Etruscan on Blue Gum project

Mountain Lake Resources Inc. announces that significant progress is being achieved by Etruscan Diamonds Ltd. (Etruscan Diamonds) on the Blue Gum Diamond Project located in the alluvial diamond district of Ventersdorp in South Africa.

According to the company, operations continue with 5,465 carats recovered from 209,231 cubic meters of gravel with an average rough tender value of US$613 per carat, aggregating US$3,350,000 for the period December 2007 to May 2008.

Delivery and installation of the new pre-screener unit by the end of this month will improve plant throughput by increasing pre-screening capacity from 1,000 cubic meters per day to 10,000 cubic meters per day.

The Blue Gum pre-feasibility study for expanded production to 260,000 cubic meters per month is expected by the end of August. This study will incorporate an updated resource estimate that will take into account in-fill and deeper drilling that should provide for conversion of a higher percentage of inferred resource into the indicated resource classification. Exploration planning is focused on additional sinkhole targets outside of the Blue Gum project area.

Kevin MacNeill, President of Etruscan Diamonds Limited., said, we are pleased with the way operations are currently ramping up at the Blue Gum Project. We are looking forward to completing the pre-feasibility study which will lay the groundwork for expanding our present processing facilities from a 100,000 cubic meter per month capacity to 260,000 cubic meters per month.

MacNeill further said that, however, what is most exciting to me about the Blue Gum Project is the potential for additional resource beyond that identified in the National Instrument 43-101 Report prepared in January of this year by Dr. Tania Marshall of Explorations Unlimited.

As Dr. Marshall states in her report, a large area of exploration potential exists on the Blue Gum Project beyond the resource that has been identified to date. This includes the gravels below and adjacent to the existing defined resource as well as the gravels located in other sink holes located on the Blue Gum property.

And these gravel bearing sink hole features are not limited to the Blue Gum property. We have already identified sink hole features on other properties which appear to be larger in size than the current sink holes being mined on Blue Gum. Over the coming months we will continue to explore and drill these sink hole features to determine the size of the gravel content.”

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