Mr. Rob Scargill reports

PELE MOUNTAIN PROVIDES BUSINESS UPDATE

Pele Mountain Resources Inc. has provided a business update on the company's capital restructuring and its decision to proceed with the non-binding letter of intent announced on June 1, 2017.

Pele has engaged with all of its significant creditors regarding the capital restructuring and a potential equity-for-debt conversion and, over all, has received supportive responses. The final terms for any conversion will be subject to TSX Venture Exchange approval, and further information will be provided about the shares-for-debt transactions in a future news release.

As announced in June, Pele has entered into a non-binding letter of intent with Enirgi Group Corp. as a new strategic direction for the company. Within North America, Enirgi Group is actively developing opportunities for the application and licensing of its direct extraction process (DXP) technology, which produces lithium directly from raw, unconcentrated brine in under 24 hours. Under the terms of the letter of intent, Pele will become the vehicle for this opportunity, in exchange for a controlling interest by Enirgi Group. Preparation of the various agreements between Pele and Enirgi Group is under way. These agreements will initially cover management services, technology rights and marketing rights. The company expects to enter into a definitive agreement with Enirgi Group and provide further disclosure pursuant to TSX-V policies on or about July 31, 2017.

A package of documents containing the capital restructuring plan, the agreements that clearly set out the relationship between Pele and Enirgi Group, and the terms of the additional share issues will be presented to the TSX-V for review. If shareholder approval is a condition of final TSX-V approval of the capital restructuring plan, including the shares-for-debt transactions, the transaction with Enirgi Group or any other transactions, Pele will call a special meeting of its shareholders to consider and approve the transactions.

The previously announced consolidation of common shares on the basis of one postconsolidation common share for 10 preconsolidation common shares was put on hold following the halt in the stock to allow progress on the capital restructuring plan. Given the progress of the work to date, the company may complete this consolidation whilst the stock is under a trading halt. The consolidation was previously approved by its shareholders at its annual and special meeting held on March 9, 2017. The consolidation will reduce the number of issued and outstanding common shares of the company from 209,996,930 preconsolidation common shares to approximately 20,999,693 postconsolidation common shares. The company's trading symbol will remain GEM on the TSX-V.

About Pele Mountain Resources Inc.

Pele Mountain Resources has a strategic relationship with Enirgi Group to market and develop Enirgi Group's proprietary DXP technology in North America. The company is seeking to partner with holders of lithium brine resources to unlock value through the application of the technology.

We seek Safe Harbor.