TMX group

Dec. 16, 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. HLM today reported the closing of a non-brokered private placement offering of 3,125,000 units ("Units") of the Company, for total gross proceeds of $500,000, with the MineralFields Group.  Each Unit consists of one (1) Common Share of the Company (issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (each a "Flow-Through Share") and one-half of one (1/2) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1) additional Common Share of the Company at an exercise price of $0.20 for the first 12 months from issuance and $0.25 for the second 12 months until 24 months from closing (the "Offering")).  

All of the Flow-Through Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period.  Proceeds from the Offering will be used to advance Houston Lake's 100% owned and 100% optioned gold properties located near Kenora, Ontario.

In connection with the Offering, the Company issued a finder's fee and due diligence fee in the aggregate amount of $40,000 and 250,000 finder options (8% of the total number of Units sold under the Offering) to Limited Market Dealer Inc.  Each finder option is exercisable at an exercise price of $0.16 into one Common Share and one-half of one Warrant for a period of two years from closing.

"We are very pleased to be entering into this relationship with MineralFields Group", said Trevor R. Walker, President of Houston.  "This is an important milestone in the growth of the company and we look forward to working with MineralFields Group as we advance our West Cedartree Project in the Kenora Mining District of Ontario."


About MineralFields, Pathway and First Canadian Securities (r)

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Fund Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com.  First Canadian Securities (r) (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies.  MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities (r).


About Houston Lake Mining Inc.

Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group 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.


Company Contacts
Trevor R. Walker, MBA
President
Tel: 705.897.7622
Fax: 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.



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