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HOUSTON LAKE MINING INC. (HLM-CDNX)
PRESS RELEASE
Corporate
Update
February 8, 2002: Sudbury, Ontario - Houston Lake Mining Inc. (CDNX:HLM, "Houston Lake") is pleased to announce that the Company has received approval from the Corporate Finance Department of The Canadian Venture Exchange ("CDNX") for an extension of the financing dated September 19, 2001 to March 19, 2002 on the same terms and conditions as previously announced. Houston Lake also provides additional disclosure concerning a legal action involving the Corporation at the request of the CDNX. The Company has reserved for issuance 600,000 Units at a price of $0.50. Each Unit consists of one (1) flow-through common share and one half (˝) purchase warrant. One full purchase warrant can be exercised at $0.60 for a period of one year. The Offering has a hold period of one year in Ontario and four months in Alberta and British Columbia and is contingent on regulatory approval. The financing utilizes Super Flow-through Shares which yield a tax write-off in excess of 100% of the investment. For instance, an investor at a top marginal tax rate in Ontario would incur an after tax cost of $0.215 per share. At the request of the CDNX the Company provides the following note disclosure from the Company’s most recent Interim Financial Statements Nine Months Ended December 31, 2000 and 2001. Houston Lake had disclosed the legal action in subsequent financing documentation though the note disclosure should have been included in prior financial statements: "On August 15, 2000 a claim was made in connection with the alleged non-payment of amounts owed. The amount of the claim is $206,750.70. The Corporation has filed a Statement of Defense. Management is of the opinion that the claim has little merit and intends to vigorously defend against the claim. A contingency of $41,994.38 is currently included in the financial statement." Houston Lake is actively exploring for rare metals, platinum group metals and gold in northwestern Ontario. The common shares of Houston Lake Mining Inc. trade through the facilities of the Canadian Venture Exchange under the symbol HLM. Houston Lake Mining Inc. has a total of 14,848,695 common shares issued and outstanding. For further information on all of the Company's projects, we invite you to visit us at www.houstonlakemining.com. For
more information, please contact: E.
Grayme Anthony B.Sc., P. Geo., F.G.A.C., M. B.
A. The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein. |