HLM Announces Sale of its West Cedartree Gold Project to Coventry Resources Limited

Houston Lake Mining Inc. (TSX.V: HLM) ('HLM?), today announced
that it has signed a binding Letter of Intent to sell 100% interest in
its 1,675 hectare West Cedartree Gold Project (WCGP) to Coventry
Resources Limited (ASX:CVY) ('Coventry?) which owns the Cameron Gold
Project which hosts in excess of one million ounces, located 12km away.
Under terms of the agreement, HLM will receive total consideration
currently valued at approximately $1 million, allocated as follows (all
currency amounts in Canadian dollars, unless otherwise indicated):

• 
  $100,000 on execution of the binding Heads of Agreement (completed);
  

• 
  $400,000 in cash, on completion of due diligence and execution of a
  Definitive Sale and Purchase Agreement (the 'Agreement?).
  

• 
  7.7 million Coventry shares, representing 3.6% of the currently
  outstanding shares of Coventry (on execution of the Agreement and
  subject to applicable securities/regulatory/exchange approval).
  Coventry shares closed on the ASX at AU$0.073 on June 26, 2012); and,
  

• 
  A 2.5% net smelter return ('NSR?) royalty on the West Cedartree Claim
  Block, representing 20% of the West Cedartree Gold Project′s total
  area, including the newly discovered Robertson Gold Zone. The NSR will
  not have a buy-back clause.
  

'HLM is very pleased to have taken a significant step with such an
aggressive, capable and well respected exploration company as Coventry
and believe that they have the desire to move their project to
production to the benefit of both companies, and the West Cedartree Gold
Project? said Henry J. Kloepper, CEO of HLM. 'Coventry′s exploration
expertise and significant Cameron Gold Project asset, coupled with their
strong financing capabilities provide the opportunity for HLM
shareholders to capture value with cash and liquid assets in order to
refocus on its Pakeagama Lake Rare Metals project in Northwestern
Ontario; to retire some outstanding debt; and to continue to participate
in the upside of Cameron Gold development and ultimately gold
production.?

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. Looking forward,
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 deposits. HLM has a total of
54,119,056 common shares issued and outstanding. For additional
information, please visit 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