Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

December 28, 2007 12:32 ET

Pele Mountain Announces Closing of Financing

TORONTO, ONTARIO--(Marketwire - Dec. 28, 2007) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") is pleased to announce that it has closed a non-brokered private placement offering (the "Offering") to three (3) arm's length subscribers for an aggregate of 530,000 flow-through units in the capital of Pele (each a "Unit") at a purchase price of $0.50 per Unit for gross proceeds of $265,000. Each Unit is comprised of one (1) common share (each a "Share") on a flow-through basis (as that term is defined in the Income Tax Act (Canada)) and one half (1/2) non-transferable Series BB purchase warrant (each a "Series BB Warrant") issued for nominal consideration, where each whole Series BB Warrant is exercisable for a period of twelve (12) months after closing to purchase one (1) additional common share of Pele at a purchase price of $1.00 per share.

In connection with the Offering, Pele paid a cash fee to eligible registrants of 5% of the gross proceeds raised under the Offering and also issued compensation warrants to acquire that number of common shares equal to 5% of the total number of Units issued under the Offering exercisable at a price of $1.00 per common share for a period of twelve (12) months from closing.

The securities underlying the Units, including the Shares and Series BB Warrants issued on closing and the common shares issuable upon due exercise of the Series BB Warrants, will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

All proceeds raised under this Offering will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties. All costs associated with the Offering will be paid by the Corporation from its general funds.

About Pele Mountain Resources

Pele Mountain Resources provides investors with leverage to uranium as it advances its 100-percent owned Elliot Lake Uranium Project toward objectives of development and production. The project hosts more than 42-million pounds of NI 43-101 compliant U3O8 resources (6.4 million pounds "indicated" at a grade of 0.051-percent and 36.1 million pounds "inferred" at a grade of 0.044-percent) and has received a positive Scoping Study, providing the basis for economically-viable, environmentally-compliant uranium mining and processing operations(i). The Elliot Lake mining camp has produced more than 300 million pounds of U3O8 and was formerly known as the "Uranium Capital of the World". Pele also holds a diverse portfolio of gold, diamond, and base metal projects in Northern Ontario. Pele stock is listed on the TSX Venture Exchange under the symbol "GEM".

(i) The Scoping Study is preliminary in nature and includes both indicated and inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Scoping Study will be realized.

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. The economic viability of the 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.

Common Shares Outstanding: 77,985,660

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

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