Pele Mountain Announces Closing of Financing with MineralFields Group

• Press Release
• Source: Pele Mountain Resources Inc.
• On 12:13 pm EST, Thursday December 18, 2008

TORONTO, ONTARIO--(MARKET WIRE)--Dec 18, 2008 -- Pele Mountain Resources Inc. (CDNX:GEM.V - News) ("Pele" or the "Company") is pleased to announce that it has closed a non-brokered private placement offering (the "Offering") with MineralFields Group for an aggregate of 4,166,666 flow-through units in the capital of the Company (each a "Unit") at a purchase price of $0.12 per Unit for gross proceeds of $500,000. Each Unit is comprised of one (1) common share (each a "Share") on a flow-through basis (as that term is defined in the Income Tax Act (Canada)) and one half (1/2) transferable Series FF purchase warrant (each a "Series FF Warrant") issued for nominal consideration, where each whole Series FF Warrant is exercisable for a period of twelve (12) months after closing to purchase one (1) additional common share of Pele at a purchase price of $0.25 per share.

In connection with the Offering, Pele paid a cash fee to eligible registrants in the aggregate amount of $32,500 and also issued a total of 291,666 compensation options (the "Compensation Options"). Each Compensation Option is exercisable for 12 months from closing to purchase up to 291,666 Units at a price of $0.11 per Unit.

The securities issued pursuant to the Offering will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

All proceeds raised under this Offering will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties. All costs associated with the Offering will be paid by the Corporation from its general funds.

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

About Pele Mountain Resources

Pele Mountain Resources is committed to the sustainable development of the Eco Ridge Mine in the historic Elliot Lake mining camp. The company is developing a safe, secure, and reliable uranium mining project in order to deliver lasting benefits to local communities and its shareholders. Pele also holds a diverse portfolio of gold, diamond, and base metal projects in Northern Ontario. Pele stock is listed on the TSX Venture Exchange under the symbol "GEM".

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. The economic viability of the 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.

Common Shares Outstanding: 84,067,612

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

     Contacts:
     Pele Mountain Resources Inc.
     Al Shefsky
     President
     1-800-315-7353
     Website: http://www.pelemountain.com