Pele Mountain Announces Closing of Private Placement Offering

TORONTO, ONTARIO, Sep 30, 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 a non-brokered private placement offering (the "Offering") comprised of 3,331,700 units (the "Units") at a price of $0.16 each for gross proceeds of $533,072, with each Unit consisting of one common share and one common share purchase warrant (a "Warrant"), and 8,330,600 flow-through units (the "FT Units") at a purchase price of $0.18 per FT Unit for gross proceeds of $1,499,508, with each FT Unit consisting of one common share and one-half of one common share purchase warrant (a "FT Warrant"). Each Warrant from the Units is exercisable for one common share of Pele at $0.25 until September 30, 2012, and each FT Warrant from the FT Units is exercisable for one common share of Pele at $0.25 until March 30, 2012.

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 at $0.25 to one common share of Pele until September 30, 2012 and each FT Compensation Warrant entitles the holder upon exercise at $0.25 to one common share of Pele until March 30, 2012. On closing, the Company paid an aggregate amount of $135,362.36 in cash fees to the Finders and issued an aggregate of 569,142 Compensation Warrants and 205,730 FT Compensation Warrants to the Finders.

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 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.

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".

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. The economic viability of the 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.

Common Shares Outstanding: 113,545,908