Houston Lake Mining Inc.
TSX VENTURE : HML

Houston Lake Mining Inc.

October 20, 2005 16:40 ET

Houston Lake Mining Inc. Announces Preliminary Resource Calculation for the Angel Hill Gold Zone

SUDBURY, ONTARIO--(CCNMatthews - Oct. 20, 2005) - Houston Lake Mining Inc. (TSX VENTURE:HLM)(the "Company") is pleased to announce the results of a preliminary resource calculation report on the Angel Hill Gold Zone ("AHGZ"). The AHGZ is one of two gold zones identified thus far on the Company's 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project located near Sioux Narrows, Ontario. The AHGZ has an estimated inferred mineral resource of 106,400 tonnes grading 2.97 g/mt Au at a cutoff of 2 g/mt (117,286 short tons grading 0.087 oz/st Au at a cutoff of 0.058 oz/st) or 49,700 tonnes grading 4.77 g/mt Au at a cutoff of 4g/mt (54,785 short tons grading 0.139 oz/st Au at a cutoff of 0.117 oz/st). Houston Lake has previously reported average recoveries of 93.4% in preliminary bench tests (August 23, 2005).

The preliminary assessment report includes inferred resource estimates that have not been sufficiently drilled to enable them to have economic considerations applied to them to be categorized as reserves. There can be no certainty that the preliminary assessment will be realized. Additional evaluation is required before the inferred resources can be upgraded to measured and indicated categories.

The inferred mineral resource estimate was determined to NI 43-101 standards under CIM definitions by Independent Consulting Geologist Dean R. Cutting, P. Geo., the Qualified Person for the project as defined under National Instrument 43-101. The estimate is based on systematic channel sampling and drilling programs (1733m in 26 holes) carried out from 2003 to 2005 to define a block 160m (525ft.) long extending from surface to a depth of 75m (246ft.) over the AHGZ.

A classical polygonal calculation on a vertical longitudinal section projection was used for the estimate. A virtual 3D model was constructed of the AHGZ utilizing Gemcom GEMS software. Outlines were interpreted for the entire alteration envelope of the AHGZ and Lenses 1 and 2 and projected onto every 20m (66ft.) section over a strike of 140m (459ft.) to establish reasonably demonstrable geological and grade continuity. The high grade gold-bearing quartz pods, though not directly interconnected, do appear to be concentrated in two relatively continuous lenses. Lens 1 is located at or near the hanging wall of the AHGZ alteration envelope. Lens 2 is located at or near the foot wall of the alteration envelope. The lenses appear to coincide with dilationary areas within the alteration package.



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Au Total Au
Cutoff Grade grams Short Grade Contained
Grade Tonnes (g/mt) Au Tons (oz/st) oz Au
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AHGZ Envelope None 587,500 0.59 346,625 647,608 0.017 11,144
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2g/t Envelope
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Lens 1a 2 g/t Au 90,600 2.99 270,894 99,869 0.087 8,709
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Lens 2a 2 g/t Au 15,800 2.86 45,188 17,417 0.083 1,453
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Lens 1a + 2a 2 g/t Au 106,400 2.97 316,082 117,286 0.087 10,162
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4g/t Envelope
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Lens 1b 4 g/t Au 41,600 4.80 199,680 45,856 0.140 6,420
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Lens 2b 4 g/t Au 8,100 4.59 37,170 8,929 0.134 1,196
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Lens 1b + 2b 4 g/t Au 49,700 4.77 236,850 54,785 0.139 7,616
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It was determined that for this basic inferred mineral resource estimate three lower composite cutoff scenarios would be applied to the dataset (see Table above). The first scenario would calculate a value for the entire alteration envelope. The second scenario would apply a lower zone cutoff of 2g/mt Au to Lenses 1 and 2 to represent a possible low grade shipping material. The third scenario would apply a lower zone composite cutoff of 4g/mt Au to Lenses 1 and 2 to represent a possible ideal shipping material suitable for custom milling. The zone composite cutoff figures chosen and applied in this inferred mineral resource estimate should in no way be interpreted as an indication of the gold grade required for economic exploitation. The following parameters were applied to the zone compositing procedure: no upper cutoff was applied as assays were repeatable (no nugget effect), any samples below detection limit of the assay method were assigned a 0 value, a minimum sampling width of 1m was used in the interpretation and composites of Lenses 1 and 2, and if assay data for the full interpreted zone width was not available that part of the interval was assigned 0 Au value in the composite calculation.

The report states " The West Cedartree Gold Property is the host of at least two potentially economically interesting gold mineralized zones: the Angel Hill Gold Zone and the McLennan Gold Zone. Both the near surface geology of the targets and the presence of the all-weather gravel Cameron Lake Road should reduce significantly infrastructure costs for any potential future exploration or mining efforts.

Based upon the extremely encouraging, potentially economic results obtained from the exploration program described in detail in this report it is strongly recommended that follow up exploration work be undertaken on the Angel Hill Gold Zone as well as the McLennan Gold Zone."

The report recommends two phases of exploration. The $750,000 Phase 1 exploration program would be comprised of: a 1000 tonne bulk sample, stripping, geological mapping and channel sampling of the AHGZ and MGZ, IP geophysical surveying and a 1,500m (4920ft.) drill program. A Phase 2 $750,000 exploration program would be contingent upon the results of the first phase.

President and CEO, E. Grayme Anthony commented: "We are delighted to be the first explorers in 20 years to have identified a new gold resource in the area. To have done so from an initial discovery is quite an accomplishment for a small company like Houston Lake. The gold mineralization remains open to depth and along strike to the south. Less than 1% of the Angel Hill Gold Zone has been explored to date and the potential of the McLennan Gold Zone is virtually untested. We look forward to building upon the strong foundation provided by our initial exploration success."

Further work is planned for both the McLennan and Angel Hill Gold Zones in the month ahead. Field crews will be on the project next week to begin work which will include the preparation for a bulk sample at Angel Hill and the evaluation of old trenches and pits along the McLennan Zone Trend.

Houston Lake is actively exploring for Gold, Platinum Group Metals and Rare Metals with a strategic focus on NW Ontario. The Company has a total of 18,706,862 common shares issued and outstanding. The common shares of Houston Lake Mining Inc. trade through the facilities of the TSX Venture Exchange under the symbol HLM. For further information, we invite you to visit us at www.houstonlakemining.com. To hear more about HLM.V from CEO Grayme Anthony please go to: http://www.publiccoreport.net/featured/HLM/company.asp.



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