TORONTO, ONTARIO--(Marketwired - Sept. 23, 2016) - Pele Mountain Resources Inc. (TSX
VENTURE:GEM)(OTCQX:GOLDF) ("Pele" or the "Company") announced
today that it has entered into a funding agreement (the "Agreement") with an arm's length lender (the
"Lender"). The Agreement sets out the terms of a $100,000 loan (the "Loan") from the Lender to
Pele.
The Loan bears interest at 6-percent per annum and will be repaid from the first proceeds realized from the sale of Pele's
1.96-million shares of Kesselrun Resources Ltd. (the "KES Shares").
Pele President and CEO Al Shefsky stated, "In keeping with our previously announced plan to monetize non-core-assets, we are
partially monetizing our KES shares through this loan agreement - providing some immediate cash to the Company while retaining
significant upside to Kesselrun. These are heavily-restricted shares of a junior exploration company and we believe that this
loan is a prudent measure for Pele. It should be clear that we retain all of our KES shares and will, of course, abide by
agreed-to restrictions on their future sale."
As partial consideration for the Loan, Pele has agreed to issue 400,000 shares at an attributed value of $0.05 of the
Company to the Lender, subject to regulatory approval. Upon repayment of the Loan, the Lender shall retain a 50-percent interest
in the proceeds of future sales of the KES Shares and a 10-percent interest in any proceeds actually received by Pele from
the Company's royalty on its former Ardeen Project.
The Loan is subject to approval of the TSX Venture Exchange and the shares issuable pursuant to the Agreement will be subject
to a four (4) month hold.
About Pele
Pele Mountain Resources is focused on the sustainable development of power generation, energy storage and mineral processing
in Northern Ontario.
Pele's Eco Ridge project has unique characteristics that make it an attractive development site, including excellent regional
infrastructure, strong local support, and its strategic location in Elliot Lake, Canada's only historic rare earth mining
and processing camp. Pele remains committed to advancing Eco Ridge as host to Canada's first rare earth processing centre and its
extensive NI 43-101 mineral resources continue to provide exposure and leverage to rare earths and uranium.
The protracted downturn in the rare earth and uranium markets has prompted Pele to expand its business model to include
electricity generation and energy storage projects, beginning in Elliot Lake. Pele sees considerable opportunity in this
rapidly growing sector and is working with leading energy industry professionals and suppliers of advanced technologies to
provide a range of customized benefits to municipal and industrial electricity consumers in Northern Ontario.
Pele shares are listed on the TSX Venture Exchange under the symbol "GEM" and on the OTCQX under the symbol
"GOLDF".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Some of the statements contained in this
release are forward-looking statements, such as 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.
Shares Outstanding: 209,596,930