St. Elias Mines Ltd. Reviews 2010

2011 Augers Well for St. Elias - Growth Projects in Peru and B.C.

VANCOUVER, BC--(Marketwire - December 31, 2010) - Lori McClenahan, President of St. Elias Mines Ltd. (TSX-V: SLI) (PINKSHEETS: SELSF) (US Clearing Symbol: SELSF) (FRANKFURT: EKL), is pleased to provide the following year end review on the corporate affairs of the Company.

2010 HIGHLIGHTS

• Received favourable results from Stage 1 and Stage 2 Titan 24 Geophysical Surveys at the Tesoro Gold Project in Peru.

• Completed an Independent 43-101 Technical Report on the Tesoro Gold Project.

• St. Elias acquired six strategic mineral claims adjoining the Tesoro Gold Project.

• St. Elias granted option to Amarok Resources Inc. on the Cueva Blanca Gold Property in Peru.

• St. Elias granted option to Ansell Capital Corp. on the Vilcoro Gold Property in Peru.

• St. Elias granted option to Dorex Minerals Inc. on the Strawberry Flats Property, B.C.

• St. Elias granted option to Inform Resources Corp. on the South Rim Project.

• Completed an Environmental Impact Study ("EIS") on the Vilcoro Gold Property in Peru.

• Standard and Poors initiated Factual Stock Report coverage on St. Elias.

• Retained Nick Fuller & Associates for European investor relations.

• Retained The Haft Group, Inc. for US public relations.

• Engaged INDEVA Corporation as a corporate advisor.

• Expanded investor relations activities world-wide highlighted by New York events.

• St. Elias is adequately funded with working capital in excess of $4,000,000 (December 31, 2010) with no debt.

"St. Elias is well-positioned to weather the current market conditions and our emphasis in 2011 will be on the advancement of our existing gold projects. The price of gold continues to be resilient through this difficult economic period and we expect it will continue to be strong in the future," stated President, Lori McClenahan.

Tesoro Gold Project, Peru

During 2010, positive results were received for Stage 1 and Stage 2 Titan 24 Geophysical Surveys at the Tesoro Gold Project. The surveys were conducted by Quantec Geoscience Limited, a leading provider of geophysical surveys and services for the mineral exploration industry. Quantec, through detailed analysis of their Titan 24 data, recommended a total of 52 drill holes to test the first and second priority targets interpreted in the property. Of them, 26 drill holes are recommended to test the first priority anomalous zones and 26 drill holes are proposed to test the second priority target zones. These zones are interpreted to be related to, and/or the extension of, previously discovered mineralized zones in the Property. The Company has planned an initial 10,000 metre diamond drilling program at Tesoro.

An Environmental Impact Study ("EIS") which is required prior to drilling has been submitted to the Peruvian government and the Company is now awaiting final approval. This will be the third EIS completed on the Tesoro Property. 

The Company retained Bradley Bros. Limited, a prominent diamond drilling company, to provide a quote for the upcoming drill program.

Exploration results to date have shown the Tesoro Gold Project to be permissive for the expansion of known gold mineralized zones both on strike and to depth as well as the discovery of additional gold mineralization. In that regard, St. Elias staked six New Tesoro Claims (Chance A, B, C, D, E and F) surrounding its existing Tesoro Gold Project. Prior to the acquisition of the New Claims, the Tesoro Project comprised three mineral claims (Chance 1, Chance 2 and Chance 5) covering approximately 5,000 acres. With the addition of the New Tesoro Claims, the Tesoro Gold Project covers 17,436 acres.

The Company completed an Independent 43-101 Technical Report on the Tesoro Gold Project. The Report, dated September 30, 2010, written by Paul D. Gray, P.Geo, is available for viewing by visiting www.sedar.com. Mr. Gray conducted a site visit and property inspection of the Tesoro Property from June 6 - 8, 2010 (verification assays returned grades up to 231.12 g/t or 6.74 oz/t gold).

The Tesoro Property has never been evaluated to depth, or to its full strike potential. This leaves a large potential for the discovery of additional mineralization.

Cueva Blanca Property, Peru

During the year, St. Elias entered into a letter agreement with Amarok Resources Inc. ("Amarok") whereby Amarok agreed to acquire a 60% interest, subject to a 1.5% net smelter return royalty ("NSR"), in the Cueva Blanca Gold Property from St. Elias in consideration of $200,000, issuing 100,000 common shares of Amarok to St. Elias and incurring $1,500,000 in exploration expenditures on the property. Amarok is a publicly traded mineral exploration company. The Cueva Blanca Property is 100% owned by St. Elias.

Vilcoro Gold Property, Peru

During the year, the Company entered into a letter agreement with Ansell Capital Corp. ("Ansell") whereby Ansell agreed to acquire a 65% interest, subject to a 1.5% NSR, in the Vilcoro Gold Property from St. Elias in consideration of making cash payments of $500,000 issuing 1,000,000 common shares of Ansell to St. Elias and incurring $2,500,000 in exploration expenditures on the property. The Vilcoro is 50% owned by St. Elias and 50% owned by Emilsen Medina Inga de Brophy. Ansell is a publicly traded mineral exploration company.

In fall 2010, an Environmental Impact Study was completed at the Vilcoro and the Ministerio de Energia y Minas (Ministry of Energy and Mines) subsequently granted a permit to allow drilling on the Vilcoro Gold Property. Drilling is planned for spring 2011.

Strawberry Flats Gold Project, B.C.

During the year, St. Elias entered into an option agreement with Dorex Minerals Inc. ("Dorex") whereby Dorex agreed to acquire up to an 80% interest, subject to a 1.5% NSR, in the Strawberry Flats Gold Project. Dorex can acquire an initial 60% interest in the property from St. Elias in consideration of $50,827, issuing 600,000 common shares of Dorex to St. Elias and incurring $600,000 in exploration expenditures on the property. Dorex can earn a further 20% interest in the Property in consideration of making additional cash payments of $200,000 to St. Elias, issuing an additional 600,000 common shares of Dorex to St. Elias and incurring an additional $1,000,000 in exploration expenditures on the property. Dorex is a publicly traded mineral exploration company.

In 2010, a Phase I exploration program, designed to locate drill targets for a Phase II diamond drilling program, was completed.

South Rim Project, B.C.

During the year, St. Elias entered into a letter agreement with Inform Resources Corp. ("Inform"), formerly "Downtown Industries Ltd.", whereby Inform agreed to acquire up to a 75% interest in the South Rim Project. Inform can acquire an initial 51% interest in the property from St. Elias in consideration of $75,000, issuing 220,000 common shares of Inform to St. Elias and incurring $600,000 in exploration expenditures on the Property. Inform can earn a further 24% interest in the property from St. Elias in consideration of $250,000, issuing of 600,000 common shares of Inform to St. Elias and incurring $1,500,000 in exploration expenditures on the property. Inform Resources Corp. is a publicly traded mineral exploration company.

In 2010, a Phase I exploration program was completed and results will be announced shortly.

Beaverdell Gold/Silver Property, B.C.

St. Elias has granted an option to Intigold Mines Ltd. ("Intigold") to acquire a 100% interest, subject to a 1.5% NSR, in the Beaverdell Gold/Silver Property. Intigold can acquire an initial 51% interest in the property from St. Elias in consideration of $35,000, issuing 300,000 common shares of Intigold to St. Elias and incurring $350,000 in exploration expenditures on the property. Intigold can earn a further 49% interest in the Property from St. Elias in consideration of $200,000, issuing of 1,200,000 common shares of Intigold to St. Elias and incurring $1,000,000 in exploration expenditures on the property. Intigold is a publicly traded mineral exploration company. 

A 2011 exploration program is presently being planned.

INVESTOR RELATIONS ACTIVITIES

During 2010, the Company substantially expanded its investor relations and communications activities world-wide in order to strengthen St. Elias' profile and visibility.

The Company retained The Haft Group, Inc., an investor relations and specialist firm based in New York, to provide investor and financial public relations services to St. Elias. The Company retained Nick Fuller & Associates, based in London, as its European Investor Relations Consultant to increase international awareness and facilitate company exposure in the European financial markets. 

St. Elias conducted over 70 corporate presentations in 2010 to brokers, analysts, corporate sources, private investors and other financial professionals in Beijing, Calgary, Chicago, Edmonton, Frankfurt, Geneva, Kelowna, London, Montreal, New York, Paris, Quebec City, Toronto and Zurich.

The Company also sponsored several important conferences in New York. Highlighted in St. Elias' conferences were an important outlook conference on gold mining and corporate outlook plans at a September broker dinner at New York's Friars Club and a December presentation at the Financial Investment Analysts, Inc. ("FIA") in New York.

St. Elias will continue increasing corporate awareness globally in the New Year with initial spring 2011 investor relations activities scheduled as follows:

January 2011 

• Los Angeles and San Diego (broker and investor contact meetings)
• Mineral Exploration Roundup (Vancouver, B.C.)

February 2011 

• New York (broker and investor contact meetings)

March 2011 

• "Spring Break for Wall Street Dinner Conference" (the Florida Stock and Bond Club)
• "PDAC" Prospectors and Developers Association of Canada (Toronto, ON)

April 2011 

• European Road Show (Paris, Brussels, Zurich, Geneva, Milan)
• Israel (broker and investor contact meetings)

"The Haft Group in New York, Aaron Etra, Esq., INDEVA Corp, NY corporate advisor, and Nick Fuller in London, are coordinating activities World-Wide" Lori McClenahan noted.

OTHER CORPORATE MATTERS

Independent Analyst Report

Gluckstein & Silverspoon Research completed an independent Analyst Report on St. Elias. Gluckstein & Silverspoon is an equity research service company dedicated to increasing the visibility of innovative and growing private and public companies that represent extraordinary investment opportunities. To view the report, visit the Company's website.

Standard & Poor's Listing

During 2010, Standard & Poor's commenced Factual Stock Report coverage on St. Elias. The Stock Report is updated weekly and reflects the latest pricing, trading volume, key stock statistics and numerous other items. This report will be accessible on an ongoing basis to the investment community by scores of buy-side institutions and sell-side firms that utilize Standard & Poor's research and information platforms daily. Millions of self-directed investors also have access to the report via their e-brokerage accounts. Please visit the Company's website or www.standardandpoors.com to view the Stock Report.

2010 Annual General Meeting

St. Elias' 2010 Annual General Meeting was held on November 25, 2010. Included in the business completed was the approval of a new shareholders' rights plan (the "Plan"). Further details of the Plan are contained in the Company's annual general meeting material available for viewing on www.sedar.com.

Appointment of Officers

The Company appointed Kulwant Sandher as its Chief Financial Officer. Mr. Sandher is a Chartered Accountant whose first degree was a B.Sc (Eng) in Avionics. He is a member of the Institute of Chartered Accountants in England and Wales as well as the Canadian Institute of Chartered Accountants. Mr. Sandher has 19 years of experience in finance management roles in companies such as Wang Europe and Wang U.K. Limited, Rennie & Company Chartered Accountants, Maximizer Technologies. He has served as CFO for The Stallion Group, Serebra Learning Corp, Conac Software Corp, and served as a COO for Marketrend Interactive Inc. Currently, Kulwant is serving as a Director and Chief Financial Officer of Delta Oil & Gas Inc. and Chief Financial Officer of Millrock Resources Inc.

Tina Whyte was appointed as the corporate secretary of St. Elias. Ms. Whyte has over 20 years' experience in the corporate securities industry, primarily in mining and resource development. Her expertise extends to continuous disclosure and corporate governance-related matters, as well as the coordination of all matters necessary to successfully conclude a variety of corporate and securities-related dealings including specialized brokerage transactions.

In announcing the appointments of Mr. Sandher and Ms. Whyte, Lori McClenahan, President of the Company, stated, "As we continue our growth, we are very pleased to have individuals with Mr. Sandher's and Ms. Whyte's extensive experience join the St. Elias' team."

For additional information on St. Elias and its projects, please visit us at www.steliasmines.com or call 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 may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statement.