January 22, 2003

News Release: Discovers Big Diamond

Pele Mountain Resources Inc. (TSX Venture:GEM) ("Pele") is pleased to announce the breakthrough discovery of a big diamond from the Festival Property, where Pele controls a 100% interest in the mineral rights. The 0.72 carat, white, gem quality diamond is the biggest diamond recovered from bedrock in the Wawa area. The diamond has been named "The Big Goose" after the English translation of the Ojibway word "Wawa". This profoundly important discovery confirms the presence of a population of large, gem quality diamonds, and further demonstrates the strong economic potential of the extensive diamond deposits on Pele's Festival Property. The 0.72 carat diamond measured 4.42mm x 4.28mm x 3.58mm and was recovered from a 13 tonne bedrock sample blasted from Pele's Cristal diamond occurrence. The sample was processed and the diamonds were recovered and reported by SGS Lakefield Research Ltd. ("SGS Lakefield"). In addition to "The Big Goose", a total of 39 commercial size diamonds greater than a 0.85mm square mesh sieve size were also recovered. The total aggregate weight of the commercial size diamonds was 1.142 carats. The recovered grade of the commercial size diamonds is in the range of currently producing diamond mines. SGS Lakefield also reported recovering 57 additional diamonds greater than a 0.6mm square mesh sieve with an aggregate weight of 0.234 carats.

The 13 tonne sample was collected from Pele's Cristal diamond occurrence in 2001 at the same time that a 100 tonne sample from the site was collected (see Pele's press release dated February 14, 2002). The 13 tonne sample was placed in ore bags, sealed with security tags and stored in a secure location until the sample was transported to SGS Lakefield during December of 2002. The sample arrived at SGS Lakefield with all security seals intact. The sample was then crushed, screened and processed through a magnetic separation circuit at SGS Lakefield. Magnetic separation is an established technique and commonly used to recover diamonds at producing diamond mines.

In addition to the implementation of the standard SGS Lakefield quality control and security measures, Dr. Edward Walker, P.Geo., an independent consultant, was retained to oversee and monitor additional quality control and quality assurance activities during the processing of the sample. The results of the 13 tonne sample builds on the success achieved by Pele last field season in demonstrating the magnetic separation technique as an important and cost-effective tool for processing exploration samples from the diamond deposits at the Festival Property.

Pele is a Canadian mining exploration and development company and a leader in the search for economic diamond deposits in Northern Ontario. Pele controls a 100% mineral rights interest in the 101 square km Festival Diamond Property, which is located 25 kms north of Wawa. Pele also owns a 100% interest in two gold projects in northwestern Ontario. This press release had been reviewed and approved by Dr. Edward Walker, P.Geo., of PetroLogic Inc., an independent consultant and Qualified Person.

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.

Pele Mountain Resources Inc.
Al Shefsky
President
(416) 368-7224
www.pelemountain.com
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