SUDBURY, ONTARIO--(CCNMatthews - Jan. 4, 2006) - Houston Lake Mining Inc. (TSX VENTURE:HLM)(the "Company") is pleased to report that the Company has closed on an additional $43,300 subject to regulatory approval to bring the total Flow-through private placement funds raised to $298,300. Regulatory approval has been granted previously for the initial closing of $255,000 of the placement. The proceeds of the private placement will be utilized for to execute the independently recommended Phase 1 exploration program on the Company's 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project located near Sioux Narrows, Ontario. A minimum of 1000m (3280 foot) of diamond drilling will test the southern and depth extensions of the Angel Hill Gold Zone. The drill program is expected to begin this winter as soon as an available drill rig has been located.
The total financing is comprised of 1,104,813 units at a price of $0.27 per unit for maximum gross proceeds of $298,300. 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 has been paid to 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 minimum of 1000m (3280 ft.) of diamond drilling. 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 19,811,675 common shares issued and outstanding inclusive 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)