PIGEON RIVER PROJECT

In late-2009, Pele staked more than 1,700 mining claim units totaling approximately 270 square-kilometres in the Pigeon River area of Northwest Ontario, 60 kilometres southwest of Thunder Bay. The 100-percent owned property covers large unexplored magnetic targets near the basal contact of the Duluth Complex with potential to host nickel (“Ni”), copper (“Cu”), and platinum group element (“PGE”) mineralization.

The property lies in the Proterozoic Superior Mid Continent Rift, a geological setting with proven potential to host mafic/ultramafic igneous systems associated with the rifting of the Archean craton. Recent discoveries in this setting include Kennecott’s Ni/Cu/PGE deposits at Eagle (Michigan) and Tamarac (Minnesota) and Magma Metals’ PGE deposit northeast of Thunder Bay. Pele’s exploration targets at Pigeon River are a similar massive sulphide deposit, hosted in an ultramafic body or conduit and disseminated sulfides similar to the high tonnage, low grade Ni/Cu deposits of the Duluth complex.

In 2010, Pele completed three diamond drill holes totaling 605 metres, intersecting sediments of the Proterozoic Rove Formation, some containing sulphide, and intruded by several diabase sills. Regarding exploration and drilling results, independent geological consultant Alan Aubut P. Geo., an expert in Ni/Cu/PGE exploration in the Mid Continent Rift, stated that “the property shows many similarities with the Noril’sk-Talnakh region of northern Russia and drilling confirms that some of the key features required are present.” Detailed results of the drilling can be found in Pele’s press release dated June 24, 2010.

In conjunction with the staking and exploration at Pigeon River, Pele entered into an agreement with a private, arm’s length company operating as Vanex Exploration, pursuant to which Vanex has been granted a 1.5-percent net smelter return (NSR) royalty in respect of the Property, of which Pele may buy back up to 1-percent for $1-million. Under a consulting agreement, Pele has retained Vanex for geological consulting services, to be provided by its President, Mr. Wim Vanderklift, an experienced and highly-regarded expert in Ni/Cu/PGE exploration. Additional terms of the Agreement can be found in Pele’s press release dated January 7, 2010.

Pele is actively seeking to bring in a qualified partner at Pigeon River as it focuses on sustainable development at its flagship Eco Ridge Mine Rare Earths and Uranium Project.