Increasing the Size of the Company's Pakeagama Rare Metals Project in North Western Ontario

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FSC / Press Release


Houston Lake Mining Announces Acquisition of Rare Metals Properties, Increasing the Size of the Company's Pakeagama Rare Metals Project in North Western Ontario


Sudbury, Ontario CANADA, January 18, 2011 /FSC/ - Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTCBB_Pink_Sheets), is an advanced exploration company which has prospected and strategically acquired contiguous gold, rare metals and platinum group elements projects with the objective of transitioning into production. HLM is pleased to announce the execution of an option of prospective and adjacent rare metal properties in order to substantiate the Company's controlled land position and size of the Pakeagama Rare Metals Project located in the Red Lake Mining District of northwestern Ontario, Canada. Houston Lake now holds a 100 percent interest in 1,024 hectares (2,530 acres) of mining claims at its Pakeagama Rare Metals Project. This land position covers all known exposures of the Pakeagama rare metals pegmatite. All four properties are subject to a 2.5 percent Net Smelter Royalty ("NSR").


Subject to regulatory approval Houston Lake will issue 600,000 common shares and pay $135,000 over the course of 5 years without exploration expenditure guarantees to earn a 100 percent interest from two private individuals. The 3 properties optioned cover the strong potential of a south to east extension of the Pakeagama rare metal pegmatite.


"Strong market interest in rare metals has made our Pakeagama Rare Metals Project the chief focus of a staking rush north of Red Lake," said Trevor R. Walker, President. "We believe that we hold the key ground identified by the Ontario Geological Survey (OGS) in their 1998-1999 rare metals evaluation of the region and are happy to have optioned grounds that strongly suggest the extension of the known mineralized pegmatite. High grade cesium, tantalum, rubidium and lithium oxide values have been reported in the Core Zone of the exposed pegmatite which is open in all directions on our project." Pakeagama Rare Metals Project's rare metals and their applications can be viewed at .


While our primary goal has recently remained fixed on advancing our West Cedartree Gold Project, the market interest in rare metals affords the company an opportunity to illustrate the outstanding value thought to be contained in the Pakeagama Rare Metal Project. Independent geologists have indicated that this is a highly prospective target containing rare metal signatures similar to the Tanco Mine, located in neighbouring southeastern Manitoba. Cesium is produced primarily from the Tanco mine owned by Cabot Corporation which in the mid-1990's, accounted for approximately 82% of the reported world reserves. Current world-wide demand is difficult to estimate, but internal best estimation predicts that 500,000 - 3,000,000 pounds per year is produced whereas the chemical and oil industries consume the majority of the supply. Prices have remained stable for the past several years at $US1000/tonne for a minimum 24% cesium oxide concentrate.


The exposed Pakeagama Lake pegmatite is host to the known rare metals mineralization on the project. Initial work on the pegmatite by the OGS and The Open University of the United Kingdom consisted of two field seasons of study, 1648 electron microprobe analyses, 50 bulk chemical analyses, 21 analyses of potassium feldspar and X-ray diffraction work conducted upon 30 samples. Initial channel sampling of the Core Zone yielded 13.9 metres grading 4.62% lithium oxide. The results of these studies have been published by the OGS (Open File Report 6000, Summary of Field Work and Other Activities, November, 1999, pp. 26-1 to 26-12). The Summary Report concludes: "The detailed documentation of a variety of tantalum-rich minerals coupled with the presence of pollucite renders the Pakeagama Lake pegmatite and adjoining area one of the best targets for tantalum and cesium exploration in northwestern Ontario."


Exploration work by Houston Lake to date on the project has consisted of 25.4 km of line-cutting, magnetic and VLF-EM surveys, detailed and property scale geological mapping, stripping and channel sampling. This work has exposed the pegmatite for over 280 metres along strike and in the absence of targeted exploration, it is unknown whether a 700 g/t tantalum oxide showing on the shore of Pakeagama Lake is part of the main Pakeagama Lake pegmatite thereby extending the strike length up to 580 metres or the possibility of an additional pegmatite on the property. Further stripping work has expanded the width to over 125 metres. An adjacent lithium-cesium anomaly may indicate a potential width of 160 metres. These dimensions make the Pakeagama Lake pegmatite one of the largest rare metal petalite pegmatites in Ontario. The pegmatite remains open along strike in all three directions. Channel sampling of an 11.0m section of the Northern Wall Zone averaged 1.21% lithium oxide, 0.53% rubidium oxide, 958 g/t cesium oxide, 222 g/t tantalum oxide, 1259 g/t beryllium oxide, 107.0 g/t niobium oxide, 56 g/t gallium, 8.1 g/t germanium, 35.8 g/t thallium, and 120 g/t tin. A $600,000 diamond drill exploration program is recommended by an independent geological consultant to advance the project.


Due Diligence


All sample values reported were analyzed by Activation Laboratories of Ancaster, Ontario using neutron activation for cesium, rubidium, and tantalum, multiacid digestion ICP for lithium, XRF pressed pellet for niobium and tin, lithium metaborate/tetraborate fusion for thallium, gallium, beryllium and germanium. Check assays were analyzed by SGS XRAL Laboratories of Toronto, Ontario.


Peter Vanstone, P. Geo., is the Qualified Person under the guidelines of NI 43-101 for the technical aspects of this news release.


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 49,432,637 common shares issued and outstanding. For additional information, please visit us at http://www.houstonlakemining.com/">www.houstonlakemining.com.


Company Contacts

Houston Lake Mining Inc.

Trevor R. Walker, MBA

President

Tel: 705.897.7622 Fax: 705.897.7618