Company Information for Pele Mountain Resources Inc

TSX.V-GEM

www.pelemountain.com

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TSX.V; GEM

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Company Statement

Pele Mountain Resources provides investors with superior leverage to uranium as it advances its 100-percent owned Elliot Lake Uranium Project toward objectives of development and production. The project hosts more than 42-million pounds of NI 43-101 compliant U3O8 resources (6.4 million pounds “indicated” at a grade of 0.051-percent and 36.1 million pounds “inferred” at a grade of 0.044-percent) and has received a positive Scoping Study from Scott Wilson Roscoe Postle Associates.

The Elliot Lake mining camp has produced more than 300 million pounds of U3O8 and was formerly known as the “Uranium Capital of the World.” Pele also holds a diverse portfolio of gold, diamond, and base metal projects in Northern Ontario. Pele stock is listed on the TSX Venture Exchange under the symbol “GEM.”

Current Operations

The Elliot Lake Uranium Project:
Pele is focused on advancing its 100-percent owned Elliot Lake Uranium Project toward objectives of development and production. The project hosts a NI 43-101 compliant resource of 6.4 million pounds of “indicated” U₃O₈ and 36.1 million pounds of “inferred” U₃O₈ with the potential for significant upgrade and expansion.

The Company has received a positive Scoping Study for the project, authored by Scott Wilson Roscoe Postle Associates, which provides the basis for an economically-viable, environmentally-compliant uranium mining and processing operation. The Scoping Study focused on U₃O₈mineralization in the Main Conglomerate Bed (“MCB”) that lies within the Adit Block, a 600 by 800-metre area of near-surface and relatively higher-grade mineralization that presents a favourable location for initial mining. The MCB lies about 10 to 15 metres above the basement rocks and extends across a strike length of 6,000 metres, and a dip length of at least 3,800 metres, all within the Pele property. All stated Elliot Lake resources are hosted within the MCB.

The Scoping Study presents a base case mining and processing scenario that includes less than half of Pele’s known uranium resources and which retains significant upside potential in many of its parameters. Highlights of the Scoping Study include:

An 18-year mine life, producing 826,000 pounds of U₃O₈ annually at a cash operating cost of US$55.51 per pound.
Initial capital costs of C$195-million (which includes a contingency of C$28.5-million); and C$63-million in sustaining capital costs over the life of the mine, which includes C$31-million for decommissioning.
An innovative mining and processing plan comprised of 40-percent conventional mining and acid-leaching, and 60-percent underground bioleaching.

The updated NI 43-101 compliant mineral resource estimate at Elliot Lake is as follows:

The Elliot Lake Uranium Project:

Elliot Lake Mineral Resource Estimate
Classification Tonnes (million) U₃O₈ (%) U₃O₈ (million lbs) Indicated 5.681 0.051 6.387 Inferred 37.262 0.044 36.145

The mineral resource was estimated using a cut-off grade of 0.03-percent U₃O₈ and a uranium price of US$55 per pound U₃O₈, at a C$/US$ exchange rate of 1.0:0.9. The Elliot Lake deposit extends down-plunge and to the east beyond the boundaries of the resource.

Based on historical wide-spaced drilling, Scott Wilson RPA estimates that these areas could contain an additional 35 to 40 million tonnes grading from 0.04 to 0.05-percent as a potential mineral deposit.¹The Scoping Study highlights several potential opportunities to improve project economics from the base case scenario, including the following:

Further optimization of the mine design and mining schedule may result in reduced operating costs and/or increased production rates.
Additional drilling may expand higher grade zones beyond the Adit Zone, particularly in areas adjacent to the flanks of a topographic high in the basement rocks.
Additional higher-grade mineralization may be hosted within the Basal Conglomerate Bed at or near the Unconformity between the basement rocks and the overlying sediments, an excellent exploration target with significant “blue sky” potential.
The recovery of Rare Earth Oxides may provide substantial economic benefit.

The Company has initiated preparations to deliver a Letter of Intent to apply to the Canadian Nuclear Safety Commission (“CNSC”) for licensing a uranium mine at the project. The Letter of Intent will enable the CNSC to more effectively provide guidance to Pele on the preparation for the Environmental Assessment and the licensing application process.

Using the base case scenario presented in the Scoping Study, with a fixed U₃O₈price of US$95 per pound and initial capital costs funded with all-equity cash advances, the project has an attractive IRR of 13-percent. However, at incrementally higher U₃O₈ prices, significantly higher rates of return are achievable. For example, at a U₃O₈price of US$115 per pound the IRR increases to 21-percent, and at US$135 per pound the IRR increases to 28-percent. (These IRR figures are significantly higher when a partial debt financing is considered.)

This illustrates the explosive leverage of the project to the uranium price.

Additional details of the Elliot Lake Scoping Study can be found in the Elliot Lake project section or in Pele’s press release dated October 4, 2007.

The Elliot Lake mining camp was once known as “the uranium capital of the world” and has produced more than 270 million pounds of U₃O₈from stratigraphically-bound deposits that demonstrate remarkable consistency over extensive areas. Management believes that as an established mining camp with excellent infrastructure, well-understood geology, and a politically-stable and mining-friendly jurisdiction, Elliot Lake is an ideal location for the development of a secure and reliable long-term uranium supply.

Notes:
¹The potential quantity and grade of the potential mineral deposit identified in the Report are conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

The Highland Project:
Located northeast of Wawa, where Pele controls the largest group of mining claims and mineral rights within the prolific Goudreau-Lochalsh gold camp.

Pele has drilled over 9,000 metres at Highland to date and has successfully mined a 10,000-tonne bulk sample in 1999 that was transported to Hemlo for processing and gold recovery. Recent exploration success has spurred renewed interest in the potential for revenue generating operations at Highland.
The 2006 field season has focused primarily on zones of high-grade gold mineralization and confirming areas of known gold-copper mineralization across the western Highland properties. Over 30 core drill holes have been drilled in the current program and results are pending.

Also at Highland, a mica kimberlite dike (the Talisker Diamond Occurrence) has been discovered and drill-tested along a strike length of more than 1,100 metres, to a depth of over 100 metres, across widths of between 4 to 10 metres, and is open in all directions. A 1,311-kilogram sample of HQ-size drill core was recently extracted from Talisker and processed by caustic digestion, returning diamonds of high quality and encouraging size distribution.

The Festival Project:
A 500-tonne bulk sampling program was recently completed at the Festival Diamond Project. The program was funded by Goldcorp Inc. which has formed a 50-percent joint venture with Pele on the project.. Results from the program reaffirmed the presence of commercial size, gem quality diamonds within the targeted ultramafic volcanics across an extensive area and also indicated that the ultramafic mass flow units also contain commercial size, gem quality diamonds.

The Sudbury Project:
Consists of approximately 350 mining claim units covering 14,000 acres in the prolific Sudbury Mining Camp. Pele has signed an option agreement with Wallbridge Mining Company which can earn up to a 60-percent interest and will operate the project. The property hosts an offset dike with a strike extension exceeding three kilometres, as well as several occurrences of Sudbury breccia. Management of both Pele and Wallbridge believe that the project has the potential to host offset dike related Ni-Cu-PGE mineralization as well as footwall Ni-Cu-PGE mineralization related to major structures which cross the property.

The Ardeen Project:
Along the Shebandowan Greenstone Belt, the Ardeen Project includes northern Ontario’s first producing gold mine and is in close proximity to a high-grade copper-zinc discovery. Ardeen has been optioned to East-West Resource Corporation and Maple Minerals Corp (a division of Mega Uranium) which can earn a combined 60-percent interest in the project and are its operators. East-West and Maple have reported that 13 drill holes were completed in 2005 testing five target areas including extensions of surface gold showings and new geophysical targets. The areas examined all showed encouraging mineralization with one hole returning a 78-metre mineralized intercept along strike of the 2-million ounce Moss Lake deposit.

The Alliance Project:
Has been optioned by Trigon Exploration Canada which has funded enough expenditures to earn a 50-percent interest in the project. Alliance is located in the James Bay Lowlands of northern Ontario where numerous geophysical targets have been staked within the 6-million acre area of the Fort Hope Airborne Survey. A drill program at Alliance has tested several kimberlite targets following collection and analysis of indicator mineral samples and high resolution airborne geophysical data. No new kimberlites have yet been discovered.

The Rio Algom "measured ore estimate" is historical, has not been confirmed by a qualified person, and should not be relied upon.
The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery of a mineral resource.

Geographical Spread

Ontario, Canada

Board of Directors and Key Management

Alan Shefsky	President, CEO & Director
Fergus Kerr	Vice-President
James Andersen	CFO
Martin Cooper	Director
Steven Rukavina	Secretary & Director
Peter Dimmel	Director
Steven Cohen	Director
Richard Cooper	Director
Ed Walker	Key Consultant
Bob MacGregor	Key Consultant

Company Address

2200 Yonge Street, Suite 1002
Toronto, Canada M4S 2C6


Telephone:	+1 416 368 7224
Facsimile:	+1 416 368 7230
Website:	http://www.pelemountain.com

Additional Address/Key Contact

Toll-free number 800 315 PELE

Capital

65,724,360

Annual General Meeting

TBA

Year End

September 30th

Major Shareholders

Management

Sprott Asset Management

Pinetree Capital

Most Recent Statement

28/10/08 - Pele Mountain Provides Eco Ridge Mine Project Update
09/09/08 - Pele Mountain Initiates Permitting Process at Eco Ridge Mine
26/08/08 - Pele Mountain Assembles Team of Uranium Industry Leaders to Develop Eco Ridge Mine at Elliot Lake
11/05/08 - Pele Mountain Enters Into Option Agreement to Sell Its Timmins Nickel Project
01/05/08 - Pele Mountain to Launch Pre-Feasibility Study for Elliot Lake Uranium Mine Project
06/03/08 - Pele Mountain Reports Additional Positive Drill Results from Its Elliot Lake Uranium Mine Project

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