Advances Eco Ridge Mine Project

Discovering and developing the mineral wealth of Northern Ontario

Pele Mountain Resources is focused on the sustainable development of a rare earth processing center in Elliot Lake, Ontario, at the same location as its Eco Ridge Mine Rare Earth and Uranium Project.

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Advances Eco Ridge Mine Project

posted on Jan 09, 2009 04:35AM

January 9, 2009

Pele Mountain Advances Eco Ridge Mine Project

Extensive Drill Program Returns Positive Results

TORONTO, ONTARIO--(Marketwire - Jan. 9, 2009) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") today announced drill results from its Eco Ridge Mine Project in the historic Elliot Lake uranium mining camp of Northern Ontario. Since its last drilling update in March 2008, Pele has completed an additional 84 holes, totaling nearly 15,000 metres. The program included both in-fill and step-out drilling, along with additional drilling to acquire core for metallurgical testing, to identify a site for a bulk sample, to test ground conditions beneath an area proposed for processing facilities, and to acquire hydro-geological data required for the mine permitting process.

With its excellent regional infrastructure, well-understood geology, and politically-stable and mining-friendly jurisdiction, Elliot Lake is an ideal location for the development of a long-term uranium supply. Pele's 100-percent owned Eco Ridge Mine property contains a NI 43-101 compliant resource of 6.4 million pounds of "indicated" U3O8 (5.68 million tonnes grading 0.051 percent U3O8) and 36.1 million pounds of "inferred" U3O8 (37.26 tonnes grading 0.044 percent U3O8) with the potential for significant expansion. More than 300 million pounds of U3O8 were mined from similar deposits near Elliot Lake by Rio Algom and Denison Mines from 1956 to 1996.

Pele commenced the permitting process for the Eco Ridge Mine by filing a Project Description (see Pele website at www.pelemountain.net) with the Canadian Nuclear Safety Commission and the Federal Government's Major Project Management Office. (See Pele press release dated September 8, 2008.) The document details Pele's approach to the sustainable development of uranium operations at Eco Ridge. Since the release of that document, Pele also announced the postponement of its pre-feasibility study and certain components of the permitting process as cost-cutting measures, in response to difficult market conditions. (See Pele press release dated October 28, 2008.) Other aspects of development continue to advance at the project.

Most of the newly-reported holes are from in-fill drilling within the Adit Block, a near-surface area of relatively higher-grade mineralization within the Main Conglomerate Bed ("MCB") that presents a favorable location for initial mining and areas to the north and east of the Adit Block. The MCB, which contains the higher grade uranium mineralization outcrops on the property and extends over a strike length of 6,000 meters. The uranium mineralization has been intersected in holes at a depth of 1,000 meters and over a dip length of about 3,800 meters. The drilling provided further confirmation of uranium mineralization continuity and delineated relatively higher-grade trends that run from southeast to northwest and which remain open. The in-fill drill program was designed by SRK Consulting to create a block model for mine design purposes.

Drill holes PM08-100, 101 and 108 were step-outs that successfully intersected the projected northwest trend of relatively higher grade uranium mineralization. This trend extends out from the region of higher density drilling of the Adit Block. PM08-108, located beyond the boundaries of the NI 43-101 compliant resource, returned 0.072% U3O8 over 2.48 metres, once again confirming outstanding potential for resource expansion downdip and towards the north-west.

Drill holes PM08-105, 106, 107, 109-115, and 117-119 provided approximately 200 kilograms of core for metallurgical testing by SGS Lakefield Research for processing circuit design and by MIRARCO for closure study purposes. Drill holes PM08-165 and 166 were located near the deposit outcrop to identify a site for the extraction of a 35-tonne bulk sample for additional metallurgical testing.

Drill Results - Main Conglomerate Bed- Adit Block & Extensions to 
North & East

------------------------------------------------------------
              From       Length     Est. True
Hole ID         (m)          (m)     Width (m)      U3O8 (%)
------------------------------------------------------------
PM08-83     240.07         2.85          2.47         0.056
------------------------------------------------------------
PM08-84     234.69         2.36          2.19         0.025
------------------------------------------------------------
PM08-85     207.22         2.59          2.50         0.037
------------------------------------------------------------
PM08-86     192.65         1.56          1.51         0.035
------------------------------------------------------------
PM08-87     198.39         2.58          2.49         0.043
------------------------------------------------------------
PM08-89(i)  237.48         2.52          2.49         0.112
------------------------------------------------------------
PM08-90(i)  317.80         1.75          1.72         0.010
------------------------------------------------------------
PM08-100    299.28         2.82          2.72         0.059
------------------------------------------------------------
PM08-101    309.62         2.58          2.50         0.056
------------------------------------------------------------
PM08-105     22.30         2.80          2.54         0.045
------------------------------------------------------------
PM08-106     21.80         2.56          2.55         0.040
------------------------------------------------------------
PM08-107     24.12         2.54          2.45         0.035
------------------------------------------------------------
PM08-108(i) 335.33         2.59          2.48         0.072
------------------------------------------------------------
PM08-109     42.70         5.25          2.46         0.052
------------------------------------------------------------
PM08-110     41.96         7.94          3.72         0.058
------------------------------------------------------------
PM08-111    138.80         4.60          2.51         0.062
------------------------------------------------------------
PM08-112    143.40         9.30          5.07         0.048
------------------------------------------------------------
PM08-113    113.30         5.10          2.78         0.061
------------------------------------------------------------
PM08-114    111.00         6.40          3.49         0.046
------------------------------------------------------------
PM08-115    110.76         5.16          2.81         0.068
------------------------------------------------------------
PM08-116    105.63         4.38          2.39         0.041
------------------------------------------------------------
PM08-117     70.30         5.70          2.67         0.082
------------------------------------------------------------
PM08-118     75.20         5.50          2.58         0.065
------------------------------------------------------------
PM08-119     65.05         5.25          2.46         0.078
------------------------------------------------------------
PM08-124     83.03         3.64          3.63         0.048
------------------------------------------------------------
PM08-125     56.98         3.09          3.08         0.076
------------------------------------------------------------
PM08-126    164.56         2.16          2.15         0.040
------------------------------------------------------------
PM08-127    146.84         2.46          2.42         0.051
------------------------------------------------------------
PM08-128    135.74         2.60          2.60         0.047
------------------------------------------------------------
PM08-130     88.41         2.40          2.39         0.041
------------------------------------------------------------
PM08-131     98.61         2.58          2.57         0.034
------------------------------------------------------------
PM08-132     58.40         4.17          3.72         0.046
------------------------------------------------------------
PM08-133    225.67         2.27          2.26         0.029
------------------------------------------------------------
PM08-134    126.54         2.17          2.16         0.038
------------------------------------------------------------
PM08-135    186.45         2.61          2.45         0.033
------------------------------------------------------------
PM08-136    211.23         2.18          2.05         0.042
------------------------------------------------------------
PM08-137     63.64         2.45          2.44         0.040
------------------------------------------------------------
PM08-138     75.40         3.35          3.33         0.043
------------------------------------------------------------
PM08-139    108.54         3.15          3.13         0.046
------------------------------------------------------------
PM08-141    191.13         2.17          1.90         0.037
------------------------------------------------------------
PM08-142    185.50         2.43          2.42         0.045
------------------------------------------------------------
PM08-143    241.71         3.06          3.05         0.027
------------------------------------------------------------
PM08-144    185.10         1.33          1.32         0.038
------------------------------------------------------------
PM08-145    294.42         2.51          2.50         0.035
------------------------------------------------------------
PM08-146    236.91         2.76          2.75         0.042
------------------------------------------------------------
PM08-147    150.50         2.53          2.53         0.041
------------------------------------------------------------
PM08-148    237.24         2.63          2.63         0.037
------------------------------------------------------------
PM08-149    176.03         2.49          2.48         0.040
------------------------------------------------------------
PM08-150    242.88         3.37          3.36         0.044
------------------------------------------------------------
PM08-151    165.50         3.30          3.29         0.046
------------------------------------------------------------
PM08-152    295.28         2.45          2.43         0.058
------------------------------------------------------------
PM08-153    192.91         2.86          2.85         0.057
------------------------------------------------------------
PM08-154    275.89         2.31          2.30         0.050
------------------------------------------------------------
PM08-155    181.28         2.77          2.76         0.071
------------------------------------------------------------
PM08-156    232.22         2.66          2.65         0.034
------------------------------------------------------------
PM08-157    220.38         2.44          2.42         0.062
------------------------------------------------------------
PM08-158    265.00         2.71          2.70         0.040
------------------------------------------------------------
PM08-159    188.85         2.66          2.65         0.064
------------------------------------------------------------
PM08-160    253.40         2.40          2.40         0.053
------------------------------------------------------------
PM08-161    165.09         2.99          2.98         0.051
------------------------------------------------------------
PM08-162    208.48         2.55          2.54         0.051
------------------------------------------------------------
PM08-163    140.05         2.67          2.51         0.027
------------------------------------------------------------
PM08-164    268.92         2.45          2.44         0.059
------------------------------------------------------------
PM08-165      1.89         3.14          3.13         0.051
------------------------------------------------------------
PM08-166      3.47         3.45          3.44         0.050
------------------------------------------------------------
(i) designed to test airborne geophysical anomalies

This press release has been reviewed and approved by Fergus Kerr P. Eng., Vice President Uranium Operations for the Company and a Qualified Person under NI 43-101.

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