Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

November 27, 2006 07:30 ET

Pele Mountain Discovers New Gold-Copper Zone at Highland Project

TORONTO, ONTARIO--(CCNMatthews - Nov. 27, 2006) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that drilling at its Highland Project in northern Ontario has led to the discovery of a new gold-bearing shear zone with significant copper, silver and cobalt mineralization. Highland is 100-percent owned by Pele Gold Corporation ("Pele Gold"), a wholly-owned subsidiary of the Company.

Pele Gold's 2006 exploration work at Highland has focused primarily within and along the contacts of the Gutcher Lake Stock ("GLS"), an important geological feature in the western Goudreau Lochalsh Deformation Zone ("GLDZ"). A recently completed airborne geophysical survey by Geotech Ltd. identified three VTEM anomalies in close proximity to the northern contact of the GLS. Each of the three anomalies was drilled with significant shearing and anomalous sulphide mineralization intersected in all of them. Drilling at Anomaly 'G', renamed the "Wolverine Zone", returned significant gold, copper, silver and cobalt mineralization as indicated in the table below.



Wolverine Zone Drill Highlights
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Drill Hole From To Length Gold Silver Cobalt Copper
(m) (m) (m) (g/t) (g/t) (g/t) (%)
--------------------------------------------------------------
BC-DH06-01 139.86 142.75 2.89 2.5 14 588 1.24
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including 142.31 142.75 0.44 10.1 42 2,428 4.30
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The Wolverine zone is associated with an approximately 300-metre VTEM anomaly oriented sub-parallel to the regional stratigraphy and the GLDZ, along the contact between porphyry and metavolcanics. The occurrence is characterized by intense shearing and alteration with associated massive pyrite and chalcopyrite within numerous veinlets. These veinlets are associated with silicification up to 5 centimetres wide and a zone of massive pyrite and chalcopyrite with a core length of 0.44 metres within a 2.9-metre zone of disseminated mineralization. Two follow-up holes are being drilled at Wolverine, each a 50-metre step-out from the hole reported above.

The Wolverine Zone is situated within recently acquired claims that are in close proximity to previously discovered gold and copper mineralization at Pele's B and C zones, which are crosscutting structures extending to the south of the Wolverine Zone, nearly perpendicular to the regional stratigraphy and the GLDZ. Two additional holes were drilled at the B and C zones, highlights of which are displayed in the table below.



B and C Gold-Copper Zones
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----------------------------------------------------------------
Core
Drill Hole From To Length Gold Silver Cobalt Copper
(m) (m) (m) (g/t) (g/t) (g/t) (wt %)
----------------------------------------------------------------
BC-DH06-02 47.00 47.97 0.97 0.8 18 462 1.58
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including 47.00 47.40 0.40 1.2 39 1,026 3.19
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and 83.45 84.05 0.60 1.1 19 183 0.74
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BC-DH06-03 160.65 161.52 0.87 0.2 5 50 0.45
----------------------------------------------------------------
and 178.53 179.20 0.67 2.8 7 24 0.58
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and 179.50 179.88 0.38 0.5 13 58 1.14
----------------------------------------------------------------


Two drill holes were also completed at the W-8 zone, a discordant structure oriented similar to the B and C zones located 800 metres west of the Wolverine Zone on a non-contiguous claim. Highlights are displayed in the following table.



W-8 Zone Drill Highlights
-------------------------

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Drill Hole From To Length Gold Copper
(m) (m) (m) (g/t) (%)
-------------------------------------------
W8-DH06-01 29.95 30.75 0.80 0.7 0.90
-------------------------------------------
W8-DH06-02 52.60 53.40 0.80 3.8 0.42
-------------------------------------------


Drilling continues to demonstrate that significant concentrations of gold, copper, silver, and cobalt mineralization are present within shear zones that are directly or closely associated with the northern contact of the GLS. These include the Wolverine, B and C, W-8, and Murphy Mine Extension zones.

All the assay data reported herein was processed using standard fire assaying techniques by Accurassay Laboratories in Thunder Bay, Ontario, an ISO 17025 accredited laboratory. This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101.

About Pele Mountain Resources

Pele Mountain Resources is discovering and developing the mineral wealth of northern Ontario. Pele is focused on the exploration 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: 63,222,145

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

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