Symbol: GEM

Listing: TSX Venture Exchange

Common Shares Outstanding: 132,588,746

TORONTO, March 7 /CNW/ - Pele Mountain Resources Inc. (TSX Venture
symbol: GEM) ("Pele" or the "Company") today provided an update on its Ardeen and East Highland gold
projects. Pele is pursuing strategies to unlock value at its gold
projects as it focuses on the sustainable development of its Eco Ridge
Mine Uranium and Rare Earths project.

Australian-based Coventry Resources Ltd. ("Coventry")has notified the Company that it has satisfied all conditions necessary
to complete its initial 51-percent earn-in at Pele's Ardeen Gold
Project, along the Shebandowan Greenstone Belt in Northern Ontario.
Furthermore, Coventry has advised Pele that it intends to increase its
project interest to 75-percent by making additional required
exploration expenditures by January 2013, and then forming a joint
venture with Pele. Coventry will continue as the project operator
during the option period and plans to resume exploration at Ardeen in
the spring.

In late 2009, Coventry completed a 53-hole, 6,435-metre diamond drill
program at Ardeen, targeting along strike and down-plunge extensions of
known high-grade gold mineralization, returning assays of up to 11.6
metres of 27.0 grams per tonne (g/t) gold and 41.1 g/t silver. More
than 12,000 metres of drilling at Ardeen by Pele in the 1990s also
returned numerous high-grade gold intercepts. Coventry has completed
its initial earn-in, and the Ardeen project is now 49 percent owned by
Pele Gold.

Pele also announced that it has received updated engineering plans for
the extraction of a high-grade, near-surface bulk sample which is
expected to return up to 2,500 ounces of gold at the 'A' zone at East
Highland. In the late-1990s, approximately 3,800 tonnes of material
was mined from a shallow open pit at the 'A' Zone, returning an average
gold grade of about 5 grams per tonne (g/t). Plans for the bulk sample
include widening and deepening the existing pit under the existing
closure plan. The selection of a mill for processing ore from the bulk
sample has not been finalized.

Pele President and CEO Al Shefsky stated, "We continue to seek a
qualified partner to explore and develop our Highland gold properties
as we concentrate on the development of Eco Ridge. We believe that
Highland has excellent potential for near-term cash flow opportunities
as well as the delineation of significant gold resources."

Pele also announced results from drilling at the 'A' zone which was
planned, performed, and paid for by an arm's-length third party.
Drilling sought to extend the known mineralized zone to the east
through a series of shallow core holes totaling approximately 500
metres. The results extended the high grade ore zone in the pit by an
additional 5 meters and also confirmed that the shear zone which hosts
the A zone mineralization remains open to the east.

Drill results can be viewed on Pele's website at www.pelemountain.com/pdfs/AZone Extension.pdf

Pele's Highland gold properties are located approximately 100 kilometres
southeast of Hemlo in Northern Ontario, along the Michipicoten
Greenstone Belt, home to several past producing gold mines including
the million-ounce plus Renabie Mine and where Richmont Mines Inc. is
currently operating the Island Gold Mine. East and West Highland are
100-percent owned by Pele Gold Corporation ("Pele Gold"), a wholly
owned subsidiary of the Company.

Pele also announced today that further to the Company's press release
announcing certain option grants to directors, officers, employees and
consultants of the Company on December 21, 2010, Pele confirms that it
granted to an officer of the Company, 300,000 stock options exercisable
at $0.325 per share on January 1, 2011 and 50,000 stock options
exercisable at $0.43 per share on February 1, 2011. All of the
forgoing stock options expire on December 31, 2012.

This news release has been reviewed and approved by Peter Dimmell,
P.Geo. (NL, ON), a Pele Director and a Qualified Person under National
Instrument 43-101.

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