Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

December 22, 2006 12:14 ET

Pele Mountain Announces That Goldcorp Elects to Form 50-50 Joint Venture at Festival Diamond Project

TORONTO, ONTARIO--(CCNMatthews - Dec. 22, 2006) - Pele Mountain Resources Inc. (TSX VENTURE:GEM)("Pele" or the "Company") announced today that Goldcorp Inc. (TSX:G)(NYSE:GG) has informed Pele that it has elected under its option agreement with Pele to form a 50-50 joint venture at the Festival Diamond Project in northern Ontario. Goldcorp has funded aggregate expenditures in excess of $1,500,000 as set out in the amendment to Goldcorp's option agreement announced by Pele on August 22, 2005. Accordingly, Goldcorp has fulfilled the requirements necessary to earn a 50-percent undivided interest in the project from Pele. Goldcorp has also informed Pele that it is electing to terminate its second option to earn an additional 10-percent interest in the project.

The Festival Diamond Project is located 25 kilometres north of Wawa along the Trans Canada Highway and consists of a 100-percent interest in the mineral rights of a 101-square kilometre patented land package. A 500-tonne bulk sampling program was completed at Festival earlier this year, with results reaffirming the presence of commercial size, gem quality diamonds within a suite of ultramafic rocks exposed in intermittent outcrop along a stratigraphic horizon that extends for more than five kilometres.

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 its 100-percent owned projects at Elliot Lake and Highland. The Elliot Lake uranium project contains a substantial "Measured Ore Estimate" compiled by Rio Algom within an historically prolific mining camp. Exploration at Highland indicates outstanding potential for gold resources and existing regional infrastructure provides opportunities for revenue producing operations. Pele is also a generative exploration company holding a diverse portfolio of gold, diamond, and base metal projects, providing exposure and leverage 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: 65,307,860

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

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