Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

December 19, 2008 14:58 ET

Pele Mountain Announces Closing of Financing

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2008) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") is pleased to announce that it has closed a non-brokered private placement offering (the "Offering") for aggregate gross proceeds of $319,920.

The Offering was for an aggregate of 2,666,000 flow-through units in the capital of Pele (each a "Flow-Through Unit") at a purchase price of $0.12 per Flow-Through Unit. 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 GG purchase warrant (each a "Series GG Warrant") issued for nominal consideration, where each whole Series GG Warrant is exercisable for a period of twenty-four (24) months after closing to purchase one (1) additional common share of Pele at a purchase price of $0.25 per share.

Three insiders of the Company participated in the Offering, subscribing for an aggregate of 2,250,000 Flow-Through Units. No commissions or finder's fees were payable by the Company pursuant to the Offering.

The securities issued pursuant to the Offering 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 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 is committed to the sustainable development of the Eco Ridge Mine in the historic Elliot Lake mining camp. The company is developing a safe, secure, and reliable uranium project in order to deliver lasting benefits to local communities and its shareholders. 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".

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: 90,900,278

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

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