Mr. Al Shefsky reports

PELE MOUNTAIN ANNOUNCES MAJOR INCREASE IN URANIUM AND RARE EARTH RESOURCES AT ECO RIDGE

Pele Mountain Resources Inc. has released an updated National Instrument 43-101 resource estimate for its Eco Ridge mine project in Elliot Lake, Ont. Pele has completed a positive preliminary economic assessment for Eco Ridge that demonstrates its potential to become a profitable producer of rare-earth oxides (REO) and uranium oxide (U3O8).

Highlights of the updated resource estimate include:

• A 116-per-cent increase to inferred resource tonnage to 36.56 million tonnes at an increased average grade of 0.047 per cent U3O8 and 1,554 parts per million total REO. This includes a 136-per-cent increase in U3O8 to 37.62 million pounds and a 130-per-cent increase in total REO to 125.25 million pounds;
• An 11-per-cent increase to indicated resource tonnage to 22.74 million tonnes at an average grade of 0.045 per cent U3O8 and 1,606 ppm total REO. This includes a 10-per-cent increase in U3O8 to 22.55 million pounds and a 10-per-cent increase in total REO to 80.51 million pounds;
• Expanded higher-grade zones identified for production early in the mine life, which can positively impact project economics;
• Substantial increases in critical REO resources including neodymium, dysprosium, yttrium, terbium and europium oxides, as well as in scandium oxide resources.

Pele president and chief executive officer Al Shefsky stated: "Our recent drilling conclusively demonstrated the downdip continuity of the Eco Ridge deposit and has led to a major increase in NI 43-101 uranium and rare-earth resources at the project. The new and expanded resource estimate marks another important milestone on the pathway to production at Eco Ridge, as we prepare to transition the project into the licensing and feasibility process. The increase in resources also boosts our shareholders' exposure to uranium, critical rare earths and scandium. Recent research from JP Morgan forecasts an increase in the U3O8 price to $90 per pound in 2016, more than double the current spot price. Pele shares have historically provided excellent leverage to sizable increases in the uranium price."

Roscoe Postle Associates (RPA) reports the mineral resources shown in the table for the Main Conglomerate Bed at Eco Ridge.

                  MINERAL RESOURCE ESTIMATE -- JUNE, 2013               

Classification  Tonnes         U3O8           Total REO      U3O8 equivalent  
                  (000)    (%)      (klb)  (ppm)      (klb)    (%)      (klb)

Indicated       22,743  0.045     22,554  1,606     80,510  0.099     49,827 
Inferred        36,560  0.047     37,623  1,554    125,248  0.102     81,842 

1. CIM definitions were followed for mineral resources. 
2. Mineral resources are estimated within the Main Conglomerate Bed (MCB)
at a cut-off value of $90 per tonne. Values were calculated based on prices 
and recoveries of uranium and rare earths, net of rare-earth separation 
costs. 
3. Mineral resources are estimated using an average long-term uranium price
of $70 (U.S.) per pound U3O8, a rare-earth basket price of $55 per kilogram 
(net of separation charges) and a Canadian/U.S. exchange rate of 1 to 1.
4. U3O8 equivalents are calculated by converting rare-earth values (net of
prices, recoveries and separation charges) to uranium values. 
5. A minimum mining thickness of 1.8 metres was used. 
6. Total rare earth oxides include light oxides La2O3, CeO2, Pr6O11 and 
Nd2O3, and heavy oxides Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3,
Tm2O3, Yb2O3, Y2O3 and Lu2O3. Sc2O3 is also included, as it occurs in low 
concentrations and carries high unit values like a heavy rare-earth oxide.

REO price assumptions for the resource estimate were reduced from a basket price of $78 per tonne previously used in the PEA to a revised basket price of $55 per tonne (both net of separation charges). With uranium maintained at a relatively conservative $70 per pound, the combined uranium and rare-earth resources have a uranium-equivalent grade of 0.1 per cent U3O8, which is comparable with the average grade mined during four decades of productive operations in Elliot Lake, and exceeds the grade of several currently producing uranium mines and several major uranium development projects in the world today.

RPA also outlined two higher-grade zones within the MCB that come up to the surface allowing for higher-grade production in the early years of the mine life that can facilitate accelerated repayment of project start-up capital along with improved project economics compared to the PEA (all other things being equal).

RPA reports the mineral resources shown in the table for the higher-grade zones in the MCB at Eco Ridge.

               HIGH-GRADE AREA MINERAL RESOURCES -- JUNE, 2013           

Classification  Tonnes         U3O8           Total REO      U3O8 equivalent  
                  (000)    (%)      (klb)  (ppm)      (klb)    (%)      (klb)

Indicated        8,639  0.055     10,417  1,852     35,279  0.117     22,235 
Inferred        20,866  0.053     24,236  1,715     78,903  0.111     51,260 

1. CIM definitions were followed for mineral resources. 
2. This subset of mineral resources was estimated within a portion of the 
Main Conglomerate Bed (MCB) at a cut-off value of $90 per tonne. Values were 
calculated based on prices and recoveries of uranium and rare earths, net of 
rare-earth separation costs. 
3. Mineral resources are estimated using an average long-term uranium price
of $70 (U.S.) per pound U3O8, a rare-earth basket price of $55 per kilogram 
(net of separation charges) and a Canadian/U.S. exchange rate of 1 to 1.
4. U3O8 equivalents are calculated by converting rare-earth values (net of
prices, recoveries and separation charges) to uranium values. 
5. A minimum mining thickness of 1.8 metres was used. 
6. Total rare earth oxides include light oxides La2O3, CeO2, Pr6O11 and 
Nd2O3, and heavy oxides Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3,
Tm2O3, Yb2O3, Y2O3 and Lu2O3. Sc2O3 is also included, as it occurs in low 
concentrations and carries high unit values like a heavy rare-earth oxide.

The resource wireframe, which contains both indicated and inferred U3O8 and REO resources within the near-surface portion of the MCB, increased by nearly 59 per cent from 37.4 million tonnes to 59.3 million tonnes. The mineral resources at Eco Ridge continue to have excellent potential for expansion with lower-than-normal exploration risk in the historically drilled areas outside of the resource wireframe. To date, infill drilling at Eco Ridge has been 100 per cent successful in upgrading inferred resources to the indicated category in the MCB.

The hangingwall mineralization along with two small lower-grade areas contained in the previous resource wireframe were removed from the resource estimate in order to focus on the higher-grade areas in the MCB. The hangingwall mineralization remains a potential opportunity for future resources and increased mine life.

Elliot Lake is the only mining camp in Canada to have achieved commercial production of REO and was historically the most important source of heavy REO in North America. From 1956 to 1996, Rio Algom and Denison Mines produced more than 300 million pounds of U3O8, along with significant quantities of yttrium and heavy REO, from Elliot Lake deposits similar to the MCB at Eco Ridge.

Pele Mountain is a leader in the race to develop critical rare earths outside of China. Eco Ridge has competitive advantages that may enable its development ahead of other rare earth projects. It is located in Elliot Lake, a proven mining camp featuring outstanding regional infrastructure and enthusiastic local support. Its geology and mineralogy are well understood, and it has very large, expandable, upgradable National Instrument 43-101 resources containing a strategically significant mix of critical rare earths forecast to remain in supply deficit. The project is being advanced by a world-class development team led by Pele's executive vice-president, Roger Payne, PEng, former general manager for Rio Algom in Elliot Lake, and includes RPA, SNC-Lavalin Inc., SENES Consultants Ltd. and Golder Associates Ltd., which have extensive experience in licensing, operating and decommissioning mines in Elliot Lake.

The resource estimate supersedes the previous resource estimate contained in the 2012 PEA. Both the PEA and the updated resource estimate announced today were authored by RPA. The technical information relating to the resource estimate in this press release has been reviewed and approved by Tudorel Ciuculescu, PGeo, of RPA, an independent qualified person under NI 43-101.

We seek Safe Harbor.