Mr. Al Shefsky reports

PELE MOUNTAIN ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Pele Mountain Resources Inc. has closed a non-brokered private placement offering comprising 8,012,200 units at a price of five cents each for total gross proceeds of $400,610. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable to acquire one common share of Pele at seven cents until April 13, 2018.

Six directors of the company purchased a total of $83,510 of the securities issued pursuant to the offering, and declared a conflict and recused themselves from voting on the offering. There was no materially contrary view or abstention by any director approving the offering. Pursuant to Multilateral Instrument 61-101, protection of minority securityholders in special transactions, the purchase by the purchasing directors was a related-party transaction, but the corporation was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the offering.

In connection with the offering, the company paid to one eligible person a cash fee of $1,400, representing 7 per cent of the gross proceeds raised through the finder under the offering. The company also issued 28,000 compensation warrants to the finder, which represents 7 per cent of the total number of units issued through the finder under the offering. Each compensation warrant entitles the holder upon exercise to acquire one common share of Pele at five cents until April 13, 2016.

All proceeds raised from the sale of units will be used by Pele for general working capital purposes. The securities issued pursuant to the offering will all be subject to a four-month statutory hold period commencing from the date of issuance. The offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.