Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

July 06, 2005 09:00 ET

Drilling Commences at Pele Mountain's Ardeen Project

TORONTO, ONTARIO--(CCNMatthews - July 06, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that East-West Resource Corporation (TSX VENTURE:EWR) ("East-West") and Maple Minerals Corp (TSX VENTURE:MPM) ("Maple") have commenced exploration work at the Ardeen Project in northwestern Ontario. As announced on June 8, East-West and Maple may together earn up to a 60-percent interest in Ardeen from Pele's wholly-owned subsidiary, Pele Gold Corporation, by satisfying certain requirements and conditions.

Pele has been advised that the East-West/Maple proposed work program includes drilling, a Versatile Time-Domain ElectroMagnetic (VTEM) airborne survey, induced-polarization (IP) surveys, geological mapping, and lithochemical sampling, briefly summarized as follows:

- Drilling is underway, initially assessing iron formation and shear-hosted gold settings, and later continuing onto VMS targets as they develop.

- A detailed VTEM airborne survey is underway at 100-metre spacing to locate VMS targets similar to the discovery earlier this year by Freewest Resources Canada ("Freewest") on its nearby Sungold property.

- A 120 kilometre grid at 100-metre spacing will be cut in the southern half of the property for geological mapping and an IP survey, intended to map shear-hosted gold as well as alteration systems associated with VMS mineralization.

- An intensive whole rock sampling program is planned to locate base metal alteration patterns such as sodium depletion and magnesium footwall style alteration.

The Ardeen Project covers over 10,000 acres of favorable geology along the Shebandowan Greenstone Belt west of Thunder Bay and includes northern Ontario's first gold mine. The property has long been known for its gold potential, as past drilling by Pele has returned numerous high-grade gold intercepts from more than 12,000 metres of core. Ardeen is now also being explored for its base metal potential following the recent Freewest discovery where sampling has returned numerous high-grade assays of up to 12.5-percent copper and 32.8-percent zinc.

The technical aspects of this press release have been reviewed and approved by Peter Dimmell, P.Geo., a director of Pele and a Qualified Person.

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: 46,624,237

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

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