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<a href="http://www.pelemountain.com/index.php" target="_Blank"><img src="http://www.infostockbiz.com/images/GEM_logo.jpg" alt="Pele Mountain Resources (GEM: TSX.V)" border="0"></a>
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<font face="arial, verdana" size="5"><b>Major Rare Earth Resources
Confirmed at Pele Mountain's Eco Ridge Mine Project: Updated Economic
Model to Include Revenue from Rare Earths for the First Time</b></font>
</center><font face="arial, verdana" size="2">
</font><p align="left"><font face="arial, verdana" size="2"><b>Pele Mountain Resources</b>
announced NI 43-101 resources of 51.9-million pounds of "Indicated"
total rare earth oxides ("TREO") plus 96.3-million pounds of "Inferred"
TREO. The TREO resources are in addition to 15.2-million pounds of
"Indicated" uranium oxide ("U3O8") plus 31.4-million pounds of
"Inferred" U3O8, which was announced in Pele's press release of January
24, 2011. Pele President and CEO Al Shefsky stated, "Our new rare earth
resource is exciting because it provides a potentially significant
source of by-product revenue at Eco Ridge and it places Pele on a short
list of emerging North American rare earth developers."
</font></p><p align="left"><font face="arial, verdana" size="2">Further
reductions in export volume by China are again resulting in higher
prices for rare earth elements. CNBC reported yesterday that China's
exports of rare earth metals burst through the $100,000-per-tonne mark
for the first time in February, up almost nine-fold from last year,
while the volume of trade remains below historical averages. Money in
Metals believes this news bodes well for <b>Pele Mountain Resources (TSX-V: <a href="http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=GEM&region=C&lookup=symbol&snapshot=default">GEM</a>)</b>.
</font></p><p align="left"><font face="arial, verdana" size="2">Pele's
Eco Ridge Mine project is located in Elliot Lake, Ontario, which is the
only mining camp in Canada that successfully achieved commercial
production of rare earth oxides ("REO") in the past.
</font></p><p align="left"><font face="arial, verdana" size="2">Additionally:
</font></p><p align="left"></p><ul>
<font face="arial, verdana" size="2"><li>Eco Ridge contains the full
range of naturally occurring REO, including the highly valued "heavy"
REO. Elliot Lake was one of the most important sources of heavy REO in
North America. </li>
</font><p></p><font face="arial, verdana" size="2"><li>The project has
the potential to be a primary uranium mine that would produce REO as
by-products, and would not be wholly dependent on the volatile REO
market. </li>
</font><p></p><font face="arial, verdana" size="2"><li>The mining and
processing method to recover uranium at Eco Ridge will also recover REO
into the leach solutions, at no extra cost. </li>
</font><p></p><font face="arial, verdana" size="2"><li>Eco Ridge has well-understood geology and lies within a politically stable and mining-friendly jurisdiction. </li></font></ul>
<p align="left"><font face="arial, verdana" size="2">Resource estimates for individual REO are available on Pele's website at <a href="http://www.pelemountain.com/pdfs/Table2_RareEarthOxides.pdf">www.pelemountain.com/pdfs/Table2_RareEarthOxides.pdf</a>
</font></p><p align="left"><font face="arial, verdana" size="2">Pele
Mountain's expert team of technical personnel, advisors, and consultants
is working to optimize mining, processing, and waste management
techniques at Eco Ridge and an updated Preliminary Assessment is
expected in the second quarter of 2011. The Preliminary Assessment will
feature a detailed economic model based on combined revenues from both
U3O8 and rare earth oxides for the first time and will include design
enhancements achieved since Pele's initial Scoping Study in 2007. With
globally significant uranium and rare earth resources, excellent
regional infrastructure, and strong local support, Eco Ridge provides an
ideal location for a safe, secure, and reliable long-term supply of
these critical metals.
</font></p><p align="left"><font face="arial, verdana" size="2"><small>Forward-Looking
Statements: Some of the statements contained in the above article are
forward-looking statements and not statements of facts. Such statements
are based on publicly available information contained in Pele Mountain
Resources' press releases or assumptions made from other publicly
available documents. Forward-looking statements are subject to various
risks, uncertainties and other factors that could cause actual results
to differ materially from expected results. Readers must rely on their
own evaluation of these uncertainties.</small>
</font></p><p align="left"><font face="arial, verdana" size="2">Mark
Weaver, of MoneyinMetals.com, is an analyst working in association with
Jay Taylor of Taylor Hard Money Advisors. Mark Weaver began coverage on
Pele Mountain Resources in October 2010, when its stock was trading in
the market at $0.17.
</font></p><p align="left"><font face="arial, verdana" size="2">For
further informationa bout Pele Mountain Resources and its projects,
contact the company at 1 (800) 315-7353 and visit its website at <a href="http://www.pelemountain.com/">www.pelemountain.com</a>. Questions and comments about the article should be directed to the author at <a href="mailto:mark@moneyinmetals.com">mark@moneyinmetals.com</a>
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