SOURCE: Pele Mountain Resources Inc.

June 21, 2006 14:21 ET

Pele Mountain Extends Diamond Bearing Dike to Over 1100 Metres

TORONTO -- (MARKET WIRE) -- June 21, 2006 -- Pele Mountain Resources (TSX-V: GEM) ("Pele" or the "Company") announced today that recent drilling at the Talisker diamond occurrence has increased the confirmed strike length of the macro diamond bearing mica kimberlite dike, to more than 1100 metres. The Talisker diamond occurrence is part of the Highland Project, which is 100-percent owned by Pele Gold Corporation ("Pele Gold"), a wholly owned subsidiary of the Company.

Drilling has been targeted based on ground geophysical surveys which show the dike is closely aligned with a magnetic trend that extends for approximately 1.5 kilometres and remains open along strike in both directions. Drill intersections announced to date have returned apparent widths from approximately 4 to 10 metres in thickness.

Previous sampling of the mica kimberlite from the Talisker diamond occurrence has consisted of a single sample weighing approximately 78 kilograms of B size drill core that returned five diamonds including a white octahedron macro diamond that measured 1.12mm x 0.74mm x 0.72mm. Of the remaining four diamonds, one reported to the +300 micron size fraction and three reported to the +150 micron size fraction. The sample was processed with a bottom screen size of 75 microns at Saskatchewan Research Council, an independent ISO 17025 accredited laboratory.

HQ size drill equipment is currently collecting substantially larger samples of the Talisker diamond occurrence to process for diamond recovery by caustic digestion.

The Company also reported that diamond observation and selection of the non-magnetic heavy mineral concentrates for the Festival Property bulk-sampling program is advancing along with routine quality control reviews. Results for the bulk sample program will be announced when reported to Pele.

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.

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 several project fronts, including diamond exploration at Festival funded Goldcorp, 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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