HLM

Houston Lake Mining Inc. (TSX.V: HLM)

Highlights:

• Diamond Drill Hole (DDH) PL-010-14 intersected 2.01% Li2O over 60.70 metre (m) from 168.3m to 229 m;
• DDH PL-010-14 includes a 22 m wide lithium zone (Lower Intermediate [LIZ]) averaging 2.46% Li2O from 171 to 193 m;
• DDH PL-010-14 and DDH PL-008-14 increases the deposits strike length from 265m to 400m; and
• Mineralization remains open to depth and along strike to the northwest and southeast.

Houston Lake Mining Inc. (TSX.V: HLM), is a mining exploration company that is specialized in rare-metals and is actively exploring for lithium (Li), tantalum (Ta), rubidium (Rb) and cesium (Cs) by focusing on its high-grade, 100% owned and optioned 4,032 hectare (9,963 acre) PAK Rare Metals Project in Northwestern Ontario, Canada. HLM is pleased to announce the results of five (5) drill holes designed to test along strike from the 2014 Phase II, nine-hole diamond drill program on the Pakeagama Lake pegmatite. The assay and collar data for the 5 holes reported are presented in Tables I and II.

The primary objective of these holes was to test the deposit along strike from previously drilled holes. The intersection summaries for the two drill holes outlined in Table I below have confirmed continuity of the zones. DDH PL-010-14 was drilled ESE of PL-001-13 (Phase I drill program) and extended the strike length by approximately 56m to the ESE and also further defined the bounding contacts with the host rock(s). DDH’s PL-007-14 and 008-14 were drilled WNW of PL-003-14 and although some relative pinching of the pegmatite has occurred the holes have extended the strike length by approximately 110m to the WNW from the current inferred resource estimate. Table I summarizes the lithium, cesium, tantalum and rubidium grades for the two drill holes by mineralogical zones for the pegmatite intersections.

Table I – Core Length Intercepts (Pakeagama Lake pegmatite)

DDH PL-010-14  

Designed to test continuity of zoned pegmatite zones along strike (approx. 56m ESE) ofDDH’s PL-001-13 and PL-009-14 where only overburden is observed from surface.

Zone  

Width (m)

 

Li2O (%)

 

Ta2O5 (ppm)

 

SnO2 (ppm)

 

Nb2O5 (ppm)

 

Rb2O (%)

 

Cs2O (%)

  Geology

Rubidium, Tantalum and Lithium enriched zones

              62.30 – 76.60 m   14.30   n/a 94 37 38 0.95 0.10 CIZ 87.00 – 94.95 m 7.95 1.03 54 72 45 0.47 0.06 LIZ

Lithium, Rubidium and Tantalum enriched zones

168.30 – 229.00 m 60.70 2.01 108 139 65 0.38 0.04 LIZ/WZ including 171.00 – 193.00 m 22.00 2.46 62 82 37 0.43 0.05 LIZ including 193.00 – 227.00 m   34.00   1.82   146   182   87   0.35   0.054   LIZ/WZ  

 

 

 

                                    DDH PL-007 -14  

Designed to test continuity of pegmatite along strike (approximately 56 m WNW of DDHPL-13-003) and collared from NNE.

Zone  

Width (m)

 

Li2O (%)

 

Ta2O5 (ppm)

 

SnO2 (ppm)

 

Nb2O5 (ppm)

 

Rb2O (%)

 

Cs2O (%)

  Geology Pegmatite incl. metasediment and granite sheets/rafts 3.60 - 22.60 m 19.00 1.07 105 427 64 0.24 0.010 Pegmatite including 3.60 - 14.00 m 10.40 1.80 92 77 72 0.33 0.010 LIZ/Aplite Lithium plus Tantalum and Rubidium enriched zones 70.85 – 87.90 m 17.05 1.44 115 72 97 0.14 0.021

Aplite/LIZ/UIZ

including 82.00 - 87.90 m 5.00 2.48 75 104 61 0.22 0.030

LIZ/UIZ

99.00 – 120.25 m 21.25 0.53 188 589 132 0.20 0.040

Aplite/LIZ/Granite/UIZ

including 99.00 - 112.65 m   13.65   0.76   250   899   187   0.25   0.050  

Aplite/LIZ/UIZ/Granite

      DDH PL-009 -14  

Short hole designed to test to the SSE (obliquely) of PL-001-13 to determine if thepegmatite exists beyond the visible surface exposure.

Zone  

Width (m)

 

Li2O (%)

 

Ta2O5 (ppm)

 

SnO2 (ppm)

 

Nb2O5 (ppm)

 

Rb2O (%)

 

Cs2O (%)

  Geology Rubidium, Tantalum and Cesium enriched zones 38.50 - 64.60 m   26.10   0.81   108   242   40   0.78   0.100   CIZ Rubidium enriched zone 42.30 - 54.65 12.35 0.85 84 318 28 1.00 0.110 CIZ 89.25 – 96.50 m 7.25 0.62 53 52 29 0.95 0.100 CIZ Lithium enriched zone 100.35 – 106.50 m   6.15   1.77   131   94   69   0.37   0.060   LIZ       DDH PL-008 -14  

Designed to test continuity of pegmatite along strike (approximately 67 m WNW of DDHPL-007-14) and collared from NNE.

Zone  

Width (m)

 

Li2O (%)

 

Ta2O5 (ppm)

 

SnO2 (ppm)

 

Nb2O5 (ppm)

 

Rb2O (%)

 

Cs2O (%)

  Geology Total Pegmatite   89.00 - 107.00 m   18.00   0.66   271   149   126   0.19   0.130   LIZ/Aplite Tantalum, Lithium and Cesium enriched zones 89.50 –92.00 m   2.50   1.94   829   156   87   0.28   0.640   LIZ/Aplite       DDH PL-014 -14  

A stratigraphic hole designed to delineate the contact between the 2-mica PakeagamaLake granite and the host metasediments (approximately 110 m ENE of DDH PL-010-14).

-No significant results-

(1) The intervals in Table I are drill intersection widths. There is currently insufficient data to determine the true thickness of the pegmatite.(2) Li20 content in the CIZ is predominantly associated with lithian micas and to a lesser extent (if any) in spodumene. Li2O content in the Li enriched zones is predominantly associated with spodumene.n/a = Not applicable

The Upper Intermediate (UIZ), Central Intermediate (CIZ) and Lower Intermediate Zones (LIZ) were previously described in the July 2, 2013 Press Release. Zones of sodic aplite are present in all holes and vary in width from tens of centimetres to several metres, and contain significant concentrations of Ta, Rb and Cs.

Noteworthy observations are that the NNE (footwall) boundary with the metasediments is consistent and predictable while the SSW (hanging wall) contact with the granite is somewhat erratic and complicated by granitic blocks and rafts and appears to have been variably affected (metasomatized) by the pegmatite intrusion event(s). The mineralized pegmatite remains open along strike to the WNW and ESE, and at depth. Granitic blocks/rafts mapped on surface appear to diminish with depth.

“These drill holes were planned with an objective of potentially increasing the strike length of the deposit. The September 24, 2014 press release which positively displayed that the pegmatite’s grade x thickness is persisting with depth, coupled with the results from this press release have increased the overall geometry and should result in a tonnage increase to the maiden resource estimate,” commented Trevor R. Walker, President of HLM. “We are extremely pleased with the overall results from the Phase II diamond drill program and can conclude that the Pakeagama Lake pegmatite is robust with analogous features to the high grade, multi-element, and large tonnage of the prolific Tanco pegmatite in southeastern Manitoba and the Greenbushes pegmatite in Western Australia.”

Table II– Collar Locations for Diamond Drill Hole (DDH)

                      DDHNo   NAD83 (Zone 15N)   Elevation (mASL)   Azimuth   Inclination   Total Depth (m) Easting   Northing PL-010-14 474609 5827807 316.0 020 -45 326 PL-007-14 474417 5828062 320.0 210 -45 140 PL-008-14 474355 5828089 320.9 210 -45 133.6 PL-009-14 474555 5827838 319.5 045 -45 116 PL-014-14 474768 5827885 320.8 007.5 -45 179

The Company also announces that it has granted incentive stock options totalling 450,000 to a consultant. The options are set for a period of five years, expiring on November 11, 2019. The options are priced at $0.135 and are subject to regulatory approval.

The Company also announces that by written consent of the shareholders on September 25, 2014, the resolution proposed was duly passed for the issuance of 2,500,000 common shares relating to a settlement of $200,000 of debt due to a company owned by one “non-arm’s length” individual. The common shares were a part of an aggregate 3,991,000 shares for debt settlement that have now been approved. Following the foregoing issuance of shares in settlement of debt, the Company will have 90,807,595 shares outstanding.

Due Diligence

All scientific and technical information in this release has been reviewed and approved by Peter J. Vanstone, P.Geo., the qualified person (QP) under the definitions established by National Instrument 43-101. Under HLM’s QA/QC procedures, the diamond drill contract specified NQ-sized drill core providing a 47.6 mm diameter sample. The drill holes were oriented perpendicular to the strike of the pegmatite and drilled continuously across it. Sample security and chain of custody started with the removal of core from the core tube and boxing of drill core at the drill site. The boxed core remained under the custody of the drill contractor until it was transported from the drill to the secure on-site Core Shack facility by either the drill contractor or one of the Company’s designated personnel. At the on-site Core Shack, core boxes were opened and inspected to ensure correct boxing and labelling of the core by the drill contractor, photographed and then re-closed. The core was stored securely until moved into the Core Shack for processing. The company geologists logged the core, and then marked and tagged it for sampling and splitting. Each core sample was assigned a tag with a unique identifying number. Sample lengths are typically one meter, but can be less depending on zone mineralogy and boundaries. The Core was then re-closed and shipped to the company’s off-site core splitting facility in Sudbury, Ontario. Core marked for splitting was cut using a diamond core saw with a mounted jig to assure the core was cut lengthwise into equal halves. Half of the core was sent to an analytical laboratory for quantitative analysis of select elements. The remaining half of the core is retained and incorporated into HLM’s secure, off-site core library.

All samples were assayed by AcmeLabs’ (A Bureau Veritas Group Company), an ISO accredited laboratory in Vancouver, British Columbia. Sample blanks along with tantalum, lithium, rubidium and cesium certified reference material was routinely inserted into the sample stream in accordance with industry recommended practices. Field duplicate samples were also taken in accordance with industry recommended practices.

About the PAK Rare Metals Project

The PAK Rare Metals Project lies close to the boundary between two geological sub-provinces of the western Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The deposit is an LCT (lithium- cesium- tantalum) classified pegmatite. These rare types of deposits have been the principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world.

HLM is actively exploring its 100% owned and optioned project which contains the Pakeagama Lake pegmatite. The deposit is one of the highest grade deposits in North America which has a current Inferred Resource of 6.89 million tonnes of 1.86% Li2O Eq. which has a technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3). Within the deposit, the pegmatite uniquely hosts an Upper Intermediate Zone of 1.17million tonnes grading 3.44% Li2O. The pegmatite has a 265m strike length with an estimated width varying from 45 to 125m with a sub-vertical orientation. The resource remains open to depth and along strike to the northwest and southeast. A 9-hole, 1,500m Phase II diamond drill program was completed in late March 2014 and have not yet been considered in a resource calculation.

About Houston Lake Mining Inc.

HLM’s goal is to become a fully integrated lithium and tantalum producer through the development of the PAK Rare Metals Project in Ontario, Canada. The Company's strategy is to take advantage of low-Fe ceramics/glass market as well as the global shift towards electric/hybrid vehicles and high quality consumer electronics by becoming a raw material supplier of the elements required for the pursuit of sustainable energy and other applications in ceramics/glass, high-tech electronics and metal alloys. Combined, HLM’s Board of Directors and Management have over 300 years of finance, exploration and mining experience to help to facilitate the Company’s goal.

HLM has a total of 90,807,595 common shares issued and outstanding. For additional information on HLM, please visit www.houstonlakemining.com.

Company Contact Information

Trevor R. Walker, President

2736 Belisle Drive

Val Caron, ON.

P3N 1B3 CANADA

 

T. +001 705.897.7622

F. +001 705.897.7618

 

Henry J. Kloepper, CEO

T. +001 416.520.0187

Forward-looking StatementsNeither 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.Trevor R. Walker, 705-897-7622PresidentF. +001 705.897.7618orHenry J. Kloepper, 416-520-0187CEO