Aug. 31, 2010 (Filing Services Canada) -- Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTCBB_Pink_Sheets), is an advanced exploration company which has prospected and strategically acquired contiguous gold properties in Northwestern Ontario with the objective of transitioning into production. HLM also seeks platinum group and rare metal deposits in Northwestern Ontario. Today HLM has released its report for the first quarter, and three months ended June 30, 2010.
Fourth Quarter Highlights
Dubenski Gold Zone (DBGZ)
* Completed a 4,900 m diamond drilling program on the Dubenski property. The program expanded the Dubenski gold zone from 365m to a length of 465m. It also confirmed that the Shaft and Central Zones are in fact one mineralized zone (DBGZ). The DBGZ is open in all directions.
* The most significant diamond drill hole of the program was DB10-70 encountering 19m of 9.99g/t gold, including 3.10m of 57.28g/t. Highlights of this program can be seen at www.houstonlakemining.com.
* Ongoing exploration efforts including sampling and assessment/planning for Q2-summer drilling program (phase V) to drill holes 100-250 metres below the existing drilling to date at the DBGZ.
Angel Hill Gold Zone (AHGZ)
* Completed mechanized stripping of one of the Robertson Occurrences, a historic gold showing approximately 1.4 km to the south of the Angel Hill gold resource.
* Commenced systematic channel sampling of the Robertson Occurrence.
* Upgraded the West Cedartree core shack facilities and sourced a laboratory of closer proximity.
* 1,000,000 stock options were awarded to directors, officers, and employees of the company at an exercise price of $0.20 with an expiration date of June 1, 2015. The market price during award was $0.15 per share.
"At the transition between March 31, 2010 and this first quarter we completed and analyzed Phase IV drilling, which was a 4,900 m drilling program on Dubenski,' said Trevor R. Walker, President. "We continued to focus on the property as we believed it had the most near term potential to help us build gold ounces on the West Cedartree Project. The phase IV drill program was reported and intersected gold mineralization over significant widths. We added further ounces which will be calculated this fall/winter and it defined that both the shaft and central zones are in fact on continuous zone. During the three month period we have analyzed the zone and have planned some deeper drilling for the summer on the Dubenski Gold Zone. More specifically we have planned to go 100-250m below existing drilling on the zone to date."
The current program on the West Cedartree property is aimed at outlining three working areas (Dubenski Gold Zone, Angel Hill/Robertson Gold Zones, and Dogpaw Gold Zones) in order to advance the company towards its production objective. To date all drilling on the project has been near surface and all resources remain open.
Exploration outlays, salaries and other outlays were funded from treasury. During the three months ended June 30, 2010 Houston Lake invested $208,961 in the mining properties. Of the total:
* A total of $199,271 was spent in acquisition and exploration costs for the Dubenski property
* A total of $7,807 was spent on the West Cedartree property and;
* $900 was incurred on the Pakeagama Lake and Tib Lake projects.
Expenses for the three months ended June 30, 2010 were $113,990 compared to $127,952 for the same period of the previous year. HLM maintained a higher level of productivity on the West Cedartree Property as the previous year's quarter, despite this decrease.
For the three months ended June 30, 2010, Houston Lake incurred a net loss of $113,990 ($0.001/share) as compared to a net loss of $127,783 ($0.004/share) in the same period of 2009.
At June 30, 2010, working capital totaled $293,600 as at June 30, 2010 compared to $615,065 at the March 31, 2010 year end. The Company's current rate of cash consumption, excluding expenditures on work programs, is approximately $23,333 per month.
Looking forward the Company will continue to focus on the exploration and development of the West Cedartree Gold Project, specifically on implementing the recommendations of the NI 43-101 report for Dubenski by testing the down dip and down plunge extensions of these zones.
Further to this, HLM plans on continuing to work the Robertson Occurrences' in order to begin exploitation of some of the significant geophysical anomalies found on the West Cedartree property.
The company expects to do future drilling on the Angel Hill gold zone in order to upgrade the historic resources there, and to increase resource potential for the WCGP. Houston Lake's overall goal is to identify enough resources at three locations (Dubenski, Angel Hill, and Dogpaw Gold Zones) in order to economically justify production.
About Houston Lake Mining Inc.
Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group metal and rare metal deposits in Northwestern Ontario with a strategic focus on the West Cedartree Gold Project. Houston Lake's objective is to become a gold producer by surface mining its West Cedartree Gold Project and developing its 100% owned and optioned properties. The Company has a total of 44,164,304 common shares issued and outstanding exclusive of the announced financing. For additional information, please visit us at www.houstonlakemining.com.
Houston Lake Mining
Trevor R. Walker, MBA
President Tel: 705.897.7622
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.
Source: Houston Lake Mining Inc. (TSX-V: HLM) (Pink Sheets: HLKMF) http://www.houstonlakemining.com
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