Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

October 27, 2005 09:25 ET

Airborne Survey Discovers Conductors on Pele Mountain's Sudbury Offset Property

TORONTO, ONTARIO--(CCNMatthews - Oct. 27, 2005) -


Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that an airborne geophysical survey has discovered conductors at its Sudbury Offset project in northern Ontario. The 430 line-kilometre time-domain electromagnetic survey was flown at 50-metre spacing, covering two separate blocks within Pele's 14,000-acre property.

The first surveyed block includes the Pele Offset Dike. A preliminary review of the airborne geophysical data shows conductors with coincident magnetic responses in close proximity to the projected strike of the Pele Offset Dike. Petrological and lithogeochemical analysis of bedrock samples has confirmed the strike extension of the Pele Offset Dike over a length of more than 3 kilometres on Pele's mining claims. Other known offset dikes in the Sudbury area have hosted extensive Ni-Cu-PGE mineralization as well as several successful mining operations.

The second surveyed block includes an area where several occurrences of Sudbury Breccia have been identified on Pele's mining claims just north of Levack Township. Preliminary review of the airborne data for this area also shows electromagnetic responses. Sudbury Breccia is known to be associated with Ni-Cu-PGE mineralization in the Sudbury Basin and in some cases forms the host lithology for footwall-style mineralization, such as the recent high grade discovery by FNX Mining Company at its Levack Mine property.

The AeroTEM survey was flown by Aeroquest Limited. The survey was undertaken by Pele as a cost-effective method for identifying subsurface conductive bodies which may indicate deposits of sulfide mineralization. Additional processing and interpretation of the airborne survey data is proceeding, along with follow-up field investigation, including ground-truthing of airborne geophysical anomalies with ground geophysical surveys, in order to develop targets for detailed surface examination and/or diamond drilling.

This press release has been reviewed and approved by Scott Jobin-Bevans, Ph.D., P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101, working with Caracle Creek International Consulting Inc., based in Sudbury, Ontario.

Pele Mountain Resources is an exploration play on the abundant mineral wealth of northern Ontario. Pele has acquired and developed a diverse portfolio of diamond, gold, base metal, and uranium properties which provide exposure and leverage both to discovery and to the increased global demand for natural resources. Pele is active on five project fronts, including diamond exploration at Festival and Alliance funded by partners Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen funded by partners Maple Minerals Corp and East-West Resource Corporation, and in-house exploration at its Highland Gold and Sudbury Offset properties. 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. None of the Company's properties have any known ore body of economic or commercial value.

Common Shares Outstanding: 50,072,215

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

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