Xstrata (XTA.L) unveiled a richer agreed offer for Canada's LionOre Mining International worth C$6.2 billion (2.8 billion pounds) on Tuesday, trumping a bid from Russia's Norilsk Nickel .

London-listed Xstrata's bid, worth C$25 per share for the world's No. 10 nickel miner, is 16 percent above the C$21.50 offered on May 3 by Norilsk, the world's largest nickel miner.

"The board of directors of LionOre ... has unanimously approved entering into the amending agreement and recommends that LionOre shareholders tender to the increased offer," Xstrata said in a statement on Tuesday.

LionOre's previous line had been that Norilsk's offer was superior to the C$18.50 per share offered by Swiss-based Xstrata on March 26, a deal the Canadian miner had agreed to.

LionOre's shares rose by more than 13 percent, climbing well above the bid price on the Toronto Stock Exchange, suggesting investors expect an sweetened offer from Norilsk.

Just after midday in the North American session, LionOre stock was up C$3.15 at C$26.85.

"I think there's a strong possibility of Norilsk counter bidding," said Orest Wowkadow, an analyst at Canaccord Adams.

"I think, at the end of the day, Norilsk can pay more than Xstrata can," he said, adding that Xstrata would likely face shareholder opposition if it was seen to overpay, while Norilsk is privately controlled.

Norilsk Nickel declined immediate comment on Xstrata's latest offer. A company spokesman said management required time to evaluate its options.

Xstrata shares rose 0.9 percent to 2,722 pence, valuing the company at 26.4 billion pounds.

Since making that initial offer, Xstrata has got regulatory clearance from Australia, Canada and the European Union.

"With the break fee increased to C$305 million and all regulatory requirements in place, we do not anticipate that Norilsk Nickel will counter this increased offer," Investec Securities analyst Nick Hatch said in a broker note.

"The transaction remains both value and earnings accretive (for Xstrata)," said Hatch, who has a "buy" recommendation on Xstrata stock, with a 2,975 pence target.

But Merrill Lynch analysts said "consensus forecasts (for LionOre) are based on nickel prices which are low versus the current spot price ... Based on consensus net income of $693 million, we see ample room for Norilsk to raise their bid and still have an earnings accretive transaction."

Xstrata said the expiry date for its increased offer for LionOre was midnight Vancouver time on Friday, May 25.

Its battle for LionOre is reminiscent of last year's tussle for another Canadian nickel miner, Falconbridge Ltd.

Then, Xstrata entered the fray with a C$52.50 per share offer, valuing Falconbridge at C$20 billion, and eventually won with a C$62.50 bid.

LionOre did not return calls seeking comment.

German cement maker HeidelbergCement AG has agreed to buy Hanson for 8 billion pounds to create the world’s second-largest company in construction materials.

The cash offer of 1,100 pence per share would be the biggest takeover in the sector and creates a building materials company with a market value of $34 billion (17.2 billion pounds), leapfrogging Lafarge and challenging top-ranked Saint Gobain .

The combination of the world’s fourth-largest cement maker and biggest aggregates specialist will have revenues of around 15 billion euros (10.3 billion pounds) and more than 70,000 employees, the two firms said in a statement on Tuesday.

The deal also marks the departure from the stock market of the name Hanson, once one of the world’s largest conglomerates.

"The strategic fit has been made, and with it Heidelberg joins the global players in the segment, in terms of profitability and size," said WestLB analyst Ralf Doerper.

The deal highlights the growing attractiveness of Hanson, which produces aggregates such as crushed rock and gravel, as the sector consolidates and companies look to boost margins and market share in what is a highly fragmented industry.

"The price is high, but a company like Hanson does not come as a bargain," Heidelberg Chief Executive Bernd Scheifele said at a news conference on Tuesday. "We are the ideal match in terms of our products as well as our geography."

Heidelberg expects synergy benefits of 200 million euros by the end of 2009, mainly from overlapping operational headquarters in Britain and North America. Scheifele said the firm did not plan major job cuts.

It aims to complete the deal in the third quarter and finance it through a combination of hybrid capital issuance of up to 2 billion euros, the sale of debt and divestment of selected non-core assets. Deutsche Bank and Royal Bank of Scotland have fully underwritten the acquisition facilities.

complete this news visit at : tiscali.co.uk

Northern Nickel Mining Inc. a private company dedicated to the development of base metal properties primarily in the Sudbury Basin has acquired, under option, the Wanapitei Nickel Property in Dryden Township, Ontario.

The Wanapitei Intrusive Complex, southeast of the Sudbury Intrusive Complex, has signifigant Ni+Cu+PGM values , numerous EM-Mag targets and a large mineralized shear zone that has never been properly evaluated. This consistent mineralized zone is up to 4 metres in width, has been traced for 1 km in length, and is marked by a series of old pits.

Previous work on the property has identified 8 EM Conductors on the southern part of the property. In 1998 a large magnetic anomaly was located on the east side of the property, associated with numerous "gossan" zones. Prospectors gouged out samples below the "gossan" of which a sample assayed Ag 2.7 g/t; Co 0.077 %, Ni 0.625 %; Cu0.793 % (1.41 % Ni +Cu) Pd .307 g/t (0.504 g/t PGE's).

The company plans to carry out a summer work program of line cutting, geophysics, trenching, stripping and sampling. A second phase will consist of a late summer diamond drill program.

The company believes the property to be a high quality acquisition, close to the Nickel capital of Sudbury, and taken in conjunction with high world spot Nickel price a valued and exciting acquisition.

Contacts:
Northern Nickel Mining Inc.
Tim D. Towers
Director Corporate Development
(905) 319-3033

Northern Nickel Mining Inc.
Steve Mlot
Director Engineering
(416) 573-0583

Copyright © 2007 SYS-CON Media. All Rights Reserved.

Alcan Inc. today announced it welcomes the Canadian Government's announcement regarding proposed changes to the International Tax Fairness Initiative from the 2007 federal budget as a step in the right direction.

"We appreciate Minister Flaherty's decision to restore interest deductibility for foreign investments and to take the necessary steps to ensure tax fairness in Canada. We also support using any revenues generated by this initiative to further reduce business taxes in Canada," said Dick Evans, President and CEO, Alcan Inc. "As I have previously noted, Alcan's Canadian operations are linked to the success of our globally integrated supply chain which is dependent on significant investments outside of Canada," he added.

The Minister of Finance of Canada, the Honourable Jim Flaherty, provided additional clarifications by stating that the tax initiative would focus on preventing the use of tax havens and other means used to avoid paying tax.

Mr. Evans added that "given the technical nature of this matter, the upcoming appointment of a technical roundtable of tax experts is a sound way to proceed and will ensure a thorough analysis of any changes. We look forward to cooperating with the experts as they strive to move towards the Minister's stated goal of improving the fairness of Canada's tax system while at the same time being careful not to harm the ability of Canadian multinationals to grow and compete abroad," he concluded.

Alcan Inc. (NYSE, TSX: AL - News News) is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging, today's Alcan is well positioned to meet and exceed its customers' needs. Alcan is represented by 68,000 employees, including its joint-ventures, in 61 countries and regions, and posted revenues of US$23.6 billion in 2006. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com.

%B NM %C 1,18 %D Flaherty's Tax Initiative

For further information

Media contact: Anik Michaud, +1-514-848-8151, media.relations@alcan.com
Investor contact: Ulf Quellman, +1-514-848-8368, investor.relations@alcan.com


Source: ALCAN - EN

United Company RUSAL (UC RUSAL), the world's biggest aluminum company, is interested in acquiring Russian mining and metallurgical companies as part of its drive to diversify its business.

"We're interested in Russian mining and metals companies," UC RUSAL
General Director Alexander Bulygin told journalists on Tuesday.

Bulygin, speaking at the groundbreaking ceremony for the construction of an aluminum smelter for the Boguchany electricity and metals project in the Krasnoyarsk territory, did not name any of the companies. "We're interested in all the companies you of," he said.

"The western markets are still RUSAL's key markets from the point of view of sales and raw materials," Bulygin said.

UC RUSAL's foreign assets represent 50% of the value of the merged company's assets. "We'll be stepping up our strategy in the West," he said.

UC RUSAL is carrying out a number of foreign projects, some of them
in Congo, Vietnam, Papua New Guinea and Venezuela.

UC RUSAL was established through a merger between Russian Aluminium
(RUSAL), Siberian-Urals Aluminum Company (SUAL) (RTS: SUAL) and the
alumina-related assets of Switzerland's Glencore International AG. The
combined assets are capable of producing 10.6 million tonnes of alumina
and 3.9 million tonnes of aluminum per year. Bulygin has said their
combined sales revenue, going by last year's results, is potentially $10
billion.

Investing in the mining and precious metals sectors can be a difficult place. The small investor has three choices: large-cap mining companies that offer slow to moderate growth and attractive dividend yields; small, speculative mining stocks with no revenues and a high degree of risk; or sector focused ETF's and mutual funds.

An investor choosing large cap mining and precious metal stocks makes the risk/reward tradeoff. Slow to moderate growth and lower returns for less risk and the ability to sleep easy at night without worry of their stock going out of business. They will typically receive a nice, steady dividend stream and returns but forgo the large returns that come out of the junior sector.

If the average investor decides to test the waters of the junior resource market they have different challenges. Currently, there are hundreds of small stocks trading on various exchanges. Like the Internet bubble of the 90's where most companies never turned a profit most prospective deposits will never become mines. How does a small investor know if management is qualified to bring a deposit into production? Does the small investor know how to read a drill report? Do they understand the difficulties of bringing a mine into production? How do you know then if the stock you chose was the right one? You could hit it big or you could go bust.

You can choose to go the route of ETF's or sector specific mutual funds but just how experienced are the managers? Most ETF's and mutual funds are low risk investments and hence filled with large cap stocks. Juniors are dubbed too risky for their tastes.

But there is one stock which does not fall into these three companies and offers investors the chance to invest in junior mining companies and that stock is Pinetree Capital.

Pinetree Capital was founded in 1992 by Sheldon Inwentash with $4 million of initial capital as a venture investor in early stage technology companies. In 2001 they survived the tech bubble and began focusing on the resource sector in 2002 and 2003. Pinetree's strategy is to build a macro position while searching for small cap opportunities. Through their 50% owned subsidiary, PowerOne Capital Markets Limited (PowerOne), Pinetree can act as an agent to help raise capital for small cap companies and provide financial advisory services to assist in moving through the commercial production process. PowerOne is the key differentiator between Pinetree and a hedge fund, mutual fund, or ETF. PowerOne helps junior companies navigate the difficult area of fundraising which often can be the make or break for a junior. Raising money in the capital markets puts junior mining companies at the whims of unscrupulous brokers who prefer the current flavors of the month. By helping sheppard their investments from drilling to production Pinetree helps create their exit strategy in addition to building the business.

As of December 31, 2006, Pinetree had 34% of is portfolio invested in Uranium stocks (portfolio return of approximately 550% last year) and an additional 32% is invested in the Precious Metals sector (portfolio return of greater than 350 %.) The portfolio is available through the regulatory filings and news section on the website.

For those concerned about portfolio valuations the process is transparent and available for review on the website and in their regulatory filings as well.

One could say that Pinetree acts as a sophisticated closed end fund. The shares currently trade at a premium to the companies NAV even though its investments can be deemed speculative. US investors would have to get access through the Pink Sheet listing but the company has a market capitalization of roughly $1.1 billion US dollars so this should ease investor's anxiety over its size.

Sheldon Inwentash currently owns 21% of Pinetree Capital and company management (including Mr. Inwentash) owns approximately 23% basic; 28% fully diluted of shares outstanding. Management has a good sized stake, large enough where they will continue to work in the best interests of the shareholders.

Pinetree and Mr. Inwentash have been around now for more than 15 years. That is a longer track record than most fund managers anywhere in the world.

In short, if you are considering investing in the junior resource sector but do not have the time to do the legwork then Pinetree is a good place to start.

Sao Luis Mining, Inc., a "conflict free" diamond mining and precious metals exploration company, has ordered a state-of-the-art Dense Media Separation (DMS) plant with a feed capacity up to 100-tons of virgin gravels per hour. Based on the historical grade of the concession, the production could increase up to 1,000 carats a day working 20 hours a day. The upgraded DMS plant will take the place of a 40-ton per hour processing plant the Company previously ordered.

Michael J. Dillon, President and Chairman of Sao Luis Mining, says that "based on the enormous potential of bulk sampling, together with other geological surface reports for our Joint Venture Properties 231 and 117, we decided to accelerate our investment in processing equipment to rapidly begin full scale mining and generate significant revenue."

ProMet Engineers Africa (Pty) Ltd. (www.promet.co.za), a worldwide leader in DMS technology, is custom building the half million-dollar plant for Sao Luis Mining. Completion and shipping is expected within 90 days. A ProMet technician will be inspecting the existing equipment on site in Brazil and coordinate the construction of the pre-wash stages to ensure the optimum recovery of diamonds from the DMS. The modular plant will be constructed and tested in South Africa prior to being shipped. Upon arrival, the plant requires less then 2 weeks to remount and become operational.

DMS plants provide the most efficient recovery levels for diamonds. The technology relies on the difference in densities between separate materials. The mixed solids are placed in a dense liquid solution. The diamonds and other heavy minerals, which are denser than the soil and gravel in which they are found, sink while the less dense material floats. The diamonds fall to the bottom where they enter a secured laser diamond sorter for further classification..

About Sao Luis Mining:

Sao Luis Mining, Inc. (PINKSHEETS: SAOL) is a "conflict free" diamond mining and precious metals exploration company. Its strategy is to acquire interests in producing mines and develop properties that have the promise to be economically viable. Sao Luis Mining has a 51% joint venture interest in Comercio e Mineracao Sao Luis Ltda., which operates two diamond properties and an existing processing plant in the Sao Luis River Basin. The operation is located in the state of Mato Grosso, which is the most productive diamond district in Brazil and responsible for 61% of all the legally mined diamonds in Brazil in 2005. Additional information, including a photo gallery and geological report, is available at the Company's website www.saolmining.com.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, words such as "estimate," "expect," "anticipate," "projected," "planned," "forecasted" and similar expressions are intended to identify forward-looking statements, which are, by their very nature, not guarantees of Sao Luis Mining, Inc.'s future operational or financial performance, and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to the risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Michael J. Dillon
(775) 782-9157
mdillon@saolmining.com
www.saolmining.com

Published May. 15, 2007
Copyright © 2007 SYS-CON Media. All Rights Reserved.

A vice president of Stillwater Mining Co., which mines palladium and platinum, sold 47,000 shares of common stock, according to a Securities and Exchange Commission filing.

In two Form 4s filed with the SEC Monday, John Stark reported he sold the shares May 8 and Wednesday for $13.40 and $13.85 apiece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

Stillwater Mining is based in Billings, Mont.

A court case opening Tuesday is expected to expose the conflict within the South African government as it battles to balance the demands of mining expansion and environmental protection.

Billions of dollars are at stake as the government awards huge mining licences while it is accused by communities and environment groups of putting several several animal species and eco-systems are under threat.

Mpumalanga Lake District Protection Group (MLDPG) has launched a landmark bid to stop a proposed opencast coal mine in the Lake District in Mpumalanga in the east of the country. The application is to heard in the Pretoria high court from Tuesday.

"The social and environmental impact costs coming with mining will be high and will only be evident when the mining is over," said MLDPG chairman Koos Pretorius.

"We are concerned that no strategic environmental impact assessment has been conducted and are convinced that coal mining is not the best long-term use option for the area," he told AFP.

The court case is expected to highlight conflicts between the departments of Minerals and Energy (DME) and Environmental Affairs and Tourism (DEAT).

DEAT spokesman Blessing Manale said existing legislation left the department's "hands tied" and gave its counterpart free reign "to own mining rights and regulate its own environmental impact".

"We have a situation in the country where once the prospecting licence has been granted, the mining department is allowed to handle its own environmental impact assessment without our involvement," said Manale.

Environmentalists and community members accuse authorities of irregularities in awarding licenses and of not taking environmental obligations seriously.

Pretorius, a farmer, said licence applications were pending for mining or prospecting on about 80 percent of land in the Mpumalanga escarpment area, raising fears no agriculture or tourism would soon be left.

The area has coal reserves locked in close proximity to farms and ecologically sensitive areas like the Lake District, which has more than 300 lakes.

The area is rich in swamps and caves housing unique bird and frog species that draw many tourists.

According to geoscientist Terence McCarthy of the University of the Witwatersrand, many of the environmental and social costs of mining, a key job creator, were not considered.

"Mining invariably impacts negatively on the environment. One needs to weigh up the relative benefits of mining or using the land for other purposes," he told AFP.

Many mine areas became permanently "sterilised" and the groundwater contaminated, he said. "If mining were allowed (in such areas), it would mean the end of the pans and lakes. They would in time simply become pools of toxic waste."

Residents say mining expansion has put a halt to eco-tourism and farming investments.

Belgian-born farmer Pierre du Hain, who came to Mpumalanga five years ago, said he was disappointed at the government granting mining rights and would not have based his operation in South Africa if he had known earlier.

"This is bad for the economy and I wouldn't encourage anyone to come and farm in South Africa if situations like these are encouraged to go on."

In another example of the growing conflict, environmentalists have urged the government to reject an application by an Australian company for a titanium mine in Pondoland district on the tourist drawcard Wild Coast of the Eastern Cape province.

"The process of decision-making with respect to mining developments potentially contravenes South Africa's commitments under the Convention of Biological Diversity," said Sustaining the Wild Coast spokesman Val Payn.

"Mining would likely result in irreversible loss of significant biodiversity, including numerous endemic species, and natural and cultural heritage."

The Tennessee-based Save Our Cumberland Mountains is among several environmental groups and coalfield residents lobbying Congress this week for legislation intended to protect water quality while ending the practice of mountaintop removal coal mining.

The Clear Water Protection Act, H.R. 2169, was introduced earlier this month and Rep. Jim Cooper, D-Nashville, is among 67 co-sponsors. It has been referred to the House Transportation Committee.

The environmental groups said mountaintop coal mining has buried 1,000 miles of streams and headwaters in central and southern Appalachia.

They claim the U.S. Army Corps of Engineers and the federal Environmental Protection Agency created a loophole in 2002 allowing mining operators to dump their waste, filling streams, lakes and wetlands.

Russia's cabinet remains divided over the planned merger of gas monopoly Gazprom and coal major SUEK after three months of hot debate over its impact on coal and power industries, a top regulator said on Tuesday.

Gazprom is seeking to acquire 50 percent plus one share in the joint venture, which would combine the gas firm's power assets with SUEK's coal and power business.

Russia's Antimonopoly Agency chief Igor Artemyev, Economy Minister German Gref and the head of electricity giant UES Anatoly Chubais have strongly opposed the idea, saying Gazprom's acquisition of power and coal assets would undermine Russia's power sector reforms.

The idea to set up the joint venture is strongly supported by First Deputy Prime Minister and Gazprom's chairman, Dmitry Medvedev, seen as one of the top candidates to succeed President Vladimir Putin after national elections in March 2008.

On Tuesday, Artemyev said the government was still far from reaching a compromise.

"The situation in the government is quite hot -- they have our report, a number of other agencies have also expressed doubts about whether the deal makes sense. But the law says the government can take any decision," Artemyev told a briefing.


He added that his agency had yet to receive a formal request from Gazprom for the deal's clearance.

"If the merger is declared necessary by the government, the antimonopoly service will have to obey," said Artemyev, whose agency has so far failed to stop any big merger from happening.

Gazprom and SUEK announced the plan in February and said they hoped to complete the deal in the first half of this year.

The power sector reforms aim to liberalise the sector by breaking it up into separate generating firms and distributors. A union of SUEK and Gazprom, which already has assets in the power sector, could leave one entity dominant in the sector.

Gazprom already owns some assets in the power sector, including 10 percent in UES and over a quarter of stock in Moscow city utility Mosenergo .

SUEK, which has stakes in a number of regional energy companies, accounts for about 30 percent of coal supplies to the domestic market and 20 percent of Russia's coal exports.

China's imports of oil and coal rose in April, as the country's fast-growing economy continued to boost demand for fuel and power generation.

China's crude oil imports rose 23 percent in April from a year ago to a record monthly high, a report by the General Administration of Customs showed Tuesday.

Imports in April totaled 14.8 million metric tons, or an average of 3.62 million barrels a day, the report showed. Imports for the January-to-April period rose 10.8 percent from a year earlier to 54.46 million tons, or 3.33 million barrels a day.

China also imported more coal than it exported in April. Coal imports rose 27.1 percent from a year ago to 4.92 million metric tons in April, according to data released Tuesday by the General Administration of Customs. China's coal exports for April fell 18.5 percent from last year to 4.46 million tons.

In April, the Chinese government said its economy grew 11.1 percent in the first quarter.

Katanga Mining Ltd.'s shares jumped about 10 percent in heavy activity on Wednesday after the tiny copper miner made moves to block a rival company from gobbling up its stock in a creeping takeover bid.

The shares of the company, which rehabilitates mines and plants near Kolwezi in the Katanga province of the Democratic Republic of Congo, were up C$1.44, or 9.1 percent, at C$17.24 on the Toronto Stock Exchange by late morning, after racing as high as C$17.35 earlier in the session.

Volume was a heavy 1.6 million shares.

Katanga said on Tuesday that it was asking the Ontario Securities Commission to prohibit Central African Mining and Exploration Plc from buying its shares, arguing that CAMEC's actions "have contravened Ontario's takeover provisions."

CAMEC has accumulated a 22 percent stake in Katanga through a number of stock purchases and has said it intends to acquire additional shares.

Under OSC regulations, with CAMEC having accumulated more than 20 percent of Katanga, it can complete up to five additional transactions and pay no more than a 15 percent premium to market prices.

OSC regulations also restrict CAMEC from buying more than 5 percent of the outstanding shares during any one-year period.

"We believe that CAMEC is interested in only one thing -- a takeover of Katanga," Kerry Smith, an analyst at Haywood Securities wrote in a research report. "With these restrictions in place, the next logical step would be to bid for the company."

Smith boosted his stock price target to C$18.00 a share from his previous target of C$14.15 in anticipation of a takeover offer of about C$18.00 a share.

($1=$1.11 Canadian)

A mining concern in the northern Canadian town of Yellowknife faces negligence charges, after the mauling death of one of its employees by a bear, local authorities said Tuesday.

The Yukon Workers' Compensation Health and Safety Board laid five charges against Aurora Geosciences, alleging the company failed to properly train the Quebec man before sending him into the wilderness to stake mining claims.

The indictment is believed to be the first of its kind in Canada's northern hinterland, where wild animals greatly outnumber people.

"It is the first case of its kind in the Yukon involving a bear attack," said Mark Hill, a spokesman for the compensation board, told AFP.

"In our view, it's no different from any other legal obligation of companies to keep their workers safe."

The 28-year-old employee was killed by a grizzly bear in April 2006 while staking mining claims in the backwoods near Ross River, about 200 kilometers (125 miles) northeast of Whitehorse in Canada's Yukon Territory.

The Royal Canadian Mounted Police (RCMP) said he was apparently attacked by a mother bear after wandering close to a den that contained her two cubs.

The court case is scheduled to start June 5. Aurora Geosciences executives face a possible maximum penalty of one year in jail and a 150,000-dollar (135,000 US) fine.

Bear attacks are rare in mineral exploration, but geologist Al Doherty warned the case could set a dangerous precedent for anyone who works in Canada's outback.

"It opens a huge can of worms for employers, because now all of a sudden it seems that if you don't get up and dress your employee in the morning, you're liable," he told the Canadian Broadcasting Corporation (CBC).

But Hill countered: "There are a number of potential hazards in the wild. People need to be trained and equipped to deal with them. Wildlife should be known to people who work in that environment, and there is lots information available to help them deal with these dangers."

Three-dollar-a-gallon gas has become a bargain in Sheboygan, Ricky Jackson found out Thursday.

Jackson, 27, of Sheboygan, was filling the tank of his vehicle at the Clark station at Indiana Avenue and South 17th Street, one of the few stations locally that hadn't raised its price a dime to $3.10 by Thursday afternoon.

"It's ridiculous," he said. "It keeps me from doing a lot, like taking my kids to the zoo in Milwaukee or going to Green Bay. Most of the time I end up ... just basically going to work. You can't really pay too much of your bills after you get gas at the gas station."

Navraj Ghuman, manager of the Clark station, said he would have to match the higher prices.

"We'll be going up also by tonight because the cost went up on that," Ghuman, 29, of Sheboygan, said Thursday afternoon. "I think it's not good that it's going on. It's not good for the gas station either because (there are) less people who pump gas with this much price. They avoid driving."

Jim Zachman of Cedar Grove pulled up to a pump at Ryan's Amoco on Taylor Drive on Thursday afternoon with a smile on his face.

It wasn't until he'd finished filling the two 2-gallon tanks on his Harley-Davidson Springer Softail that he noticed the price.

"Oh boy!" he said in surprise as he peered at the price on the premium pump. "I didn't even realize it was $3.25. I think it was $3.10 the last time I filled it up. I didn't even realize it was that high."

The price of unleaded gas has increased about 25 cents during the last week, and most gas stations in Sheboygan were charging $3.10 for a gallon of regular unleaded Wednesday afternoon.

Although Zachman said the price of gas doesn't slow him down when he wants to get on his motorcycle, he's not happy with the way things are going.

"Obviously it bothers everybody," he said. "It bothers me, sure. I think gas prices are way too expensive, I think oil companies are lining their pockets at Americans' expense. I don't like it. But if there was an alternative, then the oil companies wouldn't be able to gouge the way they do."

But Erin Roth, executive director of the Wisconsin Petroleum Council, said there are some very sound reasons for the rise in gas prices.

For one thing, crude oil continues to hover around $65 per barrel, which is up about $15 from the price just two months ago, he said.

"Crude oil is the No. 1 component in the price of gas," Roth said.

For another thing, there have been some serious supply-and-demand problems in the Midwest thanks to a fire at the BP refinery in Whiting, Ind., which supplies a lot of gasoline to Wisconsin, Roth said.

"Demand is high unexpectedly," Roth said. "People happen to be driving more."

The increase in demand is almost 2 percent nationally, he said.

"There's not one silver bullet you can point to as the cause for prices rising," he said.

Royal Dutch Shell's (NYSE:RDS.A - News; NYSE: RDS.B - News) First Quarter 2007 CCS Earnings Were $6.9 Billion Compared to $6.1 Billion a Year ago. CCS Earnings Per Share Increased by 17% Versus the Same Quarter a Year ago.

- From 2007 Onwards the Group is Declaring its Dividends in US Dollars Rather Than in Euros. a First Quarter 2007 Dividend has Been Announced of $0.36 Per Share, an Increase of 14% Over the US Dollar Dividend for the Same Period in 2006.

- $0.5 Billion or 0.2% of Royal Dutch Shell Shares Were Bought Back for Cancellation During the Quarter.

Royal Dutch Shell Chief Executive Jeroen van der Veer commented: "These are again competitive results, driven by operating performance." He continued: "We have progressed two large and complex transactions, Sakhalin II and Shell Canada, which consolidate our position in two major resources areas. Our strategy is on track. We continue to refocus our portfolio, through disciplined capital choices."

complete to read this news visit at : biz.yahoo.com

Government has no plans to make the retail selling price of petrol and diesel uniform across the country, Minister of State for Petroleum and Natural Gas Dinsha Patel informed Lok Sabha on Thursday.

He said that petrol is costliest in Bangalore at Rs 50.62 a litre and is cheapest in Puducherry at Rs 41.91 a litre. Bhopal has the costliest diesel at Rs 35.55 per litre while Jalandhar sells the cheapest at Rs 30.08 a litre.

Bhopal also has the highest rates for domestic cooking gas (LPG) at Rs 328.75 a cylinder, while Chennai has the lowest rates of Rs 288.10 per cylinder.

Though the basic ex-storage point price of petrol, diesel and domestic LPG are uniform across the country, the retail selling prices vary from place to place.

Local levies

"This is due to different rates of state sales tax/VAT, freight from nearest refinery and other local levies like toll tax, octroi and entry tax," the minister said.

"Presently, there is no proposal for making the retail selling prices of petroleum products uniform all over the country," he added.

Patel said that Indian Oil Corporation (IOC) was pursuing export of petrochemical products, particularly purified Terephathelic (PTA) to Pakistan. The proposal involves transport of PTA by road and rail in containers across Wagha Border.

He also said that in March 2006, Government of Pakistan had permitted Pakistan State Oil (PSO) to import 10,000 tons, Group II Lube Oil Base Stock (LOBS) from IOC on a one time basis.

EnCana's Energy Expo was bigger and arguably better than ever. The fifth annual Expo brought together over 80 exhibitors from the oil and gas industry to the Garfield County fairgrounds in Rifle Wednesday.

The Expo is a showcase for oil and gas operations in Garfield County, which leads the state in drilling activity and is second to La Plata County in gas production. Last year alone 4,000 permits were issued for oil and gas drilling in Garfield County alone. As a whole, Colorado is fifth in the nation in natural gas production.

The Expo is an opportunity for operators and ancillary companies to explain their operations to the public. It's also a job fair of sorts, giving an opportunity for operators and contractors as well as job seekers to connect.

"We really tried to emphasize new technology and environmental initiatives," said EnCana spokeswoman Kathy Friesen. Videos produced by EnCana and Williams featured Williams' new H&P Flex drilling rigs that can drill up to 22 wells from one pad and considerably reduce the drilling footprint on the land. A video by EnCana presented the company's approach to citizen complaints about oil and gas operations in western Garfield County and examples of how the company has partnered with Garfield County to maintain county roads.

New companies now operating in the region were also on hand including Berry Petroleum, which began a drilling program this year. Shell was also at the Expo to present information about its Mahogany Research Project in the Piceance Basin near Meeker, which is testing a new underground retorting technology for oil shale.

"We just get a lot more industry involvement" every year, Friesen said. The community turnout appeared to be at least as high as last year. She estimated about 1,200 people came through the Expo in 2006.

The Expo ran from noon to 6 p.m. Wednesday. However on Wednesday morning the exhibits were opened especially for area high school students to give them a chance to see and talk to companies working in the region. Friesen said some of the students were also interested in job possibilities.

"They asked, 'What do you have to do to get jobs like these and what do you make?'" she said.

Besides the general information and the free give-aways, some people were there to network. Leslie Robinson, director of Garfield County United Way, was making the rounds and looking for donations.

"I'm meeting a lot of new people," she said. "This is a good outreach for me."

In Venezuela, President Hugo Chavez is threatening to snatch control of several major projects from American and European firms. In Russia, the government recently strong-armed Royal Dutch Shell into relinquishing control of a large field called Sakhalin II. In developed countries, home to the six so-called "supermajor" oil producers, politicians have debated imposing windfall profits taxes.

Across the oil-producing world, governments are responding to higher petroleum prices by imposing new taxes on oil companies and forcing the renegotiation of contracts giving foreign firms access to critical reserves.

According to speakers at the 2007 Wharton Economic Summit, such developments augur a new age for the oil business. The time is over when major oil companies can dictate the terms of development deals to host countries. About four-fifths of the world's reserves are already controlled by state-owned firms, and political strongmen like Chavez and Russia's Vladimir Putin seem intent on tightening their hold on their countries' oil wealth. Russia has the world's largest oil reserves, after Saudi Arabia.

"The ability of major oil companies to exert their muscle has diminished," said David Fleischer, a principal with Chickasaw Capital Management in Memphis, Tenn. "They still bring a lot of technology and expertise, but that's less important in today's world. Countries like Venezuela don't care as much as they should about maximizing their revenues. They care about control of their resources."

Finding New Deals

Yet the situation isn't as dire as the headlines can make it seem, said Mohammad Azam Ali, chief executive of Dubai-based Orient & Gulf DMCC. Oftentimes, politicians' threats are just posturing intended to appeal to local people, and not genuine declarations of intent. "The governments, most of them anyway, are aware of what they need the companies for. There are many examples of major U.S. oil companies doing very well in the Middle East despite problems between the U.S. government and various Middle Eastern governments."

Consider Oman, a sultanate on the Arabian Peninsula, he said. It recently entered into a long-term contract with Los Angeles-based Occidental Petroleum to develop a billion-barrel field. Occidental approached Oman and committed to investing more than $1 billion and drill more than 1,000 wells -- far more than Oman could have managed alone. The government of Abu Dhabi, the largest of the United Arab Emirates, helped to broker the deal and ended up taking a 15% stake. By inviting Abu Dhabi in, Occidental found a way to more closely align its interests and Oman's. "If Oman decides that it wants to retrade the deal with Occidental, it will also have to do it with one of its neighbors," Azam Ali pointed out.

Marathon Oil also intends to have its projects work for both itself and its host, said Janet Clark, the Houston, Tex., firm's chief financial officer. In today's world, oil producers must embrace state-owned oil companies as partners, not try to squeeze them out of projects, she said.

Marathon is making a virtue of necessity, Clark admitted. "We're not Exxon or Chevron, and we can't push people around." Marathon last year reported revenues of $65 billion, compared with $378 billion for Exxon Mobil. But Marathon's executives also believe that fair dealing creates good will that can yield unexpected dividends later. Libya's government, for example, recently invited Marathon back into the country two decades after it had left the country because of economic sanctions imposed by the U.S. government. "In 1986, we had to walk away from 300 million barrels in reserves," Clark said. "Because we had a good relationship, they held that for us."

Marathon's development of a liquefied natural gas plant in Equatorial Guinea typifies its efforts to cooperate with local governments, Clark noted. Marathon has committed to training local people and employing them in skilled jobs. It has also undertaken an anti-malarial campaign in the region where it operates. The African country, for its part, has been investing in the plant to secure a 25% stake.

Of course, not every deal works out so well. True partnerships require two willing participants. And governments like Chavez's and Putin's have shown themselves to be more interested in expropriation than cooperation. When confronted with these sorts of tactics, some experts have urged oil producers to exhaust every legal remedy. Courts could interpret a failure to do so as a voluntary relinquishment of ownership rights, these people say.

Fleischer counseled humility over legal machismo. "The humble approach -- letting [state oil companies] own the reserves and you bringing the capability and technology -- makes more sense," he said. That way, no potential partner is alienated. And sooner or later, most oil-producing nations will have to call for the big firms' help. "Many of these OPEC countries are already spending all the resources they are getting from $60 oil and not reinvesting" in their production infrastructure, he noted. "And there are countries in the world -- Iraq is a prime example -- that just have no local talent. So they need the technology and capabilities that the major companies can bring."

A recent Marathon experience ratifies Fleischer's advice. The company recently won a bid against one of the supermajor firms for the right to own and operate a section of a big field. "I don't think the government in question thought our technical program was superior," Clark said. "That other company had taken an approach in prior negotiations that made it unwelcome as a partner."

A wild card in these sorts of strategy discussions is the growing role of China's state-owned oil producers, which are expanding aggressively. Though not as technologically advanced or experienced as Western firms, they have the financial backing of their government and might appeal politically to America-bashers like Chavez. "We can't compete in the same way the Chinese national oil companies can, because we don't have a government that's going to go into Angola and build a railroad or hospitals," Clark said. "If anything, we have a government that beats up on some of these countries because they don't have the kind of evolved democracy that we have here."

The High Profits -- and Costs -- of Oil

Underpinning much of the current debate about the oil industry is public outrage at the high profits that oil companies are earning, thanks to the recent rapid rise in prices. In the last three years, the price of a barrel of oil has doubled, hovering lately at about $60. In developing countries like Nigeria and Venezuela, high prices have created resentment and the perception, real or imagined, that resources are siphoned off while few dollars are ending up in local pockets.

A worldwide oil shortage compounds the problems, explained Wharton management professor Witold Henisz. Developed countries continue to consume oil, while demand surges in China and India. "Spare capacity globally is getting down below one million barrels a day," he noted.

Clark, for her part, took issue with the popular perception that oil wells gush greenbacks. The business looks lucrative now, but oil prices zigzag routinely and therefore profits do, too. "My second year as CFO was in 1998, when the price of oil hit $10. I was focused on how we could ... meet payroll." From 1972 through 2004, the industry's average return on invested capital fell short of that of U.S. manufacturers, she added. And even during the last two years, as prices have soared, the industry's average profit margin didn't beat the average of all U.S. companies by that much -- 9.5% vs. 8.2%. "If you look over an extended period, the oil industry hasn't generated excess profits."

Part of the reason, besides volatile prices, is that oil exploration and extraction costs a lot. Those costs have lately risen because oil companies have exhausted most of the easy-to-reach reserves. "We are going to deeper and deeper water and deeper [oil] reservoirs," Clark said. "We're drilling 25,000 feet below the earth's surface."

Offshore drilling, in particular, has seen surging costs, Clark added. Three years ago, a company would have paid about $170,000 a day to operate a deep-water drilling platform. A comparable well now costs about $500,000 a day. "These days, $50 million wells are pretty routine for deepwater drilling. And if you have problems, you will have a $150 million or $175 million well."

Fleischer agreed with her analysis: "I was around in the 1980s, when the price of oil went to $10, and all I saw for 15 years was companies going out of business."

Given the volatility of the oil business and the unpredictability of foreign governments, a member of the audience asked whether major oil companies should undertake coal gasification or oil shale exploration. In coal gasification, coal is pulverized and transformed into a gas fuel, while oil shale is a form of rock containing a material called kerogen that can be distilled into oil and gas. The United States has abundant supplies of coal and oil shale.

Clark pointed out that the volatility of oil prices undermines attempts to pursue alternative fuel sources. A project that looks prudent when oil is $60 a barrel might look profligate at $30. In addition, coal produces even greater pollution than oil. "If you are someone who worries about energy security, you want us to be mining all the coal we can. But if you are worried about the environment, coal is much more carbon intensive than either oil or natural gas. Before you ever see gasified coal become a significant energy source, they are going to have to solve the carbon sequestration problem."

Diamond supply, liquidity and synthetics were on the docket as international delegates convened for the second International Diamond Conference: Mines to Market, organized by India's Gem and Jewellery Export Promotion Council (GJEPC).

The event, held from April 26-27, featured speakers representing various parts of the global diamond pipeline, including India's diamond industry.

Chief Minister of Maharashtra Vilasrao Deshmukh inaugurated the meeting along with dignitaries including GJEPC Chairman Sanjay A. Kothari; assistant minister to the prime minister of the Republic of Angola Aguinaldo Jaime; Botswana Minister of Minerals, Energy and Water Resources P.H.K. Kedikilwe; and Indian Minister of State for Commerce and Industry Jairam Ramesh.

Ramesh opened the meeting by noting India's support for the process of benefication in African countries. Deshmukh added that India's government was looking to develop a second export zone near Mumbai to complement the full-to-capacity SEEPZ.

Industry expert Chaim Even-Zohar moderated the proceedings, noting that the diamond business was changing dramatically from 350 unbroken years of centralized distribution from London, to a fragmented rough supply that is now distributed by producing countries who have local benefication and development high on their agendas.

In terms of rough sourcing for India, Praveen Shankar Pandya, GJEPC rough-sourcing sub-committee convener, said the organization had helped create Diamonds India Limited (DIL), a rough-buying company floated with the equity from 60 leading diamantaires. DIL is willing to invest as much as $1 billion to secure direct supply of rough diamonds for the country, he said.

Delegates also heard from representatives from De Beers, Rio Tinto Diamonds and Alrosa. Representing the latter, Sergei Vybornov told attendees the Russian diamond company would not favor sales to local cutting shops, but was looking to an open international sales format.

Other speakers highlighted issues such as profitability, with Eurostar Chairman Kaushik Mehta noting that his firm had been successful partnering with Hearts On Fire; former World Federation of Diamond Bourses President Shmuel Schnitzer calling on mining companies to consider extending credit to diamond manufacturers who are finding the current lending environment increasingly difficult to manage; and Ketan Parikh, senior partner with Mahendra Brothers Export Pvt. Ltd., who said there needed to be an international system to deal with the inevitable influx of synthetic diamonds in the marketplace.

Day one concluded with Martin Rapaport, who gave his perspective on the industry's need to take an active role in helping Africa's impoverished alluvial diamond miners.

Among the topics breached on day two of the conference were benefication in producer countries, emerging trading hubs such as in Dubai, United Arab Emirates, and retail.

Kedikilwe of Botswana emphasized his country's need to develop a secondary diamond industry to create jobs, transfer diamond skills to locals and look for opportunities to work with traditional global diamond centers.

Angolan Minister Jaime said his country is economically stable after 30 years of civil war and is open to direct foreign investment.

With regard to industry financing, Loet Kniphorst of ABN Amro, and Bharati Rao, managing director of the State Bank of India, spoke of their concerns regarding the high level of debt and long payment terms that are commonplace in the industry. Rao noted her bank would not be averse to financing man-made diamond manufacturers.

Wrapping up the event were J.C. Penney Executive Vice President Beryl Raff and the GJEPC's Hemant Shah who urged the industry to unite in its efforts to promote jewelry as a luxury product.

DMCI Holdings Inc. said its consolidated net profit last year fell 67 percent to P1.38 billion because of smaller gain from the sale of shares in its coal mining business.

Gains totaled P356 million last year, compared to P2.3 billion in 2005, the company said in its annual report.

Net recurring profit in 2006 was about P1 billion, down from P1.9 billion in 2005 due to weaker contribution from its 58 percent owned subsidiary, Semirara Mining Corp., it said.

DMCI, which is also engaged in the construction business, last year acquired a substantial stake in Maynilad Water Services through a joint venture with Metro
Pacific Investments Corp.

It recently signed a nickel mining venture with Asian Strategic Resources and
Properties Corp., a wholly owned unit of Australia-listed Rusina Mining NL, in Zambales, north of the capital Manila.

Andaman Group, which involved in property development, forestry, plantation and mining, expects its recently-acquired coal-mining concessions in Indonesia to contribute 30 percent of the group's net profit this year, based on rising demand from India, China, Japan and South Korea.

President Datuk Dr Patrick Teoh Seng Foo said the two mining concessions were expected to start operations within three months with an initial production of 50,000 metric tonnes (MT) per mine monthly.

"This will be increased to 200,000 MT per mine later," he said.

He said this at a media conference after signing an agreement here today with Putra Dewa Jaya Group (PDJ) to acquire controlling rights for two coal-mining concessions in Balik Papan, East Kalimantan, Indonesia.

Teoh said the diversification into coal mining was a strategic move for the group as the demand for coal has increased tremendously due to the sharp rise in crude oil prices.

"The two mines, located in Kebapatan Kutai Kartanagara and Kabapatan Berau, have a combined proven coal reserves of more than 70 million cu metres. They are owned by PDJ and its subsidiary, PT Putra Bara Jaya.

"The Kutai mine produced high-quality coal and the Berau mine medium-quality," he said.

Teoh said upon completion of the acquisition, 40 percent would be retained by its Indonesian partners and 60 percent by its subsidiary, Andaman Resources Sdn Bhd.

"Both Andaman and our Indonesian partners will invest up to RM30 million in the concessions.

"We will use internal funds to purchase machinery and equipment," he said.

Teoh said approval to acquire another coal mine concession was expected by end-2007.

"The 5,000-hectare concession in East Kalimantan has a proven reserves of over 50 million cu metres of steaming coal," he said.

The government may renegotiate the existing agreement with Asia Energy and consider new coal exploration proposals in the light of the new coal policy after the cabinet approves it.( The Daily Star )

A top energy ministry source said the draft policy may be placed before the cabinet sometime next month unless it needs further amendments.

"Asia Energy and Hosaf may have signed agreements earlier, which are now awaiting decisions. Many questions have now come up. We will now have to renegotiate these agreements in the light of the new coal policy," said a top energy ministry source.

"Without fixing a yard stick, we cannot renegotiate these deals," he added.

A pre-cabinet meet vital discussion on the policy is expected to be held at Petrobangla tomorrow. After this discussion, if the energy adviser is satisfied with the draft, it would then be placed before the cabinet for approval.

Some key issues addressed in this policy is a variable rate of 16 percent royalty on coal exported at $50 per tonne, the current average international price. The Asia Energy agreement gives Bangladesh a meagre six percent royalty irrespective of coal price in the international market. This poor rate was fixed decades ago when coal and energy prices globally were very low.

Other issues include provision of performance guarantee to be provided by the coal developer to the government. This guarantee may range between $10 million and 15 million to ensure that a developer does not abandon a mine all of a sudden without compensating for environmental or resource damage.

The draft policy seeks export of 60 percent of the country's coal, leaving 40 percent for domestic consumption.

The policy would also propose setting up a Coal Development Authority, which will be manned by coal sector professionals to monitor and deal with mining issues like environment, land use, ash or other hazardous elements.

The government has been working on the coal policy for nearly two years now. The draft policy has undergone many revisions on the basis of discussions with various stakeholders and experts.

"Besides, we are separately planning to strengthen the Bureau of Mineral Development (BMD), which is not equipped enough to act as the regulatory body," said the ministry source. Run with a few officials, the BMD under the energy ministry issues all licences for mines and minerals.

The new policy will not allow any more unsolicited coal deals like that with Hosaf group. The immediate past BNP-led alliance government in 2004 had awarded the contract for Khalaspir coal mine area to Hosaf, owned by the brother of a BNP lawmaker. Hosaf, which played a major role in making the government swallow the corruption-plagued and highly faulty Barapukuria coal mine deal, made a sketchy study in Khalaspir. It is now seeking government approval for development of Khalaspir mine which has a coal reserve worth billions of dollars.

While the Hosaf proposal for developing Khalaspir mine appears too sketchy and poor for any serious consideration for approval, Asia Energy's $3 billion development plan for Phulbari mine is backed by a $20 million study that determines a recoverable coal reserve of 572 million tonnes.

The Asia Energy deal remains suspended since August last year after the law enforcers killed several people who had gathered around the company's Phulbari office protesting its open pit coal mining plan.

Earlier that year, the then energy adviser Mahmudur Rahman had suddenly started saying that this deal was anti-state. Sources said a few days before he became energy adviser in mid-2005, Mahmudur Rahman had visited Phulbari mine site and was informed in details about the deal, long before he took a public position against it. The deal was originally signed by the then BNP government in 1994, and modified in 1998 by the Awami League government.

"It was very surprising that despite being the energy adviser, he ( Mahmudur) took a public stand against a deal which could be modified or amended through negotiation," commented a geological expert.

By the time Mahmudur came up with his public stand, Asia Energy had submitted its plan and there is a $20-million study that turned Phulbari mine into a solid a 25 plus billion dollar business prospect for any mining company, he pointed out.

Mining operations by Asia Energy were scheduled to start late last year with the first coal extraction in the coming year. Full production was expected to be achieved by 2013. Asia Energy had submitted its development scheme in October 2005 with the impression that the government would approve it within three months.

After the Phulbari killings, the government pacified the angry local people through signing a memorandum of understanding (MoU) that Asia Energy will not be allowed to mine in the area. But later the government just sat on the issue while Asia Energy reduced its profile to limited office activities in Dhaka.

Sources said Asia Energy has sent many letters to the government seeking decision on its scheme of development. Two weeks ago, the company was told that the matter would be discussed at the top level of the government for a decision.

Other than Asia Energy and Hosaf, a number of mining companies have submitted applications for exploring other prospective coal zones. Most of these applications however lack merit.

"But a couple of them are good. These will also be negotiated under the new policy," the energy ministry source said.

The country's present discovered recoverable coal reserves in various fields are more than 2,500 million tonnes or equivalent to more than 60 tcf gas (one pound of coal is equivalent to 11 cubic feet of gas). Besides, there are untapped coal resource potentials in the northern region of the country.

Rio Tinto Group, the world`s third-largest mining company, and the Indonesian government have agreed on royalty payments for a planned US$2 billion nickel project, an official said.

The government will get 1.5% of revenue from nickel-in-concentrate and 0.75% from refined metal, Simon Sembiring, director general of coal and mineral resources at the energy ministry, said by text message.

A Rio spokesman confirmed an agreement was reached, without giving royalty figures.

Indonesia is trying to win US$22 billion in investment a year to power Southeast Asia`s largest economy, rich in coal, copper and nickel.

Funds committed by miners to explore for Indonesian deposits, outside existing mines, totaled US$7 million in 2005, unchanged for five years, according to PricewaterhouseCoopers.

"We will now concentrate on negotiations with the finance ministry on taxes and other fiscal arrangements," Budi Irianto, spokesman of Rio Tinto`s Indonesian unit, said by phone.

The company`s proposed mine in Sulawesi is estimated to produce as much as 50,000 t of nickel a year from 2012.

(May 2 Bloomberg)

American Creek Resources Ltd. (the "Corporation") (TSX Venture: AMK - News) is pleased to provide an exploration update for several of the Corporation's projects located near Kamloops, British Columbia, Canada.

Austruck-Bonanza Project

A total of 18 BTW diamond drill holes totaling 3,895.5 meters have been drilled thus far in the initial Austruck-Bonanza program located north of Kamloops. Core logging and sampling took place at American Creek's facility in Kamloops and all samples were sent to Eco-Tech Laboratory Ltd. in Kamloops for assay. The highest gold values returned to date were from holes 07Bon-01 and 07Bon-02 containing 0.98 g/t gold with 14.3 g/t silver over 1 meter and 1.52 g/t gold with 15.9 g/t silver over 0.99 meters respectively (see news release dated March 5, 2007). Results have now been received for the balance of the 18 holes (5 through 18) in which there were no significant results. The Corporation is awaiting permits to expand the program to other areas of interest within the claim group. The Austruck-Bonanza property covers an area of volcanic and sedimentary rocks that have been intruded by dykes and stocks of diorite. Hydrothermal alterations along the margins of the diorite have the potential to host precious metal vein deposits, similar to the Bonaparte mine. As well, the intrusive rocks are similar to those that host the Afton copper-gold porphyry deposit located near Kamloops.

Empire Project

A total of 9 BTW diamond drill holes totaling 1,785 meters have been completed to date on the Empire Project located north of Kamloops. Core logging and sampling has been ongoing at the Corporation's facility with samples being delivered to Eco-Tech Laboratory Ltd. for assay. American Creek has received assay results for holes 1-4. The drilling intersected volcanic and sedimentary rocks that have been variably altered and contain up to 15% pyrite with zones of pyrrhotite enrichment. The volcanic/sedimentary sequence has been intruded by various bodies of ultramafic pyroxinite to less mafic diorite and granite. Fine mudstone sequences contain abundant pyrite as laminations along bedding and fine cross cutting stringers. Results to date indicate that low to moderate gold values are associated with the sediments, diorite intrusive and later quartz and carbonate veining. Drill hole 07Emp-02 returned the highest gold assay of 1.58 g/t over a 2 metre width from altered sediment (skarn) with minor pyrite disseminate and veining. A narrow (0.5 metre) quartz vein sampled in hole 07Emp-04 contains galena and sphalerite and returned an assay of 0.25 g/t gold with 16.4 g/t silver and elevated lead and zinc. The remainder of holes 2 and 4 as well as holes 1 and 3 contained no significant results. Logging, sampling and analysis of drill holes 07Emp-05 through 07Emp-09 is presently underway.

The Empire property also contains a number of historic workings. A distinct magnetic linear feature found in the O'Conner Lake area extends north through one of these workings that includes 4 underground drifts and a 25 meter long adit. Inspection of these workings indicate that they follow sediment hosted mineralized quartz veins. Mineralization includes coarse galena, coarse arsenopyrite, pyrite and chalcopyrite. The Corporation has applied for expanded permitting to begin drilling this recently discovered area of interest.

Goldmist Project

Results of the Geoscience BC geophysical airborne survey that was recently made public showed a very prominent, large (2 x 3 km) anomaly consisting of a strong magnetic high associated with a potassium low on the Corporation's Goldmist Project located north of Kamloops. Historic records along with recent preliminary prospecting by American Creek, has confirmed the presence of quartz veins (some of which contain gold) on surface in several locations within this anomaly. Further exploration is currently being planned and will be announced at a future date.

White Slide and Legacy Projects

The upcoming airborne geophysical surveys previously announced are expected to be flown around the end of May. Further exploration plans will be based on analysis of the survey results.

American Creek is now one of the largest mineral claim holders in the Kamloops mining camp with properties covering in excess of 600 square kilometers. The Corporation plans to continue and expand ground-based exploration in the area. Work is to include VLF-Em and Magnetometer surveying, Induced Polarization surveying, soil and rock geochemical sampling, and geologic mapping. Target areas are currently being assessed utilizing the previously flown Fugro airborne survey results, as well as the results from the recently released provincial and federal government airborne survey, and all available recorded historic documentation of previous work completed within the claims. The Corporation's recently procured Geographic Information Systems (GIS) specialist will assist in producing comprehensive maps to be utilized in drill target definition.

An interesting development affecting the Kamloops area projects is the widespread pine beetle infestation that has occurred over the last few years. Plans are underway for major salvage logging operations in the area which will greatly benefit American Creek as new areas become more accessible with new haul roads and skid trails being excavated. With each new access road comes the potential for exposing and discovering new mineralized zones. Also, new beetle related tax incentives just introduced by the BC government will aid in attracting exploration capital to projects within those areas affected.

American Creek has now purchased a total of five diamond drills (one used and four new) as well as the related drill bits, core barrels and tubes, drill rod, etc. in order to ensure that the Corporation's multiple 2007 drill programs are successfully completed. In addition to the five drills owned by American Creek, two additional drills along with crews have been contracted for the upcoming Electrum program near Stewart, British Columbia.

Perry Grunenberg, P. Geo. is the "Qualified Person" for the purposes of National Instrument 43-101 for the Corporation's Kamloops area projects. Mr. Grunenberg has reviewed the contents of this news release.

American Creek Resources Ltd. is a well funded Canadian mineral exploration company focused on the acquisition, exploration and development of gold and silver deposits. The Corporation has several projects within the Province of British Columbia.

American Creek's common shares trade on the TSX Venture Exchange under the symbol "AMK".

Certain information contained in this news release constitutes forward-looking statements regarding the Corporation's mineral properties. Forward looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the reasonable opinions and estimates of management of American Creek and are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include: the inherent risks involved in the exploration and development of mineral properties, uncertainties involved in the interpretation of drill results and other geological data, fluctuating commodity prices, unforeseen permitting requirements, changes in environmental laws or regulations, the possibility of project cost overruns or unanticipated costs and expenses, weather conditions, the availability of contractors for equipment and services, the availability of future financing and general business and economic conditions. Such statements are also based on a number of assumptions which may prove to be incorrect, including assumptions about general business and economic conditions being accurate, the timing and receipt of regulatory approvals for projects and operations, the availability of financing, the ability to secure equipment and labour, and American Creek's ongoing relationship with third parties. The foregoing factors, risks and assumptions are not exhaustive. Events or circumstances could cause actual events or results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-looking statements are as of the date they are made and American Creek disclaims any obligation to update any forward-looking statements, except as required by law.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

For further information

Darren R. Blaney, Chief Operating Officer, Tel: (403) 752-4040, Fax: (403) 752-4020, Email: dblaney@americancreek.com
Information relating to the Corporation is available on its website at www.americancreek.com


Source: American Creek Resources Ltd.

Trey Wasser (III-D Capital) submits: I recently wrote about the "Treasure of the Sierra Madre" focusing on the “bootstrap” mining methods being employed by some of the junior mining companies. Re-opening old mines with smaller mills and re-built infrastructure is proving profitable for many juniors. However, I do not want to leave readers with the impression that this is the only “treasure” being uncovered in the Mexican Mining Industry.

Mexico is very mining friendly. They have reasonable environmental laws and are consistent in their assessments and permitting. Mexico’s long history of mining has produced a large labor force that is very talented. Labor costs are reasonable and foreign ownership of Mexican Mines is widely accepted. Social programs are helping to cement local relations and stimulate the economy. Several junior companies have recently discovered and are developing some very productive and profitable mines in Mexico.

One of my favorites is Gammon Lake Resources (AMEX: GRS - News). Gammon Lake discovered a significant gold/silver deposit in the Ocampo District in 1998. Production at Ocampo began in 2006, and after a few problems with metallurgy, is now in full commercial production. What is especially impressive about GRS is that in only 8 years they went from initial discovery to becoming Mexico’s largest gold producer.

The Ocampo Mine is an excellent example of the extraordinary potential of newly developed mines in Mexico. Ocampo is located in the Northern Sierra Madres in the State of Chihuahua. Historically, Chihuahua is probably the most under-explored states in Mexico. What makes Ocampo particularly attractive is that it is actually two mines, an open pit heap leach operation and a very high grade underground mine with a mill and flotation system. Recovery rates at both mines are extremely high.

The open pit mine has high grade veins that average as much as 19.7 GOE per ton as well a low grade overburden. Even the overburden pays to be mined, so Ocampo has literally no waste rock. In addition, the highest grades from the pit are taken to the mill where recoveries are 96% for gold and 93% for silver. Conversely, the lower grades from the underground mine are taken to the leach pad. The Ocampo silver ore is a silver sulfide, which is cyanide-soluble. This results in extremely high recovery rates for silver. This efficient operation allows GRS to maintain cash costs at under $200 per gold equivalent ounce.

The feasibility study, released in 2004, indicated production for the first several years of 170,000 ounces of gold and 6MM ounces of silver. However, 2007 production is now estimated at 200,000 oz gold and 10MM oz silver. The underground mine currently is out-producing the mill. The stopes are much longer than originally estimated. Plus a second underground mine is already being added this year. By adding a filter press, for $2.4MM, 2008 production will grow to 240,000 oz gold and 12MM oz silver. Next year, they will add 3 new leach tanks and increase 2009 production to 280.000 oz gold and 15MM oz silver. Mine life has grown from 7 years in the Feasibility Study to over 13 years today. Resources continue to grow as GRS drills the property. Total resources are now 8MM ounces of gold and 400MM ounces of silver. While about half of these are inferred resources, they are already mining one vein of inferred mineralization and seeing grades averaging 11.5 GOE per ton. Only about 30% of the Ocampo District has been drilled.

The infrastructure at Ocampo is state of the art. They have their own power plant and a modern hotel for workers. Ocampo is already one of the largest and most profitable precious metal mines in Mexico. Steven Saville, of TSI, likens it to Goldcorp’s Redlake Mine which is considered the highest grade gold mine in the Americas.

Gammon Lakes also owns the El Cubo mine. El Cubo was acquired through the Mexgold merger last year. GRS has increased production by 100% since 2005 and more improvements are on the way. Recent drilling results indicate that the El Cubo complex will see significant resource increases and may validate an open pit operation. Production for 2007 should be 83,000 GOE growing to over 132,000 GOE by 2009.

Overall production is projected to grow, organically, about 50% from 420,000 GOE in 2007 to over 610,000 GOE in 2009.

GRS also has a very promising prospect at Guadalupe y Calvo. This is a historic mine where grades were so high that the Mexican government erected a mint right at the mine-site. The Company has really not focused on this project since the Mexgold merger as they have been concentrating most of their drilling dollars at Ocampo and El Cubo. But this very rich district has been underexplored and historic mining always stopped at the water table.

April 2007 was a very busy month for GRS. Early in the month, the Company announced the appointment of Richard Barwick as the the CEO. Barwick is a seasoned veteran with 33 years of experience. Most recently he was COO of Wheaton River-Goldcorp. This news was followed by the announcement of a $200MM secondary offering. The Company issued 10MM new shares at $20 (Canadian) with no warrants or other incentives. The funds will be used to payoff the Ocampo debt (about $132MM0 and speed up the improvements at Ocampo/El Cubo. This will accelerate production growth at least 6-8 months, according to the Company. This means that GRS could be producing close to 50,000 GOE per month by late 2008 or early 2009.

At today’s price of $16, Gammon Lakes is selling at 13 times 2007 earnings and 12 times cash flow. They were one of the companies I highlighted in my report titled “Gold Stocks Earnings to Shine in 2007”. While the majors struggle with declining production and skyrocketing costs, there are selected mid-tier producers, such as Gammon Lake Resources, that offer extraordinary fundamental value.

GRS is a solid core holding in my portfolio with a 12 month price target of $26 per share.

GRS 1-yr chart

GRS

The federal government gave its approval Monday for the reopening of an oil-shale mine in Utah, one of the experimental works intended to boost domestic oil production on Western lands.

A top-ranking Interior Department official signed off on the project, and officials said an Alabama-based partnership, Oil Shale Exploration Co., would be offered a lease to work the federal land within days.

The approval from C. Stephen Allred, Interior's assistant secretary for lands and minerals, followed leases the government awarded in December for Colorado projects, where three oil companies plan to produce shale oil by heating layers of rock in the ground.

Utah has the only mining project where oil shale will be brought to the surface, crushed into gravel and fed into a furnace-like retort.

The White River mine near Vernal, 130 miles east of Salt Lake City, was abandoned by three major oil companies in 1985 when falling crude prices made shale oil -- long an elusive bonanza in the West -- uneconomical. Today's crude oil prices could make oil-shale development more practical.

"We're ready to put the lease on the table," James F. Kohler, solid-minerals chief for the U.S. Bureau of Land Management in Utah, said Monday.

Oil Shale Exploration Co., also known as OSEC, still needs to submit operational plans for its phased testing program.

As part of the lease, Kohler said the government would require OSEC to keep piles of spent shale in lined pits until officials can figure out how to dispose of the waste.

The alkaline tailings have some heavy metals and arsenic and could grow to enormous piles, but production will be limited for years before the company starts any large-scale mining.

One possible solution would be to dump the spent shale back into the mine, he said.

The White River mine reaches a relatively thin layer of oil shale 1,000 feet underground. The richest layer is only 58 feet, compared with zones 1,000 feet thick in Colorado that are closer to the surface, where heating the ground is thought to be more practical.

The Interior Department had already determined that projects in Colorado by Shell Frontier Oil and Gas Inc., Chevron USA Inc. and Midland, Texas-based EGL Resources Inc. would have no significant environmental impact.

The government made the same determination Monday for the reopening of the White River mine. The review took longer because officials had to assess the potential of more damaging environmental effects of mining.

Officials got a late start on the review because at first, six companies competed for the right to reopen the White River mine.

OSEC emerged as the winner. It plans to use a rotary kiln to bake shale oil out of a supply of 30,000 tons of rock left outside the White River mine. If the technology works, the company would use the mine to reach more oil shale deep underground.

Dan Elcan, OSEC's managing partner and a Mobile., Ala., commercial real-estate developer, didn't return a message left on his cell phone late Monday by The Associated Press. His partnership is backed by Twin Pines Coal Co. of Alabama and would use Canadian technology.

Environmental groups have shown little resistance to the demonstration projects, but that could change when oil companies seek to mine or heat up larger pieces of federal land, consuming vast amounts of water in an arid region. The oil shale reserves scattered in Colorado, Utah and southwest Wyoming are believed to contain a 100-year domestic supply of oil if it can be unlocked.

Oil shale is said to be "rich" when it contains 30 gallons of petroleum for each ton of rock, but pound for pound that amounts to only 1/10th of the energy of liquid crude oil. Those tough economics have defied efforts at oil shale development for more than a century, most recently in 1982, when Exxon shut down its $5 billion Colony project in western Colorado and laid off 2,200 workers.

"Oil shale has the energy density of a baked potato," said Randy Udall, a skeptic and director of the Aspen, Colo.-based nonprofit Community Office for Resource Efficiency. "If someone told you there were a trillion tons of tater tots buried 1,000 feet deep, would you rush to dig them up?"

Vancouver, British Columbia… Wealth Minerals Ltd. (News/Kurs/Chart/Board)(the “Company” or “Wealth”) - (TSX Venture Exchange: WML, OTC: WMLLF, Frankfurt: EJZ), is pleased to announce that it has discovered a significant new uranium occurrence, termed “Bororo Nuevo”, over an area of approximately 5 kilometres by 3 kilometres, as part of its large San Jorge Basin Uranium Project in southern Argentina.

Highly anomalous values from the initial sampling results at Bororo Nuevo range from detection limit to 23.58 lb/ton U3O8 (the upper detection limit) with the majority (70%) of the samples returning values in excess of 1.18 lb/ton U3O8. Mineralization remains open in all directions.

San Jorge Basin Uranium Program

The results form part of a multi-disciplinary basin-wide exploration initiative utilizing basin-analysis, structural-interpretation, High Resolution Airborne Magnetic–Radiometric (HiRAM) geophysics and follow-up ground truthing by experienced uranium geologists targeting world-class, high-grade uranium mineralization in the unexplored San Jorge Basin, southern Argentina. As a result of this initiative, a total of 120 targets were generated for field checking and a total of 1,500 samples were collected.

The program has been extremely successful in locating new uranium occurrences. Prior to the beginning of Wealth’s program there were 16 known occurrences within the Basin. To date, of the 120 targets screened, Wealth has discovered new uranium occurrences on 86, of which Bororo Nuevo is the highest ranked. The results from an additional 10 targets show moderately anomalous uranium values, and will be followed up with additional field work The results of the sampling from the remaining 109 targets, although often successful in identifying a new uranium occurrence, are not deemed worthy of further follow-up work at this time.

Bororo Nuevo Property

At the Bororo Nuevo Property at least seven separate mineralized outcrop clusters (measuring up to a maximum of 500 metres by 500 metres) were discovered within a uranium fairway measuring about 5 kilometres long by up to 3 kilometres wide. Mineralization remains open in all directions.

Mineralization is located near the base of the Cretaceous age Chubut Group in approximately the same stratigraphic position as the Cero Solo uranium deposit (quoted resource of approximately 10 million pounds U3O8). Visible uranium mineralization with extremely high radiometric counts is hosted within multiple horizons of conglomerate, sandstone and tuff and varies from 0.5 to 1.5 metres in thickness.

The initial 79 characterization reconnaissance samples were collected from mineralized and un-mineralized material - that is, from outcrops which had obvious anomalous radiometric readings and visible uranium minerals as well as material which exhibited key pathfinder alteration.

Of the 79 samples, 70% (55 samples) returned values greater than 1.18 lb/ton U3O8 (500 ppm uranium), 58% (46 samples) returned values greater than 2.36 lb/ton U3O8 (1,000 ppm uranium), 42% (33 samples) returned values greater than 4.72 lb/ton U3O8 (2,000 ppm uranium), 23% (18 samples) returned values greater than 9.44 lb/ton U3O8 (4,000 ppm uranium) and 11% (9 samples) returned values of 23.58 lb/ton U3O8 (10,000 ppm uranium), being the upper detection limit. Those samples returning values at the upper detection limit have been sent for further analysis to determine the actual uranium values.

Laboratory results were received in parts per million uranium. The conversion factor used to convert parts per million uranium to pounds per short ton U3O8 is 1.179, which was verified with the Saskatchewan Research Council (ppm uranium x 1.179 = ppm U308; 10,000 ppm uranium = 1% = 20 lbs/ton uranium).

The mineralization at Bororo Nuevo, as well as at other occurrences which the Company has located on its large property holdings in the San Jorge Basin, appear to conform to the “Tabular Sandstone Hosted Type” model similar to many found in the New Mexico area of the Colorado Plateau Uranium Districts of the Western United States.

In light of these initial encouraging results, the Company has entered into option agreements to acquire additional exploration licences (“cateos”) - see below - and continues to negotiate to acquire additional ground in the San Jorge Basin and other promising areas.

Option Agreements – San Jorge Basin Properties

In connection with its ongoing exploration program in the San Jorge Basin, the Company has also negotiated options to acquire an interest in additional cateos in Chubut, as follows:

1. pursuant to an option agreement dated March 13, 2007 between the Company and two South American individuals, the Company has the option to acquire a 100% interest in and to 20 cateos in consideration of the issuance of an aggregate of 50,000 shares, as to 10,000 shares 21 days after TSXV acceptance of the agreement and as to an additional 10,000 shares on each of the first, second, third and fourth anniversaries of the date of such acceptance;

2. pursuant to an option agreement dated March 13, 2007 between the Company and two South American individuals, the Company has the option to acquire a 100% interest in and to 20 cateos in consideration of the issuance of an aggregate of 50,000 shares, as to 10,000 shares 21 days after TSXV acceptance of the agreement and as to an additional 10,000 shares on each of the first, second, third and fourth anniversaries of the date of such acceptance; and

3. pursuant to an option agreement dated March 13, 2007 between the Company and a South American individual, the Company has the option to acquire a 100% interest in and to 11 cateos in consideration of the issuance of an aggregate of 50,000 shares, as to 10,000 shares 21 days after TSXV acceptance of the agreement and as to an additional 10,000 shares on each of the first, second, third and fourth anniversaries of the date of such acceptance.

Each of these option agreements is subject to acceptance for filing by the TSXV.

Director Retires

The Company also announces the retirement of Jerry Pogue as a director of the Company, effective April 24, 2007. The directors would like to take this opportunity to thank Mr. Pogue for his valuable contributions to the growth and development of the Company and his hard work and dedication on behalf of the Company and its shareholders over the past few years.

Qualified Person and QA/QC Controls

James M. Dawson, P. Eng., Wealth’s consulting geologist and a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Dawson is not independent of Wealth by virtue of being a shareholder and the holder of stock options.

The San Jorge Basin Project work program is supervised by James M. Dawson, Wealth’s consulting geologist, who is responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then sealed and shipped to Alex Stewart Assayers (ASA) for analysis. ASA’s quality system complies with the requirements for the International Standard ISO 9001:2000. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Finally, representative blind duplicate samples are forwarded to ASA for additional quality control.

About Wealth Minerals Ltd.

Wealth is a well financed mineral exploration company with approximately 27.0 million shares issued and listings on the TSX Venture and Frankfurt Stock Exchanges and the OTCBB. The Company’s focus is the acquisition and exploration of prospective uranium properties, primarily in Argentina and Peru. In addition to ongoing work programs on its existing properties, it continues to actively evaluate new potential uranium projects in these countries.

For further details on the Company readers are referred to the Company’s web site (www.wealthminerals.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.

On Behalf of the Board of Directors of

WEALTH MINERALS LTD.

“Henk Van Alphen”

President & CEO

For further information, please contact: Glenn Shand

Phone: 604-331-0096 / 888-331-0096

E-mail: info@wealthminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release, which has been prepared by management.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the timing of future activities by the Company, future anticipated exploration program costs, timing and results, the discovery and delineation of mineral deposits/resources/reserves, business and financing plans, potential mining scenarios, the success of mineral processing procedures, business trends and future operating costs and revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, the Company’s inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company’s current 20F for a more complete discussion of such risk factors and their potential effects.

This press release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the US Securities and Exchange Commission’s mining guidelines strictly prohibit information of this type in documents filed with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties

All of the Company’s public disclosure filings may be accessed via www.sedar.com and www.sec.gov and readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties.


This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Pele Mountain Resources Inc. (TSX VENTURE: GEM) ("Pele" or the "Company") announced today that it has entered into a binding agreement (the "Agreement") to acquire 5 mining claims comprised of 77 claim units (the "New Claims") located immediately adjacent to the southern boundary of the Company's Elliot Lake Project. Pele is focused on developing a world-class uranium mine at Elliot Lake where an inferred resource of over 33 million pounds of U3O8 has been defined, with the potential for significant upgrade and expansion.

Upon closing of the Agreement, scheduled for May 4, 2007, Pele's 100-percent owned Elliot Lake project will comprise a total of 389 mining claim units covering more than 15,000 acres.

Under the terms of the Agreement, Pele has agreed to pay the vendors a total of $122,000 in cash and to issue 150,000 common shares in the capital of Pele at an attributed value of $0.90 per share or an aggregate value of $135,000 in accordance with the following schedule:

- $24,000 and 30,000 shares on closing, scheduled for May 4, 2007;

- $28,000 and 40,000 shares by May 1, 2008;

- $30,000 and 40,000 shares by May 1, 2009;

- $40,000 and 40,000 shares by May 1, 2010.

The above cash payments and share issuances can at Pele's option be accelerated at any time.

The vendors will also retain a 3-percent NSR royalty, of which Pele may buy back 1.5-percent for $1.5-million.

Ongoing technical, economic, and environmental scoping studies at Elliot Lake are being conducted under the supervision of Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA"). The studies are focused on determining the optimal mining and processing methods for the deposit while establishing an effective environmental management plan.

The transaction remains subject to standard closing conditions and acceptance of applicable regulatory filings.

About Pele Mountain Resources

Pele Mountain Resources is focused on developing a world-class mining and processing facility at its 100-percent owned Elliot Lake Uranium Project in Northern Ontario. The project hosts a NI 43-101 compliant inferred resource of over 33 million pounds of U3O8 with the potential for significant near-term upgrade and expansion. Scott Wilson RPA is collaborating with experienced professionals from a wide range of disciplines to lead its recommended technical, economic, and environmental scoping studies.

The Elliot Lake camp was once known as "the uranium capital of the world" and has produced more than 270 million pounds of U3O8 from stratigraphically-bound deposits that demonstrate remarkable consistency over extensive areas. The uranium market is currently experiencing unprecedented price gains due to surging global demand and increasingly uncertain supply.

Pele also holds a diverse portfolio of gold, diamond, and base metal projects located across Northern Ontario, including the Highland Project where drilling has outlined several high-grade, narrow-vein gold zones within an historic mining camp. Through project generation and mineral discovery, Pele provides shareholders with exposure and leverage to the ongoing bull market in natural resources. Pele stock trades 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.

Common Shares Outstanding: 71,581,860



The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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

Published May. 2, 2007
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