Common Shares Outstanding: 127,625,135

TORONTO, Nov. 16 /CNW/ - Pele Mountain Resources Inc. (TSX Venture: GEM) ("Pele" or the "Company") is pleased to announce that it has closed a non-brokered private placement offering (the "Offering") with the MineralFields Group, comprised of 769,230 units (the "Hard Dollar Units") at a price of $0.26 each for aggregate gross proceeds of $200,000 and 3,333,333 flow-through units (the "FT Units") at a purchase price of $0.30 per FT Unit for aggregate gross proceeds of $1,000,000. Each Hard Dollar Unit consists of one common share and one common share purchase warrant (a "Warrant"), with each Warrant exercisable to acquire one common share of Pele at $0.36 until November 16, 2012. Each FT Unit consists of one common share and one-half of one common share purchase warrant (a "FT Warrant"), with each whole FT Warrant exercisable to acquire one common share of Pele at $0.40 until November 16, 2012.

In connection with the Offering, the Company paid eligible persons (the "Finders") a cash fee of 6.5% 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 "Hard Dollar Compensation Warrants") or FT Units (the "FT Compensation Warrants") issued through each Finder under the Offering. Each Hard Dollar Compensation Warrant entitles the holder upon exercise to acquire one common share of Pele at $0.26 until November 16, 2012 and each FT Compensation Warrant entitles the holder upon exercise to acquire one common share of Pele at $0.30 until November 16, 2012. On closing, the Company paid $74,750 in cash fees to the Finders and issued 53,846 Hard Dollar Compensation Warrants and 221,666 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.