Houston Lake Mining Inc.

Annual Report:

Income Statement: As of Mar. 31 Thou. US Dollar	2007	2006
Revenues	115
Costs & exps.	553	198
Depr. & amort.	13	4
Interest exp.	1
Income tax	(471)	(107)
Net income	149	(95)
Share earns. basic	$0.01	($0.01)
Share earns. diluted	$0.01	($0.01)

Balance Sheet: As of Mar. 31 Thou. US Dollar	2007	2006
Assets:
Cash & equiv.	1,183	140
Accts. rec., net	47	32
Prepaid expenses		25
Tot. curr assets	1,230	197
Invstmt. in mining props.	3,326	2,066
Net property	65	10
Total assets	4,621	2,273
Liabilities:
Accts. pay. & accruals	319	282
Tot. curr. liabs.	319	282
Com. stk. n.p.	6,868	4,822
Paid-in cap.	681	566
Retained earns.	(3,248)	(3,397)
Total Stockholders' Equity	4,302	1,991
Total liabs.	4,621	2,273
Common Shares (Thou.)	24,144	19,867