Houston Lake Reports First Quarter Results: Financial News

SUDBURY, ON--(MARKET WIRE)--Aug 28, 2008 -- Houston Lake Mining Inc. (CDNX:HLM.V - News) (Other OTC:HLKMF.PK - News), an advanced exploration company seeking gold, platinum group and rare metal deposits in Ontario, today released its report for the first quarter ended June 30, 2008.

First Quarter Highlights

 
Dubenski Gold Zone

* Intersected the highest gold grades in the history of the company from
drilling on the Dubenski property. Intersections include:
  - 33 Metres Grading 12.11g/t Au
  - 14 Metres Grading 8.78 g/t Au
  - 3 Metres Grading 256.94 g/t Au
* Commenced second year of Dubenski property option
* Contracted Watts Griffis and McOuat (WGM) to complete an NI 43-101 report
on the Dubenski Shaft Zone resource
* Conducted a deep IP survey that yielded 30 high priority targets for
follow up exploration

Dogpaw Gold Zone

* Completed 34 hole 2865m drill program targeting Vein No. 1 at Dogpaw
* Shipped 275 drill core samples to TSL Laboratories from Dogpaw property

Financings

* Raised $1,204,800 in two flow through financings

Subsequent to First Quarter

Dogpaw Gold Zone

* Reported high grade gold assays from Dogpaw Lake property (24 of 27 holes
intersected gold values of greater than 3 g/t Au). Sample holes include:
  - 4.6 Metres Grading 10.51 g/t Au
  - 6.10 Metres Grading 5.09 g/t Au
* Commenced a new 2,000 Metre drill program to expand historical resource
along newly defined lateral extension

Financings

* Raised $800,000 in flow through financing for further exploration

"With such encouraging drill results from our Dubenski property and 30 new exploration targets from our deep IP survey, I believe we have only scratched the surface at Dubenski," said Grayme Anthony, President & CEO. "We have also completed an aggressive drill program on the Dogpaw gold zone and we are expecting a steady flow of drill results into the second quarter." He continued, "Our drilling success has helped support our stock price, which has remained relatively strong even in the recent trying financial markets. This strength has enabled us to complete three important financings that will fund our on-going exploration activities on the West Cedartree property."

The current exploration programs on the Dubenski and Dogpaw Lake properties aim to upgrade the two historic gold resources to modern standards. Significant gold results were returned from both properties. Drilling at Dubenski intersected some of the highest grade drill results ever reported from the property. Drilling also extended the known gold mineralization at the Dogpaw No. 1 Vein laterally and to depth.

Exploration expenses, salaries and other outlays were funded from treasury. During the first quarter ended June 30, 2008 Houston Lake invested $554,457 in the mining properties. Of the total:

 
* $199.443 was incurred in acquisition and exploration costs for the
Dubenski property;
* $312,033 was devoted to exploration on the Dogpaw Lake property;
* $22,033 was expended on the West Cedartree property;
* $20,948 was spent on the Pakeagama Lake and Tib Lake properties.

Expenses during the first quarter increased to $183,747 from $139,495, reflecting higher shareholder and investor relations costs, consulting expenses which included the provision of new financial advisory services and transfer and legal fees connected with financings.

Houston Lake issued 2,008,000 flow-through common shares for total gross proceeds of $1,204,800.

At June 30, 2008, working capital totaled $832,076, compared to $798,458 at the same time last year. The Company's current rate of cash consumption, excluding expenditures on work programs, is approximately $15,000 per month.

Outlook

Looking into the second quarter we will continue to focus on exploration and development of the West Cedartree Gold Project.

"Given our drilling success we believe there is the possibility of extensive gold mineralization at West Cedartree and we are confident in our ability to accurately target the mineralization," said Mr. Anthony. "We are expecting to have an NI 43-101 report from WGM out this fall on the Dubenski Shaft Zone."

Houston Lake has made considerable progress on its development timeline, which can be viewed at www.houstonlakemining.com.

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 30,768,579 common shares issued and outstanding.

Forward-looking Statements

The TSX Venture Exchange has not reviewed and does not accept 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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