Pele Mountain Announces Closing of Private Placement Offering

TORONTO, ONTARIO, Oct 01, 2010 (MARKETWIRE via COMTEX News Network) --

Pele Mountain Resources Inc. (TSX VENTURE: GEM) ("Pele" or the "Company") is pleased to announce that it has closed the second tranche of a non-brokered private placement offering (the "Offering") comprised of 3,026,664 flow-through units (the "Units") at a purchase price of $0.18 per Unit for gross proceeds of $544,800. Each Unit consists of one common share and one-half of one common share purchase warrant (a "Warrant"), with each Warrant exercisable for one common share of Pele at $0.25 until April 1, 2012. Pele announced the closing of the first tranche on September 30, 2010.

In connection with the Offering, the Company paid eligible persons (the "Finders") a cash fee of 7% of the gross proceeds raised through each Finder and also issued compensation warrants equal to 7% of the total number of Units (the "Compensation Warrants") issued through each Finder under the Offering. Each Compensation Warrant is exercisable for one common share of Pele at $0.25 until April 1, 2012. On closing, the Company paid an aggregate amount of $15,820 in cash fees to the Finders and issued an aggregate of 87,889 Compensation Warrants.

The securities issued pursuant to the Offering will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

All proceeds raised from the sale of Units will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties.

About Pele

Pele Mountain Resources is focused on the sustainable development of its Eco Ridge Mine Uranium and Rare Earth Elements ("REE") project, located in the Elliot Lake mining camp of Northern Ontario. Pele's expert team of technical personnel, advisors, and consultants is working to optimize mining, processing, and waste management techniques at Eco Ridge. With well-understood geology, excellent regional infrastructure, and strong local support, Eco Ridge provides an ideal location for a safe, secure, and reliable long-term supply of Uranium and REE. Additionally, Pele has, or is actively seeking, qualified strategic partners to advance its other high-potential exploration projects, including high-grade gold properties at Highland and Ardeen. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM".