HOUSTON LAKE MINING INC.

(HLM-TSX.V)

PRESS RELEASE

$200,000 Financing Proposed for Additional Drilling
on Houston Lake’s Angel Hill Gold Zone

September 1, 2004: Sudbury, Ontario - Houston Lake Mining Inc. (TSX.V:HLM, "Houston Lake") is pleased to announce that the Company intends to raise $200,000 in a non-brokered flow-through private placement financing subject to regulatory approval. The proceeds of the financing would be utilized to fund a 1000m. (3280 ft.) drill program on the West Cedartree Gold Project.The Project is located near Sioux Narrows, Ontario. The drill program is anticipated to commence upon closing subject to drill availability.

The company proposes to offer up to a maximum of 500,000 flow-through common shares at a price of $0.40 per share for maximum gross proceeds of $200,000. The proposed offering is restricted to residents of Ontario, would have a hold period of four months and is subject to regulatory approval.The financing utilizes Super Flow-through shares, which include tax-based incentives of 100 percent of the Proceeds will be used for working capital purposes to execute the recommended 1000m. (3280 ft.) 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 with gabbro 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 recommended 1000m (3280 ft) drill program seeks to further extend the Angel Hill Gold Zone to depth under the stripped area and builds upon the systematic drilling completed last winter. Independent Consulting Geologist Dean R. Cutting, P. Geo. is the Qualified Person for the project.

E. Grayme Anthony, President, comments: “We continue to be pleased by the results to date on the West Cedartree Gold Project. The McLennan Gold Zone has yielded encouraging results from this summer’s preliminary trench sampling program. 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 this 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 16,900,195 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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