St Andrew Goldfields Ltd.

St Andrew Goldfields Ltd.

November 20, 2006 16:48 ET

St Andrew Awards Aquarius Feasibility Study to SRK and Announces Mike Kolin as Project Manager

OAKVILLE, ONTARIO--(CCNMatthews - Nov. 20, 2006) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") is pleased to announce that SRK Consulting (US) Inc. ("SRK") has been appointed Manager and co-coordinator of the Aquarius Feasibility Study and Mr. Mike Kolin has been appointed as St Andrew's Project Manager.

Aquarius Feasibility Study

SRK has been engaged to prepare a bankable feasibility study of the Aquarius Project. As such SRK is responsible for specific technical elements of the study and general oversight and coordination of the work of others in the preparation of this study. These technical elements include resource and reserve estimation, mine design, mine planning and financial modeling. SRK is also responsible for study compilation. GBM Minerals Engineering Consultants Limited of the London, England will be responsible for Process and Infrastructure and other sub-consultants will be appointed, as needed, to address geotechnical, hydrogeological and environmental and permitting aspects of the project. The consultant team will work closely with the St Andrew's project manager and the owner's project team.

Project Manager - Mike Kolin

Mike Kolin, P.E., Principal Mine Engineer, Gustavson Associates, LLC, has been appointed St Andrew's Project Manager and will be the primary contact and liaison between SRK, the sub-consultants and St Andrew during the study. He will work closely with SRK to ensure availability of data and resources for timely completion of the work. Mr. Kolin has over 35 years of engineering and project management experience in the mining industry. He received an Engineer of Mines degree from the Colorado School of Mines and a Master of Science degree in Mining Engineering from the Henry Krumb School of Mines.

Aquarius Deposit and the Stock Gold Complex

On May 10, 2006, St Andrew acquired the Aquarius Deposit, including associated plant infrastructure and equipment from Kinross Gold Corporation for shares and warrants of the Company. The transaction resulted in Kinross acquiring an approximate 12% common share interest in the Company on an undiluted basis.

The Company views the Aquarius Deposit as a strategic development for the Stock Gold Complex that could add a large bulk open pit component to an existing low tonnage higher grade underground mining operation. In addition, the Company believes a number of synergies exist to integrate the Aquarius Deposit into its existing operations as a production unit of the Stock Gold Complex.

Location, Description and History

The Aquarius Deposit is located approximately 8 kilometres by road from the Stock Gold Complex. The property consists of 9 mining leases, 41 patented and 35 unpatented claims covering 5,341 hectares.

Echo Bay Mines Ltd. ("Echo Bay Mines") acquired the Aquarius Deposit in 1995 and initiated a surface drill program aimed at identifying a large bulk ore tonnage. Kinross subsequently acquired the Aquarius Deposit in February 2003 through a merger with Echo Bay Mines and TVX Gold Inc. St Andrew acquired the Aquarius Deposit from Kinross in May 2006.

The Aquarius Deposit is positioned along a large regional esker that acts as a major groundwater aquifer in the region. Groundwater inflows, particularly in the glacial tills, sands and gravels that overlie the Aquarius Deposit can be significant. Accordingly, mitigation of the ground water inflow is a key factor in the development of the Aquarius Deposit. From May 1997 to March 1998, Echo Bay Mines installed over 2,240 freeze wells, all related piping and two 1,250 tonne freeze plants to complete a freeze wall system. This system surrounds the deposit with a barrier of frozen ground which will limit the inflows of ground water into the future Aquarius open-pit mine. Physical work on the project was halted on the completion of the freeze wall installation due to low gold prices in 1999.

Mineral Resource Estimates

The Aquarius Deposit is discussed in detail in a NI 43-101 technical report prepared by Scott Wilson RPA titled "Technical Report on the Aquarius Project, Timmins, Ontario, Canada" (the "Aquarius Technical Report") and dated October 2, 2006. In the Aquarius Technical Report, Scott Wilson RPA reported the following mineral resources:

Aquarius Project - Mineral Resources

Indicated Inferred
Tonnes Grams Ounces Tonnes g/t Au Ounces
per Au Au
Aquarius Deposit 23,112,000 1.49 1,106,000 502,000 0.83 14,000

(a) Grades are cut to 100 g/t Au.
(b) No cut-off grade is applied because of uncertainty about selectivity
within the deposit.
(c) No minimum mining width was used in the resource estimate.
(d) a gold price of US$500 per ounce was used.
(e) An exchange rate of C$: US$ of 0.90 to 1.0 was used.

Plans for Aquarius Deposit

In November 2005, GBM Minerals Engineering of London, England completed a conceptual plan for the Company for integrating the Aquarius Deposit into the existing Stock Gold Complex operations. This conceptual plan is based on a combined underground and open-pit mining and milling operation of 9,000 tonnes per day which consists of the existing Stock Gold Complex gold mill capacity of 1,500 tonnes per day of underground ore from the Clavos and Taylor Deposits, combined with open-pit production of 7,500 tonnes per day from the Aquarius Deposit. The conceptual plan envisaged a 10 kilometre long overland conveyor belt system from the Aquarius open-pit to the enlarged Stock Gold Complex.

St Andrew (TSX:SAS) is a gold mining and exploration company producing gold from its Stock Gold Complex in Timmins, Ontario and with gold production from its Nixon Fork project in Alaska scheduled to commence in November of 2006. In addition, the recently acquired Holloway-Holt Gold Mine in the Timmins Mining Camp is forecast to increase St Andrew's gold production. 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 48.3% equity interest in New Zealand-based gold explorer, Glass Earth Limited.

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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