Mountain Lake Resources Inc V.MOA

JOINT NEWS RELEASE

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Tirisano Diamond prices increase to $588 per carat WINDSOR, NS, Nov 10, 2004 (Canada NewsWire via COMTEX) -- Etruscan Resources Inc. (EET.TSX) and Mountain Lake Resources Inc. (MOA.TSX Venture) announced today that Trans Hex Group Ltd. (Trans Hex), the operator of the Tirisano Diamond Mine located in South Africa, has reported that diamond sales since June 1, 2004 have achieved an average price of US$588 per carat. Pursuant to an option agreement between Etruscan Diamonds and Mvelaphanda Exploration, Trans Hex became the operator of the Tirisano Mine on June 1, 2004 and for the period June 1 to September 30 produced 2,430 carats. Since June 1, 2004 all diamond sales have been made through the Trans Hex tender system. The combination of tendering via Trans Hex, continued strong demand for gem quality rough diamonds and foreign exchange factors has resulted in a significant increase in the selling prices for Tirisano diamonds when compared to the average price of US$407 realized during the prior year. As previously announced Trans Hex has been incrementally increasing diamond production since June 1, 2004. Trans Hex has reported that the effective utilization of the Tirisano plant has been increased to 77%. Trans Hex is presently overseeing the expansion of the operation and to date has incurred expenditures of approximately R17,000,000 (Cdn $3.4 million). This expansion is scheduled for completion by the end of December 2004 with a forecast increase in annual diamond production to 15,000 carats. Diamond production will continue during the expansion and commissioning period with only limited shut downs. Under the terms of the option agreement finalized in June 2004, Mvelaphanda Exploration has until August 19, 2005 to earn a 50% interest in the Nooitgedacht property where the Tirisano Diamond Mine is located. Mvelaphanda Exploration is a joint venture equally owned by Trans Hex and Mvelaphanda Resources. To earn the interest, Mvelaphanda Exploration must fund and carry out the expansion of the current plant at the Tirisano Diamond Mine to achieve a minimum design capacity of 300 metric tons per hour throughput and must operate the plant for a period of 30 operating days at an average effective utilization rate of not less than 72%. The estimated cost of the expansion is approximately R41,000,000 (Cdn $8,200,000). Mvelaphanda Exploration is funding all working capital requirements of the Tirisano Diamond Mine during the option period. Upon completion of the earn-in on the Nooitgedacht property, Etruscan Diamonds and Mvelaphanda Exploration will enter into a 50/50 joint venture arrangement. Trans Hex will act as operator of the joint venture and will report to a joint management committee consisting of equal representation from each of Etruscan Diamonds and Mvelaphanda Exploration. Mvelaphanda Exploration has stated that it expects to meet the "earn-in" conditions prior to the August 2005 deadline. The common shares of Etruscan are traded on the TSX Exchange under the symbol "EET". The common shares of Mountain Lake are traded on the TSX Venture Exchange under the symbol "MOA". More extensive information on Etruscan and Mountain Lake can be found on their respective websites at https://www.etruscan.com and https://www.mountain-lake.com . This press release may contain certain forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements may include statements regarding exploration results and budgets, mineral reserve and resource estimates, work programs, capital expenditures, mine operating costs, production targets and timetables, future commercial production, strategic plans, market price of precious metals or other statements that are not statements of fact. Although the Companies believe the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Various factors that may affect future results include, but are not limited to: fluctuations in market prices of precious metals; foreign currency exchange fluctuations; risks relating to mining exploration and development including reserve estimation and costs and timing of commercial production; requirements for additional financing; political and regulatory risks, and other risks and uncertainties described in the Companies' annual information forms filed with the Canadian Securities regulators on SEDAR ( www.sedar.com ). Accordingly, readers should not place undue reliance on forward-looking statements. NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: https://www.newswire.ca/en/releases/orgDisplay.cgi?okey=69442 https://www.newswire.ca/en/releases/orgDisplay.cgi?okey=12750 For further information: from Etruscan contact: Richard Gordon, Investor Relations, Tel: [phone]/Fax: [phone]; Tony Hayes, Vice President, Corporate Development, Tel: [phone]/Fax: [phone]; from Mountain Lake contact: Allen Sheito, President and CEO, Tel: [phone]/Fax: [phone]; Frank Metcalf, QC, Director, Tel: [phone]/Fax: [phone] News release via Canada NewsWire, Halifax 902-422-1411 -------------------------------------------------------------------------------- Copyright (C) 2004 CNW, All rights reserved News provided by