Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

August 16, 2005 09:53 ET

Pele Intercepts More High-Grade Gold at Highland

TORONTO, ONTARIO--(CCNMatthews - Aug. 16, 2005) -


Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") today announced more high-grade gold intersections from drilling at the Highland Gold Project in northern Ontario. Highland is 100-percent owned by Pele Gold Corporation, a wholly-owned subsidiary of the Company.

Positive sampling results this past spring prompted a first-phase, 8-hole drill program at Highland's Springbank and Talisker gold occurrences. As reported on August 3, assays from the two Talisker holes have confirmed near-surface, high-grade mineralization, including an intersection of 8.36 grams per tonne (g/t) gold over 8.16 metres, carried primarily by the intersections of two quartz veins.

Assay results from the six Springbank holes have also returned near-surface, high-grade gold including intersections of 12.7 g/t across 2.45 meters, 7.0 g/t gold over 5.35 meters, and 9.9 g/t over 2.50 metres. All six drill holes, including a majority of the assayed samples, reported detectable concentrations of gold. Highlights from the Springbank drill holes are included in the table below.

Springbank Zone Drill Results

Drill Hole From (m) To (m) Length (m) Gold (g/t)
PP-DH05-01 24.46 26.96 2.50 9.9
including 24.46 25.11 0.65 13.3
PP-DH05-05 0.00 2.45 2.45 12.7
including 1.00 1.70 0.70 23.7
PP-DH05-06 6.46 11.81 5.35 7.0
including 9.87 10.47 0.60 26.0

The two shear zones at Springbank occur along the contact between felsic/intermediate metavolcanics and granodiorite. Gold is associated with extensively altered rocks and quartz veining. The Springbank and Talisker gold occurrences are located within shear zones that remain open along strike in both directions and at depth.

Both the Springbank and Talisker gold occurrences are within Pele's recently-acquired, royalty-free Porter-Premier property in the western Goudreau-Lochalsh Deformation Zone ("GLDZ"), an area that has seen considerably less exploration than the central GLDZ, home to the development-stage Island Gold project and several other past producing gold mines. Pele's recent drill results demonstrate that associations and controls identified by the high-grade gold intersections at Springbank and Talikser are fundamentally similar to those within the central GLDZ and that high-grade gold-bearing shears extend onto Pele's claims in the western GLDZ.

Al Shefsky, President and CEO of Pele, stated, "Our latest results from Springbank and Talisker reveal high-grade gold mineralization in areas that had not previously been drilled and are very encouraging. Given the productive history of the GLDZ, we are proceeding at Highland with a strong belief in the potential to outline substantial gold resources on our properties. With nearby milling facilities and outstanding local infrastructure, there is an opportunity for low cost development and operation at Highland. Accordingly, we are moving forward with a second-phase drill program at the Springbank and Talisker gold occurrences to extend the zones of high-grade gold mineralization."

Since late-2004, Pele has expanded its holdings throughout the 30-kilometre long GLDZ and now controls the largest wholly-owned group of mining claims in the area. Among the many gold occurrences on Pele-held ground are:

- The Springbank and Talisker zones in the western GLDZ, where initial drilling has recently identified near-surface, high-grade gold mineralization.

- The Markes and "A" zones in the central GLDZ, where bulk-samples of near-surface gold-bearing ore were successfully extracted and processed in 1999 and 2000, respectively.

- The Markes North, McCall, Mclaughlin, "B", and "E" zones, also in the central GLDZ, where significant gold mineralization is also evident along strike with the Island Gold Project and the past producing Cline and Edwards Mines.

- The Macallan Zone in the eastern GLDZ, where grab samples grading up to 57.7 g/t gold were obtained late last year.

Please see the Highland project map at for location details. All samples were assayed for gold by Accurassay Laboratories, Thunder Bay, Ontario, an ISO 17025 accredited laboratory.

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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