SOURCE: Pele Mountain Resources Inc.

July 11, 2006 10:30 ET

Pele Mountain Options Sudbury Offset Project to Wallbridge

TORONTO -- (MARKET WIRE) -- July 11, 2006 -- Pele Mountain Resources (TSX-V: GEM) ("Pele" or the "Company") announced today that it has signed an option agreement with Wallbridge Mining Company Ltd. (TSX: WM) ("Wallbridge") on Pele's 100-percent owned Sudbury Offset Project (the "Project") in northern Ontario. The Project consists of approximately 350 mining claim units covering 14,000 acres in the prolific Sudbury Mining Camp, extending 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 Foy Offset Dike.

Petrological and lithogeochemical analysis of quartz-diorite host rock on the project has confirmed the presence of an offset dike with a strike extension exceeding three kilometres on Pele's claims. Offset dikes in the Sudbury area have hosted extensive Ni-Cu-PGE mineralization as well as several successful mining operations. The Project also includes several occurrences of Sudbury breccia, a host lithology which is often associated with footwall-style Ni-Cu-PGE mineralization. An airborne survey flown on two areas of the Project last fall identified a number of conductors, indicating the potential for sulfide mineralization.

Management of both companies believe that the Project has the potential to host offset dike related Ni-Cu-PGE mineralization as well as footwall Ni-Cu-PGE mineralization related to major structures which cross the Project. Its potential is also underscored by the recent staking of over 600 claim units immediately west of the Project by Falconbridge, one of the largest single land acquisitions by a major mining company in the camp in many years. Subject to regulatory acceptance of applicable filings, the optioning of the Project will result in Wallbridge controlling the third largest holding of mining claims in the Sudbury area, behind only Inco and Falconbridge.

Wallbridge will operate the Project during the option period and can earn a 60-percent interest by issuing 1.05 million of its common shares to Pele and by making $1.2 million in work expenditures by year-end 2009, as detailed below.

    
--  2006: 150,000 shares on approval; an additional 200,000 shares and
    $100,000 work commitment by year-end.
--  2007: An additional 300,000 shares and an additional $300,000 work
    commitment by year-end.
--  2008: An additional 400,000 shares and an additional $300,000 work
    commitment by year-end.
--  2009: An additional $500,000 work commitment by year-end.
    
The common shares issued to Pele will all be subject to a statutory hold period expiring four (4) months and one (1) day from the respective dates of issuance. Wallbridge can increase its interest to 72.5 percent by completing a bankable feasibility study and arranging the financing for the project through to commercial production.

Pele President and CEO Al Shefsky stated, "We are excited to have the Wallbridge team engaged as our exploration partner at Sudbury. They are well established in the camp and bring considerable exploration and operational expertise to the Project. Furthermore, this agreement supports our corporate objective of increasing shareholder value through strategic alliances that leverage exploration spending on our properties."

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 Company-operated gold and diamond exploration at Highland, diamond exploration at Festival and Alliance funded by Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen funded by Maple Minerals Corp and East-West Resource Corporation, and Ni-Cu-PGE exploration at Sudbury funded by Wallbridge Mining Company Ltd. 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.

For further information please contact Al Shefsky, President, at (416) 368-7224, or visit the Pele website at www.pelemountain.com.

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