Mr. Trevor Walker reports

HLM RAISES $566,000 IN FINANCING OVERSUBSCRIBED BY 26%

Houston Lake Mining Inc. has closed a non-brokered private placement offering for a total of 3,144,444 units of the company priced at 18 cents per unit, for total gross proceeds of $566,000.

The common shares are to be issued under a unit offering of 3,144,444 units at a subscription price of 18 cents per unit. Each unit shall consist of one common share of the company and one share purchase warrant. Each full warrant shall entitle the holder thereof to purchase one additional common share of HLM at an exercise price of 29 cents for an 18-month period from the closing.

In connection with the $566,000 offering, the company issued finders' fees of $4,320 (8 per cent of the gross proceeds of the offering) and 24,000 finders' warrants (8 per cent of the total number of units sold under the offering). Each finders' option will be exercisable at a price of 29 cents into one common share for a period of 18 months from the date of issuance.

All of the shares and warrants issued pursuant to the private placement are subject to a minimum four-month hold period. Proceeds from the financing will be used to advance exploration of HLM's 100-per-cent-owned and optioned PAK Rare Metals project located in Northwestern Ontario.

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 Li2OEq (lithium oxide equivalent) (1) which has a technical/ceramic grade spodumene with low inherent iron (below 0.1 per cent Fe2O3). Within the deposit, the pegmatite uniquely hosts an upper intermediate zone of 1.17 million tonnes grading 3.44 per cent Li2O. A nine-hole, 1,500-metre phase II diamond drill program was completed in late March, 2014, which and has not yet been considered in a resource calculation. As a result of the drill program, the pegmatite now has a 400 m strike length with an estimated width varying from 10 m to 125 m with a subvertical orientation. The resource remains open to depth and along strike to the northwest and southeast.

(1) Assumptions and calculations used for the Li2OEq included on page 69 of WSP resource estimate and technical report, Jan. 17, 2014, filed with SEDAR Jan. 20, 2014. A cut-off of 0.4 per cent Li2O was used for all calculations.

We seek Safe Harbor.