Released on = January 16, 2007, 12:01 pm

Press Release Author = Pele Mountain Resources (TSX-V GEM)

Industry = Energy

Press Release Summary = January 16, 2007 - Toronto - Pele Mountain Resources Inc.
(TSX Venture: GEM) (\"Pele\" or the \"Company\") announced today that it has received
and filed on SEDAR a NI 43-101 compliant Technical Report (the \"Report\")on its
Elliot Lake uranium project (the \"Project\") in northern Ontario

Press Release Body = FOR IMMEDIATE RELEASE

January 16, 2007 - Toronto - Pele Mountain Resources Inc. (TSX Venture: GEM) (\"Pele\"
or the \"Company\") announced today that it has received and filed on SEDAR a NI
43-101 compliant Technical Report (the \"Report\")on its Elliot Lake uranium project
(the \"Project\") in northern Ontario, authored by Scott Wilson Roscoe Postle
Associates Inc. (\"Scott Wilson RPA\"), dated January 15, 2007. Highlights of the
Report include:

* A mineral resource estimate of 30.05 million tonnes grading 0.050-percent
uranium oxide (U3O8), or 1.0 pound per short ton, for a total inferred resource
containing 33.05-million pounds U3O8 (based on a cut-off grade1 of 0.03-percent
U3O8 and a minimum mining width of 2.44 metres, or 8 feet). The mineral resource
estimate is based on a database of 70 drill holes in the Main Conglomerate Bed.
Drill hole spacing was variable, mostly in the order of 100 m to 400 m. The
resource estimate used a nearest neighbour block model method, equivalent to a
polygonal method.

* Very good potential to increase the mineral resources in drill-tested
extensions of the Main Conglomerate Bed that could contain a potential mineral
deposit of 25 to 30 million tonnes at grades ranging from 0.04% U3O8 to 0.05%
U3O82

* Additional resource potential in the mineralized Basal and Upper conglomerate
beds and in the lower-grade hanging wall of the Main Conglomerate Bed.

Scott Wilson RPA has included in the Report recommendations for a two-stage program
to advance the Project through a preliminary feasibility study.

* The first stage includes an economic analysis of the potential viability of
mineral resources (a preliminary assessment) and calls for additional data
compilation, mapping, drilling, metallurgical and leach testing, and resource
modeling, along with early-stage studies of permitting requirements and of mine
development and processing options. Estimated costs of the first-stage program
are $830,000.

* Upon the successful completion of the first stage, a preliminary feasibility
study will be undertaken as a comprehensive study of the viability of mineral
resources. Estimated costs of the second-stage program are $4.5-million.

Scott Wilson RPA has also included in the Report recommendations to pursue
additional opportunities to increase project revenue and decrease costs for a
potential uranium mining and processing operation. These four key opportunities
involve assessments of:

* The technical and economic viability of recovering Rare Earth Oxides and the
production of marketable products.
* The mining and underground leaching of the lower grade mineralization in the
hanging wall of the Main Conglomerate Bed.
* The viability of using surface heap leaching as an alternative to conventional
milling.
* The potential to mine higher grade, near-surface portions of the deposit early
in the project life.

Pele President and CEO Al Shefsky stated, \"This Report transforms Pele Mountain
Resources. It has advanced our Elliot Lake project to the evaluation stage,
outlining an inferred mineral resource with an in-situ value well in excess of
C$2.5-billion and very good potential for expansion. Our shareholders now own a
100-percent interest in a vast resource of uranium oxide at a time when global
demand is surging at an unprecedented rate. We are committed to advancing the
Project systematically according to the roadmap provided in the Scott Wilson RPA
Report. A drill crew and technical personnel have been mobilized to the Project to
begin implementation of its recommendations.\"

Please see Pele\'s website at www.pelemountain.com, or www.sedar.com to view the Report.

This press release has been reviewed and approved by Robert MacGregor, P.Eng., an
independent Qualified Person with 14 years experience working in the Elliot Lake
area during its time as an active uranium mining camp. Any disclosure in this press
release pertaining to the Report has been reviewed and approved by Lawrence B.
Cochrane, Ph.D., P. Eng. and William E. Roscoe, Ph.D, P. Eng., the authors of the
Scott Wilson RPA Report, each being a \"Qualified Person\" under NI 43-101.

About Pele Mountain Resources

Pele Mountain Resources is focused on the advancement of its 100-percent owned
Elliot Lake uranium project in northern Ontario. The Elliot Lake project hosts a NI
43-101 compliant mineral resource of 33 million pounds of U3O8 with very good
potential to increase the mineral resources on the property, according to a
Technical Report authored by Scott Wilson Roscoe Postle Associates Inc.

The Elliot Lake mining camp was once known as \"the uranium capital of the world\" and
has produced more than 270 million pounds of U3O8 from stratigraphically-bound
deposits that demonstrate remarkable consistency over extensive areas. The uranium
market is currently experiencing a strong upward price trend due to uncertain supply
and increasing global demand.

Pele also holds a diverse portfolio of gold, diamond, and base metal projects
located across northern Ontario, including the Highland project where drilling has
outlined several high-grade, narrow-vein gold zones within an historic mining camp.
Through project generation and mineral discovery, Pele provides shareholders with
exposure and leverage to the increasing global demand for natural resources. Pele
stock trades on the TSX Venture Exchange under the symbol \"GEM\".

For further information please contact Al Shefsky, President, at (416) 368-7224, or
visit the Pele website at www.pelemountain.com.

1 Assumptions used in determining cut off grade include:
(i) operating costs of about of about US$65 per recovered pound of U3O8.
(ii) market price of US$70 per pound U3O8,
(iii) recoveries based on historical recoveries for the Elliot Lake camp.

2 The 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 TSX Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. 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.

Web Site = http://www.pelemountain.com

Contact Details = info@pelemountain.com
1800 315 7353