Pele Mountain Prepares Updated Resource Estimate at Eco Ridge Mine Rare Earth and Uranium Project

TORONTO, ONTARIO--(Marketwired - April 3, 2013) - Pele Mountain Resources Inc. (TSX VENTURE:GEM)(OTCQX:GOLDF) ("Pele" or the "Company") announced today that it has retained Roscoe Postle Associates Inc. ("RPA") to prepare an update to the NI 43-101 mineral resource estimate for its Eco Ridge Mine Rare Earth and Uranium Project ("Eco Ridge") in Elliot Lake, Ontario. Pele has completed a positive Preliminary Economic Assessment ("PEA") for Eco Ridge that demonstrates its potential to become a profitable producer of rare earth oxides ("REO") and uranium oxide ("U₃O₈").

The updated resource estimate is expected this quarter and will include recently drilled areas of higher-grade and thicker mineralization to the northwest of the current Resource Wireframe. All 11 holes drilled in this area late last year successfully intersected the Main Conglomerate Bed ("MCB") over a 3-kilometre strike length, with 9 of the 11 holes significantly exceeding the average total REO grades and 9 of the 11 holes significantly exceeding the U₃O₈ grades reported in the current Resource Wireframe. For more information on the recent drill program please see Pele's press release dated January 29, 2013.

Pele is also pleased to announce that Jacob Securities has initiated coverage on Pele and has issued a report which states "We believe Pele's current market valuation leaves room for considerable upside, particularly in view of the completed PEA, and the potential for expansion and medium-term production at Eco Ridge. Pele is positioned for success as a producer of a geopolitically secure supply of U₃O₈ and Critical REO." To view a copy of the Jacob Securities report, please click here: http://research.jacobsecurities.com/wp-content/uploads/2013/03/GEM-Pele-Mountain-Resources-Inc.-Initiation-Watch-List-Report-March-22-2013-JSI.pdf.

The technical information in this press release has been reviewed and approved by Edward C. Walker, Ph.D., P. Geo., an independent Qualified Person as defined by NI 43-101.

About Pele

Pele Mountain Resources is focused on the sustainable development of its 100-percent owned Eco Ridge Mine Rare Earths and Uranium Project. Eco Ridge is located in Elliot Lake, the only Canadian mining camp to have ever achieved commercial rare earth production. Elliot Lake was once the major source of heavy rare earth, yttrium and uranium production in North America. With well-understood geology, mineralogy, and metallurgy, excellent regional infrastructure, and strong local support, Eco Ridge is an ideal location for the development of a safe, secure, and reliable long-term supply of critical rare earths and uranium. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM" and on the OTCQX under the symbol "GOLDF".

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.

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