SOURCE: Houston Lake Mining Inc.

November 25, 2008 08:00 ET

Houston Lake Reports Second Quarter Results

Makes Significant Progress on Dubenski and Dogpaw Lake Gold Zones

Secures $1 Million in Financing

SUDBURY, ON--(Marketwire - November 25, 2008) - Houston Lake Mining Inc. (TSX-V: HLM) (PINKSHEETS: HLKMF), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, today released its report for the second quarter ended September 30, 2008.

Second Quarter Highlights

Dubenski Gold Zone

* Watts Griffis and McOuat (WGM) to complete an NI 43-101 report on the
Dubenski Shaft Zone resource by Christmas
* Matrix GeoTechnologies (Matrix) to produce 3D models of IP results over
the Dubenski Shaft, Central and East Zone

Dogpaw Gold Zone

* Reported high grade gold assays from Dogpaw Lake property (32 of 39 holes
intersected gold values of greater than 3 g/mt Au). Core length intercepts
include:
* 4.6 metres grading 10.51 g/mt Au
* 6.1 metres grading 5.09 g/mt Au
* 0.4 metres grading 53.48 g/mt Au
* Results from 8 holes pending from Dogpaw No. 1 Vein
* Completed a 14 hole, 2,062 Meter drill program to expand historical
resource along newly defined lateral extension, results pending
* Program aimed at expanding historic resource to encompass the No. 2 Vein
* Confirmed that No. 1, No. 2 and No. 4 Veins form a single gold
mineralizing system that has been traced for over 310 Metres along strike
and to depth of 210 Metres

Financings

* Raised $1,000,000 in two financings

Subsequent to Second Quarter

Dubenski Gold Zone

* Following a very successful drill program and deep IP survey conducted
earlier this year, Houston Lake commenced a new 2000 meter drill program
aimed at testing the down plunge extension of the Dubenski Shaft Zone.
* Earlier results included core lengths of:
* 38.9 metres grading 20.44 g/mt Au
* 33.0 metres grading 12.11g/mt Au
* 27.0 metres grading 12.95 g/mt Au
* Deep IP survey yielded 30 high priority targets for follow up exploration

Dogpaw Gold Zone

* Completed a stripping and channel sampling program over the Dogpaw No. 4
Vein
* Reported high grade gold assays from in channel sampling Dogpaw Lake No.
4 Vein:
* 1.8 metres grading 6.59 g/mt Au
* 2.05 metres grading 6.41 g/mt Au
* 0.5 metres grading 11.05 g/mt Au

Investor Relations

* Retained the California-based firm of Incorporated Communications Services ("ICS") to conduct media awareness and investor relations programs on behalf of the Company in the United States.

"Our earlier drill results from the Dubenski property yielded numerous wide and high-grade intercepts," said Grayme Anthony, President & CEO. He continued, "Given these exceptional results we started a new drill program to test the downward extension of the Shaft Zone. We are also expecting results from 22 holes on Dogpaw Lake. We remain focused on advancing the three main gold zones at our West Cedartree property to the point where we can make a decision to move forward with an on-site grinding mill."

The current programs on the Dubenski and Dogpaw Lake properties aims at upgrading the two historic gold resources to modern standards. Significant gold results were returned from both properties. Drilling at Dubenski intersected some of the highest grade drill results ever reported from the property. Drilling also extended the known gold mineralization at the Dogpaw No. 1, No. 2 and No. 4 Veins both along strike and to depth.

Exploration expenses, salaries and other outlays were funded from treasury. During the six months ended September 30, 2008 Houston Lake invested $1,245,859 in the mining properties. Of the total:

* $388,335 was incurred in acquisition and exploration costs for the
Dubenski property;
* $766,192 was devoted to exploration on the Dogpaw Lake property;
* $60,736 was expended on the West Cedartree property;
* $30,596 was spent on the Pakeagama Lake and Tib Lake properties.

Expenses during the six months ended September 30, 2008 increased to $290,181 from $254,956 for the same period of the previous year. The six month increase reflected higher shareholder and investor relations costs, consulting expenses which included the provision of new financial advisory services and transfer and legal fees connected with financings. Net loss per share as at September 30, 2008 was $0.01 which remained unchanged from the same period of the previous year.

Houston Lake issued 3,784,135 common shares for total gross proceeds of $1,234,800. Issuance costs were $148,078. At September 30, 2008, working capital totaled $980,638, compared to $421,516 as at March 31, 2007. The Company's current rate of cash consumption, excluding expenditures on work programs, is about $25,000 per month.

E. Grayme Anthony, P. Geo., President of the Company, is the Qualified Person under the guidelines of NI 43-101 for the technical aspects of this news release.

Outlook

Looking into the second quarter we will continue to focus on exploration and development of the West Cedartree Gold Project.

"We continue to take a prudent approach to financing our company while striving to minimize exploration risk. This helps to ensure that our dollars are spent wisely in the field to yield the best possible results for our shareholders," commented Mr. Anthony.

Houston Lake has made considerable progress on its development timeline, which can be viewed at www.houstonlakemining.com.

About Houston Lake Mining Inc.

Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group metal and rare metal deposits in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake's objective 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 31,148,881 common shares issued and outstanding.

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.

www.houstonlakemining.com

Contact Information

  • Company Contacts

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

    In Canada:
    Linx Partners Ltd.
    Wanda Cutler
    Tel: 416-303-6460

    In United States:
    ICS
    George Duggan
    Tel: 818-542-6880