Pele: Highland Overview

GOLD OVERVIEW

The Highland Project is located northeast of Wawa in northern Ontario, along the Goudreau-Lochalsh Deformation Zone (“GLDZ”), host to several past producing gold mines. Highland is 100-percent owned by Pele Gold Corporation, a wholly-owned subsidiary of the Company.

Highland covers more than 10,000 acres of the GLDZ, giving Pele the one of the largest land positions within this historic and re-emerging mining camp. The Company has drilled over 10,000 metres at Highland to-date and has successfully mined a 10,000-tonne bulk sample that was transported to Hemlo for processing and gold recovery. With encouraging exploration results, nearby custom milling facilities, and outstanding local infrastructure, Pele management believes that this project is well positioned to benefit from the rising trend in gold prices.

Exploration and drilling at Highland in 2005 & 2006 focused primarily within and along the contacts of the Gutcher Lake Stock (“GLS”) an important geological feature in the western GLDZ. At least nine shear zones hosting high-grade, narrow-vein gold mineralization have been identified along or adjacent to the GLS contact within the project area.

Several important milestones were reached at Highland in 2006 including the following:

• Consolidation of mineral rights over a large area covering most of the GLS, enabling comprehensive exploration efforts across historic property boundaries for the first time. 
• Discovery and expansion of high-grade gold mineralization within several shear zones from Porter-Premier (Talisker and Springbank) through Farquhar, Doublewood, and Bowmore to the Murphy Gold Mine, along the southern GLS contact.
• Drill confirmation that the Farquhar and Bowmore zones host high-grade gold mineralization in a geological setting that is typical of current and historic GLDZ gold mining operations.
• Discovery and expansion of gold-copper mineralization at the Wolverine zone in association with the B-C and W-8 zones along the northern GLS contact.

A comprehensive summary of highlights from Pele’s 2005 & 2006 drill programs at Highland can be viewed by clicking here: Highland Drilling Summary.

Exploration data from the 2005 & 2006 field seasons at Highland has been included in a NI 43-101 Technical Report which can be viewed by clicking here: Highland Technical Report.