Magma Metals Makes Second Year Option Payment, Commences Drilling on Houston Lake Mining’s PGM Project

June 26, 2007: Sudbury, Ontario, Canada - Houston Lake Mining Inc. ("Houston Lake", TSX.V:HLM) is pleased to report that a 750m drill program is commencing this week on Houston Lake’s 100 percent-owned, 2496 hectare (6167 acre) Tib Lake PGM Project located in Ontario, Canada. Magma Metals Limited (“Magma”, ASX:MMB) of Perth, Western Australia is the operator on the project. The drill program targets several high-resolution helicopter-borne aeromagnetic anomalies which may reflect zones of potentially mineralized vari-textured gabbro (“VTG”) the host rock to the mineralisation at nearby North American Palladium’s Lac des Iles mine. The setting of the mineralisation at Tib Lake is believed to be analogous to that at the mine. Magma has made the required cash payment of $50,000 to initiate Option Year 2.

Historic drilling at Tib Lake has returned intersections of 19.5m at 1.68g/t Pt+Pd+Au from 48.5m and 22m at 1.26g/t Pt+Pd+Au from 64m. Magma has the right to earn a 70% interest by incurring exploration expenditures of $2.6 million and making total cash payments of $400,000 over a 5 year period. Houston Lake’s ownership interest is subject to a 2.5% NSR.

About Houston Lake Mining Inc.

Houston Lake’s objective in the short term is to become a gold producer by surface mining our West Cedartree gold project. The Company has a total of 24,654,989 common shares issued and outstanding. For additional information, we invite you to visit us at www.houstonlakemining.com.