GOLD DEVELOPMENT: Pele Mountain begins permitting for East Highland project

ONTARIO - Pele Mountain Resources of Toronto has begun the planning and permitting process to resume near-surface mining at the A zone of its east Highland gold project 100 km southeast of Hemlo. A bulk sample of 3,800 tonnes grading 5.0 g/t Au was mined by River Gold in 1999. Pele proposes to extend the open pit and remove 12,000 tonnes of ore. The material has a diluted grade of 6.6 g/t.

The company has engaged the services of Genivar to assist with permitting. It has also been in talks with a number of mill operators to arrange for ore processing.

Pele is also pursuing its Eco Ridge uranium and rare earth project near Elliot Lake. Please see www.PeleMountain.com.