SOURCE: Houston Lake Mining Inc.

May 14, 2007 14:20 ET

Houston Lake to Raise $2.5 Million in a Private Placement Financing With Max Capital Markets Ltd.

SUDBURY, ON -- (MARKET WIRE) -- May 14, 2007 -- Houston Lake Mining Inc. (TSX-V: HLM) (PINKSHEETS: HLKMF) (the "Company") is pleased to report that the Company is raising a total of $2.5 million in a non-brokered flow-through private placement financing with Max Capital Markets Ltd. subject to regulatory approval. The proceeds of the private placement will be utilized to bring the historic resource on the recently acquired Dubensky property up to NI-43-101 standards and to continue exploration and drilling on the Company's 100% owned and optioned gold properties located near Sioux Narrows, Ontario.

Houston Lake is offering up to 1,250,000 Common Share Units and 1,086,957 Flow Through Shares for total gross proceeds of $2.5 million. The 1,250,000 Units have a subscription price of $1.00 per Unit, each Unit being comprised of one Common Share and one half Warrant exercisable at $1.25 for a period of 24 months. The 1,086,957 Flow-Through Shares have a subscription price of $1.15. The offerings have a hold period of four months and are subject to regulatory approval. The Company will pay a finder's fee to Max Capital Markets Ltd. of Toronto, Ontario for Units and Flow Through Shares which are completed equal to 8.0% of the gross proceeds of the subscriptions payable in cash and 8.0% finder's warrants which will be exercisable to acquire common shares of the Company at $1.25 for a period of 24 months after the Closing Date.

About Houston Lake Mining Inc.

Houston Lake's objective in the short term is to become a gold producer by surface mining our West Cedartree gold project. The Company has a total of 24,544,156 common shares issued and outstanding. For additional information, we invite you 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

  • Company Contacts:

    A. Schwab & Associates
    Investor Relations
    1-800-537-4099 (toll-free)
    Email Contact

    E. Grayme Anthony B.Sc., P. Geo., FGAC, MBA
    President & CEO
    Tel: (705) 897-7622
    Fax: (705) 897-7618
    Email Contact