BEN NEVIS (ABITIBI/SWAYZE)

The Company planned to continue exploration of the property.

The company commenced exploration, a shallow drill program of eight holes totaling 1850m was completed to test the Verna Lake anomaly over a strike length of 1.6km. Assay results include wide intervals of anomalous base metal mineralization, such as 55m at 0.12% Cu in drill hole WC WC-03, which includes 1.7m at 0.57% Cu. Numerous anomalous gold values were encountered associated with the copper and molybdenum mineralization. The setting of the mineralization is now recognized as porphyry type. Diamond drilling of several targets is about to commence in a much larger section property.

Mountain Lake has raised CAD1.6 million in an unbrokered private placement with Sprott Asset Management for exploration and development work on the company's exploration properties in North America and for general working capital. Mountain Lake issued 1,250,000 shares at CAD1.25 per share to raise CAD1,562,500 in gross proceeds. This follows a private placement, also with Sprott, for CAD850,000 last month. In the recent financing, 1,250,000 shares were sold at CAD1.25 per share for CAD1,562,500 in gross proceeds. Mountain Lake's North American properties include the 178 sq km Valentine Lake gold project in Newfoundland, the 736 ha Goodwin base metals property located in the southwest quadrant of the Bathurst base metal mining district. of New Brunswick and the 2,353 ha Canagau base metals property in the Ben Nevis Township of northeast Ontario.