Mountain Lake Resources - Bobby's Pond Metals Project

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Valentine Lake Project

Glover Island Project

Little River Project

Bobby's Pond Project

Bobby's Pond

The Bobby’s Pond Zinc-Copper-Lead Project is located in the Buchans area of central Newfoundland. The area is renowned for the historic Buchans Zinc Mines (Production 1928-1984) and is currently host to several other active volcanogenic massive sulphide (VMS) style projects. The most recent to be put into production in 2007 is Teck Resources' Duck Pond deposit, which is located 45 kilometres (km) west by road of the Duck Pond mine/mill complex.

Projects

Project Status

Mountain Lake has entered into a definitive agreement with SG Spirit Gold Inc. (TSX-V: SG) (“SG”) to sell its 100% interest in its Bobby’s Pond base metals project (“Bobby’s Pond”) in exchange for common shares of SG, a cash payment of $100,000 and a 0.5% Net Smelter Royalty, pursuant to certain terms and conditions as outlined in the news release of January 26, 2012. The transaction will see Bobby’s Pond and other significant base metals assets in the Buchans Area consolidated into one publicly traded company.

Project Access

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

History & Ownership

The Bobby’s Pond deposit was originally discovered by INCO in 1988 and extensive exploration programs were conducted in 1989 and 1990 with intermittent programs thereafter in 1992 and 1996. The deposit was deemed not to meet INCO’s minimum deposit size and the property remained dormant for 9 years until Mountain Lake acquired a 100% interest in the project from INCO in May of 2005.

Current Resource Estimate

Based on the latest NI 43-101 compliant mineral resource estimate was completed on the Bobby’s Pond deposit in July 2008, by Scott Wilson Roscoe Postle Associates. The deposit contains:

an indicated resource of 1,095,000 tonnes of 0.86% Cu, 4.61% Zn, 0.44% Pb, 16.6 g/t Ag, and 0.2 g/t Au; and,

an inferred resource of 1,177,000 tonnes of 0.95% Cu, 3.75% Zn, 0.27% Pb, 10.95 g/t Ag and 0.06 g/t Au

(See bottom of page for associated NI 43-101 Technical Report).

Potential & Objectives

The vertical orientation of the deposit, the favourable metallurgical characteristic, and the fact that high grade mineralization comes to surface all bode well for the economic potential of the deposit. Thick intervals of low grade copper stringer mineralization currently define the edges of much of the deposit, and indicate that the mineralized system continues at depth.

“We have long believed that area consolidation was the logical way to develop Bobby’s Pond and the other known VMS deposits in the Buchans Camp,” said Mountain Lake President & CEO Gary Woods. “This transaction gives us the opportunity to monetize value from a non-core asset while retaining an interest in the future potential of the consolidated company.”

NI 43-101 Bobby's Pond Technical Report