Mr. Trevor Walker reports

HLM'S PHASE II DRILLING CONFIRMS AND EXTENDS HIGH-GRADE LITHIUM ZONE AT SURFACE ON THE PAK RARE METALS PROJECT, ONTARIO

Houston Lake Mining Inc. has released the results of two infill drill holes from the 2014 phase II, nine-hole diamond drill program on the Pakeagama Lake pegmatite. The assay data for the two holes being reported are presented in an attached table.

Highlights:

• Diamond drill hole (DDH) PL-011-14 intersected 1.68 per cent lithium oxide over 104 metres from 9.1 metres to 104.75 metres;
• DDH PL-011-14 includes a 12.8-metre-wide high-grade lithium zone (upper intermediate zone (UIZ)) averaging 4.01 per cent lithium oxide from 35 metres to 47.8 metres;
• DDH PL-012-14 confirms the high-grade UIZ 25 metres to the northwest;
• Resource remains open to depth and along strike to the northwest and southeast;
• Assay results pending from seven remaining drill holes from the phase II diamond drill program.

The primary objective of these two holes is to increase the level of confidence in a portion of the inferred resource (see Dec. 4, 2013, press release) with particular focus on the 1.17 million tonnes grading 3.44 per cent lithium oxide. The intersection summaries for the two drill holes outlined in the attached table have confirmed continuity of the zones along strike of the intersection in DDH-13-003 and beneath the surface outcrop and also defined bounding contacts with host rock(s). The table also summarizes the lithium, cesium, tantalum and rubidium grades for the two drill holes by mineralogical zones for the pegmatite intersections. The hole PL-012-14 intersection confirms and extends the strike length of the lithium and tantalum zones of the Pakeagama Lake pegmatite to the northwest.

                    CORE-LENGTH INTERCEPTS (PAKEAGAMA LAKE PEGMATITE)  
                 
DDH PL-011-14 -- designed to test continuity of pegmatite zonation beneath the enriched 
                 UIZ/CIZ surface zones near (approximately 25 metres east-southeast) DDH PL-003-13              
Zone                Width    Li2O    Cs2O    Ta2O5    Nb2O5    SnO2    Rb2O   Geology
                       (m)     (%)     (%)    (ppm)    (ppm)   (ppm)     (%)
Total pegmatite                   
9.1 to 104.75 m     95.65    1.68   0.024       85       59     162    0.24   WZ/CIZ/UIZ/LIZ
Tantalum-, 
rubidium- and 
cesium-enriched 
zones                   
including 9.1 
to 20.7 m            11.6     n/a   0.068      132       69      83    0.37   WZ/CIZ
including 9.85 
to 14 m              4.15     n/a   0.077      188      123     113    0.38   WZ/CIZ
Lithium-enriched 
zones                   
including 13 
to 104.75 m         91.75    1.69   0.021       80       53     156    0.22   LIZ plus UIZ
including 35 
to 47.8 m            12.8    4.01   0.031       48       33      40     0.1   UIZ
including 54 
to 104.75 m         50.75    1.73   0.023      114       84     274    0.33   LIZ
                                      
DDH PL-012-14 -- designed to test continuity of pegmatite zonation beneath the enriched 
                 UIZ/CIZ surface zones near (approximately 25 metres west-northwest) DDH PL-003-13              
Zone                Width    Li2O    Cs2O    Ta2O5    Nb2O5    SnO2    Rb2O   Geology
                       (m)     (%)     (%)    (ppm)    (ppm)   (ppm)     (%)
Total pegmatite                   
19.5 to 74.4 m       54.9    1.42    0.03       96       76      87     0.24  Aplite/WZ/LIZ/UIZ
Tantalum-, 
rubidium- and 
cesium-enriched 
zones                   
including 19.5 
to 36.45 m          16.95    1.31   0.036      130       78     146     0.23  WZ/LIZ
Lithium-enriched 
zones                   
including 35.5 
to 44 m               8.5    3.69   0.039       90       54      44     0.24  UIZ/aplite
Also 102 to 
107.2 m               5.2    2.16   0.012      107       80      50     0.27  Aplite/LIZ

The upper intermediate zone (UIZ), central intermediate zone (CIZ) and lower intermediate zone (LIZ) were previously described in the July 2, 2013, press release. Zones of sodic aplite are present in all holes and vary in width from tens of centimetres to several metres, and contain significant concentrations of tantalum, rubidium and cesium.

Noteworthy observations are that the north-northeast (footwall) boundary with the metasediments is consistent and predictable, while the south-southwest (hangingwall) contact with the granite is somewhat erratic and complicated by granitic blocks and rafts and appears to have been variably affected (metasomatized) by the pegmatite intrusion events. The mineralized pegmatite remains open along strike to the west-northwest and east-southeast and at depth. Granitic blocks/rafts mapped on surface appear to diminish with depth and along strike in both directions.

The current strike length of the pegmatite, as defined by surface mapping and drilling, remains at 290 metres with an estimated width varying from 45 metres to 125 metres assuming subvertical orientation of the pegmatite body.

"These results with particular focus on the UIZ intercepts not only confirm grade from our maiden resource calculation but should increase the zone's tonnage. These features of size and grade, combined with the pegmatite's low inherent iron (less than 0.1 per cent iron oxide [see June 11, 2014, press release]) give HLM the confidence in its potential ability to economically produce a technical-grade quality spodumene product and/or concentrate that could appeal firstly to the established specialty glass and ceramics segment of the lithium market," commented Trevor R. Walker, president of HLM. "This could be possible in contrast to many others, who would require a sizable capital investment in order to remove and produce a low-iron product. We are pleased with these results and look forward to releasing pending assay results in the near future from the remaining drill holes on our phase II diamond drill program."

Due diligence

All scientific and technical information in this release has been reviewed and approved by Peter J. Vanstone, PGeo, the qualified person under the definitions established by National Instrument 43-101. Under HLM's quality assurance/quality control procedures, the diamond drill contract specified NQ-sized drill core providing a 47.6-millimetre-diameter sample. The drill holes were oriented perpendicular to the strike of the pegmatite and drilled continuously across it. Sample security and chain of custody started with the removal of core from the core tube and boxing of drill core at the drill site. The boxed core remained under the custody of the drill contractor until it was transported from the drill to the secure on-site core shack facility by either the drill contractor or one of the company's designated personnel. At the on-site core shack, core boxes were opened and inspected to ensure correct boxing and labelling of the core by the drill contractor, photographed and then reclosed. The core was stored securely until moved into the core shack for processing. The company geologists logged the core and then marked and tagged it for sampling and splitting. Each core sample was assigned a tag with a unique identifying number. Sample lengths are typically one metre, but can be less depending on zone mineralogy and boundaries. The core was then reclosed and shipped to the company's off-site core splitting facility in Sudbury, Ont. Core marked for splitting was cut using a diamond core saw with a mounted jig to assure the core was cut lengthwise into equal halves. Half of the core was sent to an analytical laboratory for quantitative analysis of select elements. The remaining half of the core is retained and incorporated into HLM's secure, off-site core library.

All samples were assayed by an ISO-accredited laboratory. Sample blanks, along with tantalum, lithium, rubidium and cesium certified reference material, were routinely inserted into the sample stream in accordance with industry recommended practices. Field duplicate samples were also taken in accordance with industry recommended practices.

About the PAK rare metals project

The PAK rare metals project lies close to the boundary between two geological subprovinces of the western Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The deposit is an LCT (lithium-cesium-tantalum) classified pegmatite. These rare types of deposits have been the principal source of hard-rock lithium, tantalum, rubidium and cesium ores mined in the world.

HLM is actively exploring its 100-per-cent-owned-and-optioned project, which contains the Pakeagama Lake pegmatite. The deposit is one of the highest-grade deposits in North America, which has a current inferred resource of 6.89 million tonnes of 1.86 per cent lithium oxide equivalent, which has a technical/ceramic-grade spodumene with low inherent iron (below 0.1 per cent iron oxide). Within the deposit, the pegmatite uniquely hosts an upper intermediate zone of 1.17 million tonnes grading 3.44 per cent lithium oxide. The pegmatite has a 265-metre strike length with an estimated width varying from 45 to 125 metres with a subvertical orientation. The resource remains open to depth and along strike to the northwest and southeast. A nine-hole, 1,500-metre phase II diamond drill program was completed in late March 2014; assay results for this program are pending and expected in the near future.

We seek Safe Harbor.