SOURCE: MOUNTAIN LAKE RESOURCES INC.

September 10, 2007 08:30 ET

Mountain Lake Arranges Convertible Note Financing With Sprott Asset Management

Private Placement of 2-Year Convertible Notes With a Face Value of $2,000,000

HALIFAX, NS--(Marketwire - September 10, 2007) - Mountain Lake Resources Inc. (TSX-V: MOA) ("Mountain Lake" or the "Company") is pleased to report it has arranged a private placement debt financing through Sprott Asset Management Inc. ("Sprott") of 2-year limited recourse convertible notes with an aggregate face value of $2,000,000 (the "Notes") that will be placed with a group of the Sprott managed investment funds.

The Notes will bear an annual interest coupon rate of 7% per annum, payable annually. The Notes, including any accrued interest, are convertible at the election of the Company at any time after the first year into common shares of Etruscan Diamonds Ltd. ("Etruscan Diamonds"), a corporation incorporated under the Federal laws of Canada and partially owned by the Company, at a conversion price of $2.00 per share of Etruscan Diamonds.

The Company will deposit into escrow a total of 1,000,000 common shares of Etruscan Diamonds as security for repayment to the noteholders (the "Collateral Security"). In the event of default in repayment or the failure of the Company to convert the principal and accrued interest into common shares of Etruscan Diamonds, then the noteholders' sole recourse against the Company will be limited to the Collateral Security, and the noteholders will not have any further recourse against the Company or its other assets for any deficiency. The Company owns an additional 4,250,000 shares of Etruscan Diamonds, all of which are unencumbered.

The funds will be used to finance the Company's 2007 and 2008 exploration and development programs, and general working capital purposes. The Notes are subject to the acceptance of the TSX Venture Exchange.

About Mountain Lake Resources Inc.

Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior mining and exploration company whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties. Current projects include: a 100% interest in the Bobby's Pond Base Metal Project; the Valentine Lake Gold Project, in which Richmont Mines Inc. is earning a 70% interest; and a 17.2% stake in Etruscan Diamonds Limited, a producing diamond miner in South Africa. For more information visit: www.mountain-lake.com

ON BEHALF OF THE BOARD OF DIRECTORS

s/"Gary Woods"

President & CEO


THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

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