HLM Enters Letter of Intent with North American Palladium for the Option to Purchase its Tib Lake PGE Property

Sudbury, Ontario CANADA, January 04, 2012 /FSC/ - Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTC Pink),announces that it has entered into a Letter of Intent (LOI) with North American Palladium Ltd. (TSX: PDL, NYSE Amex: PAL) whereby North American Palladium would have the Option to Purchase the Tib Lake Platinum Group Elements (PGE) property after completion of certain cash payments and exploration expenditures.  The property is the second largest intrusion in the Lac des Iles mining camp, located just north of Thunder Bay, Ontario.

The LOI provides that North American Palladium may acquire a 100% interest in the 2,464 hecatre Tib Lake PGE  property from HLM after making staged payments totalling C$450,000 to HLM and incurring exploration expenditures of C$1.6 million, in aggregate, over five years. HLM would retain the exclusivity to exercise its buy back option to purchase 1% of a 2.5% Net Smelter Royalty for C$1,000,000, and to purchase the remaining Royalty (1.5%) on such terms and conditions as it is able to negotiate with the holder of the royalty.

The terms of the LOI remain subject to entering into a definitive agreement and the LOI also requires regulatory approval.

"HLM is very pleased to have taken a significant step with such a well respected, mining company as North American Palladium," said Henry J. Kloepper, CEO of HLM. "North American Palladium's PGE mining expertise and exploration track record in discovering high-grade mineralization, coupled with available capacity at their LDI mill only 15 km away, provide a unique opportunity for the Tib Lake PGE property."


About Houston Lake Mining Inc.
Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for rare metal, gold and platinum group deposits in Northwestern Ontario with a strategic focus on the Pakeagama Rare Metals Project. Houston Lake's objective is to become a producer and developing its 100% owned and optioned properties. The Company has a total of 54,119,056 common shares issued and outstanding. For additional information, please visit us at www.houstonlakemining.com.


Company Contact Information
Henry J. Kloepper
CEO

2892 White Street
Val Caron, ON.
P3N 1B2 CANADA
T. +001 705.897.7622
F. +001 705.897.7618


Forward-looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.  


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Source: Houston Lake Mining Inc. (TSX-V: HLM) (Pink Sheets: HLKMF) http://www.houstonlakemining.com
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