July 12, 2007: Sudbury, Ontario - Houston Lake Mining Inc. (TSX.V: HLM, the "Company") is pleased to report that the Company has closed on the first tranche of $345,000 of a total of $2.5 million in a non-brokered flow-through private placement financing with Max Capital Markets Ltd. subject to regulatory approval. The proceeds of the private placement will be utilized to bring the historic resource on the recently acquired Dubenski property up to NI-43-101 standards and to continue exploration and drilling on the Company’s 100% owned and optioned gold properties located near Sioux Narrows, Ontario.

Houston Lake is currently permitting the Angel Hill Gold Zone (AHGZ) for future open pit production. A final draft of the revised closure plan has just been received and Houston Lake is in the process of selecting a qualified engineering firm to review the document prior to submission for government approval. This initial permit would enable HLM to extract and ship up to 50,000 tonnes of gold bearing rock for off site processing. The development plan is to first outline three open pit working areas that would contain a collective minimum of 100,000 + oz. to support the production volumes necessary for a proposed 250 tpd (approx.) mill facility. On the AHGZ, we are extending the existing gold resource contiguous with last year’s successful bulk sample, with geological mapping, mechanical stripping, channel sampling and drilling of the near surface mineralized zone. A fall diamond drill program is scheduled to prove up historic gold resources at the Dogpaw No.1 Vein and complete a N1 43-101 resource calculation. A second geological team will advance the newly acquired Dubenski property to prove up and expand on the historic mineral resource (1998) of approximately 355,000 tonnes averaging 6.25 g/mt.

Houston Lake has re-priced the offering announced on May 14, 2007 and is now offering up to 1,388,888 Common Share Units and 1,250,000 Flow Through Shares for total gross proceeds of $2.5 million. The 1,388,888 Units have a subscription price of $0.90 per Unit, each Unit being comprised of one half warrant exercisable at $1.15 for a period of 24 months. The 1,250,000 Flow-Through Shares have a subscription price of $1.00. The offerings have a hold period of four months and are subject to regulatory approval. The Company will pay a finder’s fee to Max Capital Markets Ltd. of Toronto, Ontario for Units and Flow Through Shares which are completed equal to 8.0% of the gross proceeds of the subscriptions payable in cash and 8.0% finder’s warrants which will be exercisable to acquire common shares of the Company at $1.15 for a period of 24 months after the Closing Date.

Independent Consultant Dean R. Cutting, P. Geo., is the Qualified Person for the project under the guidelines of NI 43-101 and has reviewed this press release in its entirety.

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 24,724,989 common shares issued and outstanding. For additional information, we invite you to visit us at www.houstonlakemining.com.