(via Thenewswire.ca)

Vancouver, B.C. October 22, 2012 St. Elias Mines Ltd. (SLI - TSX:V) ("St. Elias" or the "Company") today announced that the Company has arranged a non-brokered private placement of a minimum of 50 million units to a maximum of 100 million units at a price of $0.10 per unit. If all of the units are placed, gross proceeds raised will be $10,000,000.

Each unit consists of one common share and one common share purchase warrant, each warrant is exercisable into one additional common share for a period of 24 months from closing at a price of $0.125 per share.

Lori McClenahan, President and CEO of St. Elias Mines said, "Our ability to raise capital in this challenging financing environment speaks to the excellent potential of our projects. We intend to use the proceeds to advance our exploration activities in Peru on behalf of our shareholders."

In connection with the private placement, St, Elias will pay finder's fees of up to 10% of the gross proceeds raised. The finder's fees will be payable in cash or units or a combination of both.

All securities issued in connection with the private placement are subject to a four month and one day hold period under the applicable securities laws.

The private placement is subject to the approval of the TSX Venture Exchange.

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) or contact:

U.S. Investor Relations Consultant

Herbert Haft
The Haft Group, Inc.

Tel: (212) 759-8865

Email: herbhaft@haftgroupinc.com

herbhaft