HOUSTON LAKE MINING INC.

(HLM-TSX.V)

PRESS RELEASE

High Grade Drill Results Verified on Houston Lake’s Angel Hill Gold Zone

May 27, 2004:  Sudbury, Ontario, Canada - Houston Lake Mining Inc. ("Houston Lake", TSX.V:HLM) is pleased to report that check assays verify previous results from the recently completed 20 hole 1139m diamond drilling program on the Company’s 100% owned, 603.6 hectare (1490.9 acre) West Cedartree Gold Project. The project is located near Sioux Narrows in the Kenora Mining District of Ontario and is road-accessible. Fifty drill samples were sent for confirmation of results as part of a 43-101 level due diligence on the Angel Hill Gold Zone ("AHGZ"), one of two gold zones discovered thus far on the project. Check assay values ranged from trace to a high value of 81.33 g/t Au (2.37 oz/t Au). These results will be incorporated into the assay results to provide a greater assurance in a resource calculation. Crews are expected to be on the property by next weekend to begin the work towards a bulk sample.

Samples from the drill program were previously run at ALS Chemex Labs of Vancouver, BC utilizing standard fire assay. Fifty samples were selected to audit both high and low assay results. The reject samples were shipped to TSL Laboratories of Saskatoon, Saskatchewan. Forty of the reject samples were analyzed by standard fire assay while the ten higher grade reject samples underwent metallic gravimetric analysis. Houston Lake has previously applied this methodology to increase confidence in surface channel samples from the AHGZ. Despite utilizing dissimilar analytical methodologies at two different labs, the results proved to be fairly consistent from sample to sample such that the overall repeatability was at a 95.85% level.

Gravimetric analysis provides a higher level of assurance by testing a larger quantity of sample and monitoring the size distribution of the gold. The overall repeatability of the assay results for the ten high grade samples was 97.56%. The consistency of the results from two laboratories indicates that the gold is well distributed within the samples. Gold was found to occur mainly as fine flakes (-150 mesh) or in combination with other minerals and also as coarse gold (+150 mesh). These attributes suggest that reasonable recoveries may be expected from third party milling.

A geological team is expected to arrive on the project by next weekend to prepare for the proposed bulk sample. The bulk sample aims to provide further details on geological structural controls as well as provide an indication of gold recoveries and general cost structures. Independent consulting geologist, Dean R. Cutting, P. Geo. is the Qualified Person for the project. A pattern of drill holes will be laid out at that time for blasting. As drilling proceeds cuttings will be sampled and sent to the laboratory for analysis. This will provide a rough indication of the grade expected from the bulk sample. Blasting of the bulk sample is expected occur in July dependent upon mill scheduling availability. A number of gold mills fall within a 400km (240 mile) radius of the project and two rail heads lie within 120km (72 miles) of the property. Thus mill arrangements are not expected to be a hindrance.

The West Cedartree Gold Project is located near Sioux Narrows about 70km (42 miles) SSE of Kenora, Ontario. Recent work by Houston Lake has focused on Angel Hill Gold Zone ("AHGZ"). A 20 hole 1139m (3736ft.) diamond drilling program has recently been completed. The program seeks to provide the basis for a resource estimate to a depth of 40m (130 ft.) below the stripped area. Twelve of the 18 holes drilled under the 130m (426ft.) stripped area have returned significant gold values and 5 of these holes intersected grades higher than 1 oz/t Au (see also Table 1). The AHGZ remains open to depth and along strike to the south.

Table 1. Significant Drill Hole Results from the Angel Hill Gold Zone

Termination of Ghost Lake Property Agreement

Houston Lake has made the strategic decision to focus the Company’s current exploration and development efforts on the West Cedartree Gold Project. The Company therefore has terminated it’s 2 year option agreement on the Ghost Lake rare metals property despite the receipt of encouraging results. The 100% option agreement called for the issuance of 150,000 shares, $25,000 in cash subject to a 2.5% NSR and a $10,000 in advance royalty payments. An issuance of 75,000 shares and $12,500 remained to complete the option agreement. The claims are in the process of being returned in good standing to Mr. John Brady of Sudbury, Ontario.

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 16,807,195 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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