Trading Symbol:  SLI (TSX Venture Exchange)

EKL (Frankfurt Exchange)

SELSF (U.S. Clearing Symbol)

News Release 2008-02

January 23, 2008

NEWS RELEASE

DRILLING ENCOUNTERS HIGH-GRADE MOLYBDENUM
- CARMI (KETTLE RIVER ) MOLY PROJECT, BC

Lori McClenahan, President of St. Elias Mines Ltd. (“St. Elias” or the “Company”), is pleased to announce the following update received from Hi Ho Silver Resources Inc. (“Hi Ho”) with respect ongoing exploration activity at the Carmi (Kettle River) Molybdenum Property (the “Property”) located in southwestern British Columbia.  Hi Ho has an option to acquire up to a 70% interest in the Property from St. Elias.

Hi Ho has recently received full analytical results from the second round of diamond drilling at the Property consisting of 16 diamond drill holes.  This drill program concentrated on the E Zone.  Results from all of the holes from this program are summarized in the table below.  Since completion of this program Hi Ho has completed a third round of drilling during the period November to December 2007.  Results from this program which includes several holes in the Lake zone are pending.  Hi Ho completed a total of eight holes during this program prior to Christmas shutdown.  One hole conducted by the company during the winter 2006 drill program within the Lake Zone returned values grading 139 meters of 0.128% MoS₂ and 0.055g/t rhenium.  A great deal more drilling is planned within the Lake zone during 2008.

* MoS₂ x 0.5994 = Mo

Diamond drill holes 07-198, 07-200 through 07-202, 07-205 through 07-207, 07-209 and 07-211 through 07-213 were all drilled to twin previously completed drill holes in order to confirm the results previously reported.  Of the 11 twin holes, seven agreed reasonably well with the previously reported results, three returned lower grade molybdenite mineralization over much shorter intervals than previously reported and one returned no molybdenite mineralization.

The remaining five drill holes 07-199, 07-203, 07-204, 07-208 and 07-210 were step out holes from previously identified mineralization.  Diamond drill hole 07-199 is a step out 100 metres west of and on the same section as 07-192.  Results from this hole show that the mineralization continues west of DDH 07-192.

Diamond drill holes 07-203 and 07-204 were step out holes 100 metres to the west of the previously defined molybdenite mineralization in the southwest portion of the E zone.  These drill holes delineate the maximum southwest extension of the zone.

Diamond drill hole 07-208 is a step out 100 metres west of 07-209.  This hole returned no mineralization and delineates the western edge of the E zone on this section.

Diamond drill hole 07-210 is a step out 100 metres west of 07-207.  Results from this hole confirm that the mineralization continues west of 07-207.

Results to date show that molybdenite mineralization within the E zone is present over a large area and generally within 120 metres of surface.  In general, results from this program agree reasonably well with results reported by previous operators.  One area in the southern portion of the E zone, represented by drill holes 07-201, 07-202 and 07-207, shows a high degree of variability between the current drill results and those previously reported.  Clearly this area will require further drilling. 

All drill results are currently being compiled and will be incorporated into a National Instrument 43-101 compliant resource estimate.  It is anticipated that this work should be completed by mid April 2008.  A total of 221 drill holes have been completed on the Property by all parties.  The Property is located eight kilometres from a paved highway and is easily accessible by two wheel drive vehicle.  The project benefits from good infrastructure; high voltage power is nearby and the community of Beaverdell (location of the formerly producing Highland Bell Mine) is less than 30 kilometres away.

All drill core was logged, split and sampled at a secure core facility at Beaverdell.  The work program at Carmi was designed and is supervised by Paul Reynolds , P. Geo. and Michael Sanguinetti, P. Eng. who are independent qualified persons under the definition of National Instrument 43-101.  They are responsible for all aspects of the work including the quality control/quality assurance program.  On-site personnel at the project collect and track samples which are then sealed and shipped to Acme Analytical Laboratories Ltd. in Vancouver ..  Acme’s quality control system complies with the requirements for the international standards ISO 9001:2000.  Analytical accuracy and precision are monitored at the laboratory by the analysis of reagent blanks, reference material and replicate samples.  Quality control is further assured by the use of international and in-house standards.  Blind certified reference material is inserted at regular intervals into the sample sequence by on site personnel in order to independently assess analytical accuracy.  Finally, blind duplicate samples are forwarded to Acme for additional quality control.

The technical information contained in this news release has been verified by, Paul Reynolds, P. Geo., who is a qualified person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral Properties. ”

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this document.

This news release contains forward-looking statements regarding the ongoing and upcoming exploration work and expected geometry of geological formations and structures.  Actual results may differ materially from those currently anticipated in such statements.