Pele Mountain Advances Mine Planning and Scoping Studies on 33-Million Pound Uranium Oxide Resource at Elliot Lake

Pele Mountain Advances Mine Planning and Scoping Studies on 33-Million Pound Uranium Oxide Resource at Elliot Lake

Pele Mountain Resources Inc. announced that mine planning and other scoping studies continue to advance on schedule at its 100-percent owned Elliot Lake Uranium Project in Northern Ontario. The focus of the ongoing studies is to establish the basis for economically viable, safe, and environmentally compliant mining and processing facilities at Elliot Lake where an inferred resource of over 33 million pounds of U3O8 has been outlined, with the potential for significant upgrade and expansion. The final scoping study (the “Scoping Study”) is expected to be available at the end of September.

Pele President and CEO Al Shefsky stated, “As detailed below, we continue to achieve significant progress on multiple fronts at Elliot Lake. While we anticipate the potential for increased volatility in spot uranium prices, we expect a generally increasing long term price trend due to strong demand and uncertain supply for years to come. Our positive technical results, combined with our outlook for a robust uranium market, support our objective of developing world-class facilities at Elliot Lake.”

Pele is pleased to report the following updates and milestones in the areas of block modeling and resource estimation, mine planning and scheduling, metallurgical testing and process design, and environmental management. Some of the studies originally scheduled for a preliminary feasibility stage have been accelerated to facilitate a more comprehensive scoping Study and to optimize timelines for the project.

Block Modeling & Resource Estimation

– Block modeling for the 600-metre by 800-metre Adit Block has been completed and the results are being used in ongoing mine planning studies.

– In-fill drilling within the Adit Block is continuing and will enable the upgrade of “inferred” mineral resources within this area to the “indicated” category. More than 7,000 metres of drilling has been completed to-date.

– Down hole radiometric surveys of several recent and historic drill holes have been successfully logged to-date. This process has demonstrated excellent correlation with core assays from independent laboratories and will be used to acquire accurate uranium equivalent data in a timely and cost effective manner. A quality assurance and quality control protocol is being developed by Scott Wilson RPA to be implemented with radiometric surveys going forward.

– New data from drilling programs and radiometric survey analysis are being incorporated into the geological and block models on an ongoing basis.

– An update of the global resource will be completed and is expected to be available when the Scoping Study is released.

Mine Planning

– Mining and development designs have been selected for Scoping Study purposes. Current plans are to send the higher-grade ore to a conventional plant for milling while lower-grade ore will be leached underground. Mechanized mining techniques with low-profile equipment will be used to achieve 7 to 8 foot mining thickness in order to optimize grade.

– Plant design, projected mine production rates, a preliminary development schedule, and cost estimates will be included in the final Scoping Study.

– In-fill drilling is ongoing to further outline relatively higher-grade, near-surface zones for mining early in the project life as development of an initial 10-year mine plan continues.

Metallurgical Testing & Process Design

– The selected baseline case for processing is a conventional mill and recovery plant (vat leaching) built to modern specifications, along with underground flood leaching of lower-grade ore.

– A mineralogy report has been received and will assist in selecting and optimizing recovery techniques. Lab scale leach testing is underway to determine expected uranium recoveries.

– Preliminary plant designs and plant cost estimates are underway, subject to refinement following the results of ongoing leach testing.

– Rare earth oxide content and recoveries are being analysed, to be followed by an economic evaluation based on their recoverability.

Environmental Management

– An environmental baseline survey is underway.

– Requirements for the Environmental Assessment Submissions have been determined.

– A compilation of previous monitoring program results in the project area is underway.

– An exploration safety, health, and environmental practices manual has been developed and implemented.

References to the Report or the Scoping Study have been reviewed and approved by Lawrence B. Cochrane, Ph.D., P. Eng. of Scott Wilson RPA, a “Qualified Person” under NI 43-101.

About Pele Mountain Resources

Pele Mountain Resources is focused on its objective of developing a world-class mining and processing facility at its 100-percent owned Elliot Lake Uranium Project in Northern Ontario. The project hosts a NI 43-101 compliant inferred resource of over 33 million pounds of U3O8 comprised of 30.05 million tonnes at a grade of 0.05-percent with the potential for significant near-term upgrade and expansion. Scott Wilson Roscoe Postle Associates Inc. is collaborating with experienced professionals from a wide range of disciplines to lead its recommended technical, economic, and environmental scoping studies.

The Elliot Lake camp was once known as “the uranium capital of the world” and has produced more than 270 million pounds of U3O8 from stratigraphically-bound deposits that demonstrate remarkable consistency over extensive areas. The uranium market is currently experiencing unprecedented price gains due to surging global demand and increasingly uncertain supply.

Pele also holds a diverse portfolio of gold, diamond, and base metal projects located across Northern Ontario. Through project generation, strategic partnerships, and mineral discovery, Pele provides shareholders with exposure and leverage to the ongoing bull market in natural resources. Pele stock trades on the TSX Venture Exchange under the symbol “GEM”.

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.

Common Shares Outstanding: 72,071,310

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: Pele Mountain Resources Inc. Al Shefsky President (416) 368-7224


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