HLM Enters Definitive Agreement with North American Palladium with the Option to Purchase its Tib Lake PGE Property

Houston Lake Mining Inc. (TSX.V: HLM) (HLM), announces that it
has signed a definitive agreement with North American Palladium Ltd.
(TSX: PDL, NYSE Amex: PAL) whereby North American Palladium (NAP)
has the option to purchase HLM′s Tib Lake Platinum Group Elements (PGE)
property with completion of cash payments and exploration expenditures.
The property is located 15 km from NAP′s Lac des Iles (LDI) mine and
15,000-tonne per day mill complex, located north of Thunder Bay,
Ontario. The PGE property covers the second largest intrusion in the LDI
mining district and also contains significant PGE exploration targets.

The agreement provides NAP with an option to earn a 100% interest in the
2,464-hecatre Tib Lake PGE property from HLM after making staged
payments totalling CAD$450,000 to HLM and incurring exploration
expenditures of CAD$1.6 million over five years.

Upon completion of the earn-in, the property will have a residual 2.5%
net smelter return royalty (NSR) in favour of a third party or HLM
(depending on the claim). HLM will also retain the right to buy back 1%
of the third party NSR for CAD$1 million and to purchase the remaining
1.5% of the third party NSR on such terms and conditions that the two
parties may agree on. On claim areas where HLM is a royalty holder, NAP
will have the right to purchase 1% of the NSR for CAD$1 million.

'HLM is very pleased to have an agreement with such a well respected,
mining company as North American Palladium, and we look forward to the
forthcoming exploration on the property,? said Rick Walker, Chairman of
HLM. 'North American Palladium′s PGE mining expertise and exploration
track record in discovering high-grade mineralization, coupled with
available capacity at their LDI mill only 15 km away, provide a unique
opportunity for the Tib Lake PGE Property′s progress and to all
stakeholders of the asset should an economic deposit be discovered.?

About Houston Lake Mining Inc.

HLM is an advanced mining exploration company that is actively exploring
for rare metals, through focus on its 100% owned and optioned Pakeagama
Rare Metals Project in northwestern Ontario, Canada. HLM has a
significant interest with platinum group elements and gold, also in
northwestern Ontario. Houston Lake′s corporate objective is to become a
producer either through developing its 100% owned and optioned
properties or through acquisition of economic, late stage, small to
medium size deposits. HLM has a total of 54,119,056 common shares issued
and outstanding. For additional information, please visit us at www.houstonlakemining.com.

Forward-looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed
'forward-looking statements?. All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially
from those in forward looking statements include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and those actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
Investors should review the Company′s registered filings what are
available at www.sedar.com.

Houston Lake Mining Inc.

Henry J. Kloepper, CEO

T.
+001 705.897.7622

F. +001 705.897.7618