FOR
IMMEDIATE RELEASE
April 21, 2009 - Toronto - Pele
Mountain Resources Inc. (TSX Venture: GEM)
("Pele" or the "Company") announced
today that it has entered into an amending agreement (the "Amending
Agreement") to accelerate the acquisition of 5 mining claims
comprised of 77 claim units (the "Claims") located in
the southern portion of the Company's Eco Ridge Mine Uranium Project.
In September 2008, Pele commenced
the permitting process at Eco Ridge by filing a Project Description
with the Canadian Nuclear Safety Commission and the Federal
Government's Major Project Management Office, documenting Pele's
approach to sustainable development. The mining, processing, and
waste management plans make innovative use of proven technologies to
build a modern, state-of-the-science facility, significantly more
advanced and environmentally-friendly than historic operations in the Elliot
Lake camp. Although project timelines were since
delayed due to difficult market conditions, the Company is continuing
certain development work for the project including technical studies
relating to block model analysis, mine design and, metallurgical testing.
Pele is also engaged in discussions with potential partners that could
assist in funding the re-establishment of pre-feasibility and mine
permitting schedules.
With its excellent regional
infrastructure, well-understood geology, and politically-stable and
mining-friendly jurisdiction, Elliot Lake
is an excellent location for the development of a long-term, secure and
reliable uranium supply. Pele's 100-percent owned Eco Ridge Mine
property contains a NI 43-101 report which indicates 6.4 million pounds
of "indicated" U3O8 (5.68 million
tonnes grading 0.051-percent U3O8) and 36.1
million pounds of "inferred" U3O8
(37.26 tonnes grading 0.044-percent U3O8) with
the potential for significant expansion. More than 300 million
pounds of U3O8 were mined from similar deposits
near Elliot Lake by Rio Algom and
Denison Mines from 1956 to 1996.
The accelerated acquisition
of mining claims was achieved through an Amending Agreement to the
purchase agreement (the "Original Purchase Agreement")
previously announced on May 2, 2007. Under the terms of the
Original Purchase Agreement, Pele agreed to pay the vendors a total of
$122,000 in cash and to issue 150,000 common shares in the capital of
Pele at an attributed value of $0.90 per share or an aggregate value of
$135,000, in accordance with the following schedule:
$24,000 and 30,000 shares on May 4, 2007
(complete);
$28,000 and 40,000 shares on May 1, 2008
(complete);
$30,000 and 40,000 shares on May 1, 2009; and
$40,000 and 40,000 shares on May 1, 2010.
Under the terms of the
Amending Agreement, Pele and the vendors each have agreed to amend the
Original Purchase Agreement by, among other things, reducing the total
cash payments to be made by Pele to the vendors by $40,000 (from
$122,000 to $82,000) and increasing the number of common shares to be
issued by Pele to the vendors by 40,000 (from 150,000 to 190,000), in
accordance with the following schedule:
$24,000 and 30,000 shares on May 4, 2007
(complete);
$28,000 and 40,000 shares on May 1, 2008
(complete); and
$30,000 and 120,000 shares on May 1, 2009.
The Amending Agreement
remains subject to acceptance of applicable regulatory filings with the
TSX Venture Exchange.
About Pele Mountain Resources
Pele Mountain Resources is focused on the
sustainable development of its Eco Ridge Mine Uranium Project in the
historic Elliot Lake mining region.. The Company is developing a
safe, secure, and reliable long-term source of uranium in order to
deliver lasting benefitsto 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".
For further information please contact Al Shefsky, President, at
(800) 315-7353, or visit the Pele website at www.pelemountain.com.
The TSX-V 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.
The economic viability of the NI 43-101 mineral resource at Pele's Eco
Ridge Mine Project has not yet been demonstrated by a pre feasibility study..