St. Elias Mines Ltd.; Update on Corporate Affairs

Expanded Investor Relations Activities World-Wide Highlighted by New York Events, Bolster Drilling and Exploration Programs in Peru and British Columbia, SLI announced today

Vancouver, B.C. August 26, 2010 Lori McClenahan, President of St. Elias Mines Ltd. (SLI – TSX:V) (“St. Elias” or the “Company”), is pleased to provide the following update on the corporate affairs of the Company.

PROPERTIES

The Company is escalating exploration programs at three properties in Peru (Tesoro, Cueva Blanca and Vilcoro) and two in British Columbia (Strawberry Flats and Beaverdell.) With the exception of the Tesoro Gold Project in Peru, these programs are being advanced through option agreements, exposing St. Elias to over $7.1 million in exploration (funded by other parties.) Tesoro Gold Project, Peru

A Stage 1 Titan 24 Geophysical Survey completed during the 2009 exploration season at Tesoro has provided a wealth of information which the Company is following up with an ongoing exploration program budgeted at $3,000,000 for the next 12 months as follows:

Stage 2 Titan 24 Geophysical Survey: $ 500,000

Surface Exploration Program: 500,000

Diamond Drilling (10,000 metres): 2,000,000

St. Elias is adequately funded with working capital of approx. $4,000,000 (June 30, 2010) to complete the planned exploration program.

The field portion of the Stage 2 Titan 24 Geophysical Survey was completed in June 2010. Final results are pending and will be announced shortly.

The surface exploration program (rock samples, soil samples, trenching) to examine and evaluate geophysical anomalies is ongoing and results will be announced as and when available.

An Environmental Impact Study (“EIS”) which is required prior to drilling has been submitted to the Peruvian government for final approval. This will be the third EIS completed on the Tesoro Property.

Bradley Bros. Limited, diamond drilling contractor, has been retained to provide a quote for the upcoming drill program. With over 65 years’ experience, Bradley Bros. is recognized for providing exemplary service in all drilling conditions including global factors such as climate, terrain topography and complex geological environment requiring special drilling techniques.

In addition, the Company is in the process of completing an Independent 43-101 Technical Report on the Tesoro Project which will be made available on the Company’s website and on SEDAR shortly.

Cueva Blanca Property, Peru

The Cueva Blanca Property is 100% owned by the Company. In April 2010, the Company entered into a letter agreement with Amarok Resources Inc. (“Amarok”) whereby the Company has granted an option to Amarok to earn a 60% interest, subject to a 1.5% net smelter return royalty (“NSR”), in the Cueva Blanca Gold Property located in northern Peru. Amarok is a publicly traded mineral exploration company (US OTCBB – Symbol “AMOK”) St. Elias and Amarok are in the process of completing a formal agreement and initiating a Phase I exploration program at Cueva Blanca.

Vilcoro Gold Property, Peru

The Vilcoro is 50% owned by the company and 50% owned by Emilsen Medina Inga de Brophy (“Emilsen”) In April 2010, the Company and Emilsen entered into a letter agreement with Ansell Capital Corp. (“Ansell”) whereby Ansell has agreed to acquire a 65% interest, subject to a 1.5% NSR, in the Vilcoro Gold Property located in north-central Peru. Ansell is a publicly traded mineral exploration company (TSX:V – Symbol “ACP”)

St. Elias and Ansell are in the process of completing a formal agreement and an EIS at the Vilcoro for an upcoming drilling program. Strawberry Flats Gold Project, B.C.

In March 2010, 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 (the “Property”) located in south-central British Columbia. Dorex is a publicly traded mineral exploration company (TSX:V – Symbol “DOX”) A Phase I 2010 exploration program, designed to locate drill targets for a Phase II diamond drilling program, is ongoing.

Beaverdell Gold/Silver Property, B.C.

St. Elias has granted an option to Intigold Mines Ltd. (“Intigold”) to earn a 100% interest, subject to a 1.5% NSR, in the Beaverdell Gold/Silver Property located in southwestern British Columbia. Intigold is a private company in the process of completing a listing on the TSX Venture Exchange. A 2010 exploration program has been initiated.

INVESTOR RELATIONS ACTIVITIES

During 2010, the Company substantially expanded its investor relations activities in order to strengthen St. Elias’ profile and visibility. In spring 2010, the Company engaged Nick Fuller & Associates (“NFA”), based in London, as its European Investor Relations Consultant to increase international awareness and facilitate company exposure in the European financial markets.

In summer 2010, the Company also retained The Haft Group, Inc., based in New York, to provide investor and financial public relations services to St. Elias. From March to August 2010, the Company conducted over 60 corporate presentations to brokers, analysts, corporate sources, private investors and other financial professionals in Kelowna, Edmonton, Calgary, Montreal, Toronto, New York, London, Paris, Frankfurt, Zurich and Geneva.

In the last several months the company has sponsored important conferences in New York. Highlighted in St. Elias’ September conferences, is an important outlook conference on gold mining and corporate outlook plans, September 29th at a corporate and broker dinner at New York’s Friars Club, along with other September broker and investor contact meetings. “The Haft Group in New York, Aaron Etra, Esq., Indeva Corp, NY corporate advisor with Haft, and Nick Fuller in London, are coordinating activities World-Wide” Lori McClenahan noted today. “The Friars Club audience on the 29th, will also include guests from Canada as well as New York brokers and corporate contacts,” the St. Elias President noted.

OTHER CORPORATE MATTERS

Independent Analyst Report

In July 2010, 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 summer 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 S&P 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 has been scheduled for Thursday, November 25, 2010. All interested parties are invited to attend. Please RSVP through the Company.

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) or contact:

European Investor Relations U.S. Investor Relations

Nicholas Fuller Herbert

HaftNick Fuller & Associates

The Haft Group, Inc.

Tel: 011-44-207-256-5204

Tel: (212) 759-8865

Email: nick@fullerir.com

Email: herbhaft@haftgroupinc.com

herbhaft@aol.com

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. Copyright (c) 2010 Thenewswire.ca – All rights reserved.