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 “Project”) located in southwestern Peru.

The Company is continuing with its plan of development for the Project (refer to News Release

dated May 10, 2007.) The objective of the plan is to develop the Project by incrementally

expanding the operation from artisanal levels of production through to a profitable production

level while concurrently defining resources or reserves.