Mountain Lake - Bobby's Pond

Bobby's Pond Zn-Cu VMS Project

Current Status

The 2007/2008 drilling program to evaluate the Bobby's Pond deposit from the 250 metre to 500 metre level was concluded in March. An increased understanding of the geology of the deposit was gained as a result of the drill program and the mineralization, as currently defined, remains open in all directions.

Sample Assay Results

A summary of the assay results from all of Mountain Lake’s drilling to date can be seen by clicking on the image at right.

An example of a massive sulphide interval from MOA06-08 can be seen by clicking on the drill core photo (below right) to enlarge it.

A metric tonne weighs 2204.6 lbs. and 6.3% Zinc equates to 139 lbs. of zinc per metric tonne (see resource estimate below).

Project Location

The Bobby’s Pond project is located in the Buchans area of central Newfoundland. The area is renowned for the historic Buchans Zinc Mines (Production 1928-1984) and host to several other active volcanogenic massive sulphide (VMS) style projects. The most advanced of the current projects is Teck Cominco’s Duck Pond deposit, which was put into production in 2007. The Bobby’s Pond deposit is located ~45 kilometres(kms) west (by road) of the Duck Pond mine/mill complex.

Access

Access to the Bobby’s Pond deposit area is by paved roads (~230 kms from Deer Lake) and a further 36 kms by gravel and forestry roads from Buchans Junction.

History & Ownership

Mountain Lake acquired a 100% interest in the project from Inco in May of 2005. The Bobby’s Pond deposit was discovered by INCO in 1988 and extensive exploration programs were conducted in 1989 and 1990 with intermittent programs in 1992 and 1996 thereafter.

The deposit was deemed not to meet INCO’s minimum deposit size and the property was optioned to Mountain Lake after sitting dormant for 9 years. In addition to reconnaissance and detailed geochemical sampling, geological mapping and prospecting, line cutting and geophysical surveys conducted by INCO, a total of 78 holes (23,088 metres) have been drilled on the deposit including 39 holes (12,356 metres) by Mountain Lake from 2005 through early 2008.

A total of 956 metres (3 holes) of drilling also took place on the adjacent Cornerstone Option property in 2007.

Resource Estimate

An NI 43-101 compliant mineral resource estimate was completed on the Bobby’s Pond deposit in January 2007, by Scott Wilson RPA. The deposit hosts: an indicated resource of 840,000 tonnes of 6.30% Zn, 0.93% Cu, 0.53 Pb%, 20 g/t Ag and minor Au values; and an inferred resource of 480,000 tonnes of 6.36% Zn, 1.07% Cu, 0.38 Pb%, 15 g/t Ag and minor Au values.

A new resource calculation is in progress incorporating the latest drill results.

Potential

Recent results indicate that a high grade massive sulphide zone exists at depths of almost 500 metres.

MOA08-34 intersected three mineralized horizons with 0.24% Cu and 0.93% Zn over 12 metres, 0.92% Cu and 0.03% Zn over 22.5 metres, and 3.25% Cu, 2.51% Pb and 23.33% Zn from 521.0 to 522.75 metres. The third interval is currently the deepest massive sulphide intercept at Bobby’s Pond and a follow up hole intersected the extension of this mineralization 50 metres up dip in two closely spaced zones grading 2.31% Cu, 2.7% Pb, 9.1% Zn, 54 gpt Ag and 49 ppb Au over 1.0 metre and 3.52% Cu, 3.09% Pb, 13.73% Zn, 73 gpt Ag and 100 ppb Au over a 1.35 metres.

Thick intervals of low grade Cu stringer mineralization currently define the edges of much of the deposit as a result of the last round of drilling indicating that the mineralized system continues. More drilling will be required to determine if additional high grade mineralization such as that intersected in MOA08-34,& 35 occurs just beyond the current limits of drilling.

Objectives

Mountain Lake's objectives for advancing the Bobby’s Pond project include:

• Surface exploration and follow up diamond drilling over the remainder of the Cornerstone Option property beginning in Summer ’08.

• Carrying out mineralogical studies and metallurgical tests to determine the optimum recovery for copper, zinc, silver, and gold in the deposit (in progress);

• Actively researching the viability of area consolidation (ongoing).

NI 43-101 Bobby's Pond Technical Report