Pele Mountain Announces Final Closing of Private Placement Offering

TORONTO, ONTARIO, Oct 06, 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 final tranche of a non-brokered private placement offering (the "Offering") comprised of 2,250,000 units (the "Units") at a price of $0.16 each for aggregate gross proceeds of $360,000, with each Unit consisting of one common share and one common share purchase warrant (a "Warrant"), and 4,600,000 flow-through units (the "FT Units") at a purchase price of $0.18 per FT Unit for aggregate gross proceeds of $828,000, with each FT Unit consisting of one common share and one-half of one common share purchase warrant (a "FT Warrant"). Each Warrant is exercisable to acquire one common share of Pele at $0.25 until October 6, 2012, and each FT Warrant is exercisable to acquire one common share of Pele at $0.25 until April 6, 2012.

Together with the closing of the first tranche on September 30, 2010 and the second tranche on October 1, 2010, Pele has issued an aggregate of 5,581,700 Units resulting in total gross proceeds to Pele of $893,072 from the sale of Units under the Offering and has issued an aggregate of 15,957,264 FT Units resulting in total gross proceeds to Pele of $2,872,308 from the sale of FT Units under the Offering. M Partners Inc. raised $2,485,748 for the Company in connection with the Offering.

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 under the Offering and also issued compensation warrants equal to 7% of the total number of Units (the "Compensation Warrants") or FT Units (the "FT Compensation Warrants") issued through each Finder under the Offering. Each Compensation Warrant entitles the holder upon exercise to acquire one common share of Pele at $0.16 until October 6, 2012 and each FT Compensation Warrant entitles the holder upon exercise to acquire one common share of Pele at $0.18 until April 6, 2012. On closing, the Company paid $76,440 in cash fees to the Finders and issued 115,500 Compensation Warrants and 322,000 FT Compensation Warrants to the Finders.

The securities issued pursuant to the Offering will all be subject to a four (4) month statutory hold period 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 FT Units will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties and all proceeds raised from the sale of Units will be used by Pele to finance exploration and development activities and for general working capital purposes.