Lori McClenahan, President of St. Elias Mines Ltd. (the "Company"), announces that, due to repeated defamatory comments concerning the Company and its President, Lori McClenahan, posted on the Stockhouse forum chat lines prompting serious concern from the Company's longtime investors, the Company has retained counsel to begin taking appropriate action against certain parties who post malicious and inaccurate information deemed to be damaging to the Company's reputation.

The Company believes that the internet is one of the most powerful tools for communication ever invented. Posting defamatory comments on a widely-read internet bulletin board, must be considered in the same light as publishing them in any other way because the accusations are available to a "potentially broad and worldwide audience." For example, statements transmitted and published over Stockhouse about particular companies are accessible by millions of individuals including investors and potential investors.

While management believes in focusing its efforts on advancing the Company and its projects, it is management’s responsibility to address defamatory comments when they cause interference and/or damage to the Company.

In the past, anonymous posters were hard to identify, however, recent internet libel cases have set precedents and this lack of information is no longer an obstacle to obtaining the identity of anonymous internet posters and launching an internet libel suit. In a case decided in Alberta last year, Madame Justice C.A. Kent awarded oil and gas producer, Vaquero Energy Ltd., $75,000 in damages over defamatory Stockhouse posts. During the trial, it was revealed that the anonymous poster was easily tracked down by his IP address, a unique number assigned to every computer accessing the internet. Other cases include libel lawsuits filed by (1) Adanac Gold Corp. and Molycor Gold Corp., (2) Epic Data Inc. and (3) Farallon Resources Ltd. In addition, Barrick Gold Corp. recently won a $125,000 libel award over defamatory internet postings. Based on these cases, it is evident that the Canadian courts take an unfavourable view of defamatory comments posted by cyber chatters.

Lori McClenahan,