St Elias Mines Ltd. and Intigold Mines Ltd. provided update with respect to the Cueva Blanca gold property located in northwest Peru. The property is owned 100% by St. Elias Mines Ltd. Intigold Mines Ltd. has an option to acquire a 60% interest in the property.

St. Elias and Intigold have initiated field studies in the Cueva Blanca area in preparation for diamond drilling. This work has primarily consisted of community relations activities to re-establish the strong community connection (participation and support) that St.

Elias enjoyed during its previous exploration programs at Cueva Blanca. Other activities include data compilation and re-interpretation as well as other required preparatory studies. At this time, it is anticipated that very little fieldwork will be required prior to mobilizing drilling equipment and crews to the site.

The initial drilling targets include the Cruz Vein, the Cruz breccia bodies and a stratiform silicified zone that has anomalous bismuth-mercury geochemistry. The economic targets at the Cueva Blanca Property are gold and silver. The first phase drilling program is budgeted at $2.5 million.

This program will consist of approximately 10,000 meters of drilling. The primary target of the drill program will be the gold-silver-bearing Cruz Vein System. The target areas are along strike and down dip from the previously drilled area of the vein.

Infill and confirmation holes will also be completed in certain sections of the previously drilled areas of the vein system. In these areas, detailed information is lacking because rough terrain prevented the construction of drill platforms at the desired 50-meter spacing along strike. The planned program will utilize man-portable drills that can be sited almost anywhere, whereas all previous drilling was done with a Long year LF-70 skid-mounted drill that required road access.

The company and Intigold have entered into an agreement whereby St. Elias and Intigold have agreed to amend certain terms of the option agreement whereby St. Elias granted to Intigold an option to earn a 60% interest in the Cueva Blanca Property.

The agreement has been amended to remove the retention of a 1.5 % net smelter return royalty and to provide for Intigold to earn an option to acquire a 60% working interest with St. Elias retaining a 40% working interest. All other terms remain the same.

Intigold can acquire a 60% working interest from St. Elias in consideration of Intigold making cash payments of $200,000 to St. Elias over a two-year period, issuing one million common shares in the capital of Intigold to St.

Elias and incurring $1.5 million in exploration expenditures on the property over a three-year period. Cueva Blanca Property: the property covers approximately 5,800 hectares (58 square kilometers) and is located in the Lambayeque department in northwestern Peru, within the northern Peru Miocene metallogenic belt. This belt is defined by a large number of world-class gold and copper-gold deposits of similar age (five million to 25 million years) including Yanacocha, Lagunas Norte and Pierina.

Also of great importance are world-class copper-gold porphyry deposits, such as Rio Blanco, Canariaco, La Granja, Cerro Corona, Minas Conga-Galeno-Michiqillay, Magistral and Antamina. The giant gold deposits and the Cu-Au porphyries often occur in clusters (for example, Yanacocha-Conga-Galeno-Michiqillay). Discrete vein- and breccia-hosted deposits of gold and poly metallic mineralization occur adjacent to some copper porphyry deposits.

The Cueva Blanca property is bordered to the south and southeast by mineral concessions of Vale SA, and Barrick Gold holds extensive mineral concessions four kilometres to the north. The property lies within the northern member of a pair of profound east-west tectonic warps that cross northern Peru. These flexures are marked by an abrupt change in the direction of the regional geological trend from northwest to east-west.

Within the southernmost of these tectonic features are the multimillion-ounce Yanacocha gold mine and numerous Cu-Au porphyry deposits. Both the northern and southern structures are on the order of 60 to 80 kilometres wide; they extend right across the Andes from the Pacific Ocean to the Amazon River basin. The locations of the giant Yanacocha gold mine and other gold deposits and Cu-Au porphyries of the Cajamarca district may be controlled or at least influenced by east to northeast structures within the large-scale southern tectonic flexure.

The Cueva Blanca Property, as well as the Canariaco and Rio Blanco Cu-Au porphyries and gold prospects such as Las Huaquillas (Inca One) and Rio Tabaconas (Golden Alliance) appear to be within the northern tectonic flexure. An important feature of the Cueva Blanca Property is the Cruz gold/silver epithermal vein system. Some examples of exceptional classic epithermal deposits with geologic characteristics broadly similar to the Cruz vein system are Kupol (Russia), El Penon (Chile), and Tayoltita, Guanajuato and Pachuca (Mexico).

The company and Intigold have entered into an agreement whereby St. Elias and Intigold have agreed to amend certain terms of the option agreement whereby St. Elias granted to Intigold an option to earn a 60% interest in the Cueva Blanca Property.

The agreement has been amended to remove the retention of a 1.5 % net smelter return royalty and to provide for Intigold to earn an option to acquire a 60% working interest with St. Elias retaining a 40% working interest. All other terms remain the same.

Intigold can acquire a 60% working interest from St. Elias in consideration of Intigold making cash payments of $200,000 to St. Elias over a two-year period, issuing one million common shares in the capital of Intigold to St.

Elias and incurring $1.5 million in exploration expenditures on the property over a three-year period. Cueva Blanca Property: the property covers approximately 5,800 hectares (58 square kilometers) and is located in the Lambayeque department in northwestern Peru, within the northern Peru Miocene metallogenic belt. This belt is defined by a large number of world-class gold and copper-gold deposits of similar age (five million to 25 million years) including Yanacocha, Lagunas Norte and Pierina.