Trading Symbol:  SLI (TSX Venture Exchange)

EKL (Frankfurt Exchange)

SELSF (U.S. Clearing Symbol)

News Release 2008-01

January 22, 2008

NEWS RELEASE

Jales/Gralheira Property, Portugal – Gold and Silver Resource Calculations

Lori McClenahan, President of St. Elias Mines Ltd. (“St. Elias” or the “Company”), is pleased to advise that Kernow Resources & Developments Ltd. (“Kernow”) has received an estimate of the gold and silver resources identified at the Gralheira deposit located within the Jales-Gralheira Gold Property (the “Property”) in Portugal.  The estimate is contained in a report entitled “ A Report on the Mineral Assets of the Gralheira Gold-Silver Property, Portugal” prepared by Wardell Armstrong International Ltd. (“WAI”) of Cornwall, U.K.   The Report will be filed on SEDAR (www.sedar.com ) shortly.   WAI is an internationally recognized, independent mineral industry consultant.

The Property is located in northern Portugal approximately 125 kilometres northeast of the city of Porto ..   The Property covers an area of approximately 5.2 square kilometres.   The Property includes the Jales Mines, which produced approximately 830,000 ounces of gold in ore grading 12.9g/t between 1933-1992, and the Gralheira deposit, which has been explored by drilling (over 120 drill holes completed to a maximum depth of 511 meters over a strike length 2,700 meters); underground sampling from a 350 meter long adit and 200 meters of crosscuts; and a TITAN24 IP/Resistivity geophysical survey.

St. Elias owns a 51% interest in the Property and Kernow owns a 49% interest in the Property.  Title to the Property is held by way of an Experimental Mining Licence granted to Kernow Mining Portugal Soc. Unip. Lda. in May of 2007.   The Licence is valid for three years from the date of grant.

Summary

A summary of the Gralheira Mineral Resource for gold is given in the following table:

Details of the Gold and Silver Resources

The Gralheira resource in the combined Measured and Indicated categories at 3g/t cut off grade comprises 599,000 tonnes at grade of 5.27g/t gold and 23.18g/t silver and contains 3,160 kg (101,593 oz) of gold and 13,890 kg (445,973 oz) of silver.   The Inferred resource is 975,000 tonnes at grades of 4.72g/t gold and 15.00g/t silver, which contains 4,597kg (147,786 oz) of gold and 15,042 kg (482,961 oz) of silver.

The combined Measured and Indicated category at 6g/t cut off grade comprises 142,000 tonnes at a grade of 8.97g/t gold and 34.12g/t silver and contains 1,276 kg (41,010 oz) of gold and 4,850 kg (155,721 oz) of silver.   The Inferred resource is 159,000 tonnes at a grade of 8.84g/t gold and 16.20g/t silver, which contains 1,409 kg (45,310 oz) of gold and 2,584 kg (82,966 oz) of silver.

Methodology Used to Estimate the Resources

The resources were estimated using data from 126 diamond drill holes and 1,237 sample intersections, including those from the 350 meter long adit.   The holes are positioned along a strike length of 2,000 meters.   The deepest intersection used in the calculation was at 450 meters below surface.   However the majority of the current resources are located between the surface and depths of 250 meters and 350 meters below surface level.

WAI used the Datamine software program in its estimations.   The wireframe and block models were constructed using a 1.20 meter mineralized width.   Where the mineralized intercept exceeded the 1.20 meter restriction the model was increased to match the intercept.

The gold resource estimations used top cut (capping) grades of between 4.2g/t and 35.0g/t gold depending on the statistical data for each of the structures examined.   Capping levels were also applied to the silver values of 130g/t and 140g/t.

The removal of the top-cut at a 6g/t gold cut-off grade produces the following results whereby the combined Measured and Indicated category comprises 142,000 tonnes at grade of 10.88g/t gold and contains 1,547 kg (48,117 oz) of gold.   The Inferred resource is 159,000 tonnes at grade of 9.94g/t gold, which contains 1,586 kg (49,330 oz) of gold.   This represents an increase of 8,433 ounces of gold over the top cut level in the Measured and Indicated category.

To the Companies’ knowledge, the estimate of mineral resources will not be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

The geological and technical content of this release has been reviewed, verified by the Companies’ geological staff (which includes Alan Matthews, C.Eng. a “qualified person” for the purpose of NI 43-101, Standards of Disclosure for Mineral Projects).

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.