Mr. Al Shefsky reports

PELE MOUNTAIN ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Pele Mountain Resources Inc. has closed a non-brokered private placement offering comprising 2,134,180 flow-through units at a purchase price of five cents per FT unit for aggregate gross proceeds of $106,709 and 5.25 million units at a price of five cents each for aggregate gross proceeds of $262,500. The total amount raised under the offering was $369,209.

Each FT unit consists of one common share and one common share purchase warrant, with each FT warrant exercisable to acquire one common share of Pele at seven cents until May 20, 2017. 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 five cents until Nov. 20, 2018.

Five directors of the company purchased an aggregate of $257,700 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 Security Holders in Special Transactions (MI 61-101), 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 eligible persons a cash fee of 7 per cent of the gross proceeds raised through each finder under the offering and also issued compensation warrants equal to 7 per cent of the total number of units issued through each finder under the offering. Each compensation warrant entitles the holder upon exercise to acquire one common share of Pele at five cents until Nov. 20, 2016. On closing, the company paid $2,800 in cash fees to the finders and issued 56,000 compensation warrants to the finders.

All proceeds raised from the sale of FT units will be used by Pele to finance qualified Canadian exploration expenditures on its Canadian resource properties, and 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.

We seek Safe Harbor.