Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

January 11, 2007 07:30 ET

Pele Mountain Discovers New Gold Occurrence at Highland

Extends Farquhar, Bowmore, and Wolverine Zones

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2007) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") today announced additional results from its 2006 drilling program at the Highland Project, northeast of Wawa in northern Ontario. Highland is 100-percent owned by Pele Gold Corporation ("Pele Gold"), a wholly-owned subsidiary of the Company.

Recent exploration at Highland has focused primarily within and along the contacts of the Gutcher Lake Stock ("GLS"), an important geological feature in the western Goudreau Lochalsh Deformation Zone ("GLDZ") which hosts several past producing gold mines. At least nine high-grade gold-bearing shear zones have been identified along or adjacent to the GLS contact within the project area. Three of the nine zones were discovered by Pele during this past field season and eight of them were drilled in 2006. The most recent discovery is the Doublewood occurrence, located between the Farquhar and Bowmore zones, where a high-grade quartz vein was intersected by a single drill hole. Exploration completed at Highland to-date demonstrates that shear zones along the GLS host high-grade, narrow-vein gold deposits.

The Company reached many important milestones at Highland during 2006 including the following:

- Consolidation of mineral rights over a large area encompassing most of the GLS, enabling comprehensive exploration efforts across historic property boundaries for the first time.

- Discovery and expansion of high-grade gold mineralization within several shear zones from Porter-Premier (Talisker and Springbank) through Farquhar, Doublewood, and Bowmore to the Murphy Gold Mine, along the southern GLS contact.

- Drill confirmation that the Farquhar and Bowmore zones host high-grade gold mineralization in a geological setting that is typical of current and historic GLDZ gold mining operations.

- Discovery and expansion of gold-copper mineralization at the Wolverine zone in association with the B-C and W-8 zones along the northern GLS contact.

- The discovery of a mica kimberlite dike hosting commercial-size diamonds, drill-tested along a strike length of more than 1,100 metres, to a depth of over 100 metres, across widths of between 4 to 10 metres, and open in all directions.

Doublewood Gold Discovery

The Doublewood gold occurrence is located 400 metres northeast of the Farquhar zone and 380 metres west of the Bowmore zone, adjacent to the GLS contact. Mechanical stripping at and in between the Farquhar and Bowmore zones exposed a conjugate set of shear zones along and in the vicinity of the GLS contact. Interpolation of the shearing into a swampy area absent of bedrock indicated the possibility of a gold-bearing shear at or adjacent to the GLS contact. A single drill hole intersected a 10 metre wide shear zone hosting a high-grade gold-bearing quartz vein.



---------------------------------------------
Core
From To Length Gold
Drill Hole (m) (m) (m) (g/t)
---------------------------------------------
FDH06-29 121.47 123.10 1.63 9.6
---------------------------------------------
including 121.92 122.11 0.19 82.2
---------------------------------------------


Farquhar Drill Results

Five additional drill holes were completed at the Farquhar gold occurrence, testing the gold-bearing vein along a strike of 170 metres and to a depth of approximately 200 metres. Visible gold was observed at vertical depths of approximately 100 and 200 metres in drill holes FDH06-26 and FDH06-27, respectively. Drill results from Farquhar are summarized in the table below.



-------------------------------------------------------------
Core
From To Length Gold
Drill Hole (m) (m) (m) (g/t) Comments
-------------------------------------------------------------
FDH06-24 135.30 135.58 0.28 0.3
-------------------------------------------------------------
FDH06-25 125.93 127.00 1.07 4.3
-------------------------------------------------------------
Including 125.93 126.25 0.32 8.6
-------------------------------------------------------------
FDH06-26 107.15 108.34 1.19 12.8 Visible Gold
-------------------------------------------------------------
Including 107.90 108.34 0.44 23.5
-------------------------------------------------------------
FDH06-27 128.00 128.43 0.43 0.4 Visible Gold
-------------------------------------------------------------
FDH06-28 186.40 187.60 1.20 1.0 Visible Gold
-------------------------------------------------------------


Bowmore Drill Results

Eight additional drill holes were completed at the Bowmore gold occurrence to determine the strike direction and dip of the zone. The drill holes were spaced 15 to 25 metres apart for approximately 70 metres of the shear zone with the deepest vertical intersections occurring at approximately 100 metres. High-grade gold mineralization was intersected within the central area of the shear zone to a depth of approximately 100 metres and remains open at depth. Drill results from Bowmore are summarized in the table below.



-------------------------------------------------------------
Core
From To Length Gold
Drill Hole (m) (m) (m) (g/t) Comments
-------------------------------------------------------------
BM-DH06-08 52.49 54.14 1.65 8.9 Visible Gold
-------------------------------------------------------------
Including 53.30 53.60 0.30 41.4 Visible Gold
-------------------------------------------------------------
BM-DH06-08 62.77 63.31 0.54 10.7
-------------------------------------------------------------
BM-DH06-16 117.00 118.06 1.06 8.6
-------------------------------------------------------------
Including 117.00 117.54 0.54 14.6
-------------------------------------------------------------
BM-DH06-09 32.00 32.62 0.62 2.7
-------------------------------------------------------------
BM-DH06-10 12.84 13.22 0.38 1.0
-------------------------------------------------------------
BM-DH06-11 74.46 74.77 0.31 9.5
-------------------------------------------------------------
BM-DH06-12 69.33 69.74 0.41 2.4
-------------------------------------------------------------
BM-DH06-12 82.93 83.19 0.26 2.0
-------------------------------------------------------------


Wolverine Drill Results

Two drills holes were completed at the Wolverine gold-copper occurrence along the northern GLS contact, 50 metres on either side of the initial discovery hole. The drill hole to the west intersected a diabase at the projected location of the zone and the second drill extended the gold-copper mineralization to the east. As at the discovery hole, strongly anomalous silver and cobalt values were present in both holes. Drill results from Wolverine are summarized in the table below.



--------------------------------------------------------------------------
Core
From To Length Gold Cu Ag Co
Drill Hole (m) (m) (m) (g/t) (%) (g/t) (g/t)
--------------------------------------------------------------------------
BC-DH06-05 120.00 123.00 3.00 0.4 0.49 13 312
--------------------------------------------------------------------------
Including 122.05 122.60 0.55 0.9 0.55 18 801
--------------------------------------------------------------------------
BC-DH06-05 98.82 99.50 0.68 0.8 0.51 16 1,066
--------------------------------------------------------------------------


Data from Pele Gold's 2006 field season at Highland are now being compiled and reviewed and will be included in an NI 43-101 compliant technical report which will be prepared in early-2007 and will include detailed recommendations for follow-up work at Highland.

Assay data reported herein was processed using standard fire assaying techniques by Accurassay Laboratories in Thunder Bay, Ontario, an ISO 17025 accredited laboratory.

This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101.

Option and Warrant Exercises

Pele also announced today that 600,000 options and 1,852,215 warrants have been exercised over the last 30 days resulting in the issuance from treasury of 2,452,215 common shares for total gross proceeds of $830,146 to the Company. Pele currently has a total of 65,724,360 common shares outstanding inclusive of the forgoing issuance of treasury shares.

About Pele Mountain Resources

Pele Mountain Resources is discovering and developing the mineral wealth of northern Ontario. Pele is focused on the exploration and development of its 100-percent owned projects at Elliot Lake and Highland. The Elliot Lake uranium project contains a substantial historical resource compiled by Rio Algom within a formerly prolific mining camp. Exploration at Highland indicates outstanding potential for gold resources and existing regional infrastructure provides opportunities for revenue producing operations. Pele is also a generative exploration company holding a diverse portfolio of gold, diamond, and base metal projects, providing exposure and leverage to discovery and to the increased global demand for natural resources. Four Pele projects are currently funded and operated through agreements with strategic partners, including Goldcorp, Wallbridge Mining, Trigon Exploration, East West Resources and Maple Minerals (a division of Mega Uranium). 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: 65,724,360

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

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