Pele Mountain Resources: Company Overview

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 substantial 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) 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.¹ 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.
• A base case pre-tax Internal Rate of Return of 13-percent, assuming an “all equity” funding scenario for the initial capital costs of the project.

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 camp was once known as "the Uranium Capital of the World" and has produced more than 300 million pounds of U₃O₈ from stratigraphically-bound deposits that demonstrate remarkable consistency over extensive areas. The uranium market is currently experiencing unprecedented price gains due to surging global demand and increasingly uncertain supply.

Pele also holds a diverse portfolio of gold, diamond, and base metal projects in Northern Ontario. Through project generation, strategic partnerships, and mineral discovery, Pele provides shareholders with exposure and leverage to the ongoing bull market in natural resources. Pele stock trades on the TSX Venture Exchange under the symbol “GEM.”

Notes:
¹The Preliminary Assessment is preliminary in nature and includes both indicated and inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.