Houston Lake Mining Inc.
TSX VENTURE : HLM

Houston Lake Mining Inc.

November 17, 2005 14:19 ET

Houston Lake Mining Provides Angel Hill Gold Bulk Sample Update; $200,000 Private Placement Proposed for Phase 3 Drill Program

SUDBURY, ONTARIO--(CCNMatthews - Nov. 17, 2005) - Houston Lake Mining Inc. (TSX VENTURE:HLM)(the "Company") is pleased to report that the Company has completed drilling and sampling of blast holes related to bulk sampling of a portion of 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. A total of 235 samples of drill cuttings were shipped for fire assay analysis earlier in the week. The Company proposes to raise $200,000 in a non-brokered flow-through private placement subject to regulatory approval. The proceeds of the private placement would be utilized for a 1000m (3280 foot) drill program to test the southern and depth extensions of the AHGZ.

The company proposes to offer up to a maximum of 500,000 units at a price of $0.40 per unit for maximum gross proceeds of $200,000. Each unit will consist of one flow through common share and one purchase warrant. Each full warrant can be exercised into one non-flow-through common share at a price of $0.50 for the first year and $0.60 for the second year. The proposed offering is restricted to residents of Ontario and Alberta, would have a hold period of four months and is subject to regulatory approval. The financing utilizes Super Flow-through shares, which include tax-based incentives of 100 percent of the investment with an additional 20 percent tax credit. The financing is expected to close within 30 days. Proceeds will be used for working capital purposes to execute the recommended 1000m. (3280 ft.) drill program on the West Cedartree Gold Project.

A total of 235 samples of drill cuttings from the blast hole pattern were sent to ALS Chemex Laboratories in Thunder Bay, Ontario (sample preparation) and in North Vancouver, B.C (for fire assay analysis). The samples are intended to serve as a preliminary grade control on the planned bulk sample. Results of the bulk sample are not expected to be available for a month and will be announced as soon as received.

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). The estimate is based on systematic channel sampling and drilling programs (1733m in 26 holes) defining a block 160m (525ft.) long extending from surface to a depth of 75m (246ft.). Average recoveries of 93.4% have been previously reported in preliminary bench tests. Independent Consulting Geologist Dean R. Cutting, P. Geo., the Qualified Person for the project as defined under National Instrument 43-101.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information