St. Elias Mines Special Update.

VANCOUVER, British Columbia -- Lori McClenahan, President of St. Elias Mines Ltd. (the "Company") (TSX VENTURE:SLI) (FWB:EKL) (Pink Sheets:SELSF), is pleased to provide the following update:

Jales/Gralheira Gold Property, Portugal

As previously announced, Kernow Resources & Developments Ltd. and the Company retained VISA Consultores to prepare an Environmental Impact Statement ("EIS") relative to the Jales/Gralheira Gold Property and to assist the companies with an application for an Experimental Mining License ("EML"). The EIS has now been completed and submitted in support of the companies' application for an EML, which was filed with applicable government agencies in Portugal on June 14, 2006. The EIS and EML are required as part of the ongoing advancement of the project.

During the period of review by the Portuguese government, the companies will be carrying out metallurgical testing and making necessary arrangements for additional TITAN 24 geophysics.

St. Elias Mines Ltd. owns a 51% interest in the Jales/Gralheira Gold Property and, is in the process of earning an additional 24% in the property.

Tesoro Gold Property, Peru

The Company is continuing with its ongoing underground bulk sampling and exploration program at its 100%-owned Tesoro Gold Property located within the Nazca-Ocono gold belt of southwestern Peru. A detailed update of this program will be announced shortly.

In addition, the Company announces that it has secured the services of an independent mining engineer to implement a program designed to increase productivity of the ongoing underground bulk sampling and exploration program.

Kettle River (Carmi-Moly) Property, B.C.

The Company has granted options to Hi Ho Silver Resources Inc. ("Hi Ho") whereby Hi Ho can earn up to a 70% interest in the Kettle River (Carmi-Moly) Property located in southwestern B.C. Hi Ho is a mineral exploration company in the process of going public and obtaining a listing on the CNQ exchange. Regulatory filings for the initial public offering are nearing completion and Hi Ho's shares are expected to trade shortly. The symbol for Hi Ho shares will be "HIHO".

An independent geological 43-101 report has recommended a $1,100,000 two phase exploration program which includes advanced 3D IP/Resitivity geophysical surveying and diamond drilling. Permitting and preparation for the initial exploration program, which includes 3D geophysics, are underway.

Goldroad Property, Nevada

The Company has established a foothold in Nevada by staking 44 lode claims (904 acres) in Lander County. The Goldroad Property was staked as detailed geological research suggested that the property has strong geological similarities to deposits within both the Carlin Trend and the Cortez Trend. Initial field observations confirmed: the presence of Lower Place Carbonate rocks; major structural features including the Roberts Mountain Thrust; and widespread (locally intense) hydrothermal alteration within the claim block.

Incentive Stock Options

The Company has granted incentive stock options to certain of the Company's directors, officers, employees and consultants to purchase up to 1,000,000 common shares under the Company's Stock Option Plan. The options will be granted for a period of two years, commencing on July 17, 2006 at a price of $0.30 per share.

For additional information on St. Elias and its projects, visit www.steliasmines.com or call 1-888-895-5522 (toll free US and Canada).

ST. ELIAS MINES LTD.

("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.