Tuesday, April 17th, 2012 - Pele Mountain Resources Inc.

TORONTO, ONTARIO Pele Mountain Resources Inc. (TSX VENTURE: GEM)(OTCQX: GOLDF) ("Pele" or the "Company") today announced results of an updated NI 43-101 Preliminary Economic Assessment (the "PEA") on its Eco Ridge Mine Rare Earths and Uranium Project ("Eco Ridge" or the "Project"). The PEA was prepared by Roscoe Postle Associates Inc. ("RPA") and demonstrates that Eco Ridge has excellent potential to become a profitable producer of rare earths and U3O8.
Operational highlights of the updated PEA include:

-- 9,000-tonne per day operation with life-of-mine production of 97.2-
million lbs of total REO (in the form of a mixed rare earth carbonate
concentrate) and 27.5-million lbs of U3O8 over an 11-year mine life;
-- Production of a strategically significant combination of rare earths
forecast to remain in supply deficit, with 85-percent of Project revenue
from Heavy REO, neodymium oxide (Nd2O3) and U3O8.
-- Life-of-mine production includes 14.2-million lbs of Nd2O3, 882,000 lbs
of dysprosium oxide (Dy2O3), 4.1-million lbs of yttrium oxide (Y2O3) and
significant quantities of terbium and europium oxides, providing a vital
source of Critical REO outside China.
-- Light REO recoveries average 89-percent, Heavy REO recoveries average
78-percent, and U3O8recovery averages 90-percent;
-- Increased mineral resources include new Hanging Wall Zone ("HWZ")
mineralization and recently drilled lateral extensions of the Main
Conglomerate Bed ("MCB").

Financial highlights of the updated PEA include (all terms in US$):

-- For an 11-year mine life, Cumulative total revenue of $5.90-billion;
Cumulative operating cash flow of $2.83-billion; Cumulative pre-tax cash
flow of $2.16-billion;
-- NPV of $1.02-billion (at a 10-percent discount rate);
-- IRR of 50-percent with before-tax payback period of 1.5 years from
commencement of commercial production.
-- Operating unit cost of $71.33 per tonne; Net revenue of $154.22 per
tonne.
-- Start up capital expenditures of $563-million (includes contingency of
$108-million);
-- $535-million of processing fees included for separation of concentrates
into individual oxides;
-- REO basket price of $78 per kg for individual oxides net of separation
costs and U3O8 price of $70 per lb are far more conservative than price
forecasts in 2011 PEA;
-- 67-percent of Project revenue from REO; Nearly 80-percent of REO revenue
from Heavy REO plus Nd2O3.

Complete press release available at: http://www.pelemountain.com/news/04162012_PEA_EUAS.pdf

Note: The PEA is preliminary in nature. It includes inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable their categorization as mineral reserves. There is no certainty that the PEA forecast will be realized.

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.

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.

Contact Profile

Al Shefsky

P: (800) 315-7353
W: www.pelemountain.com

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