Trading Symbol:
SLI (TSX Venture Exchange)
EKL (Frankfurt Exchange)
SELSF (U.S. Clearing Symbol)
News Release 2009-10
June
4, 2009
Jales/Gralheira Property, Portugal
Lori McClenahan, President of St. Elias Mines
Ltd. (St. Elias or the Company), is pleased to announce that the Company has
entered into a formal agreement with Kernow Resources
& Developments Ltd. (Kernow) with respect to the Jales/Gralheira Property located
in northern Portugal.
Under the terms of the Agreement, it was agreed that Kernow
purchase St. Elias? 51% interest in the Property (thereby bringing its
ownership of the Property to 100%) in consideration of:
1.
Kernow forgiving all the outstanding
payments due to Kernow by St. Elias (approximately
CDN$61,200);
2.
Kernow paying to St. Elias the sum of
CDN$50,000 on receipt of satisfactory documentation quit claiming all rights to
the Property to Kernow (paid);
3.
Kernow issuing to St. Elias 1,000,000
shares in the capital of Kernow (issued);
4.
On receipt of a Full
Mining License from the Portuguese Authorities and Exchange approval, Kernow issuing St. Elias a further 2,000,000 shares and
paying to St. Elias a further CDN$100,000;
5.
The resale of such
shares will be restricted to not more than 100,000 shares per month for 10
months after the expiry of the respective restricted resale periods imposed by
applicable securities legislation and the TSX Venture Exchange; and
6.
Kernow granting to St. Elias a 0.4% net
smelter royalty on the Property.
Kernow’s purchase of St. Elias 51% interest will bring Kernow’s
ownership in the Property to 100%.
Lori McClenahan states We are extremely
pleased with this deal, it’s a win-win situation. St. Elias will
retain a large stake in the project through its ownership of Kernow shares and the net smelter return royalty while the
consolidation of the ownership of the project under one company will make it easier to advance it to the next
level. St. Elias
focus will now be on the exploration and development of its Peruvian
properties.
Jales/Gralheira Gold Property covers approximately 1,250 acres (500 hectares) and is
located in northern Portugal. The Property includes the Jales Mine, which produced about 830,000 ounces of gold in
ore grading up to 12.9g/t gold between 1933 and 1992. It also covers the Gralheira Gold and Silver deposit, which has been explored
by drilling, 126 drill holes (completed to a maximum depth of 511 metres) over
a strike length of 2,700m, underground sampling from a 350m long adit and 200m of crosscuts, and a TITAN24 IP/Resistivity
geophysical survey.
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