HOUSTON LAKE MINING INC.

(HLM-TSX.V)

PRESS RELEASE

$309,743 Shares for Debt Financing Proposed

August 12, 2004: Sudbury, Ontario, Canada - Houston Lake Mining Inc. ("Houston Lake", TSX.V:HLM) is pleased to report that the Company has received a positive response from five major creditors for a Shares for Debt Financing.  Houston Lake proposes to issue up to 1,032,475 common shares at price of $0.30.  The financing is subject to regulatory approval and would have a hold period of four months.   

The price of $0.30 represents a 14.4% discount to the prior day’s closing price of $0.35.  A maximum discount of 25% is allowable under the regulation. The $309,743 debt includes $291,487 owed to companies owned by two non-arms length individuals. The non-arms length portion of the proposed financing would therefore be a maximum of 971,623 common shares.   

Houston Lake had received Shareholder permission at the February 10, 2004 Annual and Special General Meeting to retire up to $400,000 of debt for creditors who are owed in excess of $5,000.  Voting by arms length Shareholders had 2,318,152 in favour of the resolution while 393,611 were opposed. The debt has been verified by audited Annual Financial Statements which were disseminated yesterday.  Management believes that the proposed Shares for Debt financing would strengthen the balance sheet and increase the attractiveness of the Company for future financings.

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 16,882,195 common shares issued and outstanding exclusive of the proposed 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 on all of our projects, we invite you to visit us at www.houstonlakemining.com.

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