Lori McClenahan, President of St. Elias Mines Ltd. (the “Company”), is pleased to provide the following update with respect to the ongoing underground exploration and development program at the Tesoro Gold Project (the “Property”) in Peru.

The A4 Vein System has completely different characteristics from the ZCV#1 Vein in that the gold grades are moderate with pockets of multi-ounce material occurring. Results have been sporadically spectacular (up to 11 oz/t gold in a 4-tonne bulk sample) with gold grades between the “Bonanza” segments generally in the 2 to 7 g/t range. In the most recent bulk sample, representing development material from the main shaft (42m to 65m levels) and parts of the 42m level, 41 tonnes assayed 0.243 oz/t gold.

Based on information from more than 200 meters of underground development on each of the ZCV#1 Vein and the A4 Vein System, the Company had decided to:

extract two high-grade pods from the A4 Vein System in order to determine the size and grade of the “Bonanza” segments as a guide to determining optimum spacing for a future drill program.