February 9, 1999: Calgary, Alberta - Houston Lake Mining Inc. ("Houston Lake") is pleased to announce that the Company has completed an initial $100,000 closing of its non-brokered private placement of up to 750,000 units priced at $0.40 per unit for maximum gross proceeds of $300,000. Each unit consists of one (1) flow-through common share, one (1) common share and a one half (1/2) common share purchase warrant. The holder of a full warrant is entitled to acquire a non-flow-through common share at $0.30 for a period of one year. The initial closing involves the issuance of 250,000 units (500,000 common shares and 125,000 purchase warrants) priced at $0.40. Half of the private placement value ($50,000) is renounceable on a flow-through basis for the fiscal year 1999. Houston Lake has received permission from The Alberta Stock Exchange to extend the private placement financing until March 15, 1999.

Proceeds will be used primarily to advance exploration on the Company’s Tib Lake Palladium Property, located in the Thunder Bay area. Exploration will involve line-cutting, magnetic and Induced Polarization (IP) geophysical surveys and diamond drilling. Drilling is expected to begin as soon as a drill rig can be moved onto the property and will focus on the vicinity of the Kuhner Occurrence where a 1995 drill hole intersected an estimated true width of 13.6 metres of 1.68 g/t PGE’s (combined precious metals: palladium, platinum, and gold) including 2.74 g/t PGE’s over 5.2 metres and including 4.53 g/t PGE’s over 1.5 metres at a depth of 30.5 metres (see Press Release dated August 10, 1998). The exploration program is being managed by independent consulting geologist, Andreas Lichtblau, F.G.A.C.

Company President, Mr. E. Grayme Anthony, stated that the Tib Lake Palladium Property represents one of the best palladium exploration targets in Canada. He noted that the property covers a large intrusive of a similar geological age and is proximal to the only primary producer of palladium in Canada, that numerous key geological features are present and that the property already hosts an encouraging PGE drill intersection (referred to above), which is both open along strike and to depth. Mr. Anthony went on to state that the Company’s decision to focus on palladium exploration appears to be timely, as the reported palladium supply disruptions in Russia and general concerns about South African supply, combined with increased demand from the automotive catylitic converter sector, have made palladium one of the few commodities whose price is currently rising.

Houston Lake has the option to earn a 100 per cent interest in the Tib Lake Palladium Property from Obongo Precious Metals Inc. upon making exploration expenditures of $300,000, cash payments of $22,500 and the issuance of 75,000 common shares over the two year option period. The agreement is subject to a 2.5 per cent net smelter return royalty (see Press Release dated March 13, 1998).

Corporate Update

Houston Lake held its Annual Shareholders’ Meeting on January 13, 1999.

Houston Lake is pleased to announce the election of Mr. James (Jay) A. Richardson as Director of the Company. Mr. Richardson has served on the boards of other public companies and brings extensive corporate governance experience in addition to an extensive background in financing and accounting to the Board of Directors of Houston Lake. Mr. Richardson is an ex-partner of Clarkson, Gordon; Arthur Young, Singapore and KPMG Peat Marwick, United Kingdom. He now makes his career as an international financial advisor as President of Manaca Inc., based in Toronto. Shareholders re-elected Mr. Rick Walker (Chairman) and Mr. E. Grayme Anthony (President) to the Board of Directors.

Shareholders also approved the allotment of 675,000 common shares under the Company’s Stock Option Plan. The stock options have been allotted to officers and employees at a price of $0.20 and are exercisable over a five year period.

Shareholders have approved the reservation of up to 10,000,000 common shares for private placement financing for a period of up to one year from the date of the Annual Shareholder’s Meeting.

The common shares of Houston Lake Mining Inc. trade through the facilities of the Alberta Stock Exchange under the symbol HLM. Houston Lake has a total of 10,446,600 common shares issued and outstanding, inclusive of the initial closing referred to above.

For more information, please contact:

Tel: (705) 897-7622

Fax: (705) 897-7618

e-mail: houston@vianet.on.ca