Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

August 11, 2009 10:19 ET

Pele Mountain Announces High-Grade Gold Discovery at Its Highland Project

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that channel sampling at its Highland Project has returned high-grade gold and associated visible gold at the recently-discovered Lone Ranger occurrence. Highland is 100-percent owned by Pele Gold Corporation, a wholly owned subsidiary of the Company.

The Lone Ranger occurrence is hosted by a felsic unit that has been identified in outcrop over a 160 m plus strike length and a width of at least 40 m, and which remains open along strike. The felsic unit is sheared, strongly foliated and altered (sericitized) and is cut by widespread stockwork quartz veining. High grade values and visible gold are associated with the stockwork quartz veining. The occurrence was discovered by Pele's project geologist, P.C. Delisle in late 2008 when the original, and only sample taken, was a composite grab across the 40 metre width that returned 0.5 g/t (see Pele press release dated March 19, 2009).

Channel samples were cut in three areas over approximately 90 m of strike length. The channel cuts were from 7.9 m to 13.4 metres long with individual samples approximately 2 m in length. A high value of 34 g/t over 2 m was located in the central channel associated with a 0.3 m wide quartz vein. Follow up field examination of the quartz vein associated with the high grade sample noted visible gold. The other channel samples returned gold values from anomalous to 1.7 g/t over 2 m.

Pele President and CEO Al Shefsky stated, "Our discovery at Lone Ranger is exciting because of its impressive size and widespread quartz stockwork seen throughout. The presence of high-grade and visible gold within the stockwork substantially elevates the potential for this discovery to host a large tonnage gold system."

Mr. Shefsky continued, "Our recent efforts have focused primarily on advancing toward sustainable development of our Eco Ridge Mine project while bringing in quality partners like Coventry and Wallbridge to fund and operate our other projects in Northern Ontario. While we remain firm believers in the long-term outlook for uranium and Eco Ridge and are actively continuing our efforts there, we are also long-standing believers in gold and consider the opportunities at Highland to be very compelling. We have launched an expanded program at Highland, including additional stripping and sampling in preparation for drilling, to further evaluate Lone Ranger, along with other high-potential zones."

The Highland Project, covering more than 10,000 acres, is located in the Michipicoten Greenstone Belt, approximately 100 kilometres to the southeast of Hemlo in Northern Ontario. The Michipicoten Belt, where Richmont Mines Inc. is operating the Island Gold mine and milling complex, is also home to several past producing gold mines, including the one-million ounce plus Renabie Mine. Over the past 13 years, Pele has consolidated historically fragmented mining claims covering favorable geology through acquisitions, staking and licensing and has now accumulated one of the largest claim holdings in the area. Pele successfully completed a 10,000 tonne bulk sample at the Markes Zone in 1999 which returned positive cash flow when gold was trading at US$300 per ounce. With outstanding infrastructure including three nearby modern gold mills, Pele management believes there is excellent potential to establish revenue generating operations at Highland.

Samples were analyzed at Accurassay Laboratories in Thunder Bay, an independent, ISO 17025 accredited laboratory. Samples were analyzed for gold by fire assay. The Company is performing routine QA and QC on laboratory assay results. This news release has been reviewed and approved by Peter Dimmell, P.Geo., a Pele Director and a Qualified Person under National Instrument 43-101.

About Pele

Pele Mountain Resources is discovering and developing the mineral wealth of Northern Ontario. At its Eco Ridge Mine uranium project, Pele is advancing toward the sustainable development of a safe, secure, and reliable operation near Elliot Lake. At its Highland Gold project, Pele has established several high-grade showings and is working to identify mineable gold resources. The Company also holds the Ardeen Gold and Sudbury Nickel projects, which are actively explored under option agreements with Coventry Resources Ltd. and Wallbridge Mining Company, respectively. Pele's shares are listed 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. 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: 95,486,944

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information