President of St. Elias, Lori McClenahan, said that this move follows a similar agreement dated April 16, 2010 with Amarok Resources Inc., with respect to an acquisition of a 60% interest in the same property.

The Cueva Blanca property covers 1,200 hectares and is located in the Lambayeque department along the same geological trend as a number of multi-million ounce deposits including Yanacocha, Pierina and Lagunas Norte.

The Cueva Blanca is a promising high-grade gold/silver vein prospect with common geologic characteristics to the El Dorado deposit in El Salvador, which is a unique type of epithermal deposit that formed in a specific geologic environment.

Examples of this type of system are El Pinon in Chile, the Midas and Sleeper Mines in Northern Nevada, and the El Limon Mine in Nicaragua.

Cueva Blanca exploration history has followed the classic pattern: acquisition based on geologic reasoning; property-wide prospecting and subsequent discovery of precious metal showings; detailed surface exploration of mineralized zones; and initial diamond drilling.

The historical results provide an indication of the potential of the Property and are relevant to continuing exploration.

Historical exploration work on the Cruz vein system, which included 91 trenches and 18 drill holes totalling 1,860 metres, proved that the quartz veins consistently contain gold and silver and that the Cruz vein system is a classic epithermal gold-silver deposit.

Historical results of gold assays from the Cruz vein drill program include 6.0m of 2.31 g/t, 6.0m of 2.96g/t, 1.5 m of 22.68 g/t; 9.5m of 8.09 g/t; 10.8m of 2.4 g/t and 1.2m of 6.95g/t.

The vein intersections contain virtually no sulfides. The vein system is open along strike to the SE and NW, and to depth.