Houston Lake Mining Raises $800,000 In A Flow-Through Private Placement

Sudbury, Ontario CANADA, Aug 25, 2008 (Filing Services Canada via COMTEX) -- Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTCBB_Pink_Sheets), is pleased to report it has completed a $800,000 offering that will be used to continue exploration activities at its West Cedartree Gold Project in Ontario.

The funds were raised through the sale of 1,333,333 flow-through units priced at $0.60 per unit in a non-brokered private placement, subject to regulatory approval. Each unit consisted of one flow-through common share and one half of one common share purchase warrant. Each whole warrant is exercisable into one common share at an exercise price of $0.70 for 24 months from closing.

Proceeds from the offering will finance ongoing exploration activities at Houston Lake's 100% owned and 100% optioned gold properties near Kenora, Ontario. The Company has eight contiguous properties that comprise its West Cedartree Gold Project. In April, management concluded a highly successful winter diamond drill program at the Dubenski property, and a new round of drilling is under way at the Dogpaw Lake property.

"With the closing of this financing we are now well positioned to continue our aggressive exploration on our West Cedartree Group of properties," said Grayme Anthony, President and CEO. "Drilling continues to expand the potential gold resource on the Dogpaw Lake property and we look ahead to further drill definition of gold mineralization at Dubenski."

All securities issued in connection with this financing have a hold period of four months. A finder's fee of $64,000 (8% of the gross proceeds) and 106,666 agent's options (8% of the total issuance) were paid pursuant to the offering. Each agent's option is exercisable at an exercise price of $0.70 into one common share and one broker warrant for a period of two years, with each broker warrant exercisable at a price of $0.70 into one common share for a period of two years.

About Houston Lake Mining Inc.

Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group metal and rare metal deposits in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake's objective is to become a gold producer by surface mining its West Cedartree gold project and developing its 100% owned and optioned properties. The Company has a total of 29,435,246 common shares issued and outstanding exclusive of the announced financing. For additional information, please visit us at www.houstonlakemining.com.

Company Contacts

Houston Lake Mining Linx Partners Ltd.

E. Grayme Anthony P.Geo., MBA Wanda Cutler President and CEO

Tel: 705-897-7622 Tel: 416-303-6460

Fax: 705-897-7618

ganthony@vianet.on.ca