Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

November 01, 2005 09:46 ET

Pele Mountain's 500-Tonne Festival Bulk Sample Advances to Processing Stage

TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that the 500-tonne bulk sampling program at its Festival Diamond Project has advanced to the processing stage. Exploration at Festival is funded by Goldcorp (TSX:G; NYSE:GG) which has provided sufficient funding to earn a 50-percent interest in the project from Pele.

The three bulk samples from Festival, including a 300-tonne sample from the Cristal diamond occurrence and two samples totaling 200 tonnes from the Deutz diamond occurrence, were extracted and shipped to Lakefield, Ontario in September and have now been crushed to less than 8-millimetre square mesh sieve size. The processing circuit is now being commissioned following engineering, fabrication and testing of the various component parts during October. Processing of the Cristal sample will begin this week, with diamond-bearing concentrates expected before the end of November. Processing of the two Deutz samples will begin immediately following completion of the Cristal sample. Results will be announced following the recovery and measurement of diamonds from all three bulk samples.

Commercial size and gem quality diamonds have been recovered from previous bulk sampling at Festival within a suite of ultramafic rocks exposed in intermittent outcrop along a stratigraphic horizon that extends for more than five kilometres. Drilling at five different locations has confirmed that the diamond bearing zones at Festival are up to 60 metres thick. Cristal was the site of past sampling efforts that recovered commercial size and gem quality diamonds, including a 0.72-carat stone. Deutz was the site of a recent drill program that confirmed subsurface continuity of Festival's South Zone and demonstrated that significant diamond concentrations are recoverable from multiple ultramafic rock types. The 500-tonne bulk sample is larger than all previous sampling efforts at Festival combined.

Pele is operating the Festival program under the supervision of Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101, who has reviewed and approved this press release.

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 five project fronts, including diamond exploration at Festival and Alliance funded by partners Goldcorp and Trigon Exploration Canada, 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".

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: 50,072,215

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

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