Mr. Al Shefsky reports

PELE MOUNTAIN ENTERS INTO FUNDING AGREEMENT

Pele Mountain Resources Inc. has entered into a financing agreement with an arm's-length lender. The agreement sets out the terms of a $100,000 loan from the lender to Pele.

The loan bears interest at 6 per cent per annum and will be repaid from the first proceeds realized from the sale of Pele's 1.96 million shares of Kesselrun Resources Ltd.

Pele president and chief executive officer Al Shefsky stated: "In keeping with our previously announced plan to monetize non-core assets, we are partially monetizing our Kesselrun shares through this loan agreement -- providing some immediate cash to the company while retaining significant upside to Kesselrun. These are heavily restricted shares of a junior exploration company, and we believe that this loan is a prudent measure for Pele. It should be clear that we retain all of our Kesselrun shares and will, of course, abide by agreed-to restrictions on their future sale."

As partial consideration for the loan, Pele has agreed to issue 400,000 shares at an attributed value of five cents of the company to the lender, subject to regulatory approval. Upon repayment of the loan, the lender shall retain a 50-per-cent interest in the proceeds of future sales of the Kesselrun shares and a 10-per-cent interest in any proceeds actually received by Pele from the company's royalty on its former Ardeen project.

The loan is subject to approval of the TSX Venture Exchange, and the shares issuable pursuant to the agreement will be subject to a four-month hold.

About Pele

Pele Mountain Resources is focused on the sustainable development of power generation, energy storage and mineral processing in Northern Ontario.

Pele's Eco Ridge project has unique characteristics that make it an attractive development site, including excellent regional infrastructure, strong local support and its strategic location in Elliot Lake, Canada's only historic rare earth mining and processing camp.

We seek Safe Harbor.