Pele Mountain Announces Option Grants

TORONTO, ONTARIO, Jan 12 (MARKET WIRE) --
Pele Mountain Resources Inc. (TSX VENTURE: GEM) ("Pele" or the "Company")
announced that earlier today it granted 1,600,000 incentive stock options
to members of management of the Company (the "Management Options") and an
aggregate of 1,000,000 incentive stock options to the remaining four (4)
directors of the Company under its Stock Option Plan (collectively, the
"Director Options"). All Management Options and Director Options are
exercisable at $0.17 per share. The Management Options expire on December
31, 2011 and the Director Options expire on December 31, 2013.

In addition, the Company also announced that it has granted 300,000
incentive stock options to certain employees of the Company (the
"Employee Options") to acquire up to an aggregate of 300,000 common
shares of Pele. The Employee Options are exercisable at $0.17 per common
share and expire on December 31, 2011.

Finally, the Company also announced that it has granted 100,000 incentive
stock options to certain consultants of Pele (the "Consultant Options")
to acquire up to an aggregate of 100,000 common shares of Pele. The
Consultant Options are exercisable at $0.17 per common share and expire
on December 31, 2009.

The exercise price of all options granted represents a 55% premium over
the closing price of Pele's common shares on the TSX Venture Exchange on
the date of grant. All options granted and any common shares issued upon
their due exercise will be subject to a statutory four-month hold
expiring May 13, 2009. The granting of the options are subject to
regulatory acceptance of applicable filings.

About Pele Mountain Resources

Pele Mountain Resources is committed to the sustainable development of
the Eco Ridge Mine in the historic Elliot Lake mining camp. The company
is developing a safe, secure, and reliable uranium project in order to
deliver lasting benefits to local communities and its shareholders. Pele
also holds a diverse portfolio of gold, diamond, and base metal projects
in Northern Ontario. Pele stock is listed 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: 91,200,278

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
1-800-315-7353
Website: www.pelemountain.com

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