Substantial increase in Blue Gum

Mountain Lake Resources Inc. announces that Etruscan Diamonds Ltd. (”Etruscan Diamonds”) has received a National Instrument 43-101 compliant independent resource update on its Blue Gum Diamond Project in South Africa which substantially increases the resource on the project. The independent resource update, prepared by Dr. Tania Marshall of Explorations Unlimited, estimates that the Blue Gum Diamond Project contains 20.5 million cubic meters of indicated diamond resource and 17 million cubic meters of inferred diamond resource as follows:

Volume calculations are based on 2,305 boreholes which have been drilled on the property, totalling 51,542m. The deepest drilling indicates that the lower gravels extend down at least to 117m (without intersecting bedrock). Geophysical interpretation, however, indicates that final depths of the sinkholes may be in excess of 120m and, potentially, up to 200m in places.

Eleven bulk-samples (Pits 1, 2 (A, B, and C), 3, 3A, 5C, 6, 7, 8 and 9) processed 159,797.81m3 of Lower Gravels (LGP), including Transition Zone gravels (TZP) and recovered 4,555.04 carats for a global grade of 2.85ct/100m3 (bottom cut-off of 1.6mm) and US$466/ct. In addition, 129,557.46m3 of Upper Gravels (UGP) was processed to recover 2,292.00 carats at an average grade of 1.77ct/100m3. The average value of US$466/ct for the Blue Gum diamonds is somewhat lower than what may now be expected from this deposit. The last 6 months sales have achieved an average of US$545/ct and it is thought that this reflects recent significant increases in diamond prices. It is expected that this increase will continue and will influence the value of the 2008 diamond parcels.

A 43-101 compliant technical report (which includes data from 2006-2007) on the Blue Gum Resource Update will be filed on SEDAR within 45 days.

Kevin MacNeill, President of Etruscan Diamonds sais that we are extremely pleased with the increase in the resource on the project. We believe the potential exists to expand the resource even further with additional bulk sampling and continued exploration on other portions of the Blue Gum property. We will continue infill drilling in the inferred blocks to upgrade these areas to indicated resource ahead of mining.

Over the past six months, our sales of diamonds have achieved an average price of $545 per carat and we believe this increase will continue and further improve prices of our 2008 diamond sales. This will obviously enhance the economics of an already robust project.

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