Mountain Lake Resources Inc. (TSX-V: MOA) ("Mountain Lake" or the "Company") is pleased to report, that further to the news release of December 13, 2011, it has entered into a definitive agreement (the "MOA 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") located 20 kilometres (km) southeast of the town of Buchans in central Newfoundland.

In consideration for the sale of 100% of Bobby's Pond to SG Spirit Gold, upon closing, Mountain Lake will receive:

  • the number of common shares of SG Spirit Gold representing 3.65% of the issued and outstanding capital of SG Spirit Gold, following completion of the $12,500,000 financing;
  • a one-time cash payment of $100,000; and
  • A 0.5% Net Smelter Royalty on production from Bobby's Pond.

Concurrent with the MOA Agreement, SG has entered into a definitive agreement (the "BMC Agreement") with Buchans Minerals Corporation (TSX-V: BMC) ("Buchans") to acquire 100% of the Buchans property, inclusive of the Lundberg deposit, the Daniels Pond deposit, and the 49% interest in Tulks Hill deposit (collectively, the "Buchans Property"), all of which are located near Buchans, Newfoundland.

In consideration for the sale of 100% of the Property to SG Spirit Gold, upon closing, Buchans Minerals will receive:

  • the number of common shares of SG Spirit Gold representing 50% of the issued and outstanding capital of SG Spirit Gold, following completion of the $12,500,000 financing (the "Buchans Payment Shares");
  • the number of share purchase warrants (each whole share purchase warrant, a "Warrant") representing 1/5th of the Buchans Payment Shares. Each Warrant will entitle Buchans Minerals to acquire one common share of SG Spirit Gold at an exercise price that is a 33% discount to the issue price of common shares issued pursuant to the Financing for a period of 36 months from the date of issuance;
  • a one-time cash payment of $2.0 million;
  • the right to nominate up to 50% of the Board of Directors of SG Spirit Gold, subject to certain conditions; and
  • the right to participate in future financings of SG Spirit Gold, subject to certain conditions.

In addition, SG Spirit Gold will be required to incur cumulative expenditures of at least $7.5 million in connection with the development of the Property within a period of 24 months from the date of the Buchans Agreement.

Transaction Update

As was previously announced, in conjunction with, or prior to the closing of the Transaction, SG Spirit Gold will complete a brokered private placement (the "Financing") of subscription receipts of SG Spirit Gold ("Subscription Receipts") and flow-through subscription receipts ("FT Subscription Receipts") for gross proceeds of at least $12,500,000. Each Subscription Receipt will be exercisable for one unit of SG Spirit Gold ("Unit") upon satisfaction of all conditions to the Transaction. Each Unit will consist of one common share of SG Spirit Gold and one half of one common share purchase warrant exercisable for 24 months. Each FT Subscription Receipt will be exercisable for one flow-through common share of SG Spirit Gold upon satisfaction of all conditions to the Transaction. Each flow-through common share will consist of one common share which qualifies as a "flow-through share" for purposes of the Income Tax Act (Canada). SG Spirit Gold expects to announce definitive terms for the Financing in February 2012.

Full details of the Transaction will be included in the Management Information Circular to be filed with the regulatory authorities and mailed to SG Spirit Gold shareholders in accordance with applicable securities laws. It is anticipated that a special meeting of shareholders of SG Spirit Gold to approve the Transaction will be held in March 2012. The Transaction is being conducted entirely at arm's length.

About SG Spirit Gold:

SG Spirit Gold is a Vancouver based resource company in the business of acquiring and advancing Canadian mineral properties prospective for precious metals and base metals. The Company's management team and Board have extensive experience and success in the resource industry. Upon completion of the Transaction, the Company intends to change its name to Regiment Zinc Corp. to properly reflect its base metal focus.

SG Spirit Gold is led by The Exploration Group ("EGM"), a Vancouver-based mining services company established by Mr. Mark Morabito. EGM provides administrative, management, geological, regulatory, tax, corporate development and investor relations services to mining companies throughout North America. EGM specializes in identifying, funding, developing and managing resource-based opportunities, with a special interest on the junior mining sector. With an office that is fully Sarbanes-Oxley compliant, EGM is vertically integrated with in-house geology, legal and corporate finance departments. EGM is focused on enhancing value to its growing portfolio of noteworthy public mining companies including SG Spirit Gold Inc., Alderon Iron Ore Corp., Crosshair Energy Corporation, Excelsior Mining Corp, Logan Resources Ltd. and Ridgemont Iron Ore Corp.

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 all located on the pro-mining island of Newfoundland. Mountain Lake's current projects include: a 50% interest in the Valentine Lake gold property under the joint venture with Marathon Gold Corp. (drilling in progress); a 100% interest in the Glover Island gold exploration property (drilling in progress); an option to earn a 100% interest in the Little River gold-antimony exploration property; a 100% interest in the Bobby's Pond base metals property. For more information visit: www.mountain-lake.com

ON BEHALF OF THE BOARD OF DIRECTORS

s/"Gary Woods"

President & CEO

NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT

TERM IS DEFINED UNDER THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY

FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

For corporate, media, or investor inquiries:
Mountain Lake Resources
Greg Lytle, Communications Manager
N. America toll-free: 866-285-5817
Int?l. & Vancouver: 604-839-6946
info@mountain-lake.com