Mr. Al Shefsky reports

PELE MOUNTAIN PROVIDES UPDATE ON RARE EARTH PROCESSING PROJECT IN ELLIOT LAKE

Pele Mountain Resources Inc. has provided an update on its rare earth processing project in Elliot Lake, Ont. Pele remains committed to developing Canada's first rare earth processing centre at the site of its Eco Ridge uranium and rare earth project as a lower-cost alternative to mine development.

Pele's president Al Shefsky stated: "The continuing risk of rare earth supply disruptions, perhaps heightened by the recent American presidential election, continues to be a compelling incentive for the development of new, secure sources of rare earth supply outside of China for Western nations and industrial end-users. The massive decline in rare earth prices over the past six years has not alleviated supply risk, but has actually increased it by discouraging investment in new production that is needed for the longer term. We believe our strategy of processing imported monazite has excellent potential to achieve timely, secure, scalable and relatively low-cost rare earth production in Canada." High rare earth grades in monazite allow for substantial production, especially magnet metals neodymium and praseodymium, from relatively low tonnage while processing-only operations sharply reduce capex and time to market compared with development of a new hardrock mine. Historically, commercial monazite processing has been achieved by several companies and has provided a primary source of rare earths. The metallurgical techniques for processing monazite are well established, allowing for reduced technical risk and shortened ramp-up times.

Pele has received monazite-bearing mineral sands, delivered from current mining operations of a potential supplier, for characterization and metallurgical testwork, and is receiving technical support from Enirgi Group, a privately held specialty chemicals and diversified industrials company headquartered in Toronto. Enirgi owns and operates a portfolio of diversified assets and operations focused on power storage, chemicals, resources, innovation, environmental services and agriculture.

Pele's chairman, Wayne Richardson, is the president and chief executive officer of Enirgi Group.

Enirgi Group's innovation division has a team of highly qualified mineral processing engineers, which will work with John Goode, FCIM, FAusIMM, ARSM, PEng, an independent metallurgical engineer and qualified person under National Instrument 43-101 with significant expertise in rare earth processing, to assist in the preparation of an economic model for the project, which will be used to support marketing efforts to enter into long-term offtake agreements with major end-users, primarily of the magnet metals. Determination of capex and opex for rare earth production in Elliot Lake will provide the basis for pursuing long-term, stable-priced offtake agreements that can support development of reliable, sustainable production of rare earths for major end-users.

Pele has identified and engaged multiple potential monazite suppliers regarding long-term offtake arrangements, initiated discussions with government entities regarding the various regulatory requirements for monazite transportation and facilities development, and retained a logistics expert to assist with arranging the importation and transportation of monazite.

Pele's objective is to produce separated, high-purity rare earth oxides that have much greater value than mixed rare earth concentrates and can be used in downstream value-added processing and manufacturing and in a Canadian-based rare earth supply chain. The development of rare earth processing facilities in Elliot Lake can also support the development of Eco Ridge as market conditions improve.

Elliot Lake is an ideal location to host a rare earth processing centre. It is Canada's only proven historical rare earth mining and processing camp, and has outstanding regional infrastructure, including highways, railway, electricity, natural gas, airport, deepwater ports and a qualified work force. The region hosts vast undeveloped rare earth and uranium resources, such as those at Eco Ridge. The City of Elliot Lake supports Pele's monazite-processing strategy and has said so publicly.