Pele Mountain and Trigon Sign Option Agreement on James Bay Lowlands.

TORONTO -- Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") and Trigon Exploration Canada Ltd. ("Trigon") (TSX VENTURE:TEL) announced today that they have signed an Option Agreement pursuant to which Trigon may earn up to a 60-percent interest in two of Pele's James Bay Lowlands projects, the Alliance Project ("Alliance") and the Attawapiskat River Project ("Attawapiskat").

Highlights of the Agreement include:

- Trigon will be the operator of both projects during the option period.

- Trigon may earn a 50-percent interest in both projects by spending a total of $1,500,000 by April 30, 2006.

- Trigon may increase its interest in both projects to 60-percent by spending an additional $1,500,000 by April 30, 2008.

- Trigon is required to make an additional $250,000 cash payment to Pele by January 17, 2006 to keep its Attawapiskat option in good standing.

- Trigon will drill a minimum of 5 targets at Alliance and 1 target at Attawapiskat by June 1, 2005.

- Trigon and Pele will work together within defined "areas of interest" surrounding Alliance and Attawapiskat.

- Upon exercise of the option by Trigon, a joint venture will be formed and each party will thereafter contribute its share of the costs according to its participating interest.

- Upon commencement of commercial production from either Alliance or Attawapiskat, each party will receive its share of diamonds produced in kind according to its participating interest.

Al Shefsky, President and CEO of Pele stated, "We are very excited to be working with the diamond exploration professionals at Trigon. We believe that their proven capability and experience as members of the discovery team at the Ekati diamond mine adds tremendous value to our James Bay Lowlands portfolio and greatly enhances our prospects for diamond-bearing kimberlite discovery in the region. Our Agreement with Trigon supports and advances Pele's initiatives as a leader in the search for economic diamond deposits in northern Ontario."

Dr. George Poling, President and CEO of Trigon stated, "We are very pleased to enter into the Ontario option agreement with Pele and look forward to a productive program of exploration and development. The Superior Craton in the James Bay Lowlands is an area with proven potential for hosting economic diamond deposits. We believe that geophysics is a primary exploration tool in the Lowlands and geophysics is one of the core competencies of Trigon."

Trigon is a Canadian diamond exploration company active in some of the most promising areas of the Canadian North including the Northwest Territories, Nunavut, and now, Ontario's James Bay Lowlands. Trigon has a proven exploration team whose strong technical skills contributed to the discovery of the first 50 kimberlite pipes at the Ekati Diamond Mine. Field programs at both Alliance and Attawapiskat will be supervised by Raymond Ashley, P.Geoph., Senior Vice-President of Exploration at Trigon.

Trigon has launched exploration programs at Alliance and Attawapiskat that are expected to continue through the winter. Trigon has acquired on-site and immediately-available operating assets from Pele in order to expedite the commencement of fieldwork, including work camps, fuel and other miscellaneous supplies, and access to a hydraulic drill and related equipment. Trigon paid Pele $250,000 on January 18, 2005 for the purchase of the operating assets.

Most known diamond deposits are located on cratons and the world's largest, the Superior Craton, covers most of northern Ontario, including the James Bay Lowlands. The Superior Craton is one of only two cratons in Canada with the proven potential to host economic diamond concentrations, yet it remains largely unexplored. Both Alliance and Attawapiskat lie on the Superior Craton.

Pele's Alliance Project is located southwest of the Attawapiskat cluster, near the transition of the James Bay Lowlands and the Canadian Shield. Pele has staked and recorded more than 30 targets within the Alliance "area of interest" that covers the 6,000,000-acre area of the Fort Hope Airborne Survey, flown on behalf of the Ontario Geological Survey.

Pele's Attawapiskat River Project comprises the largest wholly-owned claim group within a 30-kilometre radius of the Victor Diamond Project, where De Beers is developing Ontario's first commercial diamond mine. Pele's Attawapiskat claims cover the extension of an important structure along which most of the Attawapiskat cluster kimberlites occur and tie on to claim blocks hosting several known diamond-bearing kimberlite pipes. The Attawapiskat "area of interest" includes Pele's Attawapiskat claims as well as a 10-kilometer area surrounding those claims.

This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., a Qualified Person and independent consultant for Pele, and Raymond Ashley, P.Geoph., a Qualified Person, and officer and director of Trigon.

Pele Mountain Resources is a Canadian mineral exploration company and a leader in the search for economic diamond and gold deposits in northern Ontario. Pele is actively exploring on four project fronts, including Goldcorp-funded programs at Pele's Ardeen Gold Mine Project and Festival Diamond Project, Trigon-funded diamond programs in the James Bay Lowlands, and an in-house program at Highland Gold. Pele trades on the TSX Venture Exchange under the symbol "GEM".

Trigon Exploration Canada Ltd. is a generative diamond exploration company that brings together recognized technical skills, extensive knowledge of Canadian diamond geology and innovative exploration techniques in the pursuit of new diamond discoveries. Trigon's existing exploration projects are strategically located in promising diamond exploration areas in Canada. After many years of successfully collaborating on diamond exploration projects, Trigon's experienced and proven management team acquired selective properties and formed the company in 2002. The exploration team, whose strong technical skills contributed to the discovery of more than 50 kimberlite pipes in NWT for Dia Met Minerals, recently developed and expanded the Trigon property portfolio and is focused on repeating its success.

The TSX Venture Exchange 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. None of the Company's properties have any known ore body of economic or commercial value.

Common Shares Outstanding: 46,484,237

Pele Mountain Resources Inc. (TSX VENTURE:GEM)

Pele Mountain Resources Inc. (TSX VENTURE:GEM)

Trigon Exploration Canada Ltd. (TSX VENTURE:TEL)