http://www.steliasmines.com/storage/news_releases/Sli-News-2007-32-FINAL.pdf

NEWS RELEASE

TESORO GOLD PROJECT, PERU

Mineralization Continues to Depth/Gold Grades Increase with Depth

Lori McClenahan, President Of. St. Elias Mines Ltd. (the “Company”), is pleased to provide the

following progress report on the underground and surface exploration activities at the Tesoro

Gold Project (the “Property”) located in southwestern Peru. To date, the Company has identified

five mineralized zones on the Property with more than 50 quartz veins (having a total combined

length of 9km) and has carried out underground exploration and development work on two of

these veins (C1 Vein and A4 Vein System.)

Zona Canchete

The shaft at the C1 Vein (previously referred to as the ZCV#1 Vein) has been deepened to the

80m level and the vein continues to be consistent and generally high grade. Currently, a short

drift is being completed to the east of the shaft on the 80m level in order that a

manway/ventilation raise can be installed between the 80m and 60m levels. The following assay

results have been received for face samples taken in the C1 shaft at 2m intervals between the

64m and 74m levels:

Sample

Shaft

Level

Width

(cm)

Sample

Type

Gold

(g)

Gold

(opt)

TV 23 64 87.00 channel 23.30 0.68

TV 24 66 30.00 channel 22.90 0.67

TV 25 68 5.00 panel 6.02 0.18

TV 26 70 14.00 channel 16.70 0.49

TV 27 72 3.33 panel 57.00 1.66

TV 28-29 74 13.50 panel 76.50 2.23 Page 2

ST. ELIAS MINES LTD.

News Release 2007-32 (October 23, 2007)

The C1 shaft will continue to be deepened to a planned depth of 100 meters below the surface.

The shaft is currently in a transition zone from oxide facies to sulphide facies. Two select

samples of massive sulphides were taken from approximately the 74m level in the shaft and

assayed for gold and other elements in order to see if the gold content increases, diminishes, or

remains the same in the sulphide-rich vein material relative to the oxide-rich material. Assay

results, listed below (both from the sulphide zone), indicate that the gold content increases in the

sulphide-rich material and that the material is also enriched with silver, copper and tungsten.

Sample

Gold

(g/t)

Gold

(opt)

Silver

(g/t)

Silver

(opt)

Copper

(%)

Tungsten

(%)

TV 835 110 3.21 83.6 2.44 5.59 0.13

TV 836 127 3.70 26.1 0.76 0.31 0.19

The C1 Vein (ZCV#1) is only one of eight gold-bearing quartz veins located at Zona Canchete.

Systematic trench sampling of the C2 Vein at Zona Canchete is presently underway. Additional

surface sampling and trenching on other veins located at Zona Canchete (C3-C8 Veins) is

planned in order to identify additional veins warranting underground development.

Zona Central

The Company is in the process of extracting two high-grade gold-bearing pods from the A4 Vein

System at Zona Central, one in the shaft between the 8m and 31m levels, and another on the 42m

level. Results of these bulk samples will be used by the Company as a guide to determining

optimum spacing for diamond drilling. Additional underground development at the A4 Vein

System will be carried out after the completion of a systematic drilling program.

Zona Central is comprised of five gold-bearing quartz veins and three additional vein swarms.

Systematic trench sampling of the A1 Vein at Zona Central is presently underway. Additional

surface sampling and trenching on other veins located at Zona Central (A2, A3 and A5 Veins) is

planned in order to identify additional veins warranting underground development.

Camp Expansion

The Company has recently installed six additional prefabricated buildings on the Property (two

warehouses, one kitchen, one dormitory and two offices.) The buildings range in size from 12 to

45 square meters. The camp is being expanded to accommodate additional personnel in

preparation for future mining on the C1 Vein. In addition, more personnel are required for a

night shift on the drill, for detailed trenching of veins, and for possible future underground

development of additional veins.