HOUSTON LAKE MINING INC.

(HLM-TSX.V)

 

PRESS RELEASE

 

Houston Lake to Commence Exploration on Three Projects

 

May 29, 2002: Sudbury, Ontario - Houston Lake Mining Inc. (CDNX:HLM, "Houston Lake") is pleased to announce that the Company will be active on all its projects this summer. Preliminary evaluation of the McLennan and Jesse (North) gold properties in the Kenora Mining District of Ontario is targeted for early June. Follow up exploration is also expected to start in June on the Pakeagama Lake rare metals project situated in the Red Lake Mining District of Ontario. Preliminary exploration is slated to begin later this week on the Ghost Lake tantalum project located near Dryden, Ontario.

McLennan and Jesse (North) Gold Project

Houston Lake has maintained a 45% ownership interest and recently obtained an option on the remaining 55% in the 139.6 hectare (345 acre) McLennan Gold Property subject to a 1.5% NSR. Houston Lake also has the right to earn a 100% interest in the 144 hectare (355.7 acre) Jesse Gold Property subject to a 2.5% NSR which adjoins the southwestern boundary of the McLennan Gold Property. Historic work had focused on the McLennan Shear Zone at the northerly-striking contact of mafic volcanics with a large gabbro body. Assessment files record highlights in trenching results of 2.74 g/t Au over 7.0 m. (.080 oz/t Au over 23.0 ft.) and 5.34 g/t Au over 5.0 m. (.156 oz/t Au over 16.4 ft.) and in drilling results of 3.06 g/t Au over 4.57 m. (.089 Au oz/t over 15.0 ft.) along the volcanic/gabbro contact. In 1997 a new 10 to 20 metre wide shear zone internal to the gabbro was identified with a strike length in excess of 800 metres (2624 feet). In 1997 results of 44.76 g/t Au over 1.2 m. (1.305 oz/t Au over 3.9 ft.) were reported from trenching over this new shear zone in the northern portion of the property. Subsequent sampling of a stripped area located approximately 100 metres to the north along the same shear structure returned 9.99 g/t Au over 4.8 metres (.291 oz/t Au over 15.7 ft.) which included 43.78 g/t Au over 1.0 metres (1.277 oz/t Au over 3.3 ft.). The extension of the new shear zone into the southern portions of the McLennan Gold Property did see limited exploration in 1997 but did not report significant gold values. Houston Lake plans to further evaluate the mineralized shear zones with an initial channel sampling program.

Pakeagama Lake Rare Metals Project

The Company’s 100 percent-owned 768 hectare (1897 acre) Pakeagama Lake rare metals property and covers all known surface exposures of the Pakeagama Lake pegmatite. Preliminary work carried out by the OGS and expanded upon by Houston Lake has determined that the Pakeagama Lake pegmatite is already the second largest complex-type, petalite sub-type in Ontario with a strike length of over 280 metres open in both directions and a width of up to 125 metres. The rare metals mineralizing system may extend for over 610 metres along strike to the 700 g/t tantalum oxide showing on the shore of Pakeagama Lake. Channel sampling perpendicular to the strike of the Northern Wall Zone of the Pakeagama Lake pegmatite has returned 1.21 percent lithium oxide, 0.53 percent rubidium oxide, 0.10 percent cesium oxide, 222 g/t tantalum oxide, 107.0 g/t niobium oxide, 0.13 percent beryllium oxide, 35.8 g/t thallium, 56 g/t gallium, 8.1 g/t germanium and 120 g/t tin over 11 metres. Channel sampling across the Core Zone yielded 13.9 metres grading 4.62% lithium oxide. A soil geochemical program is planned to begin in June to further define the known limits of the Pakeagama Pegmatite towards the 700 g/t tantalum oxide showing on the shore of Pakeagama Lake.

Ghost Lake Tantalum Project

Houston Lake has an option to earn a 100 percent interest in the 464 hectare (1188 acre) Ghost Lake tantalum property which covers the Boundary Zone which spans over 3.2 km (2.0 miles) of a newly defined extension of the Cat Lake - Winnipeg River Pegmatite Field, one of most important domains of rare metal (tantalum) mineralization in the Canadian Shield and host to the world-class Tanco tantalum mine. Significant rare element mineralizing systems with appreciable values of tantalum, cesium, beryllium, rubidium and tin have been previously identified during work conducted by the Ontario Geological Survey ("OGS") over the property. Reported values of the OGS include 186 g/t (0.019%) tantalum oxide and 115 g/t (0.012%) tin (E. Berger, 1990) and 179 g/t (0.018%) tantalum oxide (F. Breaks, 1991). The potential of the Ghost Lake property is emphasized by an elevated tantalum to niobium ratio of approximately 3:1 which approaches that of the Company’s Pakeagama Lake tantalum mineralizing system. Pronounced and broad lithium (holmquistite) and boron (tourmaline) anomalies are traceable for over 650 metres (2100 feet) on the Ghost Lake property and have been found elsewhere to be important pathfinders to rare metal (tantalum) mineralization. A preliminary exploration program will begin this week and will involve line-cutting, geophysical surveys and prospecting.

Corporate Update

Houston Lake has received $100,000 in cash payments from Agnico-Eagle Mines Limited (TSE:AGE, NYSE:AEM "Agnico-Eagle") in accordance with the Tib Lake Option Agreement (see Joint Press Release dated March 8, 2002). Under the first year option requirements Agnico Eagle is required to spend $500,000 in exploration on the 1632 hectare (4030 acre) Tib Lake property which is located in the Thunder Bay Mining District of NW Ontario and will be the Operator. The Tib Lake property is located in the Lac Des Iles area just 15 km. (9 miles) from the Lac Des Iles mine of North American Palladium Ltd. At December 31, 2001, the total proven and probable reserves, and measured and indicated resources at the Lac Des Iles mine had increased to 159 million tonnes averaging 1.55 grams of palladium per tonne containing 8.0 million ounces of palladium. The Tib Lake gabbro is the second largest intrusion of the Lac Des Iles suite of rocks and, as such, is a prime target for palladium-platinum-gold exploration.

Houston Lake is pleased to report that the Company has reached settlement on a claim made against it. Under the settlement agreement Houston Lake is required to make a cash payment of $85,000 and issue 75,000 common shares subject to regulatory approval.

Houston Lake is actively exploring for Gold, Rare Metals, and Platinum Group Metals with a strategic focus on northwestern Ontario. Houston Lake Mining Inc. has a total of 15,250,695 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 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.
Tel: (705) 897-7622
Fax: (705) 897-7618
e-mail: houston@vianet.on.ca
Web Site: www.houstonlakemining.com

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



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