Douglas Lake Minerals Completes Negotiations to Acquire Tanzanian Diamond and Gemstone Properties

Business Wire, Oct 13, 2006

VANCOUVER, British Columbia -- Harp Sangha, CEO/President of Douglas Lake Minerals Inc. (OTCBB:DLKM), announced the company has completed negotiations for the acquisition for two Tanzanian gemstone properties, the Mgambe Diamond property in the Shinyanga District and the Lake Manyara Emerald and Alexandrite property in the Mbulu District in north-central Tanzania.

The Mgambe Diamond property:

The Mgambe Diamond property consists of 46 square kilometers and lies contiguous to the eastern, northern and western boundaries of the De Beers operated Williamson Mine, one of Africa's most significant Diamond producers; the Williamson Mine is currently owned 75% by De Beers and 25% by the Government of Tanzania and has a production history that spans six decades.

The Williamson pipe covers 146 ha and, at the time of its discovery in 1940, was considered the largest economically exploitable pipe in the world.

In 2005 the Williamson Mine produced 190,000 carats of diamonds, adding to the more than 20 million carats that have been produced over the history of mining operations.

The Lake Manyara Emerald and Alexandrite property:

The Lake Manyara emerald and alexandrite property is a historic producer of emerald and alexandrite, having been discovered in the late 1960's. Early descriptions of the property and its production history were first published by the famous Swiss gemologist Gubelin in 1974. His work was later referenced in a report completed in 2001 by R. Scheepers. His work stated that, "The deposit at Manyara is of great interest, both from a academic viewpoint as well from a economic viewpoint as three rare gemstones occur in close relationship to each other, namely alexandrite, emerald and ruby. The common denominator between these three gemstones is that their color is thought to be related to the presence of chromium and/or vanadium in the crystal structure." In his conclusion Scheepers concluded that, "The Manyara deposit may be regarded as a classical schist hosted emerald-alexandrite deposit, in many respects similar to other deposits of this kind. The gemstones are closely related to the contact between mafic schists and felsic gneisses and pegmatites. An additional aspect in the case of Manyara is the presence of shear zones along which fluids preferentially migrated, adding an exploration target to the property."

Royalty-based Mining Successes

Royalty-based mining companies were popularized by such mining successes as Euro and Franco Nevada, and more recently by Tanrange Corporation (AMEX TRE, formerly Tanzanian Royalty), which trades at a market cap of approximately US$590 million compared to Douglas Lake's US$28 million at a trading price of $1.40. Royalty-based public companies traditionally trade at a premium as compared to other publicly-traded mining companies. This is primarily because shareholder dilution is minimized as exploration risks and costs are largely borne by joint-venture partners.

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About Douglas Lake Minerals, A Royalty-Based Company, Our vision at Douglas Lake Minerals is to focus on exploring and developing gold, copper, nickel, uranium and diamond mining opportunities in Tanzania, a country with vast amounts of undeveloped mineral-rich natural resources. We are exploring and developing our large portfolio of prospecting concessions through royalty-based joint venture partnerships. Our strategy is to provide investors with considerable upside potential while minimizing future shareholder dilution through our royalty partnerships (www.douglaslakeminerals.com).

NOTE: No Exchange has either approved or disapproved the information contained herein. This news release many contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and risk factors beyond its control; and actual results may differ materially from expected results. The Company will not update forward-looking statements as conditions change. Factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's quarterly and other periodic filings with the SEC.