2

Forward Looking Statements The information in this document has been prepared as at September 21, 2012 Certain statements contained in this document

constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and

forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words

“anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward‐looking

statements or information. Such statements include without limitation: statements regarding timing and other assumptions; estimates of

future resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return,

mining costs, processing costs, cash costs, mine site costs and other expenses; estimates of future capital expenditures and other

cash needs, and expectations as to the funding thereof; statements and information as to the projected development of the Eco Ridge

Mine, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such

exploration, development and production or decisions with respect to such exploration, development and production; estimates of

resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the

Company's Eco Ridge Mine project and statements and information regarding the sufficiency of the Company's cash resources. Such

statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties

and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown

could cause the actual results to be materially different from those expressed or implied by such forward looking statements and

information. Such risks include, but are not limited to: the volatility of prices of rare earth oxides and uranium oxide and other metals;

uncertainty of mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures,

and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs;

mining risks; community protests; risks associated with governmental and environmental regulation; the volatility of the Company's

stock price; and other associated risks. The Company does not intend, and does not assume any obligation, to update these forward-

looking statements and information.

Note: The Preliminary Economic Assessment (“PEA”) is preliminary in nature. It includes inferred mineral resources, which are

considered too speculative geologically to have the economic considerations applied to them that would enable their categorization as

mineral reserves. There is no certainty that the PEA forecast will be realized.

3

Located in Elliot Lake: North America’s proven

heavy rare earth mining camp.

Heavy rare earth enriched mineralogy is well

understood and provides excellent recovery.

NI 43-101 Preliminary Economic Assessment

(“the PEA”) indicates robust economics.

Heavy REO, Neodymium Oxide (Nd2O3) &

Uranium Oxide (U3O8) provide 85% of revenue.

Mine construction targeted for 2015.

The Eco Ridge Mine Rare Earth & Uranium Project

World-class technical team, experienced in Elliot Lake.

4

PROPERTY

PRODUCTS PEOPLE

PERMITTING PLAN

PROJECT ECONOMICS

PROCESSING

ECO RIDGE COMPETITIVE ADVANTAGES

5

Elliot Lake: A Proven Mining Camp

ECO RIDGE PROPERTY

300M lbs of historic U3O8 production from Elliot Lake.

Only Canadian camp to produce REO commercially.

Well-understood geology, mineralogy and metallurgy.

Outstanding regional infrastructure – highways,

railway, power, airport & deep water ports.

Qualified work force & enthusiastic local support.

Politically stable and mining friendly jurisdiction.

Ideal location for safe, secure, reliable, long-term

supply of heavy REO & U3O8.

6 ECO RIDGE PROPERTY

7 ECO RIDGE PRODUCT

REO & U3O8 Mineral Resources

Zone &

Classification

Tonnes

(000)

Total REO Uranium Oxide

Lbs (000) ppm Lbs (000) %

MCB – Indicated 20,514 73,184 1,618 20,447 0.045

HWZ – Indicated 28,223 51,111 821 7,214 0.012

TOTAL - Indicated 48,737 124,295 1,157 27,661 0.026

MCB – Inferred 16,906 54,515 1,463 15,940 0.043

HWZ – Inferred 20,956 37,329 808 5,822 0.013

TOTAL - Inferred 37,863 91,843 1,100 21,762 0.026

Source: NI 43-101 Mineral Resource Estimate as reported by Roscoe Postle Associates, April 2012

• Note: Historic drilling shows deposit continues well beyond resource wireframe.

8 ECO RIDGE PRODUCT

Critical Rare Earths Diversified with Uranium

Heavy REO, neodymium Oxide (Nd2O3) &

uranium oxide (U3O8) provide 85% of

project revenue in PEA.

US Dept. of Energy sees supply risks for

neodymium, dysprosium, europium, yttrium

& terbium (the “Critical Rare Earths”)

Vast majority of REO revenue at Eco Ridge

from Critical Rare Earths

Uranium oxide provides important by-

product revenue diversification.

9 ECO RIDGE PRODUCT

Uranium Demand is Strong

Nuclear reactors worldwide:

>400 currently operating

61 under construction

156 planned

343 proposed

Global production is less

than reactor consumption.

Balance supplied from

secondary sources, which

are nearing depletion.

Source: mining.com

10

NI 43-101 Preliminary Economic Assessment

Mining Cost per Tonne1 $41.52

Processing Cost per Tonne $26.31

G&A Cost per Tonne $3.50

Total Operating Cost

per Tonne $71.33

Net Revenue per Tonne $154.22

Pre-Tax Cash Flow $2.16 Billion

IRR 50%

Before-Tax Payback Period 1.5 Years

Net Present Value (10%

discount rate) $1.02 Billion

Source: NI 43-101 Preliminary Economic Assessment as reported by Roscoe Postle Associates, April 2012

9,000-tonne per day operation to produce

97.2M lbs of Total REO & 27.5M lbs of U3O8

over 11-year mine life.

Production of strategic combination of Critical

REO forecast to remain in supply deficit –

Majority of REO revenue from Heavy REO.

Life-of-mine production includes 14.2M lbs of

neodymium oxide (Nd2O3) & 882K lbs of

dysprosium oxide (Dy2O3), 4.1M lbs of yttrium

oxide (Y2O3) etc. providing a vital source of

Critical REO in Canada.

ECO RIDGE ECONOMICS

11 ECO RIDGE PROCESSING

Processing Circuit Optimized for HREO and Uranium

• Conventional milling achieves excellent

recovery from heavy rare earth enriched

uranium minerals.

• Bench scale acid baking tests have

achieved dramatic increase in recoveries

compared to July 2011 PEA.

• Physical concentration of ore prior to acid

baking will reduce the amount of material

to be processed by acid baking.

12 ECO RIDGE PROCESSING

Preliminary Processing Block Flow Diagram

Crushing, grinding, mineral concentration,

acid baking, and oxide precipitation will occur

at on-site processing complex, producing rare

earth carbonate and U3O8 “yellowcake”.

13 ECO RIDGE PERMITTING PLAN

Sustainable Development at Eco Ridge

Project Description detailing

Pele’s approach to sustainable

development is currently being

prepared, targeting the License

to Construct the mine in 2015.

Local support for Eco Ridge

highlighted by long-term lease

with the City of Elliot Lake for

key surface rights.

Pele is continuing friendly and

productive engagement with

Aboriginal communities.

14 ECO RIDGE PERMITTING PLAN

Pathway to Production

2005 – Sept 2012

Q4 2012 Year 2013 Year 2014 Year 2015

✔ Acquire Property Submit Project Description to

CNSC

Commence Feasibility

Study

Regulatory Review &

EA Decision

Statement

Issue Site

Preparation /

Construction

✔ Outline NI 43-101

Resources

Advance Baseline

Characterization

Program/Reporting

Complete detailed

engineering plans for

mining and processing

Engineering Design

for Process Plant

Begin Process Plant

Construction

✔ Mine Engineering Launch Environmental Impact

Study

Advance the

Environmental Impact

Study

Complete Detailed

Tailings Facility

Design Engineering

Begin mine

construction

✔ Process Engineering Additional Resource Drilling Continue permitting

process

Continue permitting

process

Construct waste

management system

✔ NI 43-101 Positive PEA Public and Aboriginal

Consultation

Public and Aboriginal

Consultation

Public and Aboriginal

Consultation

Public and Aboriginal

Consultation

✔ Initiate Baseline

Environmental Studies

15 ECO RIDGE PEOPLE

• Technical team led by Roger Payne P. Eng.,

former Rio Algom GM for Elliot Lake.

• Rare Metals Advisory Board features Dr. Anthony

Mariano and Dr. William Bird.

• Key consultants include Roscoe Postle Assoc.,

SNC-Lavalin, Senes, Golder Asso., and

Saskatchewan Research Council.

World-Class Development Team

Roger Payne P. Eng

Dr. Anthony Mariano

PROPERTY

PRODUCTS PEOPLE

PERMITTING PLAN

PROJECT ECONOMICS

PROCESSING

ECO RIDGE COMPETITIVE ADVANTAGES

16

• Proven REO mining camp at Elliot Lake

• 85% of revenue from Critical REO & Uranium

• Excellent REO recoveries with acid baking

• Updated PEA indicates robust potential

• Updated Project Description being prepared

• World-class team, experienced in Elliot Lake

Pele’s Competitive Advantages at Eco Ridge

17

Shares

Options

Warrants

Diluted

Average Price

Cash on Exercise

149.0 M

12.3 M

14.6 M

175.9M

$0.23

$0.27

$2.8M

$3.9M

$6.7M

Share Price (14-September-12)

Market Cap (undiluted)

Market Cap (diluted)

$ 0.07

$10.4 M

$12.3M

Pele Capital Structure

TSX-V : GEM

OTCQX : GOLDF

18

Mountain Pass Project

For More Information on

Pele Mountain Resources Inc.:

Email: ashefsky@pelemountain.com

Telephone: 416.368.7224 or 1 800.315.7353

Website: www.pelemountain.com

Twitter: @pele_mountain