Mr. Trevor Walker reports

HLM ANNOUNCES $200,000 FLOW-THROUGH FINANCING

Houston Lake Mining Inc. is proposing a non-brokered private placement offering of up to a maximum of 1,481,482 common shares of the company. The common shares are to be issued under a unit offering, whereby up to a maximum of 1,481,482 units at a subscription price of 13.5 cents per unit are to be offered. Each unit shall consist of one common share of the company (to be issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half share purchase warrant (each full warrant shall entitle the holder thereof to purchase one additional common share of HLM at an exercise price of 23 cents for an 18-month period from closing. All of the flow-through shares and warrants issued pursuant to the private placement are subject to a four-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange. Proceeds from the financing will be used to advance Houston Lake's 100-per-cent-owned-and optioned Pak rare metals project located in Northwestern Ontario. All securities issued in connection with this financing have a hold period of four months. HLM reserves the opportunity to grant to eligible persons a finder's fee of a maximum 7 per cent of the gross proceeds of the offering, and finder options of a maximum of 7 per cent of the total number of units sold under the offering. Each finder option will be exercisable at an exercise price of 23 cents into one common share and one-half warrant for a period of 18 months.

We seek Safe Harbor.