Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

October 29, 2007 10:13 ET

Pele Mountain Resumes Drilling at Its Elliot Lake Uranium Mine Project

TORONTO, ONTARIO--(Marketwire - Oct. 29, 2007) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that drilling has resumed at its Elliot Lake Uranium Mine Project in Northern Ontario. Pele recently received a positive scoping study (the "Scoping Study") from Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA") for its 100-percent owned project at Elliot Lake.

The 26-hole, 5,000-metre in-fill drilling program will focus on upgrading areas of inferred resources to the indicated classification in the Main Conglomerate Bed ("MCB"). All 26 drill holes will extend through to the basement rocks to test for the presence of the Basal Conglomerate Bed ("BCB"), roughly 15 metres below the MCB, where higher grade, remobilized mineralization has been found near the Unconformity between the volcanic basement rocks and the overlying sediments.

The project hosts NI 43-101 compliant U3O8 resources of 5.86 million tonnes grading 0.051-percent totalling 6.4 million pounds "indicated" and 37.26 million tonnes grading 0.044-percent totalling 36.1 million pounds "inferred", with the potential for significant upgrade and expansion. All resources defined to-date are hosted in the MCB. Wide-spaced historic drilling has demonstrated that the deposit extends down-plunge and to the east, far beyond the boundaries of the defined resource. The deposit outcrops at surface along a 6-kilometre horizon and has been intersected up to 3.8 kilometres down dip.

Pele is pursuing opportunities to increase projected revenues, reduce projected costs, and advance the Elliot Lake project to the licensing and feasibility stages, following recommendations provided by Scott Wilson RPA in the Scoping Study. Highlights of the Scoping Study are included in Pele's press release dated October 4, 2007. The full Scoping Study is available on the Pele website at www.pelemountain.com.

About Pele Mountain Resources

Pele Mountain Resources is a Canadian energy and mineral exploration company focused on advancing its 100-percent owned Elliot Lake Uranium Mine Project toward objectives of development and production. The project hosts substantial NI 43-101 compliant U3O8 resources (6.4 million pounds "indicated" and 36.1 million pounds "inferred") and has received a positive Scoping Study, providing the basis for an economically-viable, environmentally-compliant uranium mining and processing operation(1). The Elliot Lake camp was once known as "the uranium capital of the world" and has produced more than 270 million pounds of U3O8 from vast, stratigraphically-bound deposits.

Pele also holds a diverse portfolio of gold, diamond, and base metal projects located across Northern Ontario. Through project generation, strategic partnerships, and mineral discovery, Pele provides shareholders with exposure and leverage to the growing global demand for natural resources. Pele stock is listed on the TSX Venture Exchange under the symbol "GEM".

(1). The Preliminary Assessment 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 preliminary assessment 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: 72,071,310

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

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