamonds holds a 74% interest in the Blue Gum Project with the remaining 26% held by Etruscan Diamonds' black economic empowerment partner, Mogopa Minerals (Pty) Ltd.

Mr. Gary Woods, P.Geo., President and CEO of Mountain Lake, is the Qualified Person responsible for the contents of this news release.

About the Mogopa Community

The Mogopa community, through their trust, created the company Mogopa Minerals (Pty) Ltd. to oversee all mining related interests for the community. The community has about 350 families and is located in the vicinity of the mining area. Etruscan Diamonds and the Mogopa community have shared a long positive working relationship. This relationship made it possible for the creation of the current sustainable farming projects on community land.

About Mountain Lake Resources Inc.

Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior mining and exploration company whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties. Current projects include: a 100% interest in the Bobby's Pond Base Metal Project; the Valentine Lake Gold Project, in which Richmont Mines Inc. is earning a 70% interest; and a 16.2% stake in Etruscan Diamonds Limited, a producing diamond miner in South Africa.

For more information visit: www.mountain-lake.com

 ON BEHALF OF THE BOARD OF DIRECTORS s/"Gary Woods" President & CEO 

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Distributed by Filing Services Canada and retransmitted by Marketwire

 For corporate, media, or investor inquiries, please contact: Greg Lytle Lytle & Associates North America toll-free:   (866) 285-5817 International & Vancouver: (604) 839-6946 Email: Email Contact

SOURCE: Mountain Lake Resources Inc.

Source: MARKET WIRE

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