SUDBURY, ONTARIO--(CCNMatthews - Dec. 23, 2005) - Houston Lake Mining Inc. (TSX VENTURE:HLM) (the "Company") reports that it has cancelled the proposed $200,000 private placement announced on November 17, 2005 and is pleased to report that the Company has raised $255,000 in a new Flow-through private placement priced at $0.27 per unit. Each unit consists of one Flow-through common share and one half purchase warrant. A total of 944,443 units comprised of 944,443 Flow-through common shares and 472,219 non-Flow-through purchase warrants would be issuable upon regulatory approval. The proceeds of the private placement would be utilized for to execute the independently recommended Phase 1 exploration program which includes a 1000m (3280 foot) drill program to test the southern and depth extensions of the Angel Hill Gold Zone on the Company's 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project located near Sioux Narrows, Ontario.
The new financing is comprised of 944,443 units at a price of $0.27 per unit for maximum gross proceeds of $255,000. Each unit consists of one flow through common share and one half share purchase warrant. Each full warrant can be exercised into one non-flow-through common share at a price of $0.35 for two years. The offering has a hold period of four months and is subject to regulatory approval. Insiders participated in 37,037 units of the financing. A finders fee of $16,000 and 74,074 purchase warrants under the same terms as the offering would be payable for the $200,000 raised by Max Capital Markets Ltd. of Toronto, Ontario.
Proceeds will be used for working capital purposes to execute the recommended Phase 1 program on the West Cedartree Gold Project. The Phase 1 exploration program includes IP geophysical surveys and a 1000m (3280 ft.) diamond drill program. The recommended 1000 tonne bulk sampling program is currently underway and is expected be completed early in the new year.
Houston Lake is actively exploring for Gold, Platinum Group Metals and Rare Metals with a strategic focus on NW Ontario. The Company has a total of 18,706,862 common shares issued and outstanding exclusive of the announced financing. The common shares of Houston Lake Mining Inc. trade through the facilities of the TSX Venture Exchange under the symbol HLM. For further information, we invite you to visit us at www.houstonlakemining.com. To hear more about the Company from President and CEO Grayme Anthony please go to: http://www.publiccoreport.net/featured/HLM/company.asp.
FOR FURTHER INFORMATION PLEASE CONTACT:
Houston Lake Mining Inc.
E. Grayme Anthony B.Sc., P. Geo., F.G.A.C., M.B.A.
(705) 897-7618 (FAX)