DO NOT VOTE THE WHITE PROXY.
Here are a number of stunts that current management has pulled over the last couple years that show their absolute lack of respect for shareholders. In fact it shows complete distain for shareholders and a total absence of fiduciary responsibility. You have to ask yourselves whether you want more of the same from a management that has shown a total and complete disconnect with its shareholders in every respect or a new management team put forth by dissident shareholders that will strive to repair the bonds between the shareholders and management as well as put shareholder welfare and value as a primary concern once again when moving this company forward into the future.

I will continue over the next while to make you aware of the many disturbing fumbles and questionable behaviors by the current management of SLI.

DO NOT VOTE THE WHITE COMPANY PROXY...

The dissident group will be putting out their own proxy very shortly which will be sent out to all shareholders. VOTE FOR CHANGE.

From Paul Gray’s 2010 Tesoro 43101 report:

Phase IC: Systematic Mechanical Trenching Program: A detailed trenching program
focused on those areas identified as anomalous from Phase 1A and involving a D-6 or larger excavator should be implemented on the Tesoro Property as soon as practicable. This program should be concentrated on those areas on strike and in between known mineralized vein and in particular be located in the North Corridor and on the high priority near surface targets identified by Quantec. A program budget of $180,000 and duration of five (5) weeks would required for this phase, which could be done any time, weather permitting.

As seen below the trenching apparently started on May 17, 2011.

May 17, 2011
NEWS RELEASE
St. Elias Mines Ltd. – Extensive Trenching Program Commencing
at the Tesoro Gold Project in Peru

Now according to the June 9, 2011 news release below, they had completed 215 samples and 1200 meters of trenching in the first two weeks of the program.

June 9, 2011
NEWS RELEASE
ST. ELIAS MINES LTD. – Diamond Drilling, Tesoro Gold Project in Peru

As at May 31, 2011, 15 trenches totalling 1,200 linear metres have been completed with 215 samples collected over 5m sample intervals from the trenches at the Tesoro Project. The trenches were completed by a backhoe and a track-mounted excavator at Zona Central (Main Structural Corridor) and Zona Este (Parallel Structural Corridor).

Now here is where things go out of wack.

July 26, 2012
NEWS RELEASE
St. Elias Mines Ltd. – Tesoro Gold Project – Diamond Drilling and Trenching Results
The Company has also completed a mechanized trenching program on the Property. A total of approximately 4,250 linear meters of trenching in 66 trenches were completed. 557 samples, from the wall rock and quartz veins, were collected and submitted for analysis from these trenches.


It appears it took two weeks to collect 215 samples from 1200 meters of trenching in May 2011, But then took 14 months to collect another 342 samples and do another 3050 meters of trenching.

“14 months to do a little more than what it took them 2 weeks to do in May 2011”

Something is not right with this picture. Research indicated that most other companies doing trenching programs were getting their programs done and assays out in some cases less than half the time it took SLI. What were they doing? What was the heavy equipment doing for over a year? because Paul gray’s estimate of 5 weeks based on what was done in the first two, appeared to be close to bang on which would have been roughly 5 weeks.
Shareholders were given excuses from Vancouver that:
1) Labs were all backed up.
When a shareholder asked about sending them to other labs because there are 5 accredited labs in Peru I believe, the response was from Lori that she liked that lab and didn’t want to use another lab. Why is that?
2) We were told that the trenching was extended and ongoing over and over.
3) We were told couldn’t do both trenching and drill assays at the same time. It was one or the other.
It was just constant excuses for the delays but none of them made any sense.
THIS IS WHAT CURRENT MANAGEMENT DID FOR US.

Here is another questionable episode from management in January 2012.

From the first drill news release in January which helped to plunge the stock price, it was apparent that the release was poorly written, partial and incomplete as seen in the paragraph below taken from the release. It should never have been put out the way it was.

January 10, 2012
NEWS RELEASE
St. Elias Mines Ltd. – 2011 Diamond Drilling Gold Results – Tesoro Gold Project in Peru

“I believe that complete results received from the Phase I drilling at Tesoro will be more representative than the partial results reported here, however, it is important to note that the results so far indicate the system is mineralized to depth” stated President Lori McClenahan.

Now let’s look at Lori’s response to shareholders regarding that.
Instead of apologizing to shareholders for failing in her fiduciary responsibility to shareholders, a statement she made at the Calgary Presentation in March 2012 concerning this is in the audio clip below:
https://docs.google.com/open?id=0B-hwvUB...0lzbEhGQ2s

She states: “We put them out in January. You want results? Here you are. They’re not ready. Did you like that?”

So she knowingly put them out when they weren’t ready. What CEO of a company does that to its shareholders especially knowing it could cause much harm to their investment?
Especially when there was some odd trading the three days prior to that release that had caused the stock to plunge for three days in a row????????

Is that the kind of management shareholders want making decisions about their investment?

Here is another ridiculous boner by current management:

Possible loss of 40 million lbs of molybdenum:
It would appear that HIHO Silver resources was in violation of the Kettle River property option agreement and had not fulfilled the terms as laid out. Therefore the property should have reverted back to SLI. However, the company (HIHO) apparently let the Kettle River claims lapse and now the shareholders of SLI may have lost a property with a 43101 compliant Molybdenum resource of over 40 million lbs containing enormous value.

From the Sep 28 2012 audited financial statements:
Under the option agreement, the optionee is solely responsible for the maintenance of the mineral claims, however, the optionee allowed the claims to lapse and the Company is currently discussing the issue with its legal counsel regarding this situation.

This is from the fiscal year ending May 31, 2012 (so they may have been aware of it much earlier). It is now near the end of November 2012 and nothing has been made public concerning this nor have the shareholders been told anything other than what is in the financials above (Sept. 28, 2012). This is a huge Material fact that affects all shareholders, the value of their investment and there investment decisions which should have been put into a news release. Also, the above does not in my opinion negate the fact that SLI management because the terms of the option agreement may not have been met, still had a fiduciary responsibility to the shareholders to ensure that the claims did not in fact lapse especially considering the value of the resource that was at stake.
You may also find that Lori McClenahan eluded to a problem with HIHO and the Carmi (Kettle River property) near the end of the Calgary presentation March 25, 2012.

AGAIN I ASK, “IS THIS THE MANAGEMENT YOU WANT RUNNING THIS COMPANY AND LOOKING AFTER YOUR INVESTMENT????

I’ll give you another one for the books.

Shareholders came to find out in the May 24, 2012 drill release that in fact management drilled 3 holes #37,38,39, that were not only outside of the Quantec survey, but in fact on a completely different property that the shareholders were not even made aware that the company owned. That is material information that was not released to shareholders. In my opinion it is one thing to acquire a property and not mention it, but a completely different thing to start drilling it when shareholders are not aware they own it. The property consists of two claims apparently on the Northeast border of the old Tesoro property boundaries.

May 24, 2012
NEWS RELEASE

St. Elias Mines Ltd. – Diamond Drilling Update – Tesoro Gold Project in Peru

July 26, 2012
NEWS RELEASE
St. Elias Mines Ltd. – Tesoro Gold Project – Diamond Drilling and Trenching Results

http://steliasmines.com/wordpress2/wp-co...y_2012.pdf

Should shareholders want a management that does not notify shareholders of property acquisitions let alone that they will be drilling them?????

IMO