Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

November 06, 2006 08:00 ET

Pele Mountain Announces Financing with Sprott Asset Management

TORONTO, ONTARIO--(CCNMatthews - Nov. 6, 2006) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") is pleased to announce that it has entered into an agreement with Sprott Asset Management ("Sprott") for a non-brokered private placement offering (the "Offering") of 3,600,000 units in the capital stock of Pele (each a "Unit"). Each Unit is comprised of one (1) common share (each a "Share") issued at a purchase price of $0.28 per share for total gross proceeds of $1,008,000 and one half (1/2) non-transferable Series Y purchase warrant (each a "Series Y Warrant") issued for nominal consideration, where each whole Series Y Warrant is exercisable for a period of twelve (12) months after closing to purchase one (1) additional Share at a purchase price of $0.45 per share. The Offering is scheduled to close on November 6, 2006. The securities underlying the Units, including the Shares and Series Y Warrants issued on closing and the Shares issuable upon due exercise of the Series Y Warrants, will all be subject to a 4 month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

Currently, Pele has 59,622,145 common shares issued and outstanding. Following the closing of the Offering, Pele will have 63,222,145 common shares issued and outstanding.

About Pele Mountain Resources

Pele Mountain Resources is discovering and developing the mineral wealth of northern Ontario. Pele is focused on the exploration and development of high-grade gold zones at its 100-percent owned Highland project, within the Goudreau-Lochalsh mining camp. Exploration results at Highland indicate strong potential for near-surface gold resources and existing regional infrastructure, including nearby gold milling facilities, provide opportunities for revenue generating operations. Pele is a generative exploration company holding a diverse portfolio of gold, diamond, uranium and base metal projects, providing exposure to discovery and to the increased global demand for natural resources. Four Pele projects are currently funded through agreements with strategic partners, including Goldcorp, Wallbridge Mining, Trigon Exploration, East West Resources and Maple Minerals (a division of Mega Uranium). 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.

Common Shares Outstanding: 59,622,145

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

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