Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

January 16, 2008 16:05 ET

Pele Mountain Announces Option Grant

TORONTO, ONTARIO--(Marketwire - Jan. 16, 2008) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that it has granted 600,000 incentive stock options to the Company's Chief Executive Officer (the "Executive Options") and an aggregate of 500,000 incentive stock options to the remaining five (5) directors of the Company under its Stock Option Plan (collectively, the "Director Options") to acquire up to an aggregate of 1,100,000 common shares of the Company. All Executive Options and Director Options are exercisable at $0.50 per share being equal to or greater than the closing price of Pele's common shares on the TSX-V on the date immediately preceding the grant. The Executive Options expire on December 31, 2009 and the Director Options expire on December 31, 2012.

In addition, the Company also announced that it has granted 150,000 incentive stock options to certain employees (the "Employee Options") to acquire up to an aggregate of 150,000 common shares of Pele. The Employee Options are exercisable at $0.50 per common share, being equal to or greater than the closing price of Pele's common shares on the TSX-V on the date immediately preceding the grant and expire on December 31, 2009.

The Company also announced that it has granted 150,000 incentive stock options to certain consultants of Pele (the "Consultant Options") to acquire up to an aggregate of 150,000 common shares of Pele. The Consultant Options are exercisable at $0.50 per common share, being equal to or greater than the closing price of Pele's common shares on the TSX-V on the date immediately preceding the grant and expire on December 31, 2008.

All options granted and any common shares issued upon their due exercise will be subject to a statutory four-month hold expiring May 16, 2008. The granting of the options are subject to regulatory acceptance of applicable filings.

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.(1) 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".

(1) 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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