Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

August 18, 2005 09:30 ET

Airborne Survey Underway at Pele's Alliance Diamond Project

TORONTO, ONTARIO--(CCNMatthews - Aug. 18, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") today announced the commencement of an airborne survey at its Alliance Diamond Project in northwestern Ontario. Exploration at Alliance is funded and operated by Trigon Exploration Canada Ltd. ("Trigon") (TSX Venture:TEL) which can earn up to a 60-percent interest from Pele in both the Alliance and Attawapiskat diamond projects.

Trigon is now flying the Alliance property using a proprietary airborne magnetic survey system on closely-spaced lines. This will be followed by targeted heavy mineral and Mobile Metal Ion sampling as drill locations are prioritized for a planned winter program. The Alliance Project includes more than 55 staked targets within the 6-million acre area of the Fort Hope Airborne Survey, flown on behalf of the Ontario Geological Survey.

All of Pele's diamond projects, including Alliance and Attawapiskat in the James Bay Lowlands and Festival further south near Wawa, lie on the Archean-age Superior Craton in northern Ontario. Archean cratons are the primary host of economic diamond deposits worldwide and Superior, the world's largest craton, has demonstrated its economic viability through the development of De Beers Canada's Victor Project, where commercial diamond production is anticipated in 2008. Earlier this week, Trigon announced a "renewed strategic focus" on the relatively under-explored Superior Craton through its "Ontario Diamond Exploration Initiative". Trigon has a proven exploration team whose strong technical skills contributed to the discovery of the first 50 kimberlite pipes at the Ekati Diamond Mine on the Slave Craton in Canada's Northwest Territories.

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.

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, and base metal properties which provide exposure and leverage both to discovery and to the increased global demand for natural resources. Pele is active on six project fronts, including diamond exploration at Festival, Alliance and Attawapiskat River with partners Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen with partners Maple Minerals Corp and East-West Resource Corporation, and in-house exploration at its Highland Gold and Timmins Nickel 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: 46,744,237

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

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