SOURCE: Houston Lake Mining Inc.

November 20, 2007 11:18 ET

Houston Lake Reports Second Quarter Results

SUDBURY, ON--(Marketwire - November 20, 2007) - Houston Lake Mining Inc. (TSX-V: HLM) (PINKSHEETS: HLKMF), an advanced exploration company actively seeking gold, platinum group metals and rare metals in northwestern Ontario, today released its report for the fiscal 2008 second quarter ended September 30, 2007.

Second Quarter Highlights

* High grade gold assay values returned from 1988 Dogpaw Lake drill cores
* Angel Hill surface exposure lengthened to 200 metres (656 feet) in
  stripping program
* Angel Hill extended in drilling to over 280 metres (919 feet) along
  strike
* Positive drill results received on Tib Lake PGM property from Magma
  Metals
* Pakeagama Lake rare metals property expanded to 2,304 hectares
  (5,690 acres)
* Watts Griffis and McOuat contracted as geological advisors on Dubenski
  property
* Barnes McInerney retained in a corporate communications capacity
* Completed $345,000 in flow-through share financing
* Current assets totaled $909,565 at September 30, 2007

Subsequent To Second Quarter

* McLennan channel sampling intersects significant gold values
* Fall stripping program exposes two new vein systems at Dogpaw Lake
* Results pending on 480 drill & channel samples from Dogpaw Lake
* $750,000 private placement of flow-through shares in place for upcoming
  exploration

"During the second quarter, Houston Lake made substantial progress on all fronts," said E. Grayme Anthony, President and CEO. "We pushed forward with exploration of gold zones at our West Cedartree project, and we were rewarded with encouraging results from Angel Hill, McLennan and Dogpaw Lake. Our partner, Magma Metals, encountered significant values in drill intercepts on the Tib Lake PGM property. In addition, we strengthened the company's financial position by closing an equity offering in advance of our winter drilling programs at Dubenski and Dogpaw Lake."

Houston Lake contracted Watts Griffis and McOuat (WGM), Toronto-based geological advisors, to design an exploration program for the Dubenski property. A geological report is expected shortly. Also retained was Barnes McInerney Inc., Toronto-based investor relations advisors, to assist with shareholder communications.

At September 30, 2007, Houston Lake's cash, cash equivalents and receivables totaled $909,656. There was no long-term debt, and current obligations totaled $175,938, of which $134,134 is owed to parties related to the company. Houston Lake's rate of cash consumption is approximately $20,000 per month, which means the company's current cash resources are sufficient to meet anticipated outlays for the coming 12 months.

Subsequent Developments

Subsequent to the second quarter, Houston Lake reported more high grade gold mineralization intercepted in the McLennan Gold Zone at West Cedartree. In particular, the fall mechanized stripping program at Dogpaw Lake exposed two new vein systems (No. 2 and No. 4). Results are pending from approximately 480 drill and channel samples from Dogpaw Lake that were sent for fire assay.

Also subsequent to the second quarter, Houston Lake completed a $750,000 non-brokered private placement of flow-through shares. The proceeds will be deployed to bring the historic resource on the Dubenski property up to NI 43-101 standards and to continue exploration activities at the company's Dogpaw Lake property. When these proceeds are added to the financial position at September 30, 2007, working capital rises to $1.5 million.

Outlook

During the balance of 2007, results are expected from two areas: The audit program of 1997 Dogpaw Lake vein no. 1 drill core samples, and assay results from the Dogpaw Lake channel sampling program for vein nos. 2 and 4.

"Houston Lake's aggressive exploration program at our West Cedartree gold project is proceeding well," said Mr. Anthony. The company's plans include:

* Further drilling at the Dogpaw Lake property to complete prerequisites
  for resource estimate calculation;
* A final report from WGM with recommendations for advancing the Dubenski
  gold property; and
* Drilling of Dubenski Shaft Zone to follow up WGM recommendations.

"Houston Lake Mining is very well positioned to make further progress at West Cedartree," said Mr. Anthony. "We have excellent properties that are yielding encouraging results and our financial position is strong."

"Our plan is to gather more data at our three main West Cedartree gold targets -- Dubenski, Dogpaw No. 1 and Angel Hill. Once we upgrade our data on these three zones to NI 43-101 standards, we plan to combine them into a pre-feasibility study that seeks to justify an onsite mill."

About Houston Lake Mining Inc.

Houston Lake is an advanced exploration, vertically integrated resource company. The Company is actively exploring for gold, platinum group metals and rare metals in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake's objective in the short term is to become a gold producer by surface mining its West Cedartree gold project and developing its 100% owned and optioned properties. The Company has a total of 26,466,559 common shares issued and outstanding. For additional information, please feel free to visit us at www.houstonlakemining.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

Contact Information

  • Contact Information

    Houston Lake Mining
    E. Grayme Anthony, P.Geo., MBA
    President and CEO
    Tel: 705-897-7622
    Fax: 705-897-7618
    Email Contact

    Barnes McInerney
    Colin Languedoc, M.Sc.
    Senior Account Executive
    Tel: 416-367-5000 ext. 225
    Fax: 416-367-5390
    Email Contact