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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Eva who wrote (22968)	10/27/2003 10:53:32 AM
From: rdww	Respond to of 39344

Pele Mountain Creates Subsidiary for Gold Properties TORONTO, ONTARIO-- TSX Venture Symbol :GEM Oct 27.2003 Common Shares Outstanding: 39,139,014 Pele Mountain Resources Inc. (TSX-V:GEM) ("Pele" or the "Company") is pleased to announce that it has initiated a plan to separate the Company's gold exploration projects from its diamond exploration projects. Under the plan the Company's Ardeen Gold Mine Project and Wawa Gold Project are being transferred to a newly incorporated wholly owned subsidiary, Pele Gold Corporation, with officers and directors who are also officers and directors of Pele. The transfer is being achieved through a "tax-neutral" roll over agreement whereby Pele Mountain Resources Inc. transfers its 100% interest in its two gold projects in exchange for the issuance of 20,000,000 common shares of Pele Gold Corporation at an attributed value equal to the tax cost of both projects. On a go forward basis, Pele Gold Corporation will retain all benefits and be responsible for all obligations relating to these two gold projects. Al Shefsky President and CEO of Pele stated, "The transfer of Pele's gold projects into a wholly owned subsidiary is designed to optimize Pele's corporate structure and to highlight both the Company's gold and diamond projects. The recent upward trend in gold prices has generated considerable interest in the Company's gold projects, where Pele has already encountered significant zones of high-grade gold mineralization. The new corporate structure is also intended to provide additional flexibility for Pele to facilitate future opportunities to enhance shareholder value." Pele's Ardeen Gold Mine Project is the site of northern Ontario's first producing gold mine, which was discovered in 1871. During the 1930's a three-compartment shaft was sunk to the below the 1000 foot level and the mine reported production of 30,000 ounces of gold and 175,000 ounces of silver from 144,000 tons of ore processed. Pele has spent approximately $4,000,000 in acquiring and exploring the property from 1996 through 1998. Several high-grade zones have been identified and drilled by Pele in close proximity to the Ardeen Gold Mine workings. Further exploration under and along strike of the known zones at the property has a strong potential to outline additional gold and silver resources. Pele's Wawa Gold Project is located 50 kilometers northeast of Wawa in the Goudreau Localsh Deformation Zone, which has hosted several former producing gold mines including the Edwards, Cline, Magino, Renabie and Kremzar gold mines. In 1999 Pele mined a 10,000 tonne bulk sample from its Markes Zone which lies along strike from several of the former producers. The bulk sample returned approximately 1600 ounces of gold and a positive cash flow. Pele's claims host several known gold occurrences with the potential for significant resources. Pele is encouraged by the recent entry of Richmont Mines to the area through an agreement with Patricia Mining relating to a former producing gold mine with a gold mill on site that is capable of processing more than 500 tonnes a day. The Richmont Mines/ Patricia Mining property ties on to Pele's western claim boundary. Pele's Wawa Gold Project is a strategically located property that covers more than 10 kilometers of strike length in the prolific gold producing Goudreau Localsh Deformation Zone. This press release has been reviewed and approved by Peter M. Dimmell, P.Geo., a director and Qualified Person. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company 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. None of the Company's properties have any known ore body of economic or commercial value. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Pele Mountain Resources Inc. Al Shefsky, President and Chief Executive Officer (416) 368-7224 www.pelemountain.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Release.