Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

July 07, 2005 12:16 ET

Drilling Underway At Pele's Highland Gold Project

TORONTO, ONTARIO--(CCNMatthews - July 07, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that drilling is underway at the Highland Gold Project in northern Ontario. Highland is 100-percent owned by Pele Gold Corporation, a wholly-owned subsidiary of the Company.

As reported on June 22, recent grab sampling from the Springbank and Talisker gold occurrences on Pele's Porter-Premier property returned high-grade gold assays. Drill plans include six holes at Springbank and two holes at Talisker. This first phase drill program is designed to test the continuation of gold mineralization within the granodiorite-hosted shear zones below the surface samples recently collected at these locations.

This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and 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.

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

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