HOUSTON LAKE MINING INC.

(HLM-TSX.V)

PRESS RELEASE

Houston Lake Mining Closes $150,000 Financing to Initiate Phase 2 Drilling
of Angel Hill Gold Zone, Geological Crews Mobilizing To Property

October 5, 2004: Sudbury, Ontario - Houston Lake Mining Inc. (TSX.V:HLM, "Houston Lake") is pleased to announce that the Company has raised $150,000 of the proposed $200,000 financing in a non-brokered flow-through private placement subject to regulatory approval. The proceeds of the financing would be utilized to fund a minimum of 700m. (2296 ft.) in a six hole diamond drilling program on the West Cedartree Gold Project.  The Project is located near Sioux Narrows, Ontario. Geological crews are currently being mobilized to the property to begin surface exploration. The drill program is anticipated to commence in the next several weeks.

The company has closed upon 375,000 flow-through common shares at a price of $0.40 per share for maximum gross proceeds of $150,000. The offering is restricted to residents of Ontario, has a hold period of four months and is subject to regulatory approval.  Proceeds will be used for working capital purposes to execute the recommended drill program on the West Cedartree Gold  Project.

Houston Lake has a 100% interest in three contiguous properties covering a total of 635.6 hectares (1569.8 acres) in the West Cedartree Lake area.  The properties are accessed by an all-weather gravel road, which traverses the northern portions of the project area.  Recent work by Houston Lake has largely focused on the Angel Hill Gold Zone (“AHGZ”), one of two gold zones discovered thus far on the project.

The AHGZ occurs within a large gabbro sill at the contact of ultramafic rocks forming the footwall to the gabbroic rocks of the hanging wall.  Higher gold values (up to 81.33 g/t or 2.37 oz/t Au) are associated with discontinuous quartz lenses and pods which tend to be more prolific in wider portions of the zone. The AHGZ can be traced by geophysics for a distance of 2.1km (1.5miles) on the property to encompasses gold-in-soil anomalies and a gold occurrence along its strike extension. The zone remains open to depth and along strike to the south.

Last year, Houston Lake conducted stripping and washing, systematic channel sampling, and detailed mapping over a 130m (426 foot) segment of the AHGZ.  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).  A 20 hole 1139m (3736ft.) diamond drilling program was completed in February, 2004.  Twelve of the 18 holes drilled under the 130m (426ft.) stripped area returned significant gold values and 5 of these holes intersected grades higher than 1 oz/t Au.

The Fall 2004 exploration program is comprised of two components: surface exploration and diamond drilling.  The surface exploration will consist of property-scale geological mapping, channel sampling of new quartz veins uncovered last Spring on the stripped portion of the AHGZ and further clearing and evaluation of old trenches from the historic McLennan Gold Zone.  The diamond drilling program builds upon the systematic drilling completed last winter and seeks to further extend the Angel Hill Gold Zone to depth under the stripped area. A minimum of six drill holes are planned to intersect the AHGZ at an approximate depth of 60m (200ft).  Independent Consulting Geologist Dean R. Cutting, P. Geo. is the Qualified Person for the project and has reviewed this press release in its entirety.

E. Grayme Anthony, President, comments:  “We are encouraged by the results to date on the West Cedartree Gold Project. We estimate that less than 1% of  the potential Angel Hill Gold Zone system has been explored. The size of the alteration package and its projected continuity across the entire property is suggestive of a major gold system.

The Angel Hill Gold Zone mineralization was successfully extended to a depth of 40m (130ft) in last winter’s focused delineation drill program.  Not only has the zone widened with depth but 3 of the 6 deepest drill holes encountered gold grades in excess of 1 oz/t.  We look forward to seeing if this promising trend continues in the upcoming systematic diamond drill program.”

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 17,858,198 common shares issued and outstanding exclusive of the proposed financing. 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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