Lake Victoria Mining Company Inc. Signs Four Option Agreements with Otterburn Ventures, Inc.; With Aggressive Drill Program U...

Lake Victoria Mining Company, Inc. (OTCBB:LVCA) (“Lake Victoria”) is pleased to announce that Lake Victoria and Otterburn Ventures Inc. (CNSX:OTB)(“Otterburn”) have entered into four option agreements (collectively the “Agreements”), pursuant to which Lake Victoria has granted Otterburn the right to acquire up to an undivided 70% interest (the “Options”) in and to certain primary mining licenses and prospecting licenses owned by Lake Victoria known as the Singida Gold Project, North Mara Gold Project, Kalemela Gold Project and Geita Gold Project (collectively the “Properties”).

The Properties are located in the gold producing Lake Victoria Greenstone Belt in Tanzania, East Africa and cover approximately 623 square kilometers. All are situated in highly prospective geological environments for Archaean-hosted gold mineralization and have been explored to degrees varying from surface prospecting, geochemistry and geophysics to programs of significant drilling. In particular, the Singida gold prospect has undergone significant reverse circulation drilling by Lake Victoria and has resulted in the definition of numerous gold-bearing targets for follow-up drilling, currently underway.

Tanzania is Africa’s third largest gold producer. Well-known gold mining companies with producing gold mines in Tanzania include Barrick (with gold mines at North Mara, Bulyanhulu, Tulawaka and Buzwagi) and Anglo Gold (which operates the Geita Mine).

Singida Gold Project

The Singida Gold Project consists of 60 primary mining licenses totaling 4.71 square kilometers located 90 kilometers south-southeast of Singida, Tanzania. Notable results from the October 2010, drill program included: 13.91 g/t Au over 4 meters; 16.80g/t Au over 2 meters; 23.6g/t Au over 1 meter. Lake Victoria has commenced, in 2011, the second round of Reverse Circulation drilling at its Singida Gold Project in Tanzania. This program follows the initial +6000 meter drill program undertaken in October 2010 in which five exploration targets, defined by artisanal gold mines and prospects, were tested by reverse circulation drilling along the NW-SE trending Singida shear zone along a strike length of over 5 kilometers.

Under the terms of the Singida Agreement, Otterburn may earn an initial undivided 51% interest in the Singida Gold Project by paying to Lake Victoria, an aggregate of US$400,770, with US$25,000 payable on May 13, 2011 (the “Singida Deposit”) an additional US$275,770 payable by May 20, 2011, an additional US$50,000 payable on May 20, 2012 and an additional US$50,000 payable on May 20, 2013. Otterburn has also agreed to issue to Lake Victoria an aggregate of 2,200,000 common shares of Otterburn, with 1,100,000 common shares issuable on May 20, 2011, an additional 550,000 common shares on May 20, 2012 and an additional 550,000 common shares issuable on May 20, 2013. Otterburn has also agreed to fund aggregate expenditures of US$4,500,000 on the Singida Gold Project, with US$750,000 to be funded by October 17, 2011, an additional US$750,000 to be funded by May 20, 2012, an additional US$1,500,000 to be funded by May 20, 2013 and an additional US$1,500,000 to be funded by May 20, 2014. Otterburn has also agreed to complete a preliminary economic assessment on the Singida Gold Project and all costs associated with such assessment will be included in the above work expenditures. Otterburn will also pay US$646,030 on August 9, 2011 and an additional US$4,247,100 on August 2, 2013 to certain underlying owners of the primary mining licenses. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 51% interest in the Singida Gold Project.

Under the terms of the Singida Agreement, Otterburn then may earn an additional undivided 19% interest (for a total undivided interest of 70%) in the Singida Gold Project by issuing to Lake Victoria 1,000,000 common shares of Otterburn on May 20, 2017 and funding aggregate expenditures of US$750,000 on the Singida Gold Project, with US$250,000 to be funded by May 20, 2015, an additional US$250,000 to be funded by May 20, 2016 and an additional $US250,000 to be funded by May 20, 2017. Otterburn has also agreed to complete a pre-feasibility report on the Singida Gold Project and all costs associated with such assessment will not be included in the above work expenditures. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 70% interest in the Singida Gold Project.

North Mara Gold Project

The North Mara Gold Projects lie within the eastern extension of the Lake Victoria Greenstone Belt near the border with Kenya, near Barrick’s North Mara Mine. The North Mara Gold Project covers approximately 387.44 square kilometers.

Under the terms of the North Mara Agreement, Otterburn may earn an undivided 70% interest in the North Mara Gold Project by paying to Lake Victoria an aggregate of US$212,015, with US$20,000 payable on May 13, 2011 (the “North Mara Deposit”), an additional US$72,015 payable on May 20, 2011, an additional US$60,000 payable on May 20, 2012 and an additional US$60,000 payable on May 20, 2013. Otterburn has also agreed to issue to Lake Victoria an aggregate of 900,000 common shares of Otterburn, with 500,000 common shares issuable on May 20, 2011, an additional 200,000 common shares issuable on May 20, 2012 and an additional 200,000 common shares on May 20, 2013. Otterburn has also agreed to fund aggregate expenditures of US$1,850,000 on the North Mara Gold Project, with US$250,000 to be funded by October 17, 2011, an additional US$600,000 to be funded by May 20, 2012, an additional US$500,000 to be funded by May 20, 2013 and an additional US$500,000 to be funded by May 20, 2014. Otterburn has also agreed to complete a preliminary economic assessment on the North Mara Gold Project and all costs associated with such assessment will be included in the above work expenditures. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 70% interest in the North Mara Gold Project.

Kalemela Gold Project

The Kalemela Gold project, located about two hours drive over a paved highway northeast of the city of Mwanza, consists of six contiguous prospecting licenses covering about 189.24 square kilometers of greenstone belt geology.

Under the terms of the Kalemela Agreement, Otterburn may earn an undivided 70% interest in the Kalemela Gold Project by paying to Lake Victoria an aggregate of US$171,898, with US$20,000 payable on May 13, 2011 (the “Kalemela Deposit”), an additional US$41,898 payable on May 20, 2011, an additional US$50,000 payable on May 20, 2012 and an additional US$60,000 payable on May 20, 2013. Otterburn has also agreed to issue to Lake Victoria an aggregate of 600,000 common shares of Otterburn, with 300,000 common shares issuable on May 20, 2011, an additional 150,000 common shares issuable on May 20, 2012 and an additional 150,000 common shares on May 20, 2013. Otterburn has also agreed to fund aggregate expenditures of US$1,350,000 on the Kalemela Gold Project, with US$100,000 to be funded by October 17, 2011, an additional US$250,000 to be funded by May 20, 2012, an additional US$500,000 to be funded by May 20, 2013 and an additional US$500,000 to be funded by May 20, 2014. Otterburn has also agreed to complete a preliminary economic assessment on the Kalemela Gold Project and all costs associated with such assessment will be included in the above work expenditures. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 70% interest in the Kalemela Gold Project.

Geita Gold Project

The Geita Gold Project is approximately six kilometers west of the town of Geita, about 90 kilometers west of the city of Mwanza, and about 300 meters south of AngloGold Ashanti’s major open pit Geita Gold Mine. The Geita Gold Project covers approximately 42.44 square kilometers.

Under the terms of the Geita Agreement, Otterburn may earn an undivided 70% interest in the Geita Gold Project by paying to Lake Victoria an aggregate of US$152,740, with US$20,000 payable on May 13, 2011 (the “Geita Deposit”), an additional US$22,740 payable on May 20, 2011, an additional US$50,000 payable on May 20, 2012 and an additional US$60,000 payable on May 20, 2013. Otterburn has also agreed to issue to Lake Victoria an aggregate of 600,000 common shares of Otterburn, with 300,000 common shares issuable on May 20, 2011, an additional 150,000 common shares issuable on May 20, 2012 and an additional 150,000 common shares on May 20, 2013. Otterburn has also agreed to fund aggregate expenditures of US$1,570,000 on the Geita Gold Project, with US$485,000 to be funded by October 17, 2011, an additional US$85,000 to be funded by May 20, 2012, an additional US$500,000 to be funded by May 20, 2013 and an additional US$500,000 to be funded by May 20, 2014. Otterburn has also agreed to complete a preliminary economic assessment on the Geita Gold Project and all costs associated with such assessment will be included in the above work expenditures. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 70% interest in the Geita Gold Project.

Appointment of Director

Pursuant to the Agreements and subject to Otterburn’s approval, Lake Victoria will have the right to appoint one member to the board of directors of Otterburn.

Completion of Options Subject to Due Diligence

Closing of the Options is subject to the completion of a due diligence investigation of the title and environmental condition of the Properties to the satisfaction of Otterburn by May 20, 2011. Otterburn is under no obligation to make any cash payments or issue any common shares to Lake Victoria until the satisfactory completion of the due diligence investigation, other than payment of a deposit for each Property (as described below) which is due and payable by May 13, 2011. There can be no assurance that the Options will be completed as proposed or at all.

Mr. Peter Hughes CEO of Otterburn, stated: “We are delighted to have joined with Lake Victoria in the continuing, successful exploration to advance the promising gold projects in the Lake Victoria District. Our objective is to expand on the gold mineralization discovered on Lake Victoria’s favourably-located Singida Gold Project. The tenor of the gold geochemical results from recent drilling, which reach high grades locally, bode well for the future of the project. A drill-intensive program to add to the highly-favourable results obtained to date is currently underway.”

Dr. Roger Newell, Chairman of Lake Victoria, stated: “We are extremely pleased to have signed these agreements with Otterburn which will guarantee a continued aggressive drill program on the Singida Gold Project throughout 2011." Dr. Roger Newell, Lake Victoria’s Chairman and Director, holds a Ph.D. in mineral exploration from Stanford University, and has more than forty years of experience in the mining industry. Dr. Newell is renowned internationally for recognizing the potential of the Carlin Trend in Nevada and has served as Exploration Manager/Senior Geologist for the Newmont Mining Company.

Additional information in this news release regarding the properties has been obtained from Lake Victoria News Releases dated August 31, 2009, September 21, 2009, October 13, 2010, November 6 & 10, 2010, December 16, 2010, 10K Filing July 14, 2010, Form 10-K/A January 20, 2011 and March 14, 2011. Information has also been obtained from Barrick and Anglo Gold’s websites.

Lake Victoria Mining Company, Inc.

Lake Victoria Mining Company, Inc. is focused on acquiring, exploring and developing gold deposits in Lake Victoria Greenstone Belt in Tanzania, East Africa.

About Otterburn Ventures Inc.

Otterburn is a British Columbia based mineral exploration company in the business of exploring and potentially developing precious metal deposits.

Clive King, Professional Geologist, a Qualified Person as such term is defined in Canadian National Instrument 43-101, is responsible for monitoring the supervision and quality control of Lake Victoria’s exploration program. This press release has been reviewed by Clive King, Lake Victoria’s in-house Qualified Person who is registered with the South African Council of Natural Scientific Professions (Pr.Sci.Nat Reg. No. 400065/09).

On behalf of the board of directors of Lake Victoria Mining Company, Inc.,

“David Kalenuik”

President and CEO

Disclaimer

This news release may contain forward-looking statements or information within the meaning of the United States Primary Securities Litigation Reform Act of 1995 and within the meaning of Canadian provincial securities laws applicable to the Company. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to completion of a due diligence investigation of the title and environmental condition of the Properties to the satisfaction of Otterburn by May 20, 2011, conditions that Otterburn must meet in order to earn its interest pursuant to the Options, obtaining financing to meet the Company's exploration programs and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as the Company's periodic filings available at www.sec.gov and with Canadian Securities Administrators at www.sedar.com. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. This press release contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities to be issued in connection with the Agreements in the United States or to U.S. Persons. Any securities sold in connection with the Agreements have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.