Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

March 22, 2005 10:20 ET

Pele Mountain Provides Festival and Alliance Diamond Project Updates


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PELE MOUNTAIN RESOURCES INC.

TSX VENTURE SYMBOL: GEM

MARCH 22, 2005 - 10:20 ET

Pele Mountain Provides Festival and Alliance Diamond
Project Updates

TORONTO, ONTARIO--(CCNMatthews - March 22, 2005) - Pele Mountain
Resources (TSX VENTURE:GEM) ("Pele" or the "Company") today announced
updates on its Festival and Alliance diamond projects in northern
Ontario.

At Festival, Pele has collected and submitted to the lab over 400
kilograms of additional samples taken from known diamond occurrences
that have previously returned encouraging results. Pele has also
mobilized its recently acquired hydraulic drill to test the continuation
of certain diamond occurrences at depth. The upcoming drill program will
focus on the South Zone.

Recent sampling has demonstrated that the individual diamond occurrences
at Festival are part of a much larger suite of rocks and that diamonds
occur primarily within discrete layers at the base of these zones. The
two identified zones, "South" and "North", are characterized by
intermittent outcrop exposure with surface areas measuring up to 1,500
metres long and up to 800 metres across and up to 1,100 metres long and
up to 600 metres across, respectively. Both zones are comprised of
relatively thick sequences of diamondiferous volcanogenic rocks and
potentially host significant tonnage.

The Festival Diamond Project is located 25 kilometres north of Wawa
along the Trans Canada Highway where Pele controls a 100-percent
interest in the mineral rights of a 101-square kilometre patented land
package. Bulk sampling has confirmed the presence of commercial size and
gem quality diamonds at Festival. Exploration at Festival is funded by
Goldcorp (TSX:G; NYSE:GG) which can earn up to a 60-percent interest in
the project from Pele by spending $3-million over a three-year period.
Pele is operating the project under the supervision of Dr. Edward
Walker, P.Geo.

At Pele's Alliance Project, project operator Trigon Exploration Canada
(TSX Venture:TEL) recently reported that its initial field program is
nearing completion and that ground geophysical surveys have been
performed over six separate kimberlite targets. Trigon further stated
that it is using a proprietary heliportable reverse circulation drilling
system to obtain overburden samples which it will use to refine its
understanding of the nature of the surficial lithologies and that this
information will be used to aid in the design of future sampling and
drilling programs.

The Alliance Project is located in the James Bay Lowlands of northern
Ontario, near the transition of the Lowlands and the Canadian Shield.
Pele has staked and recorded more than 30 geophysical targets within the
6-million acre area of the Fort Hope Airborne Survey, where magnetic
targets with susceptibilities comparable to known regional kimberlites
have been identified. Exploration at Alliance is funded by Trigon which
can earn up to a 60-percent interest in both the Alliance and
Attawapiskat River projects from Pele by spending $3-million over a
three-year period. Trigon has committed to drill a minimum of five
targets at Alliance, and one target at Attawapiskat River, by June 1,
2005.

This press release has been reviewed and approved by Dr. Edward Walker,
P.Geo., an independent consultant and a Qualified Person.

Pele Mountain Resources is a Canadian mineral exploration company and a
leader in the search for economic diamond and gold deposits in northern
Ontario. Pele is actively exploring on four project fronts, including a
Goldcorp-funded program at the Festival Diamond Project, Trigon-funded
diamond programs in the James Bay Lowlands, and in-house gold
exploration programs at the Ardeen and Highland projects. Pele 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: 46,504,237

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pele Mountain Resources Inc.
    Al Shefsky
    President
    (416) 368-7224
    www.pelemountain.com