Mr. Al Shefsky reports

PELE MOUNTAIN ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Pele Mountain Resources Inc. has closed a non-brokered private-placement offering comprising 4,155,000 flow-through units at a purchase price of five cents per flow-through unit for total gross proceeds of $207,750 and 6,049,000 units at a price of five cents each for total gross proceeds of $302,450. The total amount raised under the offering was $510,200.

Each flow-through unit consists of one common share and one common share purchase warrant, with each flow-through warrant exercisable to acquire one common share of Pele at seven cents for a period of 18 months from the date of issuance. 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 for a period of 36 months from the date of issuance.

Three directors of the company participated in the offering, either directly or through related companies, and purchased a total of $255,200 of the securities issued pursuant to the offering. The applicable participating directors 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 certain of the participating 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 for a period of one year from the date of issuance. On closing, the company paid $5,600 cash fees to the finders and issued 112,000 compensation warrants to the finders.

All proceeds raised from the sale of flow-through 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.