Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

August 29, 2005 14:40 ET

Pele Mountain Generates New Offset Dike Exploration Project in the Prolific Sudbury Mining Camp

TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that it has staked more than 250 mining claim units covering over 10,000 acres in the prolific Sudbury Mining Camp of northern Ontario. Pele's "Sudbury Offset" property extends from the northern boundary of Levack Township into Harty and Foy townships, north of FNX Mining Company operations and about one kilometre southwest of the northern part of the Foy Offset Dike.

Please see for a map showing the Pele property location within the Sudbury area.

Preliminary prospecting work on Pele's Sudbury Offset property suggests strong potential to discover a new offset dike. A quartz-diorite dike has recently been identified in the northeast corner of the property and bedrock samples have been collected and are now being analyzed to determine if it is an offset dike. A large block of similar appearing sub-crop, located within three metres of the dike, has been examined petrologically and found to have strong affinities with the quartz-diorite host rock of the nearby Foy Offset Dike.

The property was acquired following the discovery of several massive sulphide boulders alongside a newly-built logging road, about three kilometres south of the Foy Offset Dike. Based on their size, shape and composition, it is likely that the boulders are locally derived and that their source lies within the Pele property. Subsequent stripping and washing of nearby outcrop has revealed Sudbury Breccia and other rock types. A preliminary ground magnetometer survey over an area up-ice from the boulders shows a distinct magnetic anomaly within 300 metres of the boulder location. The boulders and the nearby outcrop have also been sampled and are currently being analyzed by an independent accredited laboratory.

The Sudbury Mining Camp is the most productive nickel mining district in the world, continuing to deliver world-class base and precious metal output after more than a century of operation. The camp's dominant feature is the Sudbury Basin, a 60-kilometre long elliptical structure that features copper-nickel-platinum-palladium deposits along the contact and footwall of the Sudbury Igneous Complex, which forms the outer rim of the Sudbury Basin, as well as within offset dikes that emanate radially outward from it. Offset dikes have become the target of progressively more intense exploration interest because they have hosted several successful operations, including the Copper Cliff and Worthington mines. The Foy Offset Dike was also host to a past producing nickel mine, located east of Pele's Sudbury Offset property.

Despite its long history, new discoveries continue to be made in the Sudbury area and regional exploration has increased sharply over the last few years. The recent successes of Wallbridge Mining Company Ltd. at its newly discovered Trill Offset Dike and FNX at its Levack Footwall property provide compelling examples of the district's outstanding exploration potential.

Pele President and CEO Al Shefsky added, "Recent exploration news from around the Sudbury Basin has been nothing short of spectacular and we are excited by Pele's entry into this legendary mining camp. This acquisition provides an opportunity to add shareholder value and is a superb fit for our corporate strategy of generating high-potential projects in northern Ontario."

Follow-up work plans are under development and will be announced following the receipt of pending assay, geochemical, and petrological analysis results.

This press release has been reviewed and approved by Scott Jobin-Bevans, Ph.D., P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101 working with Caracle Creek International Consulting Inc.

Pele Mountain Resources is an exploration play on the abundant mineral wealth 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 seven project fronts, including diamond exploration at Festival, Alliance and Attawapiskat River with partners Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen with partners Maple Minerals Corp and East-West Resource Corporation, and in-house exploration at its Highland Gold, Sudbury Offset, and Elliot Lake Uranium 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. None of the Company's properties have any known ore body of economic or commercial value.

Common Shares Outstanding: 46,744,237

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