St. Elias Mines Ltd. Closes Private Placement
Raising Gross Proceeds of $4,500,000

Vancouver, BC, October 7, 2011, Lori McClenahan, President of St. Elias Mines Ltd. (the “Company���), is pleased to announce that the Company has closed a non-brokered private placement previously announced on August 17, 2011. The private placement consists of 2,500,000 units at a price of $1.80 per unit raising gross proceeds of 4,500,000. Each unit consists of one common share and one share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $2.10 per share for 12 months expiring on October 7, 2012. In connection with the private placement, finders' fees of 8%, totaling $14,508 cash and issuing 2,340 shares were paid. The finder���s shares are also at a price of $1.80 per share. The Private Placement is subject to regulatory acceptance.

In accordance with securities legislation currently in effect, the securities issued will be subject to a “hold period��� of four months plus one day from the date of closing, expiring February 8, 2012.

The proceeds of the private placement will be used for exploration expenditures on the Company���s properties and for general working capital.