Pele Mountain Resources Inc. Announces Closing of Private Placement Offering

TORONTO, Nov. 16 /CNW/ - Pele Mountain Resources Inc. (TSX Venture: GEM) ("Pele" or the "Company") is pleased to announce that it has closed a non-brokered private placement offering (the "Offering") with the MineralFields Group, comprised of 769,230 units (the "Hard Dollar Units") at a price of $0.26 each for aggregate gross proceeds of $200,000 and 3,333,333 flow-through units (the "FT Units") at a purchase price of $0.30 per FT Unit for aggregate gross proceeds of $1,000,000. Each Hard Dollar Unit consists of one common share and one common share purchase warrant (a "Warrant"), with each Warrant exercisable to acquire one common share of Pele at $0.36 until November 16, 2012. Each FT Unit consists of one common share and one-half of one common share purchase warrant (a "FT Warrant"), with each whole FT Warrant exercisable to acquire one common share of Pele at $0.40 until November 16, 2012.

In connection with the Offering, the Company paid eligible persons (the "Finders") a cash fee of 6.5% of the gross proceeds raised through each Finder under the Offering and also issued compensation warrants equal to 7% of the total number of Units (the "Hard Dollar Compensation Warrants") or FT Units (the "FT Compensation Warrants") issued through each Finder under the Offering. Each Hard Dollar Compensation Warrant entitles the holder upon exercise to acquire one common share of Pele at $0.26 until November 16, 2012 and each FT Compensation Warrant entitles the holder upon exercise to acquire one common share of Pele at $0.30 until November 16, 2012. On closing, the Company paid $74,750 in cash fees to the Finders and issued 53,846 Hard Dollar Compensation Warrants and 221,666 FT Compensation Warrants to the Finders.

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

All proceeds raised from the sale of FT Units will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties and all proceeds raised from the sale of Units will be used by Pele to finance exploration and development activities and for general working capital purposes.


About Pele

Pele Mountain Resources is focused on the sustainable development of its Eco Ridge Mine Uranium and Rare Earth Elements ("REE") project, located in the Elliot Lake mining camp of Ontario. Pele's expert team of technical personnel, advisors, and consultants is working to optimize mining, processing, and waste management techniques at Eco Ridge. With well-understood geology, excellent regional infrastructure, and strong local support, Eco Ridge provides an ideal location for a safe, secure, and reliable long-term supply of Uranium and REE. Additionally, Pele has, or is actively seeking, qualified strategic partners to advance its other high-potential exploration projects, including high-grade gold properties at Highland and Ardeen. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM".


About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, 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 Fund Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) 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 ®.



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.



For further information:

please contact Al Shefsky, President, at (800) 315-7353, or visit the Pele website at www.pelemountain.com.