Lori McClenahan, President of St. Elias Mines Ltd. (the "Company" or "St. Elias"), is pleased to provide the following update with respect to recent bulk sampling and ongoing underground exploration and development at the Tesoro Gold Project (the "Property") located in southwestern Peru. In the most recent bulk sample, a total of 81.4 tonnes of material from the A4 Vein and the C1 Vein returned a weighted average grade of 0.76 oz/t gold. Total underground development on the A4 and C1 Veins completed by the Company to date is approximatley 1,000m (3,280 feet).

Of the 81.4 tonnes of bulk sample material, 66.5 tonnes were extracted from the A4 Vein from a newly discovered mineralized pod near the extraction shaft at depths of 42 to 56 meters below surface. This included a medium-grade lot of 50.2 tonnes grading 0.554 oz/t gold and a high-grade lot of 16.3 tonnes grading 1.25 oz/t gold containing common coarse-grained gold. The Company continues to pursue this pod to determine if it extends any deeper. Total underground development on the A4 Vein includes 122 meters of level drifting and 158 meters of shaft-sinking and raising.