Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

May 12, 2005 09:56 ET

Drilling Underway at Pele Mountain's Timmins Nickel Project

TORONTO, ONTARIO--(CCNMatthews - May 12, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that drilling is underway at its Timmins Nickel Project in northern Ontario.

Drill targets have been selected following the analysis of a Versatile Time-Domain Electro Magnetic ("VTEM") airborne survey flown by Geotech Ltd. The survey has revealed strong electromagnetic conductors running southward from the Texmont Nickel Mine property onto Pele's ground. The conductors are believed to be related to stratigraphic horizons at the base of komatiitic flows. These komatiitic flows host the Texmont orebodies on the adjacent property. Exposed bedrock geology and drill core from last year confirm that the Pele property includes a suite of komatiitic rocks in a geological stratigraphy similar to that observed at Texmont.

Pele's Timmins Nickel Project is located 35 kilometres south of Timmins in a region where several former and currently producing nickel mines have emerged from world-renowned komatiite-associated deposits. The project ties on to the south and east of the past producing Texmont Nickel Mine and encompasses nearly half of the original Texmont property.

This press release has been reviewed and approved by Kian Jensen, P. Geo., a Qualified Person and independent consultant for Pele.

Pele Mountain Resources is an exploration play on the vast mineral wealth of northern Ontario. Pele has acquired and developed an exceptional portfolio of diamond, gold, and base metal properties which provide exposure and leverage both to discovery and to the unfolding bull market in natural resources. Pele is active on six project fronts, including diamond exploration at Festival, Alliance and Attawapiskat River with partners Goldcorp and Trigon Exploration Canada, along with in-house gold and base metal exploration at its Ardeen, Highland, and Timmins properties. Pele stock trades on the TSX Venture Exchange under the symbol "GEM".

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Pele's future plans, objectives or goals, including words to the effect that Pele or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. None of the Company's properties have any known ore body of economic or commercial value.

Common Shares Outstanding: 46,504,237


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information