Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

January 31, 2007 16:34 ET

Pele Mountain Approves New Stock Option Plan

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2007) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that it has received from the TSX Venture Exchange (the "TSX-V"), conditional acceptance of certain amendments to the Company's 2003 stock option plan (the "Original Plan"), adopted by the Board of Directors of Pele on January 25, 2007 (such amended plan being referred to herein as, the "2007 Plan"). The Original Plan was amended to constitute a pure "rolling" plan, reserving a maximum of 10% of the issued shares to be granted under the 2007 Plan calculated at the time of each stock option grant. Formal TSX-V acceptance of the 2007 Plan is conditional upon, and is pending, majority shareholder ratification of the 2007 Plan. The Company intends to place the 2007 Plan before its shareholders at its upcoming annual and special meeting (the "Shareholders Meeting").

Additionally, pursuant to the policies of the TSX-V, the Company announces 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 the 2007 Plan (collectively, the "Director Options") to acquire up to an aggregate of 1,100,000 common shares of the Company. The Board of Directors approved the granting of the Executive Options and Director Options subject to disinterested shareholder ratification at the next Shareholders Meeting. All Executive Options and Director Options are exercisable at $1.10 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 and expire on December 31, 2011. Subject to disinterested shareholder approval, the Executive Options and Director Options and any common shares issued upon their exercise will be subject to a statutory four-month hold expiring on June 1, 2007.

In addition, the Company also announced that it has granted to an employee of Pele 60,000 incentive stock options (the "Employee Options") under Pele's Original Plan to acquire up to an aggregate of 60,000 common shares of Pele. The Employee Options are exercisable at $1.10 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, 2011.

The Company also announced that it has granted a consultant of Pele 50,000 incentive stock options (the "Consultant Options") under Pele's Original Plan to acquire up to an aggregate of 50,000 common shares of Pele. The Consultant Options are exercisable at $1.10 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 January 29, 2008.

The Employee Options and Consultant Options and any common shares issued upon their due exercise will be subject to a statutory four-month hold expiring May 30, 2007. The granting of the Employee Options and Consultant Options are subject to regulatory acceptance of applicable filings.

About Pele Mountain Resources

Pele Mountain Resources is focused on the advancement of its 100-percent owned Elliot Lake uranium project in northern Ontario. The Elliot Lake project hosts a NI 43-101 compliant mineral resource of 33 million pounds of U3O8 with very good potential to increase the mineral resources on the property, according to a Technical Report authored by Scott Wilson Roscoe Postle Associates Inc.

The Elliot Lake mining camp was once known as "the uranium capital of the world" and has produced more than 270 million pounds of U3O8 from stratigraphically-bound deposits that demonstrate remarkable consistency over extensive areas. The uranium market is currently experiencing a strong upward price trend due to uncertain supply and increasing global demand.

Pele also holds a diverse portfolio of gold, diamond, and base metal projects located across northern Ontario, including the Highland project where drilling has outlined several high-grade, narrow-vein gold zones within an historic mining camp. Through project generation and mineral discovery, Pele provides shareholders with exposure and leverage to the increasing global demand for natural resources. 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.

Common Shares Outstanding: 65,834,360

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

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