St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

June 05, 2006 14:46 ET

St Andrew Acquires Additional Interest in New Zealand Based Explorer Glass Earth Limited

OAKVILLE, ONTARIO--(CCNMatthews - June 5, 2006) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew") is pleased to announce that it has acquired for investment purposes an additional 11.1% interest in Glass Earth Limited (TSXV.GEL).

St Andrew has acquired through a further private placement a total of 10 million Glass Earth common shares and 7.5 million warrants at an exercise price of 25 cents per common share for a period of 2 years. St Andrew's aggregate purchase price for the securities was $1,500,000.

This additional interest increases the strategic investment in Glass Earth Limited to approximately 16.7% of the outstanding common shares of Glass Earth Limited on an undiluted basis and is part of St Andrew's strategy of obtaining a presence in one of the world's more prospective gold mining and gold exploration regions described below.

St Andrew acquired the units for investment purposes, and depending on market conditions and other factors, may increase or decrease its holdings in Glass Earth in the future.

Glass Earth Company Profile
Glass Earth is one of the largest New Zealand based gold exploration companies exploring a land position of over 33,175 square kilometres in the North and South Islands.

North Island

In the North Island exploration efforts are focussed on the Coromandel/Central Volcanic Region. The Coromandel / Central Volcanic Region is host to the 10 million ounce Waihi/ Martha Hill Mine, owned by Newmont Mining, which is considered the "type" epithermal gold deposit and the kind of large epithermal gold deposit targeted by Glass Earth

- Glass Earth has defined and delineated a total of 21 priority individual target areas that could potentially host large deposits of Martha Mine "look-a-like" epithermal gold mineralization. These target areas have been covered by Exploration Permits. Drill ready targets have been generated in these areas and drilling has commenced.

- Glass Earth has entered into a Joint Venture Agreement with Newmont Waihi Mining for Newmont to fund the exploration of one of these targets in the Waihi West area adjacent to Newmont's Waihi/Martha Mine Operation

- Glass Earth will explore the Hauraki Region Exploration and Prospecting Permits that were acquired as part of the HPD New Zealand transaction

South Island

In the South Island exploration efforts are focussed on the Otago Region for mesothermal "Macraes-style" gold targets.

St Andrew (TSX.SAS) is a gold mining and exploration company with gold production operations at its Stock Gold Complex, Timmins, Ontario and Nixon Fork Gold Mine, Alaska. The company 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. The Company also holds an interest in the New Zealand based gold explorer Glass Earth.

FORWARD LOOKING STATEMENTS

Certain statements contained in this press release are "forward-looking statements" and are prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.


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