Pele Mountain Reports Major Increase in Indicated Resources  

TORONTO, ON - Pele Mountain Resources Inc. reported a major increase in Indicated uranium oxide resources as part of an updated NI 43-101 Resource Estimate at its Eco Ridge Mine uranium and rare earth elements ("REE") project near Elliot Lake in Northern Ontario. The Resource Estimate supersedes the previous estimate contained in the 2007 Preliminary Assessment authored by Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA"). Pele is focused on the sustainable development of Eco Ridge, which is owned 100-percent by First Canadian Uranium, a wholly owned subsidiary of Pele.

Pele President and CEO Al Shefsky stated, "We are very excited about the significant upgrade of our resources at Eco Ridge. We have retained Scott Wilson RPA to provide an updated Preliminary Assessment ("PA") which is expected in the second quarter of 2011. The PA will feature a detailed economic model based on combined revenues from uranium oxide ("U3O8") and rare earth oxides ("REO") and will include mining, processing, and waste management design enhancements achieved since the initial 2007 Scoping Study. The PA will also include a schedule of activities to advance the project through the feasibility and licensing stages. We believe Pele's Eco Ridge Mine project contains an important future source of uranium and rare earth elements and we are determined to rapidly advance its development." The Resource Wireframe, which contains both Indicated and Inferred U3O8 resources within the near surface portion of the Main Conglomerate Bed ("MCB"), increased in size from the previous resource estimate. The Indicated U3O8 resource has more than doubled to 15.2-million pounds (14.3-million tonnes at 0.048-percent U3O8) with an additional Inferred U3O8 resource of 31.4-million pounds (33.1-million tonnes at 0.043-percent U3O8). Scott Wilson RPA is continuing to evaluate 1537 REO assays (each containing up to 17 elements) from 123 holes, the last of which were received earlier this month. Within the Resource Wireframe, every drill hole analysed has contained significant total rare earth oxides ("TREO") and the average grade of all of the samples is 3.7 pounds per tonne. The company's address is 2200 Yonge Street, Suite 905, Toronto, ON M4S 2C6, 416-368-7224, fax: 416-368-7230.