Mr. George Drazenovic reports

ST. JAMES GOLD ANNOUNCES PRIVATE PLACEMENT

St. James Gold Corp. will conduct a non-brokered private placement of up to 450,000 units at a price of 67.2 cents per unit for gross proceeds of up to $302,400.

Each unit will comprise one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at 84 cents per share for a period of two years from the date of issue.

All securities issued in connection with the offering will be subject to a four-month statutory hold period. The company may pay a finder's fee in cash and/or share purchase warrants in accordance with the rules of the TSX Venture Exchange.

The proceeds of the offering will used to conduct exploration work on the company's Newfoundland properties, to conduct due diligence on potential acquisitions and for general corporate purposes.

Completion of the private placement remains subject to the approval of the TSX Venture Exchange.

About St. James Gold Corp.

St. James Gold is a publicly traded company listed on the TSX Venture Exchange focused on creating shareholder value through the discovery and development of economic mineral deposits by acquiring prospective exploration projects with well-delineated geological theories, integrating all available geological, geochemical and geophysical data sets, and financing efficient exploration programs. The company currently holds an option to acquire a 100-per-cent interest in 29 claims covering 1,791 acres in the Gander gold district in north-central Newfoundland adjacent to New Found Gold Corp.'s Queensway North project.