Dear reader,

I am a shareholder of the publicly traded company St Elias Mines Ltd (SLI) on the TSX-V Exchange here in Canada, SELSF in the U.S., and EKL on the Frankfurt Exchange in Germany. I am writing complaining about the recent LOI to engage in the sale of the Cueva Blanca property for $100,000. This property has an unofficial resource estimate done on it in 2002, here is a couple excerpts from that report; (please note, any bolding is done by me, rick)

"Reporting form 43-101F1, BC and Yukon Chamber of Mines, Standards of Disclosure
for Mineral Projects."

"The claims were originally staked in 1995-1996 by Inca Pacific S.A., a whollyowned Peruvian subsidiary of a Vancouver-based junior exploration company, Inca
Pacific Resources Incorporated. Work done in 1996-1997 was concentrated mainly
on the “Cruz Vein System”, a series of north-northwesterly trending, steep-dipping
gold-bearing quartz veins that can be traced along strike for at least three
kilometers. A total of 91 trenches tested the strike length of the Cruz Vein, and 18
diamond drill holes totaling 1,860 meters tested the southernmost 500 meters of
the system. This work confirmed consistently interesting gold values, typically 1-3
g/t, across widths typically <8.0m. "

"In an internal St. Elias report by Sivertz (1999),
an inferred mineral resource was calculated at 2.3 to 2.8 million tonnes containing
154,000 to 190,000 ounces of gold and 945,000 ounces of silver. These figures
were calculated to a depth of only 90 meters using a cut-off grade of 0.5 g/t gold
and 15.0 g/t silver. At current gold and silver prices (US $315 for gold and US $5
for silver), the precious-metal value of the resource is about $US 60 million. "

"On February 11/1999, St. Elias Mines Ltd. entered into a formal option agreement
with Inca Pacific Resources Inc. to acquire, in stages, a 70% interest in Cueva
Blanca. Initial work by Saint Elias, begun in late 1999, concentrated on evaluating
that part of the property, approximately 70%, that was only cursorily examined by
Inca Pacific. Work included reconnaissance-level mapping, outcrop sampling,
stream sediment sampling, and limited trenching (Brophy 2000). This led to the
discovery of Zona Verde, Zona Eugenio and a modest mercury-bismuth anomaly in
hydrobreccias linking the north end of the Cruz Vein to Zona Eugenio (Figure 1).."

As you can see the in situ value placed on the total mineralization in 1999 was $60 million U.S. dollars at the precious metal prices then of(US $315 for gold and US $5
for silver),

Todays precious metals prices are roughly $1400 for gold per ounce and $24 for silver per ounce. I will be conservative and say todays precious metal prices are 4 times what they were in 1999, hence placing an in situ value of approximately $240 million dollars on the deposit by using this old information. The proposed recent sale of that property is for proceeds of $100,000. In comparison to the company,s flagship property, the Tesoro, the Tesoro had an unofficial resource estimate which consisted of a very small 4400 ounces of gold which equates to around $6 million. I believe there may be a new resource estimate coming for the Tesoro in the future, but thats what is used for the comparison in situ estimate for the purpose of this letter. Usually, and it should well be within the going industry rate, 10% of the value of the resource is paid to the company in a buy out scenario. If we take 10% of $240 million, that leaves around $24 million that a major may pay for this property, a far cry from the $100,000.
I understand that there is no official resource estimate for either property mentioned above, but when you use the only data we shareholders have that is comparable, it certainly makes the Cueva Blanca property look like a valuable asset to the company. Although because of Policy, the BOD may be able to execute this transaction under the day to day business activities of the company, because of shareholders unique situation and ongoing investigation, I ask for you to seriously review this proposed transaction, whereas we shareholders have been denied the right to public auction of our property and also any voting privileges on this new matter. I will also add that Buenaventura, a major Peruvian mining company expressed interest in this property about a year ago, I don,t believe a major would express interest in a property only worth $100,000 as valued by the proposed sale?

I should also add that in the company,s Sept 28/2012 financials, filed on SEDAR, shows an assigned value of over $200,000 for the year 2011 and for the year 2012, the value is left blank, for the Cueva Blanca property.

I ask if an MI 61-101 has been filed by St Elias for this transaction, and if so, I request a copy.
I ask if this is considered a restructuring or COB (change of business) under TSX policies, and if so, can the shareholders be allowed to vote on this?
I ask if there will be intent by you to enforce or intervene in this transaction on behalf of shareholders and upholding integrity in the markets, as well as confidence, if I may add?
I understand the proposed purchaser Minera Elemento 79 may be a private company, and we shareholders are unable to get any information on this company at all, and perhaps exempt it from an MI 61-101?

I ask for acknowledgement of this email and also answer to my questions, if I may. I am a concerned shareholder and I have suffered huge losses on paper due to this investment to this time. I will also state that this very letter will be going to many recipients.

thank you