Who in their right mind would short the stock, when they know its being watched.

July 29, 2011

Dear St. Elias Shareholder;

Re:Illegal Shorting of St. Elias Shares

I have fielded many phone calls from loyal shareholders recently concerning trading in our company’s shares on the TSX Venture Exchange.Many are concerned with and question certain aspects of trading, namely the suspicion that illegal short selling of St. Elias shares may be taking place.We have carefully reviewed the shareholders’ list and other data that might help inform you if this is the case and have taken proper procedures with the Exchange to seek answers for you.

We will continue to monitor the trading and will notify the Exchange of any irregularities.

Sincerely,

ST. ELIAS MINES LTD.

(signed “Lori McClenahan”)

Lori McClenahan,