Houston Lake Mining Inc. (HLM-TSX.V)

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For Immediate Release

Houston Lake Completes Phase 2 Drilling on the Angel Hill Gold Zone Assays Pending from the First Shipment of Drill Samples

December 7, 2004: Sudbury, Ontario - Houston Lake Mining Inc. (TSX.V: HLM, the "Company") is pleased to announce that Phase 2 drilling has now been completed on the Company’s 100% owned, 635.6 hectare (1569.8 acre) West Cedartree Gold Project, located near Sioux Narrows, Ontario, Canada. Six bore holes of the 7 hole, 701m (2300ft.) Phase 2 drill program successfully intersected the down dip extension of the package of altered rocks hosting gold mineralization on Angel Hill. The seventh and final drill hole tested the down dip extension of the McLennan Gold Zone. The first batch of 89 drill core samples from bore holes 21-23 were shipped yesterday to ALS Chemex Laboratories of North Vancouver, B. C. The remainder of the drill core is being logged, split and shipped within the next ten days.

The Angel Hill Gold Zone (“AHGZ”) occurs within a large gabbro sill at the contact of ultramafic rocks forming the footwall to the gabbroic rocks of the hanging wall. Higher gold values (up to 115.5 g/t or 3.369 oz/t Au) are associated with discontinuous quartz lenses and pods which tend to be more prolific in wider portions of the zone. The AHGZ can be traced by geophysics for a distance of 2.1km (1.5miles) on the property to encompass gold-in-soil anomalies and a gold occurrence along its strike extension.

Last year, Houston Lake conducted stripping and washing, systematic channel sampling, and detailed mapping over a 130m (426 ft.) segment of the AHGZ. The AHGZ was directly tested by 77 systematic channel samples which ranged from trace to 71.30 g/t Au (2.080 oz/t) and had a weighted average of 4.04 g/t Au (0.118 oz/t). This Fall, ten additional selective channel samples were taken from the zone and returned a weighted average of 32.23 g/t Au (0.940 oz/t).

A 20 hole, 1139m (3736 ft.) diamond drilling program was completed in February, 2004. Twelve of the 18 holes drilled under the 130m (426ft.) stripped area returned significant gold values and 5 of these holes intersected grades higher than 1 oz/t Au. The just completed Phase 2 diamond drilling program builds upon the systematic drilling completed last winter. Six drill holes targeted and successfully intersected the AHGZ at an approximate depth of 60m (200 ft.). All six drill holes encountered similar widths and alteration types (carbonatization, fuchsitization and silicification) noted in previous drilling. The seventh drill hole targeted and successfully intersected the McLennan Gold Zone in the vicinity of trenches 2 and 3. A total of 89 drill core samples from bore holes 21-23 were sent for fire assay analysis utilizing a 50 gram charge.

“We are more than pleased by developments on the West Cedartree Project”, commented E. Grayme Anthony, President. “At every step, the Angel Hill Gold Zone has continued to exceed our expectations. Initial investigations found gold mineralization in a few outcrops and now extensive stripping and geologic mapping has extended the zone for at least 225m (738 ft.). Preliminary sampling results were improved upon by utilizing more detailed systematic channel sampling. The recent discovery of additional gold-bearing quartz veins has extended the gold mineralization into southern portions of the stripped area. Last Winter’s drilling program indicated that the Angel Hill Gold Zone has widened and the gold tenor of the zone appeared to improve with increasing depth. It is encouraging that the Phase 2 drill program has encountered similar widths below that of previous drilling and that the zone is maintaining its character. We look forward to receiving additional assay results from this promising target”.

The Company has deferred the timing of bulk sampling in light of new project developments. The identification of new gold-bearing quartz veins in the southern portions of the stripped area, additional information from the Phase 2 drill program and the fact that the gold mineralization remains open in two directions all impact the representative nature of any bulk sample. Houston Lake will therefore assess the timing of a bulk sample after the completion of a resource calculation.

The Company will be applying for an Advanced Exploration Project Permit this winter. The advanced project status would allow the Company to begin development appraisal (trenching and stripping) of the McLennan Gold Zone. The application would also seek to increase the size of a bulk sample from the Angel Hill Gold Zone.

Independent Consulting Geologist Dean R. Cutting, P. Geo. is the Qualified Person for the project and has reviewed this press release.

About Houston Lake Mining Inc.

Houston Lake Mining Inc. is an exploration company listed on The TSX Venture Exchange under the symbol HLM. We are focused on the exploration and development of opportunities in the strategic and high technology metals sector which have excellent supply/demand fundamentals. Houston Lake is actively exploring for Gold, Platinum Group Metals and Rare Metals with a strategic focus on northwestern Ontario. The Company has a total of 18,278,198 common shares issued and outstanding. For further information, we invite you to visit us at www.houstonlakemining.com.

Company Contacts:

Lindsay Malcolm E. Grayme Anthony B.Sc., P. Geo., F.G.A.C., M. B. A.

Investor Relations Tel: (705) 897-7622

1-877-713-7465 (toll-free) Fax: (705) 897-7618

lmalcolm@houstonlakemining.com ganthony@houstonlakemining.com

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.