September 5, 2000: Sudbury, Ontario - Houston Lake Mining Inc. ("Houston Lake") is pleased to report that the Company has selected a drilling company from a number of tenders received and a drill expected to be on the Tib Lake Palladium Property by early next week. Geological consultants will mobilize in advance of the drill. The $110,000 first closing will yield sufficient funds to enable the completion of the 1000 metre (3280 foot) diamond drilling program and allow the as yet unexplored eastern third of the 1632 hectare (4030 acre) property to be prospected. Houston Lake has earned a 100 percent interest in the property subject to a 2.5 percent Net Smelter Royalty with a buyback of 1 percent for $1,000,000.

Houston Lake has received conditional approval from the Canadian Venture Exchange for the $150,000 proposed financing announced on July 20, 2000. The Company will issue 275,000 Units priced at $0.40 in the first closing which was announced on August 16, 2000. Each Unit consists of one Flow-through Common Share and one-half Purchase Warrant. One full warrant can be exercised at $0.50 for a period of eight months. The private placement has a four month hold period subject to Alberta and Ontario resale restrictions of twelve months and eighteen months respectively.

The Tib Lake property was recently visited to verify targets generated in previous geological mapping, magnetic and IP (Induced Polarization) geophysical surveys, and stripping programs. Independent consulting geologist, Ken Germundson, PhD and Company president, E. Grayme Anthony, P. Geo., F.G.A.C. identified an extensive area containing heterogenous gabbro and gabbro breccia extending about 2.5 kilometres (1.5 miles) from the Jewelweed palladium occurrence to the Kuhner palladium occurrence. This zone may reach over 500 metres (1640 feet) at its widest extent and is similar to that noted at the Roby Zone of the nearby Lac Des Iles mine of North American Palladium Ltd. Sulphide liquation, magma mixing, and volatile flushing are important ore-forming processes identified in platinum-palladium mines elsewhere in the world. These processes have been interpreted within this heterogenous gabbro/gabbro breccia rock unit, attesting to the potential of the Tib Lake property.

The diamond drilling program will consist of six drill holes and total approximately 1000 metres (3280 feet). The program will target similar geophysical responses to that registered within the heterogenous gabbro/gabbrobreccia rock unit at the Kuhner occurrence, the site of the 1995 drill hole TL95-09 which intersected a core length of 18.47 metres grading 1.68 g/t PGE’s (60.6 feet grading 0.05 oz/t PGE’s). Prospecting will explore the vicinities of four other IP target areas announced on April 5, 2000. In addition, the property will receive prospecting coverage to confirm the extension of favourable rock units noted on Ontario Geological Survey maps to the east of the Kuhner occurrence. If confirmed, an additional 2 kilometres (1.2 miles) of strike length would be added to the existing 2.5 kilometre (1.5 mile) strike length of the heterogenous gabbro/gabbro breccia unit on the Tib Lake Palladium Property.

Houston Lake has cancelled a proposed financing announced on May 3, 2000 involving the maximum issuance of 250,000 units at a price of $1.20 per unit for maximum gross proceeds of $300,000. Each unit consisted of one flow-through common share, one non-flow-through common share and a purchase warrant exercisable at $0.70 for a period of one year and $0.80 for the second year.

The Company has granted to directors and employees of the Corporation incentive stock options in the amount of 250,000 common shares at an exercise price of $0.36. This represents a 25 percent discount to the previous day’s closing price of $0.47 and is subject to a one year hold period.

Houston Lake is actively exploring for rare metals, platinum group metals and gold in northwestern Ontario. Houston Lake Mining Inc. has a total of 12,612,432 common shares issued and outstanding inclusive of the first closing. The common shares of Houston Lake Mining Inc. trade through the facilities of the Canadian 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