St. Elias Mines Ltd. New Gold Bearing Vein at Tesoro Returns Assay Results of 2.51 oz/t Gold

Vancouver, B.C. July 27, 2010 Lori McClenahan, President of St. Elias Mines Ltd. (SLI – TSX:V)
(“St. Elias”), is pleased to announce the discovery of a new gold-bearing vein at the Tesoro Gold Project (the “Property”) located in southwestern Peru.

Prospectors engaged to follow up geophysical anomalies from the recent Stage 1 Titan 24 geophysical survey have discovered a new gold-bearing vein (the “N-1 Vein”) near the northeastern area of the Property. The N-1 Vein strikes 330 degrees and dips 75 degrees to the east. Although mainly covered by overburden, the N-1 Vein has been traced for a strike length of 220 meters and is open to the north and south. A sample taken from a 3-meter-deep pit returned assay results of 2.51 oz/t gold across 0.3 meters. Approximately 20% of the gold assay is due to the presence of coarse gold. John Brophy, P.Geo., a qualified person, confirms the width and extent of the vein. Trenching and additional sampling of this area are planned for the future.

The above excerpt from a news release in 2010, clearly and substantially state the validity of the Quantec geophysics. The above astronomical find was a result of proof testing the STAGE 1 geophysics and NOT the STAGE 2 , Stage 2 being a more extensive geophysics, which resulted in the 2010 Technical report by Paul Gray.

The above news release is of utmost importance for many reasons;

1) It shows the accuracy of the geophysics, to pinpoint such a small strucure, .3 m. Albeit, the geophysics tends to show wide mineralized structures that accompany a lot of veins on the property, but to pinpoint a .3 m vein within the mineralized width, is astronomical accuracy.

2) As you can see in the bolded; "follow up geophysical anomalies" , the geos were examining what the geophysical anomalies were in the STAGE 1 geophysics. The Stage 2 geophysics were more enhanced from the first Stage, and with that would come more consistency and accuracy. So to get this type of result from the STAGE1 , should only prove the accuracy of a more enhanced geophysics that resulted in STAGE 2. So, its plain to see what was partly responsible for the anomalies; gold, even though the secondary metals are not reported or tested for, they had to be there, because there has been correlation to gold and the chargeable minerals on the property, which give the anomalous signatures.

3) The high grade nature is extremely important, as well as the width, and where this is at the surface. For instance, it would be feasible to strip mine this vein at surface if it only had an average grade of around 7 g/t, if the 2.5 ounces (80 g/t )is consistent, thats more than 10 times what would be needed to be economical. It is total nonsense for anyone to claim that the veins on this property are too narrow and uneconomical, especially when they leave out the accompanying alterations of considerable width. I believe you could add an "average 5 th grader" joke in here.

4) The 20 % of course gold is very important as well, it speaks about the composition of the gold as well as a purity factor. This becomes even more important during a cost analysis upon mining and only enhances feasibility towards the top end.

5) this sentence; "Trenching and additional sampling of this area are planned for the future.", we see from satelite images that most of the early trenching was done in this area, but never no results distinguihed to be from here, because of such a vague trenching conveyance.