Mountain Lake - Valentine Lake

Valentine Lake Gold Project

Current Status

On May 20, 2008, Mountain Lake and Richmont Mines announced their initial plans for the 2008 field work program. Mountain Lake will be the feild operators conducting the field work on behalf of the joint venture. Subject to permitting, this work will include:

1. Establishing an access road to the property.

2. Trenching at the main deposit (Leprechaun Pond). This work will allow the joint venture to extract a sufficient volume of rock in order to establish a higher degree of confidence in the grade and distribution of the gold and allow for future metallurgical studies.

3. Geological mapping and geochemical surveys will be conducted on targets generated by the 2007 helicopter airborne surveys. The purpose of this work will be to identify areas of gold mineralization in close proximity to the existing Leprechaun Pond deposit.

Project Location

The 12,550 hectare Property is located in central Newfoundland, 55 kilometres(kms) south of the town of Buchans, and ~40 kms southwest of Mountain Lake's Bobby’s Pond VMS (Zn-Cu-Pb) Deposit.

Access

The Property can be accessed by way of a 75 km gravel road from Millertown via the Buchans Highway. The gravel road was built and is still being maintained by the pulp and paper company Abitibi Consolidated.

Resource Estimate

The Property's Leprechaun Pond deposit, or “Main Au Zone”, hosts a NI 43-101 (Jan. 2005) compliant inferred mineral resource of 1,314,780 tonnes grading 10.50 grams per tonne (g/t) gold. Cutting assays to 58 g/t gold, the average grade is 8.51 g/t gold, for a total estimated mineral resource of 443,000 ounces of gold at the uncut grade and 359,000 ounces of gold at the cut grade.

History & Ownership

Consequent to Mountain Lake’s exercise of the option to acquire title to the Property (March 27, 2008), Richmont has acquired an undivided 70% interest in the Property, and Mountain Lake retains an undivided 30% interest. Richmont and Mountain Lake will now proceed to further explore and develop the Property on a joint venture basis.

The Property is subject to a 7.5% net profits interest on two of the former three lots that comprise the Property, in favour of a historical holder of the mineral rights (“Reid”). Xstrata retains a 2% net smelter royalty on base metal production; and retains a 1.5% net smelter royalty on precious metals production, until the earlier of: (i) 250,000 ounces of gold are recovered, and (ii) the 7.5% net profits interest becomes payable on the Reid lots, at which time the net smelter royalty to Xstrata on precious metals will increase to 3%.

Description

The Leprechaun Pond deposit is situated at approximately kilometer 1 of an overall geological structure that has been delineated by soil geochemical surveys to extend for 26 kms in a north-easterly strike. The 27 km strike length remains largely under-explored.

Potential

Richmont Mines has put 6 gold deposits in Eastern Canada into production since 1991 and Mountain Lake is very pleased to have them as a partner at Valentine Lake.

Trenching to expose the Leprechaun Pond deposit mineralization will allow for a greater understanding of the gold mineralizing system which will be important in the planning of future detailed drill programs.

NI 43-101 Technical Report

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