To: rdww who wrote ( 234) 4/13/2004 12:19:55 PM From: rdww Read Replies (1) | Respond to of 241 Pele Mountain Announces Strategic Alliance at Attawapiskat TORONTO, ONTARIO--(CCNMatthews - Apr 13, 2004) - Pele Mountain Resources Inc. (TSX Venture:GEM) ("Pele" or the "Company") is pleased to announce that it's wholly owned subsidiary, Pele Diamond Corporation ("Pele Diamond"), has entered into a strategic alliance (the "Strategic Alliance") with 2043423 Ontario Inc.("2043423"), an arms length private company. The purpose of the Strategic Alliance is to stake mining claims in the vicinity of the Attawapiskat cluster of diamond bearing kimberlite pipes and to pursue opportunities involving the staked claims for the benefit of both parties. In furtherance of the Strategic Alliance, a total of 47 mining claims comprising 645 claim units (each claim unit covers approximately 40 acres) have been staked in a single block of contiguous mining claims that has been named the Turtle Pond Diamond Property (the "Turtle Pond Property"). The Turtle Pond Property was staked by contractors engaged by Pele Diamond who filed applications to record the mining claims in the names of Pele Diamond and 2043423, each as to an undivided 50% interest. 2043423 earned its undivided 50% interest in the Turtle Pond Property by reimbursing Pele Diamond for substantially all out-of-pocket costs incurred in staking the mining claims comprising the Turtle Pond Property. The Turtle Pond Property is strategically located to the south of De Beers' Victor Kimberlite Pipe and ties on to mining claims owned by De Beers where four known diamond bearing kimberlite pipes have previously been found, including the X-Ray 1, Zulu, Alpha North and Alpha 1 kimberlite pipes. The Turtle Pond Property also ties on to the boundary of mining claims owned by other joint ventures involving Metalex Ventures Ltd. that are exploring in the area. Pele Diamond and 2043423 have agreed that neither participant in the Strategic Alliance will have or be entitled to an interest in any mining claims now owned or hereafter acquired by the other outside of the Turtle Pond Property. Pele's interest in the Turtle Pond Property adds to the existing claim holdings at the Company's Attawapiskat River Project which is comprised of five 100% owned claim blocks. Pele's claim holdings in the area cover the largest wholly-owned group of mining claims within a 30 kilometre radius of De Beers' Victor Kimberlite Pipe, which is advancing towards planned commercial diamond production in 2007. Pele also announced today that is has staked 3 additional mining claim blocks totaling 48 mining claim units at its 100% owned West River Property, bringing the total number of mining claims wholly-owned by Pele Mountain Resources Inc. in the area to approximately 1750 units (in addition to its 50% interest in the Turtle Pond Property). Pele has also successfully completed approximately three hundred (300) kilometers of line cutting and ground magnetic geophysics and has intersected from 1 to 8 meters of predominantly limestone in four additional drill holes at its West River Property since the Company's February 13, 2004 press release. Each of these drill holes encountered approximately 20 to 30 meters of overburden before intersecting limestone and then reaching the practical depth limit of the small portable core drill being used. Three other drill holes were attempted; however, overburden conditions were too difficult for the small portable drill to penetrate through to bedrock. Pele has demobilized the small portable drill from its camp and has allowed the joint venture of Spider Resources Inc./ KWG Resources Inc. ("Spider/KWG") to mobilize a large drill capable of drilling several hundred meters along with a drill crew into Pele's camp. Spider/KWG began drilling last week and has already successfully intersected a new kimberlite body beginning at a depth of 47.5 meters down its first drill hole. According to the Spider/KWG press release dated April 12, 2004, "a 250 meter deep magnetic linear feature traceable for 7 kilometers within the joint venture property will be tested during this drill program. This deep linear magnetic feature has been interpreted as a "possible" kimberlite filled fissure or Dike." The Structure that hosts this deep linear magnetic feature appears to extend onto Pele's 100% owned West River Property within 2 kms of the Spider/KWG property boundary and appears to continue for more than 10 kilometers on Pele's ground. Pele is a Canadian mining exploration and development company and a leader in the search for economic diamond and gold deposits in Northern Ontario. This press release has been reviewed and approved by Dr. Ed Walker, P.Geo.of Petrologic Inc., an independent consultant and qualified person. 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. None of the Company's properties have any known ore body of economic or commercial value. Common Shares Outstanding: 43,571,014 -30- FOR FURTHER INFORMATION PLEASE CONTACT: Pele Mountain Resources Inc. Al Shefsky President (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.