Ms. Lori McClenahan reports

ST. ELIAS MINES LTD. - PRIVATE PLACEMENT

St. Elias Mines Ltd. has arranged a non-brokered private placement of up to five million units at a price of five cents per unit, for total proceeds of up to $250,000. Each unit will consist of one common share of the company and one non-transferrable share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the company at a price of 10 cents for a period of 24 months following closing. A finder's fee of 10 per cent of the gross proceeds will be payable in cash, units or a combination thereof. Interested purchasers can contact Lori McClenahan or Cathy Forhane for subscription documents.

The proceeds of the private placement will be used to pay Toronto Stock Exchange sustaining fees, annual government fees for the company's Peruvian and British Columbian properties, audit fees, and for working capital.