4th YEAR ASSESSMENT REPORT LINE CUTTING, SOIL GEOCHEMISTRY. on the. Little River Property, Mineral Licence 15458M

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3 4th YEAR ASSESSMENT REPORT On LINE CUTTING, SOIL GEOCHEMISTRY on the Little River Property, Mineral Licence 15458M Baie D espoir Area, Newfoundland, NTS 01M/13, by GARY WOODS, P.Geo. Work Conducted: June August, 2010 Total Expenditures: $27079 November, 2010

4 TABLE OF CONTENTS Introduction... Page 1 Location and Access.. Page 1 Property Status.. Page 2 Regional Geology.. Page 3 Property Geology and Mineralization... Page 3 Previous Work... Page Work Program... Page 5 Linecutting... Page 5 Soil Geochemistry.. Page 5 Prospecting and Rock Sampling..Page 6 Conclusions & Recommendations...Page 7 Professional Certification...Page 8 References...Page 9 LIST OF FIGURES Figure 1 General Location of Claims..... Page 1 Figure 2 Claim License Location....Page 2 Figure Soil Sample Location.Pocket Figure 4 Gold in Soils..Page 6 Figure5 Rock Sample Locations....Page 7 LIST OF TABLES Table 1 Mineral License Summary Page 2 LIST OF APPENDICES Appendix I Appendix II Appendix lll Exploration Expenditures Soil Geochemistry Analytical Certificates Rock Sampling, Descriptions, Locations and Analyses ii

5 Introduction In September, 2008, Mountain Lake Resources Inc. optioned the claims that are the subject of this report from prospectors Alex Turpin and Colin Kendall of Mount Pearl and Head of Baie D Espoir respectively. Prospecting efforts during the previous year or so had resulted in the discovery of several locally derived floats, subcrops, as well as outcrops that contained numerous grab samples with over 10 gpt Au. These gold showings occurred over a 6 km strike length within an underexplored section of a 50 km long belt with enhanced gold and arsenic (+/- antimony) values known from previous workers in the area. Work in 2009 comprised linecutting and soil sampling as well as trenching and follow up diamond drilling. This report covers the 2010 exploration program by Mountain Lake Resources Inc. which consisted of infill linecutting and soil sampling. FIGURE 1 GENERAL LOCATION OF CLAIMS Location and Access The property is located in the Baie D espoir area and is part of a 32 km long, northeast trending land package that is transected by the paved highway from Bishop s Falls to Harbour Breton. Access to this 20 claim block is afforded by an old logging road that is located just south of the park boundary is passable by pick up truck to the power line and by ATV thereafter. ATV access is also possible along the power line. The general 2

6 location of the property and the more detailed location of the claims can be seen in Figures 1 and 2 respectively M 15458M 16096M FIGURE 2 CLAIM LICENSE LOCATION Property Status The property currently comprises 3 separate mineral licenses. These licences are the result of grouping several smaller claims which were staked at different times and grouped in April, Information about the current licenses and their anniversary dates are contained in Table 1. LICENSE NUMBER 15458M 16096M 16095M TABLE 1 NUMBER OF CLAIMS TOTAL 427 MINERAL LICENSE SUMMARY 3 ISSUE DATE SEPT 7, 2007 NOVEMBER 26, 2007 MAY 16, 2007

7 Regional Geology The area of the claims spans the faulted contact between the Gander and Dunnage tectonic zones which occurs along the Day Cove Thrust Fault (Colman-Sadd, Swinden). The Little Passage gneisses are situated to the east. These gneisses are of uncertain age and comprise paragneisses (both semi pelitic and psammitic) and orthogneisses (mafic and felsic) and demonstrate mylonitic textures. West of the Little Passage gneisses are the formations of the late Cambrian to Ordovician Baie D Espoir Group. This group is thought to be the tectonostratigraphic equivalent of the Tetagouche Group in northern New Brunswick which host the famous Bathurst Camp deposits (Van Staal). In the claims area the Baie D Espoir group is composed of two formations, the Isle Galet Formation and the Riches Island Formation. The Riches Island Formation consists of grey to green pelite with thin interbeds of siltstone with very rare felsic to intermediate tuffs. Thin but laterally persistent graphitic argillite beds are also present. Volcanic rocks are much more abundant in the Isle Galet Formation and typically comprise rhyolite flows, and crystal and lapilli tuffs. Sedimentary rocks in the sequence range from pelites and graphitic argillites to tuffaceous greywackes with minor conglomerates. Property Geology and Mineralization No systematic mapping has yet been completed by Mountain Lake and the description of the geology and mineralization on the claim group is based on previous accounts only. The claim area is underlain principally by the Isle Galet Formation. This sequence varies in thickness from 1500 metres to 3000 metres and is known to extend for over 75 kilometres in a northeasterly strike. A pronounced schistosity in the various units parallels the main strike direction of the sequence and dips generally steeply to the northwest. Units identified within the sequence include chlorite schist, felsic tuff, a pelitic to conglomeratic sedimentary sequence and a mixed lithologic sequence comprising all of the above units. Several mineralized horizons have been identified within the sequence, the Pouvoir Horizon, the Kim Lake Horizon (situated immediately northeast of the claim block), the Little River horizon and an epithermally altered felsic tuff. This pervasively silicified altered felsic tuff has been traced over a distance of 25 km from Collins Brook to Fish Hook Lake and is reported to contain sericite, pyrophyllite and possibly dumortierite in addition to pyrite. The Pouvoir horizon is composed principally of chlorite schist. Gold and antimony mineralization occurs as disseminations and as massive stibnite in quartz veins. Magnetite carbonate exhalite has also been noted along this horizon. The gold mineralization is usually associated with arsenopyrite. The Little River horizon is thought to extend over 27 km from near the mouth of Little River in the south to Big Spruce Pond in the north. The horizon consists of felsic to intermediate tuffs, pelites and tuffaceous sediments. Several arsenopyrite associated gold showings occur along this horizon including many of the recent discoveries which led to the acquisition of the claims by Mountain Lake. Westfield Minerals identified numerous gold showings in trenches based on soil geochemical anomalies, the most 4

8 significant was the Wolf Showing. The Wolf Pond zone, as outlined by diamond drilling and trenching ranges from 1 to 7 m thick, has been traced for 166 m along strike and tested downdip to a depth of 55 m. Two distinct styles of mineralization are present within the Wolf Pond zone (McHale and McKillen, 1987); 1) disseminated sulphides associated with carbonate alteration; and 2) antimony-bearing quartz veins, fractures and foliation-parallel bands. The disseminated style of mineralization is the most significant. It consists of disseminated arsenopyrite laths +/- fine-grained pyrrhotite, pyrite and antimony. The antimony-quartz vein mineralization occurs throughout the Wolf Pond zone. However, it is more prevalent within the disseminated mineralized zones. The veins range from sub millimeter fractures to 50 cm in thickness. The antimony occurs as semi-massive, metallic-grey clusters and patches within massive milky-white quartz veins. Gold values up to 6.7 gpt over 2 metres occurred in DDH 87-04, and antimony values up to 3.2% over 5.6 metres were intersected in DDH The gold values in the zone of high Sb were 1303 ppb. Significant base metal mineralization occurs adjacent to the claim block to the southwest in the Barasway de Cerf deposit. This deposit was discovered in the 1930 s and has been subject of work programs by various individuals as well as Nalco and Falconbridge Nickel. The occurrence is described on the Newfoundland and Labrador Department of Natural Resources MODS files as follows: Mineralization occurs as massive to disseminated sulphide. The north seam consists of silicified greywacke with streaks of sphalerite, galena, pyrite and pyrrhotite parallel to bedding. The south seam has been traced over 1800 m and varies from 0.3 to 3.0 m wide, consisting of sphalerite, galena, pyrrhotite and pyrite. It varies from massive sphalerite to 1.0 m of silicified sulfide-rich rock. A 30 cm wide quartz vein parallels this lens and carries galena, pyrite, and argentite. Disseminated pyrite is fairly common in all rock types. Mineralization seems to pinch and swell slightly along strike. Colman-Sadd and Swinden considered this style of mineralization to be a distal volcanogenic massive sulphide deposit and remarked at the lateral continuity of the narrow band of mineralization over a 1.8 km strike length. Previous Work The earliest work known in the area focused on the Barasway de Cerf showing in Nalco acquired a large property position in the area via a concession that was granted in This concession was relinquished in Falconbridge Nickel and Hudson s Bay Oil and Gas option parts of the property from Nalco in the late 1970 s. Westfield Minerals conducted a systematic and thorough exploration program over much of the area of the current claim block from 1985 to 1989 and focused on the gold potential. Noranda Exploration Co. Ltd. held claims in the late 1980 s as well. Very little systematic work has been conducted in the area since the late 1980 s and exploration work has focused on the Pouvoir Antimony occurrence in the northeast portion of the claim block as well as compilations of previous exploration work. Prospecting by C. Kendell and A. Turpin resulted in staking of the initial land position in 2006 and claims have been added and subsequently grouped as indicated in Table 1. 5

9 Mountain Lake s 2009 work program focused on soil sampling and prospecting. A cut grid with lines every 200 metres was established in 2008 over the southern portion of what is now Licence 15458M and the grid was extended over the northern portion of the licence in The 2009 work was reported in two separate assessment reports due to the timing of the anniversary date. Trenching and drill results were reported later as part of a report that covered the entire 2009 work program on all the Little River project claims Work Program Linecutting 2010 linecutting was completed during the month of June by SCI Exploration of Miles Cove, Newfoundland. Within the boundaries of Licence 15458M, 8.2 kilometres of line were cut on lines between the existing 200 metre spaced lines in areas where gold anomalies had been identified. Soil Geochemistry 342 soil samples were collected at 25 metre spacing along the newly established grid lines. Sampling medium for the soils was the B horizon and the -80 mesh portion of the samples was analyzed at Eastern Analytical in Springdale by ICP, with a fire assay and AA finish for gold. Analytical results from the soil samples are located in Appendix II. The results of the gold analyses of the soils are illustrated in Figure 4 below. The pre 2010 results are indicated by solid circles and the 2010 results are shown as circles surrounded by a ring. Where some previous anomalies were isolated, the 2010 sampling indicated that these were part of a strong trend of anomalous values such as in the L195N area. A broad area of gold anomalies is located close to the southern boundary of the claim. No gold mineralization is known to occur in bedrock in this area. 6

10 Figure 4 - Gold in Soils Prospecting and Rock Sampling Prospecting was done in areas gold anomalies subsequent to the return of the 2010 soil sampling survey in order to upgrade areas for consideration as trenching targets. A total of 27 samples were taken in the claims area and the results, descriptions and UTM locations are included in Appendix lll. The locations of the samples are indicated in Figure 5 below. The highest gold value in the rocks collected in this area was 3925 ppb Au which was from an argillaceous sediment with disseminated arsenopyrite. 7

11 Figure 5 Figure 5 - Rock Sample Locations Conclusions and Recommendations The infill sampling in 2010 identified new areas, and upgraded previously low priority areas in the broad spaced sampling prior to 2010 for potential gold mineralization. A trenching program will provide the next step in evaluating these geochemically anomalous areas. If any significant zones are exposed during the trenching then they should be drill tested to determine the continuity of the mineralized zones at depth. 8

12 PROFESSIONAL CERTIFICATION I, Gary Woods, with business address at P.O. Box 40, 40 Ports Landing Ave, Port Williams, N.S., B0P 1T0 certify that: 1) I am a graduate (1975) of the University of Western Ontario, with a Bachelor of Science degree in Geology. 2) I am a registered member in good standing of the Professional Engineers and Geoscientists Newfoundland and Labrador (PEG-NL). 3) I have practiced my profession for over 33 years in Canada and Mexico. 4) This report is based on my direct involvement with the Little River project. 5) I have no direct interest in mineral claims held by Mountain Lake Resources Inc., or its option partners. 6) I presently possess securities as well as warrants and options to hold securities in Mountain Lake Resources Inc. Dated in Port Williams, NS this 12 th day of November, Gary Woods, P. Geo. President and CEO Mountain Lake Resources Inc. 9

13 References Colman-Sadd, S.P., Swinden, H.S.; Geology and Mineral Potential of South Central Newfoundland, Report 82-8, Department of Mines and Energy,1982 McKillen, T N, McHale, K B and Saunders, P; Westfield Minerals Limited, First year assessment report on geological and geochemical exploration for licence 2698 on claim blocks in the Little River area, south-central Newfoundland, Assessment File 1M/13/0247, 1986 McHale, K B, McKillen, T and Payne, J G; Westfield Minerals Limited, the Coniagas Mines Limited and Anglo-Dominion Gold Exploration Limited, First and second year assessment report on geological, geochemical, trenching and diamond drilling exploration for licence 2527 on claim blocks , licence 2542 on claim blocks and 4024, licence 2544 on claim block 4026, licence 2626 on claim block 4164, licence 2627 on claim block 4165, licence 2634 on claim block 4167, licence 2698 on claim blocks 4335 and 4337 and licence 2780 on claim blocks in the Little River, Lake Small Pond, Wolf Lake and Little Spruce Pond areas, southcentral Newfoundland, Assessment File NFLD/1687,1987 Reid, BC.; First year assessment report on prospecting and sampling, LittleRiver property, License 12466M, 12527M, NTS 01M/13, 2007 Turpin, A.J.; First year assessment report, Little River Claims Group, Licenses 13461M, 13462M, 13502M, 13503M, 2008 Van Staal, C.R., (GSC web site, 2006), Pre-Carboniferous metallogeny of the Canadian Appalachians, Geological Survey of Canada, web site. Cees.Van_Staal@rncan.gc.ca Woods, G. A.; Assessment Report on Line Cutting, Soil Geochemistry, Stream Sediment Geochemistry, Geology and Prospecting on the Little River Property on Mineral Licences 13461M, 13462M, 14415M, 14416M, 13502M, 13503M, 12466M, 12527M, 13629M, 14223M, 14384M, 14385M, 14386M, Feb, 2009 Woods, G.A.: 3 rd Year Assessment Report on Linecutting, Soil Geochemistry on the Little River Property, Mineral License 15458M, October, 2009 Woods, G. A.; Assessment Report on Linecutting, Soil Geochemistry, Trenching, & Diamond Drilling on the Little River Property, Mineral Licenses 15458M, 16095M, & 16095M, January,

14 APPENDIX I EXPLORATION EXPENDITURES 1

15 STATEMENT OF EXPENDITURES APPENDIX I PERSONNEL & EXPENDITURES DESCRIPTION ASSESSMENT DETAILS EXPENDITURE SOIL GEOCHEM ANALYSES EASTERN ANALYTICAL SOIL SAMPLING CLIFF BRUSCHETTE 39 MANDAYS SOIL BAGS LINECUTTING CECIL BARRETT TOTAL $4000 SCI EXPLORATION 8.2 KM x MANDAYS $3690 RENT C. BRUSCHETTE $1500 PROSPECT & GEOLOGY & TRENCH SITE PLANNING C. BARRETT 5 MANDAYS R. HOLLOWAY 5 MANDAYS D. RANKIN 2 MANDAYS TOTAL $2550 ROCK SAMPLE ANALYSIS EASTERN ANALYTICAL $ VEHICLE RENTAL QUAD $50 x 41 DAYS $2050 GAS $500 SUBTOTAL $23, ADMINISTRATION (15%) $ TOTAL $27079 PREVIOUS EXCESS EXPENDITURES $ REQUIRED EXPENDITURES 20 CLAIMS x $350 $7000 FUTURE EXCESS EXPEND. $

16 APPENDIX II SOIL GEOCHEMISTRY ANALYTICAL CERTIFICATES 3

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28 APPENDIX IIl ROCK SAMPLING DESCRIPTIONS, LOCATIONS, & ANALYTICAL CERTIFICATES 7

29 SAMPLE LOCATIONS 8

30 SAMPLE NO. DESCRIPTION 2345 Outcrop sediments with As 2346 Outcrop sediments with As 2347 Outcrop rhyolite tuff with As 4061 Sediments mixed with quartz veins with As / Py angular float 4062 Quartz veins in sediments with As / Py outcrop 4068 Quartz veins in sediments with As / Py outcrop 4069 Quartz veins in sediments with As / Py outcrop Float; very angular(3 lb.); sercitized rhyolite tuff with 1% fine grained po, py, aspy Float(2 lb.) very angular; sericitized rhyolite tuff with finely disseminated po, py, aspy Float (outcrop?); very angular block (200 lb.)silicified rhyolite tuff with trace fine grained po-py Outcrop felsic tuff / crystal tuff, tr py, aspy lb angular float, 1% fine py, po 14531* Float (5 lb.), angular, silicified greywacke(?)-tuff(?) with 1% disseminated pyrite * Outcrop; intrusive quartz breccia zone with local patches of pyrite(stibnite?); grabs have 5-10% pyrite * Outcrop in small stream; silicified greywacke(?) with trace amounts pyrite & arsenopyrite? Outcrop;rhyolite tuff with disseminated fine-grained arsenopyrite-pyrite Outcrop, silicified greywacke/quartz breccia; 1-3% pyrite, trace stibnite Outcrop, silicified greywacke/quartz breccia; 1-3% pyrite, trace stibnite * Altered rhyolite tuff with AS PY outcrop Outcrop rusty quartz 1 meter wide with As Outcrop rusty quartz 1 meter wide with As Quartz in sediments with As Outcrop(?), quartz vein with arsenopyrite Outcrop quartz veins with As Outcrop quartz veins with As Outcrop quartz veins with As Outcrop quartz veins with As 9

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