St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.
Kenrich-Eskay Mining Corporation
TSX VENTURE : KRE

Kenrich-Eskay Mining Corporation

May 08, 2008 16:40 ET

Kenrich Options the Eskay Creek Area Properties of St Andrew Goldfields

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - KENRICH-ESKAY MINING CORPORATION (TSX VENTURE:KRE)(FRANKFURT-BERLIN:878 985) and ST ANDREW GOLDFIELDS LTD. (TSX:SAS) are very pleased to announce that Kenrich has entered into an option agreement with St Andrew to acquire up to an 80% undivided interest in strategically located mineral tenures held by St Andrew in the Eskay Creek area of British Columbia. The additional mineral tenures increase the property position of Kenrich by about 33,000 hectares, increasing Kenrich's position from 13,400 hectares to a total of 46,400 hectares (now comprised of 177 mineral tenures).

The Agreement joins two very important properties in the Eskay Creek camp, into one contiguous block that surrounds and abuts the Eskay Creek mine property of Barrick Gold Corporation. Barrick Gold holds a strike length of 4 km of the Eskay Rift belt. Kenrich's property position now controls the remaining 28 km of the belt.

The St Andrew properties allow Kenrich to expand its ongoing exploration in the region and apply its accumulated geological expertise onto this highly prospective new ground closer to the prolific Eskay Creek mine. Significantly, portions of the St Andrew property lie within 1 kilometer of the Eskay deposit. The optioning of the property by St Andrew allows it to benefit from the exploration program while allowing it to continue its primary focus on its Holloway-Holt project.

The Agreement

In order to exercise the option and earn a 70% interest, Kenrich is required to issue 500,000 shares and pay $50,000 to St Andrew upon TSX Venture approval of the Agreement. Kenrich must then additionally incur $750,000 of exploration expenditures, issue 500,000 shares and pay $50,000 on or before May 7, 2009; incur $750,000 of exploration expenditures, issue 500,000 shares and pay $50,000 on or before May 7, 2010; and incur $1,500,000 of exploration expenditures, issue 250,000 shares and pay $50,000 on or before May 7, 2011. Kenrich may increase its interest to up to 80% by incurring an additional $1,000,000 of exploration expenditures on or before May 7, 2012.

Upon being vested with a 70% or 80% interest in the property, as the case may be, the parties intend to enter into an industry standard joint venture agreement to govern further exploration and development. In the event that St Andrew's interest in the property is diluted to less than 10%, its interest will revert to a 2% net smelter return royalty.

The Property

The St Andrew property optioned to Kenrich comprises 140 claims totalling over 33,000 hectares. The property covers extensive areas of highly prospective Hazelton and Stuhini Group geological units. Similar rock formations host the Eskay Creek gold-silver deposits of Barrick, as mentioned above, and also the nearby Kerr-Mitchell-Sulphurets copper-gold deposits of Seabridge Gold and the Snowfield gold deposit of Silver Standard.

Perhaps of greatest immediate significance to Kenrich is the SIB claim block that is located in the north central part of the property. The SIB claim block abuts the southern extremity of the Barrick property. The SIB contains a continuous succession of Eskay Rift rhyolite and mudstone, the host units to the Eskay deposits. Furthermore, drilling by past operators led to the discovery of the Lulu Zone, a gold, silver and base metal-enriched zone of stringer and semi-massive sulphides having the same geochemical and geological characteristics as the Eskay deposit. The best drill intercept at Lulu returned a value of 14.43 g/t Au over 14.3 metres (McGuigan, 2002 Technical Report on the Eskay Creek Properties of Heritage Exploration Limited and Glenfred Holdings Inc.). Geochemical surveys and follow-up diamond drilling by St Andrew and its predecessor company Heritage Exploration led to the discovery in 2003 of the Hexagon Zone, a broad area of hydrothermal alteration that hosts disseminated and stringer sulphides and low grade gold enrichments that is likely indicative of a large VMS-style hydrothermal system in the area east and northeast of the Lulu Zone.

With the addition of the St Andrew property, Kenrich can now explore a 28 kilometre-long belt of prospective Eskay Rift geology that extends continuously from the southern boundary of the Eskay property to the southeast boundary of the Corey Property. Kenrich will be able to apply the expertise gained from the detailed geological and lithogeochemical surveys carried out recently on their Corey Property to this greatly expanded exploration property.

Upon examination and interpretation of St Andrew data archives, Kenrich is planning to mount a significant exploration program on the property that will run concurrently with the ongoing program at Corey. Kenrich's geological team are very enthusiastic about this new opportunity and look forward to an exciting 2008 field season.

The geological portion of this release has been approved by Sean McKinley, M.Sc., P.Geo., Kenrich's Qualified Person.

About Kenrich

Kenrich-Eskay Mining Corp. is engaged in the exploration and development of strategic, mineral rich properties in British Columbia, Canada. It is a fully compliant, publicly traded Canadian corporation since 1989 with three active major exploration projects. Full detailed information about the company may be obtained from the website: www.kenrich-eskay.com.

About St Andrew

St Andrew is a gold mining and exploration company with operations in Timmins, Ontario and Alaska. 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 Gold Mine in the Kuskokwim-Tintina Mining Camp in Alaska. St Andrew also holds an approximate 29.4% equity interest in New Zealand based gold explorer Glass Earth Gold Limited which holds extensive land positions on the North and South Islands in New Zealand, and an approximate 18.0% equity interest in Apollo Gold Corporation, which has operations in Montana, Mexico and the Black Fox Deposit located in the vicinity of St Andrew's Timmins operations.

This news release contains forward-looking information under applicable securities laws. 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. Reference should be had to the most recent Annual Information Form of St Andrew and the securities filings of Kenrich respectively for a discussion of the risks and uncertainties impacting on St Andrew and Kenrich, respectively, which are available at www.sedar.com.

The TSX Venture Exchange" does not accept responsibility for the adequacy or accuracy of this news release.

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