Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

June 21, 2005 16:35 ET

High-Grade Gold Recovered at Pele's Highland Project; Drilling to Begin Immediately

TORONTO, ONTARIO--(CCNMatthews - June 21, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that prospecting and sampling in the western portion of the Highland Gold Project has returned high-grade gold values from three separate occurrences. The Highland Gold Project is 100-percent owned by Pele Gold Corporation, a wholly-owned subsidiary of the Company.

Al Shefsky, President and CEO of Pele stated, "Our western Highland claims include several historic gold occurrences that were discovered during the first area gold rush in the early 1920s. Our sampling has returned high-grade gold assays which, along with the upward trend in the gold price, support our belief in the strong potential for economic gold resources at Highland. We are encouraged by these results and are mobilizing a rig to the property to begin drill testing these showings immediately."

The Highland Gold Project covers more than 10,000 acres of mining claims along the prolific Goudreau-Lochalsh Deformation Zone ("GLDZ") in northern Ontario. Pele recently acquired 11 new claim groups at Highland, including four historic, gold occurrences along an intensely deformed contact of the Gutcher Lake Stock in the western GLDZ. High-grade gold values have been returned from two shear zones in the Porter-Premier area, referred to as the Springbank and Talisker zones. Another high-grade gold-bearing shear zone has been identified approximately four kilometers to the northeast in the Banville Page area, referred to as the Oban Zone. Sampling highlights include gold values of up to 3.75, 1.95, and 1.15 ounces per ton (oz/t).

The Springbank Zone is hosted within a 25 to 30-metre wide shear zone that has been sampled over a strike length exceeding 100 metres and remains open in both directions. Within this shear zone, gold mineralization occurs in quartz veins and altered host rocks. Highlights of the 38 samples collected from the Springbank Zone are summarized in the table below. Reported gold values of the samples collected ranged from nil to 39.4 g/t.



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Springbank Zone
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Grab Sample Gold (g/t) Gold (oz/t)
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51644 39.4 1.15
51629 23.5 0.69
51627 19.5 0.57
51625 19.0 0.55
51628 12.0 0.35
51623 9.2 0.27
51649 6.2 0.18
51642 5.5 0.16
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The Talisker Zone is approximately 275 meters northeast of the Springbank Zone and features a small historic shaft. The shaft was sunk on a quartz vein that measured less than 0.5 metres across on surface but widened to more than 1.5 meters within its first 10 vertical meters. The shaft reportedly reached a depth of less than 15 meters. Samples of vein material taken from the shaft contained visible gold and returned assays of up to nearly 2 oz/t gold. Highlights of the 10 samples collected from the Talisker Zone are summarized in the table below. Reported gold values of the samples collected ranged from 0.2 to 66.8 g/t.



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Talsiker Zone
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Grab Sample Gold (g/t) Gold (oz/t)
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51667 66.8 1.95
51659 10.9 0.32
51666 6.8 0.20
51663 5.7 0.17
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The Oban Zone is approximately four kilometres northeast of the Springbank and Talisker zones. A high-grade gold assay was reported from a sample associated with quartz veining and iron carbonate alteration with trace pyrite. Reported gold values of the 16 samples collected from the Oban Zone ranged from 0.2 to 128.7 g/t.



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Oban Zone
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Grab Sample Gold (g/t) Gold (oz/t)
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20024 128.7 3.75
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The tabulated results are highlights from approximately 170 grab samples collected by prospectors Kevin Keats and Dion Wade. All samples were processed at Accurassay Laboratories of Thunder Bay, a laboratory accredited to ISO 17025.

Following an active winter staking campaign, Highland now encompasses the largest wholly-owned mining claim group in the Goudreau Localsh Deformation Zone ("GLDZ"), host to several past producing gold mines. The GLDZ is re-emerging as an important Ontario gold camp, led by the efforts of Richmont Mines and Patricia Mining to restart mining and milling operations at the nearby Island Gold project by mid-2006. The Pele land package at Highland includes many gold occurrences both to the east and west of Island Gold, along the GLDZ.

Please visit the Pele website at http://www.pelemountain.com/projects/highland/highland_map.htm for a detailed map of the Highland project area.

The technical aspects of this press release have been reviewed and approved Dr. Edward Walker, P.Geo., an independent geological 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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