Mountain Lake News - Valentine Lake

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New Resource Estimate Completed for Leprechaun Deposit on Valentine Lake Gold Property

Two drills to commence 25,000 metre drill program in January

Halifax, NS, December 16, 2010 – Mountain Lake Resources Inc. (TSX-V: MOA) (“Mountain Lake” or the “Company”) is pleased to report the completion of an updated National Instrument (NI) 43-101 compliant resource estimate for the Leprechaun Gold Deposit, which is situated near the south-western end of the highly prospective, 30 kilometre (“km”) strike length of the Valentine Lake Gold Property (the “Property”) located in central Newfoundland. This is the first Measured and Indicated (“M+I”) resource that has been developed within the Property and is a major advance for the project.

Additionally, the Company would like to announce that a fully funded 25,000 metre drill program is planned for the Property in 2011. The program will include aggressive resource expansion and exploration drilling to more fully evaluate the Property’s potential.

Highlights:

strike length of resource is now 750 m with an additional 750 m of gold mineralization ready for drilling

resource is open down-dip and along strike to the southwest and northeast

74% of the M+I ounces and 73% of tonnes are within 150 m of surface where the 2010 drill holes were concentrated

25,000 m drill campaign using two drill rigs planned for 2011

drilling to commence in January on the northeast arm of the Leprechaun Deposit, and the Sprite Prospect and Valentine East Gold Zones

plans for 2011 also include: further metallurgical testing, drilling of geotechnical holes to assess the competency of potential pit walls so that a preliminary economic assessment can be completed by the 1st quarter of 2012, and base line environmental studies will also commence

Marathon Gold Corp. (TSX: MOZ) (“Marathon”) is the operator of the Valentine Lake Project under the sub-option and joint venture agreement (“OJVA”) between Mountain Lake and Marathon. For more information on the OJVA see the news release of December 23, 2009.

"Phillip Walford, President and CEO of Marathon commented, "The results demonstrate clearly that there is open pit potential at the Leprechaun deposit. Both Marathon Gold and Mountain Lake believe that the geological model developed is working well and indicating where additional resources can be found. We are now poised to rapidly develop resources with what will be the largest drilling campaign to date on the Property.”

(1)Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

(2)The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Resource Model

In order to better represent the geology of the Leprechaun Gold deposit, a block model was constructed which used an unfolding technique on the sample search ellipsoid. This approach allows a search ellipsoid to better reflect the actual trend of the mineralization. In addition, smaller block sizes were used in the mineralized zones to further help delineate the overall potential resource. Most of the previous drill holes were not completely sampled in all the mineralized zones and that has had a negative effect on the resource. Any unsampled intervals were considered as having a gold assay of 0.0 g/t. All of the new drill holes from this year were sampled in for every interval down the hole. Grade estimates were run using krigging, inverse distance squared, and polygonal and all compared favorably with each other. For the reported resources, the kriged gold estimate was used. High grade gold outlier values (76 g/t or higher) were given a limited area of influence. All of the geologic modeling and resource estimation were completed using the Vulcan mine planning software package. Details of the resource estimation will be available in an NI 43-101 compliant resource report to be filed within 45 days of this press release.

The mineral resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

Both Mountain Lake and Marathon Gold are pleased with the advancement of the Valentine Lake Project over the past year and have agreed to an aggressive exploration and resource definition drilling program of 25,000 m in 2011 to more fully evaluate the Property’s potential. This program will begin in January with two drills on site. Drilling will be concentrated on developing and expanding the Leprechaun Deposit resources as well as the nearby Sprite Zone, 800 m along strike from Leprechaun. IP surveys over both zones indicate that the mineralization extends below 400 m in depth and some holes will be drilled to test these deeper geophysical targets to determine the potential for development of an underground resource. The Valentine East Zone, 13 km along strike from the Leprechaun Deposit, will be drilled as well to test mineralization intersected over a 700 m strike length where historic drill holes are known to contain up to 1 g/t over 60 m near surface.

Qualified Person

The mineral resource estimate was prepared by Sam Shoemaker, MAusIMM, of Micon International, and is the independent qualified person (QP) for the mineral resource estimate.

Gary Woods, P.Geo., President and CEO of Mountain Lake, is the Company’s Qualified Person on the Valentine Lake Project and has reviewed and verified the contents of this news release.

About the Valentine Lake Gold Property:

The Leprechaun Deposit situated approximately 3 km northeast of the Property’s southwest claim boundary is the first defined gold resource within the highly prospective Property, which is over 30 km long and has anomalous gold values in rock and soils, reflecting widespread gold mineralization. Preliminary investigation of these areas has produced favourable drilling results that require follow up. Both Mountain Lake and Marathon believe that the setting of the Property is geologically analogous to other gold camps such as the Abitibi Belt.

About Mountain Lake Resources Inc.

Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior exploration company, whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties. Mountain Lake’s current projects include: a 30% interest in the Valentine Lake gold property (Newfoundland) with an option to acquire the remaining 70% interest from Richmont Mines Inc. (TSX/NYSE-Amex: RIC) and a subsequent sub-option and joint venture agreement whereby Marathon Gold Corp. can earn a 50% interest in the property; a 100% interest in the Glover Island gold exploration property (Newfoundland); an option to earn a 100% interest in the Little River gold-antimony exploration property (Newfoundland); a 100% interest in the Bobby’s Pond base metals property (Newfoundland); and a minority (~6.4%) stake in Etruscan Diamonds Ltd., an alluvial diamond project (South Africa).

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

For corporate, media, or investor inquiries, please contact:

Greg Lytle,

Communications Manager

Mountain Lake Resources Inc.

North America toll-free: (866) 285-5817

International & Vancouver: (604) 839-6946

Email: info@mountain-lake.com

ON BEHALF OF THE BOARD OF DIRECTORS

s/“Gary Woods”

President & CEO

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