November 20, 1997: Calgary, Alberta - Inca Mining Corp. ("Inca") and Houston Lake Mining Inc. ("Houston") jointly announce the discovery of a new high-grade gold-bearing shear zone on the McLennan Claims ("McLennan"), which form part of the Dogpaw Group of Properties located in Kenora, Ontario.

The new shear zone (areas 1, 4 & 5, map provided) measuring about 800m (2,625') long and up to 20m (68') wide is located approximately 300m (984') east of the McLennan shear zone and trends in a near north-south direction. The discovery zone lies in the northern part of the exposure and is open along strike in both directions. The shear zone which measures from 10m (34') to 20m (68') wide is hosted within gabbro and contains up to 5% pyrite , 15% fuchsite, and is locally highly altered (silicification, hematitization & ankeritization). A total of twenty-six samples were selected over the shear zone. Only five of the samples, which were chipped, were taken over a width of 1.2m (3.94') within the 20m (68') wide portion of the shear. The five samples, which are representative of the 1.2m (3.94') width and are the only significant results, ranged from 29.84 g/t - 74.62 g/t (0.87 oz/t - 2.18 oz/t) and are shown in the table below:

The McLennan shear zone (areas 2, 3, 6 & 7 as seen on the map) which measures from 2m (6.6') to 7m (23') wide can be traced on surface for approximately 800m (2,625') and parallels the new shear zone. The McLennan shear zone is hosted within the same gabbroic sequence but is at or near the volcanic contact to the east. Fifteen chip samples were taken across this zone and averaged 2.74 g/t gold across 7.0m (0.08 oz/t gold over 23'). Nine of the fifteen samples yielded values over 2 g/t (0.06 oz/t), the highest giving 6.52 g/t (0.19 oz/t).

On the Dogpaw claims where Inca and Houston each have the right to earn 35% from Canadian Arrow Mines Limited, 18 grab samples were taken in area 9 which locally surrounds the area of the pit. Eight of the samples returned gold grades of greater than 1 g/t (0.03 oz/t). One sample returned a grade of 5.98 g/t (0.17 oz/t). Mineralization consists of up to 12% disseminated pyrite. These samples are located within a highly altered and sheared gabbroic unit. Alteration consists of silicification and ankeritization, and subordinate fuchsite.

Management will soon be planning the next phase of work which will be announced once the program has been outlined.

ARROW PROJECT UPDATE
Mapping, trenching and 60km of Induced Polarization ("IP") and Magnetometer ("Mag") surveys have identified previously unknown structures on the Arrow Project (two maps provided).

A new zone has been discovered on lines 11+00W, 11+50W and 12+00W which returned gold values as high as 8.48 g/t (0.25 oz/t). This zone is located approximately 400m (1,312') west-northwest of the pit area. This new discovery is directly associated with an 800m (2,625') long IP anomaly trending 120o Az. The trenched area exposed the syenite in contact with the volcanics. The contact zone contains up to 20% disseminated pyrite ("Py"), moderate to strong hematitization ("Hem") and weak to strong silicification ("Sil"). The rocks display a stockwork comprised of numerous fractures healed with quartz stringers and veinlets. The table below summarizes the most significant assays from grab samples representative of the new zone:

Diamond drilling is ongoing and the trenched areas which returned significant gold assays are being tested as well as the best geophysical targets. As can be seen on the map provided, there are several continuous IP anomalies, the most significant being the 1.3 km (0.80 mile) IP zone located between the Arrow pit on Line 9+00W and the former Vimy mine on Line 4+00E. The IP survey is used to identify disseminated sulphide zones and the Mag survey is used to identify geological contacts and structures which may act as geological traps for the deposition of gold deposits.

The common shares of Inca Mining Corp. (IM and IM.wt) and Houston Lake Mining Inc. (HLM and HLM.wt) trade through the facilities of the Alberta Stock Exchange.

Joel Scodnick, President Houston Lake Mining Inc. Tel: (705) 897-7622 Fax: (705) 897-7618 e-mail: scodnick@vianet.on.ca

Joel Scodnick, President Inca Mining Corp. Tel: (705) 897-7622 Fax: (705) 897-7618 e-mail: scodnick@vianet.on.ca