FOR IMMEDIATE RELEASE
May 9, 2007 - Toronto - Pele Mountain Resources Inc. (TSX Venture: GEM) (" Pele " or the " Company ") announced today that Mr. James Andersen CA, CPA ( Illinois ), CFP has been appointed Chief Financial Officer of the Company. Mr. Andersen is a principal of Andersen and Company Professional Corporation, an accounting firm in Toronto and has more than 15 years experience in public accounting practice.
Mr. Andersen succeeds Martin Cooper BA, MA, who has served as the Company's Chief Financial Officer since its inception eleven years ago. Mr. Cooper will continue his involvement with the Company as a Director. Mr. Cooper and the Company are currently negotiating the terms of Mr. Cooper's expected appointment as Executive Vice President.
In connection with Mr. Andersen's appointment as the new Chief Financial Officer of Pele, Mr. Andersen has been granted options (the " CFO Options ") to acquire up to 150,000 common shares of the Company, exercisable at $1.10 per share and expiring on or before December 31, 2011. The CFO Options vest as to one-third on the date of the grant, as to one-third on June 30, 2007 and as to the final one-third on December 31, 2007.
In addition, the Company announced that Alan L. Shefsky, the President and CEO of Pele has accepted a 5-year renewal of his executive employment agreement (the " Executive Agreement ") to continue to act as the President and CEO of Pele. The Executive Agreement in effect terminates and replaces the original five-year executive employment agreement which was set to expire on December 31, 2007.
In connection with the Executive Agreement, Mr. Shefsky has been granted options (the " CEO Options ") to acquire up to 500,000 common shares of the Company, exercisable at $1.10 per share and expiring on or before September 30, 2012. The CEO Options shall vest and become exercisable by the executive only in the following proportions:
as to one-fifth on October 1, 2007;
as to one-fifth on October 1, 2008;
as to one-fifth on October 1, 2009;
as to one-fifth on October 1, 2010; and
as to the remaining one-fifth on October 1, 2011.
Both the CEO Options and the CFO Options and any common shares issued upon their exercise will also be subject to a statutory four-month hold. Mr. Andersen's appointment as CFO of Pele and the granting of the CEO Options and CFO Options remain subject to regulatory acceptance of applicable filings.
Pele is also pleased to announce today that it has closed its previously announced (May 2, 2007) purchase of 5 mining claims comprised of 77 claim units (the " New Claims ") located immediately adjacent to the southern boundary of the Company's Elliot Lake Project. The Company has received TSX-V acceptance of its filings in connection with its acquisition of the New Claims and both parties have satisfied all closing conditions.
About Pele Mountain Resources
P ele 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 U 3 O 8 comprised of 30.05 million tonnes at a grade of 0.05% with the potential for significant near-term upgrade and expansion. Scott Wilson RPA 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 U 3 O 8 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 ".
For further information please contact Al Shefsky, President, at (416) 368-7224, or visit the Pele website at www.pelemountain.com .
The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.