Cross Lake Minerals Ltd.

Cross Lake Minerals Ltd.

March 03, 2008 07:00 ET

Cross Lake Minerals Ltd.: Update of Operations-QR Mine Project B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - Cross Lake Minerals Ltd. (TSX:CRN) ("Cross Lake" or the "Company") is pleased to provide this update of operations for the QR Mine, which is located 58 kilometers southeast of Quesnel B.C.

Mining and milling operations have continued throughout the period from late November, when the problem with the 25 kV electrical supply was successfully resolved. Development has been largely from the Northwest Zone, which is being developed by open pit. The Company has been very pleased with the results of this development as the mineable resource is at least 25% greater than predicted in the engineering reports and the grade being delivered to the mill has also been higher.

The mill has been operating within the projected tolerance with respect to recovery and throughput. While the QR Mine has operated continuously except for two minor power outages, heavy snow accumulation combined with sub zero temperatures have resulted in lower volumes of ore being delivered to the mill from the crushing circuit. The crushing circuit is located externally from the mill and as a result, the crushed ore in the fine ore bin has been freezing. This has resulted in lower than expected production and gold shipments. The QR Mine facility, as with most mines, tends not to operate at optimum capacity during the winter months and this has been accentuated as the QR Mine started operations during this season. As conditions improve and modifications are made, the volume of ore being fed to the mill is increasing. As such, management expects the performance of the QR Mine to improve dramatically over the next few months and with modifications to overcome the problems experienced during this winter for future operations in the long term. The mill has been operating at 600 tpd for the last week which is at 65% capacity.

At the Midwest Zone, where the initial higher grade underground mineralization will be mined, rehabilitation has been ongoing. The existing decline has been re-bolted and the underground infrastructure for production established including ventilation. The initial areas for mining have been identified and final stope design is being completed.

The initial section of the West Zone deposit has also been accessed by the underground workings and the required geotechnical diamond drilling completed. The ramp intersected the flat lying mineralization and the grade, geology and shape matches the modeling completed very well. Final mine planning and scheduling is now underway for this area.

As was announced previously, underground drilling is underway to expand and evaluate in detail the North Zone. This Zone is targeted for development in the future and has the potential to significantly extend the life of the QR Mine. This initial drilling is exploring an area 200 m vertical by 100 m horizontally with drill holes piercing the target mineralization at 40 m centers. The mineralization and geology intersected to date in all the underground holes are matching the geological interpretation projected from the historic Main Zone, which is a thrusted block from the North Zone to surface. Analytical results will be released when results are received and interpreted.

The QR Project is being supervised by Tom Colbourne P.Eng., Vice President of Mining, who is the designated Qualified Person and who has reviewed the contents of this news release.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at for further information.

12(g) No. 82-2636

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