Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

February 22, 2008 17:37 ET

Pele Mountain Announces Closing of Financing

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2008) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") is pleased to announce that it has closed two non-brokered private placements offerings (collectively, the "Offering") to three (3) arm's length subscribers for aggregate gross proceeds of $1,100,000.

The first private placement was for an aggregate of 326,087 flow-through units in the capital of Pele (each a "Flow-Through Unit") at a purchase price of $0.46 per Flow-Through Unit for gross proceeds of $150,000. Each Flow-Through Unit is comprised of one (1) common share (each a "Flow-Through Share") on a flow-through basis (as that term is defined in the Income Tax Act (Canada)) and one half (1/2) non-transferable Series DD purchase warrant (each a "Series DD Warrant") issued for nominal consideration, where each whole Series DD Warrant is exercisable for a period of twelve (12) months after closing to purchase one (1) additional common share of Pele at a purchase price of $1.00 per share.

The second private placement was for an aggregate of 2,375,000 units in the capital of Pele (each a "Unit") at a purchase price of $0.40 per Unit for gross proceeds of $950,000. Each Unit is comprised of one (1) common share (each a "Share") and one half (1/2) non-transferable Series EE purchase warrant (each a "Series EE Warrant") issued for nominal consideration, where each whole Series EE Warrant is exercisable for a period of up to 24 months after closing to purchase one (1) additional common share of Pele at a purchase price of $0.50 per share.

No commissions or finder's fees were payable by the Company pursuant to the Offering.

The securities underlying the Units, including the Flow-Through Shares, Shares, Series DD Warrants and Series EE Warrants issued on closing and the common shares issuable upon due exercise of the Series DD Warrants and Series EE Warrants, will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

All proceeds raised under this Offering for the sale of Flow-through Units ($150,000) will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties. All costs associated with the Offering will be paid by the Corporation from its general funds.

About Pele Mountain Resources

Pele Mountain Resources provides investors with superior leverage to uranium as it advances its 100-percent owned Elliot Lake Uranium Project toward objectives of development and production. The project hosts substantial NI 43-101 compliant U3O8 resources (6.4 million pounds "indicated" at a grade of 0.051-percent and 36.1 million pounds "inferred" at a grade of 0.044-percent) and has received a positive Scoping Study, providing the basis for economically-viable, environmentally-compliant uranium mining and processing operations.(1) The Elliot Lake mining camp has produced more than 300 million pounds of U3O8 and was formerly known as the "Uranium Capital of the World". Pele also holds a diverse portfolio of gold, diamond, and base metal projects in Northern Ontario. Pele stock is listed on the TSX Venture Exchange under the symbol "GEM".

(1) The Scoping Study is preliminary in nature and includes both indicated and inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Scoping Study will be realized.

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. The economic viability of the 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.

Common Shares Outstanding: 84,027,612

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

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