St. Elias Mines Ltd. Tesoro Gold Project , Peru, 3D

Geological Model Derived From Titan 24 Geophysical Survey

Lori McClenahan, President of St. Elias Mines Ltd. (“St. Elias” or the “Company”), is pleased to announce that the Company has received the 3D DCIP Inversion Results (“3D Model”) from Quantec Geoscience Limited (“Quantec”) based on the recent Titan 24 Geophysical Survey conducted at the Tesoro Gold Project located in southwestern Peru. The 3D Model includes the five (5) Titan survey lines covering the northern portion of the property over Zona Canchete and Zona Central and identifies an ovoid (egg shaped) anomaly beneath Zona Central that is between approximately 300 – 500m thickness x 1,450m x 400m wide (open to the south.)

The 3D Model can be viewed at the Company’s website www.steliasmines.com under the “Tesoro Gold Project” section or by clicking on the following link http://www.steliasmines.com/titan24/3D_DCIP_Inversion.pdf.. The 3D Model was derived from the results of the recent Titan 24 Geophysical Survey which successfully identified twelve (12) high priority targets and eight (8) zones second priority targets for follow up at the Tesoro Project. Several of the Titan 24 anomalies successfully correlate with areas where gold mineralization was previously discovered at Tesoro, particularly within the “Tesoro Structural Corridor”, Zona Canchete, Zona Central, Zona Sur, Zona Incognito and Zona Este. The interpreted deep anomalies suggest the presence of significant mineralization and/or alteration zones at depth.

About 3D Geological Modelling

The Titan 24 Geophysical Survey has provided a means to see deep targets in highly prospective terrain where the targets can be fully incorporated into sophisticated three-dimensional models. 3D subsurface earth models significantly increase the chances for drill success. Quantec and the Company can take Titan 24 results together with historical data and compile them into one up-to-date 3D model that allows for quick and decisive decisions about what to do next.

Advanced explorers such as Barrick Gold, Goldcorp Inc. and FNX Mining Co. Inc. are all making use of the 3D models on a regular basis. Mining companies can choose the most prospective areas by integrating all spatial data into one common shared model of the earth. Communication of subtle details in all data sets ensures that the decision-making process is optimized and better justified. One of the most significant benefits is the ability to use both historic and new data to accurately extend and predict new reserves and resources. Juniors can now explore with the sophistication of the seniors, in part thanks to the investment of seniors like Barrick and Noranda Inc. that went into developing much of this technology.

Every new advancement in technology, particularly geophysical, has aided in new discoveries. The likelihood of making new discoveries at depths of greater than 200 meters is increasing as a result of the ability of the latest geophysical subsurface imaging capabilities. James Moffett, Chairman of Freeport-McMoran Copper & Gold, was quoted at stating “the next major world-class discovery will not be found by digging a trench.”

A Brief History of the Tesoro Gold Project

The Tesoro Gold Project is 100% owned by the Company with no underlying royalties. The Property covers approximately 2,000 hectares (5,000 acres) and is part of the well-known gold-bearing Nazca-Ocoña belt that is located in southern Peru. The Nazca-Ocoña gold belt has a long mining history dating back to pre-Incan time. Gold is associated with disseminated to semi-massive sulphides in quartz veins cutting a diorite intrusion. The continuity of the quartz veins and fractures is very impressive in the Nazca-Ocoña belt. While the veins tend to be narrow, the grade is significant and the mineralized structures tend to extend along strike for kilometers and to depths of up to 1,000 meters.

To date, the Company has identified five mineralized zones with more than 50 quartz veins (having a total combined length of 9km) at the Tesoro Project and has carried out underground exploration and development work on three of these veins (C1, C2 and A4 Veins.) The veins are mesothermal, indicating that the vein structures may extend to considerable depths.

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.

During the fall of 2009, Quantec conducted a Titan 24 Geophysical Survey over the Tesoro consisting of (9) lines covering approximately 21.6 line kilometers over the project area. The survey successfully identified twelve (12) high priority targets and eight (8) zones second priority targets for follow up at the Tesoro Project and Quantec has recommended an initial 33 hole drill program totalling 13,400m to test the first and second priority targets interpreted in the property. Thirteen (13) drill holes are recommended to test the first priority anomalous zones and twenty (20) drill holes are proposed to test the second priority target zones.

An upcoming drilling program is currently being designed by the Company’s professional geological staff.

Qualified Person

All technical work is being supervised by, and the contents of this news release have been verified by, John Brophy, P.Geo., a Canadian geologist residing in Peru, who is a “qualified person” as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. 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.