Mr. Al Shefsky reports

PELE MOUNTAIN MOU WITH SKN GAINS SUPPORT FROM ALL THREE LEVELS OF GOVERNMENT IN CANADA

Pele Mountain Resources Inc. expressed its appreciation today to federal, provincial and city government representatives for supporting the memorandum of understanding that Pele recently entered into with Sheng Kang Ning (Shanghai) Mining Investment Co. Ltd. (SKN). SKN is a subsidiary of Shenghe Resources Holding Co. Ltd., a global leader in rare earth mining, processing and downstream value-added processing (please see Pele's press release of March 30, 2015).

On April 22, Pele representatives travelled to SKN's headquarters in Nanjing, China, for an official MOU signing ceremony with Ontario's Minister of International Trade, the honourable Michael Chan, and ministry officials in attendance.

Minister Chan stated: "Ontario is very keen about this agreement. Having rare earth processing in Elliot Lake, Ont., Canada, makes sense. Having a Chinese partner use its advanced technology to bring rare earth products to the world makes sense too. On behalf of Premier Kathleen Wynne and Northern Development and Mines Minister Michael Gravelle, I want to wish you success with today's MOU."

Additionally, letters of support to SKN and Shenghe were delivered from the Mayor of Elliot Lake, Dan Marchisella, the local member of provincial parliament, Michael Mantha, and the federal member of parliament, Carol Hughes.

Al Shefsky, president and chief executive officer of Pele, stated: "We deeply appreciate the support and encouragement we are receiving from all levels of government for our MOU with SKN. We are especially grateful to the government of Ontario for Minister Chan's visits with SKN and Shenghe in China this year and his ongoing efforts in support of our proposed development of integrated rare earth processing operations in Elliot Lake."

Pele and SKN are pursuing opportunities to jointly develop rare earth processing facilities including downstream value added processing facilities at Pele's Eco Ridge property in Elliot Lake. The objective of both Pele and SKN for the proposed joint venture in Elliot Lake is to source, process, separate and market rare earths, subject to receipt of all required regulatory approvals.

SKN and Shenghe possess proprietary technologies for environmentally sustainable, low-cost, rare earth processing, and have the expertise and experience to design, build and operate integrated rare earth processing facilities and downstream value-added processing facilities.

We seek Safe Harbor.