Houston Lake Mining Inc.
TSX VENTURE : HLM

Houston Lake Mining Inc.

September 29, 2005 09:30 ET

Houston Lake Signs Letter of Intent on the Tib Lake PGM Project

SUDBURY, ONTARIO--(CCNMatthews - Sept. 29, 2005) - Houston Lake Mining Inc. ("Houston Lake")(TSX VENTURE:HLM) is pleased report that the Company has signed a Letter of Intent to enter into an option agreement with Magma Metals Limited ("Magma") of Perth, Western Australia on the Company's 100 percent-owned, 1904 hectare (4703 acre) Tib Lake PGM Project located in the Thunder Bay Mining District of NW Ontario. The ownership interest is subject to a 2.5% NSR. Magma intends to expend $CDN3 million including cash payments totalling $CDN400,000 to earn a 70% interest over a five year period. The agreement would be subject to Magma's completion of an IPO and stock exchange listing by April 30, 2006 and regulatory approval.

The Letter of Intent calls for a firm commitment by Magma of $CDN250,000 in exploration expenditures. Magma will spend $CDN1.5 million, including cash payments of $200,000, by the third anniversary of its stock exchange listing and a 70% interest by expending $CDN3 million, including total cash payments of $CDN400,000, by the fifth anniversary. Houston Lake would have a 30% Free Carried Interest to the completion of a bankable feasibility study. Houston Lake may elect to have Magma secure financing for mine development for an additional 5% interest.

The Tib Lake property is located in the Lac Des Iles (LDI) area just 15 km. (9 mi.) from the 15,000 tpd mill at the Roby Zone open pit mine of North American Palladium Ltd. A $40 million underground expansion is currently underway at the nearby mine. The Tib gabbro, with a surface exposure of some 25 square km. (10 square miles), is the second largest intrusion of the LDI suite of rocks and, as such, is a prime target for PGE exploration.

In excess of $1.0 million in exploration has been expended to date on the Tib Lake property. A new interpretation of the PGE (palladium-platinum-gold) occurrences on the property indicates that the mineralization is mainly associated with primary igneous layering similar in style to that of the prolific Merensky Reef of South Africa's Bushveld Complex as well as cross-cutting zones of vari-textured gabbro breccia.

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.

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