SOURCE: Pele Mountain Resources Inc.

April 21, 2006 17:24 ET

Pele Mountain Completes Flow-Through Private Placement

TORONTO -- (MARKET WIRE) -- April 21, 2006 -- Pele Mountain Resources (TSX-V: GEM) ("Pele" or the "Company") announced today that it has completed, subject to regulatory approval, the first tranche of a private placement (the "Flow-Through Offering") to seven (7) arm's length subscribers of a total of 1,725,000 flow-through units in the capital of Pele (each a "Flow-Through Unit") at a purchase price of $0.40 per Flow-Through Unit for gross proceeds of $690,000. Each Flow-Through Unit is comprised of one (1) flow-through common share (each a "Flow-Through Share") and one-half (1/2) non-transferable Series X purchase warrant (each a "Series X Warrant"), where each whole Series X Warrant is exercisable until April 21, 2007 to purchase one (1) additional common share of Pele at a purchase price of $0.50 per share. The securities underlying the Flow-Through Units, including the Flow-Through Shares and Series X Warrants issued under the Flow-Through Offering and the common shares of Pele issuable upon due exercise, if any, of the Series X Warrants, will all be subject to a 4 month statutory hold expiring on August 22, 2006. The Company is expected to complete the second and final tranche of the Flow-Through Offering for an additional 3,000,000 Flow-Through Units at a purchase price of $0.40 per Flow-Through Unit for gross proceeds of $1,200,000 on or about April 26, 2006.

All proceeds raised under this Flow-Through Offering 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. No commission or finder's fees are payable in connection with this Offering. Currently, Pele has 56,412,145 common shares issued and outstanding, which total includes the issuance of 1,725,000 Flow-Through Shares referred to above.

Pele Mountain Resources is focused on mineral exploration within the established mining camps of northern Ontario. Pele has acquired and developed a diverse portfolio of diamond, gold, base metal, and uranium properties, which provide exposure and leverage both to discovery and to the increased global demand for natural resources. Pele is active on five project fronts, including diamond exploration at Festival and Alliance funded by partners Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen funded by partners Maple Minerals Corp and East-West Resource Corporation, and in-house exploration at its Highland Gold and Sudbury Offset properties. Pele stock trades on the TSX Venture Exchange under the symbol "GEM."

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

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