HOUSTON LAKE MINING INC.

(HLM-TSX.V)

PRESS RELEASE

Houston Lake Intersects High Grade Gold Mineralization at Angel Hill,

Drilling Program Continues on the West Cedartree Gold Project

January 12, 2004: Sudbury, Ontario - Houston Lake Mining Inc. (TSX.V:HLM, "Houston Lake") is pleased to report on results from the first seven holes of the 20 hole 1000m (3280 ft.) diamond drill program targeting the Angel Hill Gold Zone ("AHGZ"). The AHGZ is one of several gold zones identified thus far on Houston Lake’s 100% owned, 603.6 hectare (1490.9 acre) West Cedartree Gold Project located near Kenora, Ontario. Six of seven drill holes encountered significant gold values. The best intercept encountered 10.85m. grading 3.78 g/t Au (35.59 ft. of 0.110 oz/t Au) and contained a high grade section of 0.80m assaying 46.7 g/t Au (2.62 ft. of 1.362 oz/t Au). The remaining portion of the 20-hole program began on January 6^th and is expected to be completed by the end of the month.

Table 1. Drill Hole Locations and Results for Holes 1 to 7 on the Angel Hill Gold Zone

A total of 148 drill core samples were shipped to ALS Chemex of Vancouver, B. C. and were analyzed by standard fire assay utilizing a 50 gram charge. Check samples will be sent at TSL Labs of Saskatoon, Saskatchewan..

Houston Lake carried out an extensive mechanized stripping, systematic channel sampling and detailed mapping program over a 130m (426 ft.) segment of the AHGZ in August of 2003. The AHGZ was directly tested by 77 of the 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). The 1000m. (3280 ft.) drill program builds upon the detailed surface program and is comprised of about 20 drill holes. The aim of the drill program is to provide the basis for a resource estimate to a depth of 40m (130 feet) below the stripped area. Independent consulting geologist, Dean Cutting, P. Geo. is the Qualified Person responsible for the project.

The first seven holes of the program were drilled at 20m (65.6 ft.) intervals along the AHGZ and were oriented perpendicular to the geologic strike of the gold zone. The bore holes were inclined at –45 degrees and intersected the steeply dipping AHGZ at a depth of approximately 20-25m (66-85 ft.). All seven drill holes have encountered the highly carbonatized, fuchsitic and variably silicified rocks characteristic of the AHGZ. Drilling thus far indicates that the gold zone has an estimated true width that varies from 4.25 to 16.09m (13.94 to 52.78 feet) and averages 9.7m (31.82 feet).

The first drill hole of the program targeted the northerly extension of the AHGZ and confirmed the northerly termination of the gold zone. The remaining six holes were drilled under the 130m. (426 ft.) stripped portion of the AHGZ. When compared to the surface channel samples immediately overlying the drill holes, five of the six holes illustrate higher gold tenors. This trend is most pronounced in the southern portions of the stripped area. The zone remains open to depth and to the south along strike. The AHGZ has a potential strike length of 2.1 km (6888 ft.) on the property.

The remaining drill holes of the program are planned to further appraise the AHGZ under the 120m stripped area. The next seven drill holes are targeted to intersect the AHGZ at a depth of approximately 40m (130 feet). A total of 10 drill holes have been completed to date. Results from the next set of seven drill holes are expected by early February.

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 16,582,195 common shares issued and outstanding. The common shares of Houston Lake Mining Inc. trade through the facilities of the TSX Venture Exchange under the symbol HLM. For further information, we invite you to visit us at www.houstonlakemining.com.

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