St. Elias Mines Ltd. - Tesoro Gold Project, Peru -- Mineralization Continues to Depth/Gold Grades Increase with Depth

    VANCOUVER, BRITISH COLUMBIA, October 23 /CNW/ - St. Elias Mines Ltd.
("the Company") (TSX VENTURE:SLI) (ISIN CA7849211080) (FWB:EKL) 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:Shaft       Width       Sample       Gold       Gold
      Sample      Level        (cm)        Type         (g)       (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
    ----------  ----------  ----------  -----------  ---------  ---------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.Gold      Gold     Silver    Silver    Copper   Tungsten
      Sample    (g/t)     (opt)     (g/t)     (opt)      (%)       (%)
    ---------  --------  --------  --------  --------  --------  --------
    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.

    Sample preparation and analytical work was undertaken at ALS Chemex SA
laboratory (an ISO certified 9002 facility) in Lima, Peru.

    The technical information contained in this news release has been
verified by, John Brophy, P.Geo., a Canadian geologist residing in Peru, who
is a qualified person as defined in "National Instrument 43-101, Standards of
Disclosure for Mineral Properties."

    The Tesoro Gold Property is 100% owned by the Company with no underlying
royalties. The Property is situated in a highland desert plateau within the
prolific 300km x 30km Nazca-Ocona gold belt of southwestern Peru. To date,
more than 70 gold deposits have been exploited in this region. The Property is
located between two gold deposits/mining camps. Malaga Inc. T-MLG (formerly
Dynacor Mines Ltd.), the owner of the claims located immediately northwest of
the Property, published a gold resource of +606,611 oz at 16.4g/t (on only 3
of 10 veins discovered to date) and has subsequently announced the discovery
of additional veins carrying comparable gold grades.

    For additional information on St. Elias and its projects, please visit us
at www.steliasmines.com or call 1-888-895-5522

1-888-895-5522 (toll free US and Canada). ST. ELIAS MINES LTD. (signed "Lori McClenahan") Lori McClenahan, President The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this document. This news release contains forward-looking statements regarding the ongoing and upcoming exploration work and expected geometry of geological formations and structures. Actual results may differ materially from those currently anticipated in such statements.

For further information: St. Elias Mines Ltd. Lori McClenahan, President
888-895-5522

888-895-5522 (toll free US and Canada) www.steliasmines.com