MOA Mountain Lake Resources Inc.

Mountain Lake Resources Inc. (TSX VENTURE:MOA) ("Mountain Lake") of Halifax, NS
and New Island Resources Inc. (TSX VENTURE:NIS) ("New Island") of St. John's, NL
are pleased to report that, in accordance with the terms of a Letter of Intent
dated May 27, 2010 and further to the news release of June 3, 2010, both
companies have completed a due diligence review of the assets, liabilities and
operations of the other, as currently available. Based upon these
investigations, financial advice provided by Salman Partners, and through arm's
length negotiations, Mountain Lake and New Island have agreed to proceed with
the proposed business combination by way of a corporate arrangement pursuant to
the provisions of the Business Corporations Act (Alberta) (the "Arrangement").
The Arrangement will effectively combine the assets and liabilities of both
issuers on a consolidated basis, with New Island becoming a wholly- owned
subsidiary operated by Mountain Lake.


By the terms of a definitive agreement between Mountain Lake and New Island
dated July 22, 2010, it is proposed that all of the shareholders of New Island
will exchange their issued common shares of New Island for new common shares of
Mountain Lake, on the basis of One (1) new share of Mountain Lake for every Four
point Two Five (4.25) shares of New Island. All convertible securities of New
Island will be exchanged for convertible securities of Mountain Lake on the same
basis, adjusted accordingly to reflect the final agreed share exchange ratio.
The completion of the Arrangement is subject to standard conditions precedent
applicable to statutory plans of arrangement, including standard commercial
conditions precedent, approval of the common shareholders of New Island, and
court approval. The transaction is scheduled to close in the fourth quarter of
2010.


Collectively, Mountain Lake and New Island feel the combining of regional gold
assets is a very sound strategy at this time and the proposed share exchange
ratio respects the interests of both companies' shareholders. It is further
believed that the real value of the company's combined assets will be unlocked
in the years ahead through organic growth as cash flow from production at the
Pine Cove gold mine is deployed to explore and develop its other projects on the
island of Newfoundland.


It is now anticipated that a special general meeting of the shareholders of New
Island to approve the Arrangement will be held in September 2010. New Island
shareholders will receive an information circular setting out further details of
the proposed transaction, and this Information Circular will also be filed and
made available on SEDAR (www.sedar.com) under New Island's public profile.


Interested parties are referred to Mountain Lake's earlier news release dated
June 3, 2010 for further discussion of the proposed acquisition of New Island,
and details about the properties and business activities of each company.


About New Island Resources Inc.

New Island Resources Inc. (TSX VENTURE:NIS) (New Island) is a diversified junior
exploration company holding gold and base metal properties in the province of
Newfoundland and Labrador. Its main projects include: a 70% interest in the Pine
Cove gold property, which is on option to Anaconda Mining Inc. (Anaconda)
whereby Anaconda can earn a 60% interest and operator status by bringing the
property into commercial production, where production is expected to commence in
June 2010; a 100% interest in the large Glover Island property having
significant gold showings covered by a mining lease; and a 17% shareholding in
Prominex Resources Inc. which holds the advanced Tulks Hill base metal deposit
south of Buchans. For more information visit: www.newislandresources.com.


About Mountain Lake Resources Inc.

Mountain Lake Resources Inc. (TSX VENTURE:MOA) is a diversified junior
exploration company, whose corporate strategy is to build shareholder value
through the exploration and development of economically viable mineral
properties. Mountain Lake's current projects include: a 30% interest in the
Valentine Lake gold property (Newfoundland) with an option to acquire the
remaining 70% interest from Richmont Mines Inc. (and a subsequent sub-option and
joint venture agreement whereby Marathon PGM Corp. can earn a 50% in the
property; a 100% interest in the Bobby's Pond base metals property
(Newfoundland); an option to earn a 100% interest in the Little River gold
exploration property (Newfoundland); and a 2,350,000 share (approx.6.4%) stake
in Etruscan Diamonds Ltd., an alluvial diamond project (South Africa). For more
information visit: www.mountain-lake.com.


ON BEHALF OF THE BOARD OF DIRECTORS OF MOUNTAIN LAKE RESOURCES INC.

Gary Woods, President & CEO

ON BEHALF OF THE BOARD OF DIRECTORS OF NEW ISLAND RESOURCES INC.

Harold Wareham, President & CEO

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