Ms. Lori McClenahan reports

ST. ELIAS AND CEO COMMENCE LITIGATION

St. Elias Mines has commenced litigation in the Supreme Court of British Columbia, along with its president and chief executive officer, Lori McClenahan, against a number of individuals for defamation, conspiracy and other causes of action. In this lawsuit, St. Elias also alleges breach of fiduciary duty by a former director. Many of the defendants are unknown individuals who have posted defamatory comments against St. Elias and Ms. McClenahan by means of pseudonyms. Legal processes exist whereby the identity of such persons can be determined, and those processes will be utilized. St. Elias and Ms. McClenahan intend to pursue this litigation vigorously and seek all available remedies, including damages.