St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

June 08, 2006 10:04 ET

St Andrew Announces Appointment of Mine Manager and Production Plans For Nixon Fork Mine, Alaska

OAKVILLE, ONTARIO--(CCNMatthews - June 8, 2006) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew") is pleased to announce the recent appointment of William J. Burnett as Mine Manager of its Nixon Fork gold mine in Alaska and provide its plans to begin gold production in the third quarter of 2006.

Mine Manager

William ("Bill") J. Burnett has been appointed Mine Manger for the Nixon Fork gold mine located approximately 35 miles northeast of McGrath in west central Alaska. Mr. Burnett has been employed by St Andrew's subsidiary, Mystery Creek Resources, Inc., as its Exploration Manger since early 2003. He is a graduate of Colorado State University with a Master of Science degree in Economic Geology. Mr. Burnett has worked in various exploration, development and operating projects in Colorado, Nevada, and Alaska since 1988. He worked as both Mine Geologist and Chief Geologist at the Nixon Fork Mine from 1995 through 1999. Most recently he managed a 28,000 metre, multi-year surface and underground exploration program to extend the resource base of the Nixon Fork property. Mr. Burnett is married with one child and resides in Wasilla, Alaska.

Production Plans

St Andrew recently received the state and federal permits necessary to recommence mining activities at the Nixon Fork gold mine. Modifications are taking place on the existing mill to allow for treatment of both new ore and existing tailings from the previous operations by an enhanced gravity, flotation and cyanide leach process. In addition mine development activities are expected to commence in early summer. Mine and mill production is expected to commence in Q3, 2006 at a rate of approximately 150 tonnes per day. Gold production of approximately 15,000 ounces is planned for 2006. When in full production, the Nixon Fork gold mine is expected to employ approximately 45 individuals and produce approximately 45,000 ounces of gold per year.

A resource estimate by Roscoe Postle Associates, Inc. of Toronto and Vancouver, Canada in April, 2005 estimated the measured and indicated resource at Nixon Fork at 91,400 tonnes grading 1.1 ounce per tonne or containing 100,300 ounces of gold. An additional 151,000 tonnes grading 0.4 ounce per tonne or 61,400 ounces of gold were classified as an inferred resource. This inferred resource includes approximately 116,000 tonnes of tailings from previous operations grading 0.26 ounces per tonne which St Andrew expects to reprocess in the summer of 2007 and 2008 using the cyanide leach process being installed.

St Andrew (TSX:SAS) is a gold mining and exploration company with gold production planned from its Stock Gold Complex, Timmins, Ontario and Nixon Fork gold mine, Alaska. St Andrew controls a large land position in the Timmins mining camp and holds an extensive land position at Eskay Creek in northern British Columbia. St Andrew holds an approximate 16.7% interest in Glass Earth Limited, a New Zealand-based gold exploration company.

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. Generally, these forward-looking statements can be identified by the use of words such as "expected", "planned", "estimated" or the negative of such terms, or other comparable terminology.

Specifically, this press release contains forward-looking statements regarding:

- the expectation that mine development activities will commence in early summer;

- the expectation that mine and mill production will commence in late summer/fall at a rate of approximately 150 tonnes per day;

- gold production of approximately 20,000 ounces for 2006;

- the expectation that the Nixon Fork gold mine will produce approximately 45,000 ounces of gold per year;

- the expectation of reprocessing 116,000 tonnes of tailings from previous operations grading 0.26 ounces per tonne in the summer of 2007 and 2008; and

- the expectation that gold will be produced from the Stock Gold Complex and the Nixon Fork gold mine.

These forward-looking statements are based on current expectations and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Inherent in forward-looking statements are risks and uncertainties beyond St Andrew's ability to predict or control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such statements are based on a number of assumptions and factors which may prove to be incorrect, including, but not limited to, assumptions about:

- interest rates and foreign exchange rates;

- the supply and demand for, deliveries of, and the level and volatility of prices of gold;

- the timing of the receipt of regulatory and governmental approvals for St Andrew's development projects and other operations;

- the availability of financing for St Andrew's development projects on reasonable terms;

- the costs of production to St Andrew and St Andrew's production and productivity levels, as well as those of its competitors;

- engineering and construction timetables and capital costs for St Andrew's development projects;

- market competition;

- risks involved in mining, processing, exploration and research and development activities;

- tax benefits;

- St Andrew's ongoing relations with its employees.

- changes in commodity prices;

- changes in currency exchange rates;

- inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources);

- unanticipated operational difficulties;

- delays in receipt of governmental approvals;

- unanticipated events relating to environmental, health and safety matters; and

- changes in general economic conditions or conditions in the financial markets.

St Andrew's ability to predict the results of its operations or the effects of various events on its operating results is inherently uncertain. Therefore, the reader is cautioned to consider carefully the matters described under the caption "Risk Factors" and certain other matters discussed in St Andrew's annual information form dated March 29, 2006 for the fiscal year ended December 31, 2005. Such factors and many other factors beyond St Andrew's control could cause St Andrew's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by the forward-looking statements.

The above list is not exhaustive of the factors that may affect the forward-looking statements. These and other factors should be considered carefully by prospective investors, who should not place undue reliance on such forward-looking statements. Statements relating to "mineral reserves" or "mineral resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future. These statements reflect management's beliefs and are based on information currently available to St Andrew's management. Although St Andrew believes that these statements are based on reasonable assumptions, a number of factors could cause the actual results, performance or achievements of St Andrew to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. St Andrew does not undertake any obligation to publicly update or revise any forward-looking statement after the date of this press release to conform such statements to actual results or to changes in St Andrew's expectations except as otherwise required by applicable legislation.

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