St Andrew Goldfields Ltd.

St Andrew Goldfields Ltd.

January 25, 2007 21:15 ET

St Andrew Announces Shipment of First Gold Dore From Nixon Fork Gold Mine, Alaska

OAKVILLE, ONTARIO--(CCNMatthews - Jan. 25, 2007) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") is pleased to announce the first shipment of gold dore from the Nixon Fork Gold Mine.

Nixon Fork Gold Mill

The commissioning process of the gold mill at the Nixon Fork Gold Mine was completed at the end of December 2006 and since that date copper concentrates and gold dore have been produced. Sufficient quantities of gold dore are on hand at the mine site that the first shipment of gold dore has taken place.

Mechanical delays which were encountered during the commissioning process have been overcome and the gold mill is now operating at the nominal 150 tons per day rated capacity.

The next phase of the upgrade of the metallurgical circuit is now underway with the commencement of the installation of a cyanide leach circuit that will not only increase the percentage recovery of gold from the existing underground ore but will be able to extract and retreat the tailings from the previous operation at Nixon Fork. Retreatment of tailings is expected to commence in the summer of 2007.

Underground Mining at the Crystal Garnet Mine

Underground mining operations at the Crystal Garnet Mine have continued to open up additional mining areas and sufficient stope face is now available to maintain the 150 tons per day underground ore production rate.

Nixon Fork Gold Mine Mineral Resource and Mineral Reserve Estimates

A NP 43-101 compliant "Technical Report on the Nixon Fork Project, Alaska, U.S.A." by Scott Wilson RPA and dated October 2, 2006, defined a mineral resource estimate and a mineral reserve estimate for the Nixon Fork Gold Mine as follows:

Nixon Fork - Mineral Reserves

Property Proven Probable
Tonnes Grams Ounces Tonnes g/t Au Ounces
Au per Au Au
Nixon Fork(a) 47,000 34.05 51,500 137,500 18.6 82,230

Nixon Fork - Mineral Resources

Property Measured Indicated Inferred
Tonnes Grams Ounces Tonnes g/t Au Ounces Tonnes g/t Ounces
Au Au Au Au Au
Nixon 23,400 36.8 27,700 126,000 21.6 87,700 93,000 15.5 46,300

(a) Grades are cut to 150 g/t gold; cut-off grade is 21 g/t gold.
A US$550/oz Au price was used.

(b) The reserve estimate is based on a mining plan that includes
internal dilution at a grade varying between 7.0 g/t and 21.0 g/t
gold plus an additional 10% dilution at zero grade.

Production Plans for Nixon Fork Property

The Company anticipates that the Nixon Fork Property will achieve a production rate of 40,000 ounces of gold per annum in 2007.

St Andrew is a gold mining and exploration company producing gold from the Stock Gold Complex in Timmins, Ontario and the Nixon Fork Gold Mine in Alaska. The recently acquired Holloway-Holt Gold Mine in the Timmins Mining Camp is forecast to increase St Andrew's gold production by 75,000 to 100,000 ounces per annum. St Andrew controls a very large land position in the Timmins Mining Camp, an extensive land position at Eskay Creek in northern British Columbia and land positions around Nixon Fork in the Kuskokwim-Tintina Mining Camp in Alaska. St Andrew also holds an approximate 50.2 % equity interest in New Zealand based gold explorer, Glass Earth Limited (TSX VENTURE:GEL) and a 10 % equity interest in Apollo Gold Corporation.

For further information about St Andrew Goldfields Ltd., please visit St Andrew's website at or contact Investor Relations toll-free at 1-800-463-5139 or email


The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. St Andrew does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

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