SOURCE: Houston Lake Mining Inc.

August 28, 2007 14:02 ET

Houston Lake Reports First Quarter Results

SUDBURY, ON--(Marketwire - August 28, 2007) - Houston Lake Mining Inc. (PINKSHEETS: HLKMF) (TSX-V: HLM), an advanced exploration company actively seeking gold, platinum group metals and rare metals in northwestern Ontario, today released its report for the fiscal 2008 first quarter ended June 30, 2007.

Highlights:

* Dogpaw Lake property 100% earn-in completed two years ahead of schedule

* Dogpaw Lake drilling identified high grade gold intercepts and established continuity of gold mineralization to depth

* Addition of Dubenski property option completed Houston Lake's land acquisition strategy for West Cedartree gold project

* IP Survey doubled strike length of Angel Hill Gold Zone and extended McLennan Gold Zone; chargeability improved with depth in both zones

* Angel Hill Gold Zone extended in stripping to new length of 200 m (656 ft)

* Magma Metals Limited fulfilled terms of Tib Lake PGE property option with second-year cash payment of $50,000 and commencement of diamond drilling

* Current assets of $876,584 at June 30, 2007

"Houston Lake enjoyed a very active and productive first quarter," said E. Grayme Anthony, President and CEO. "At our West Cedartree gold project we added the Dubenski property and significantly expanded the database on our other properties through extensive exploration activities."

At June 30, 2007, Houston Lake's cash, cash equivalents and receivables totaled $876,584. There was no long-term debt, and current obligations totaled $158,741, of which $142,163 is owed to parties related to the company.

Subsequent to the first quarter, Houston Lake received results from three bore holes that successfully extended the gold mineralization associated with the Angel Hill alteration system for a total of 280 m (918 ft.). The zone remains open to depth and along strike. The fourth drill hole targeted the McLennan Gold Zone and yielded high-grade gold intercepts. The company is currently engaged in an audit of a 1988 drill program that yielded high gold grades at No. 1 Vein of the Dogpaw Lake property at West Cedartree.

Also subsequent to the first quarter, Houston Lake completed a $345,000 non-brokered flow-through private placement. 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. As disclosed on July 12, the financing was planned as the first tranche of a $2.5 million financing. However, due to current market conditions the balance of the initiative has been cancelled. The change is not expected to have a material effect on the company. When financing proceeds of $345,000 are added to the cash position at June 30, 2007, cash in the second quarter currently totals $1.2 million.

Looking Ahead: Aggressive Exploration

During September 2007, results are expected from three areas:

* Analysis of channel samples collected from the southern extension of the Angel Hill Gold Zone;

* The audit program of 1988 Dogpaw Lake core samples; and

* Recent drilling at the Tib Lake platinum group property by Magma Metals Ltd. of Australia in accordance with terms of its option earn-in agreement with Houston Lake.

"Houston Lake is in an excellent position to pursue our aggressive exploration program at our West Cedartree gold project," said Mr. Anthony. The program consists of four components:

* Mechanized stripping of Dogpaw Lake No. 2 Vein and other targets in the vicinity of Dogpaw Lake No. 1 Vein;

* Further drilling at Dogpaw No. 1 Vein to complete prerequisites for resource estimate calculation;

* Watts, Griffis and McOuat Ltd. (WGM) to submit report in mid-September with recommendations for advancing the Dubenski gold property; and

* Drilling of Dubenski Shaft Zone planned to follow up on WGM recommendations.

"Houston Lake Mining is in the best position since it was founded in 1995," said Mr. Anthony. "We have a well established property portfolio and finances in place to advance our West Cedartree gold properties. In particular we are focused on the definition of gold resources to meet NI 43-101 standards at three gold zones: Angel Hill, Dogpaw Lake No. 1 Vein and Dubenski Shaft. Our aim is to prove up enough resources to justify an onsite mill at West Cedartree, and we expect to make substantial progress during the current year."

About Houston Lake Mining Inc.

Houston Lake is an advanced mining exploration company that is actively exploring for gold, platinum group metals and rare metals in northwestern Ontario. Houston Lake's principal near term objective is to become a gold producer by surface mining properties comprising its West Cedartree project near Kenora. The company is also seeking to develop its other 100% owned and optioned properties, all in Ontario. For additional information, visit 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 which are available at www.sedar.com.

Contact Information

  • Contact Information:

    Houston Lake Mining
    E. Grayme Anthony P.Geo., MBA
    President and CEO
    Tel: (416) 367-5000 ext. 225
    Fax: (416) 367-5390
    Email Contact

    Barnes McInerney
    Colin Languedoc M.Sc.
    Senior Account Executive
    Tel: (705) 897-7622
    Fax: (705) 897-7618
    Email Contact