Mr. Henry Kloepper reports

HLM FULFILLS OBLIGATION UNDER ACQUISITION AGREEMENT NOW OWNING 100% OF PAK LITHIUM PROJECT PROPERTIES

Houston Lake Mining Inc. has fulfilled its obligations under an asset purchase agreement, dated effective Dec. 8, 2010, with two arm's-length parties, to acquire 100-per-cent ownership in certain mineral properties located in the Red Lake mining district of Northwestern Ontario (PAK Southeast properties).

HLM issued 600,000 common shares and payed $135,000 over the course of five years without any exploration expenditure guarantees to earn a 100-per-cent property ownership from two private individuals. A 2.5-per-cent net smelter return royalty remains in place on the three properties, whereby HLM is entitled to purchase back 1.5 per cent at any time. The three properties cover the potential of a south-to-east down-plunge extension of the Pakeagama Lake pegmatite deposit.

The PAK lithium project consists of 33 adjoining mineral claims totalling 6,976 hectares (17,238 acres) that is owned 100 per cent by HLM and hosts the Pakeagama Lake pegmatite, one of the highest-grade lithium deposits in North America. Development work, including metallurgical and environmental baseline studies, has been under way for the preparation of a 2016 prefeasibility based on producing technical-grade lithium concentrates required in the glass-ceramic industry.

About the PAK lithium project

The PAK lithium 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-type (lithium-cesium-tantalum) pegmatite. These types of pegmatites have been the principal source of hard-rock lithium, tantalum, rubidium and cesium ores mined in the world, but there are comparatively few commercially viable deposits.

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 lithium deposits in North America, which has a current measured and indicated resource of 7.89 million tonnes of 1.73 per cent lithium oxide equivalent, and inferred resource of 295,600 tonnes of 1.35 per cent lithium oxide equivalent, which has a technical/ceramic-grade spodumene with low inherent iron (below 0.1 per cent iron (III) oxide). The deposit has adjacent zones that are enriched in rubidium and tantalum. HLM is also evaluating the phased co-production of tantalum and mica-product concentrates once lithium mineral production has been commercialized.

The deposit now has a known 500-metre strike length with an estimated true width varying from 10 metres to 125 metres with a subvertical orientation. The resource remains open to depth and along strike to the northwest and southeast.

We seek Safe Harbor.