St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

December 18, 2006 15:06 ET

St Andrew Closes $10 Million Private Placement

OAKVILLE, ONTARIO--(CCNMatthews - Dec. 18, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew") is pleased to announce the closing of its previously announced non-brokered "flow-through" share private placement for gross proceeds of $10 million. On closing, St Andrew issued 7,692,308 common shares on a "flow-through" basis at $1.30 per share.

Insiders of St Andrew subscribed for approximately 74.28% of the offering.

The proceeds from the offering will be used for exploration and development expenses with respect to St Andrew's properties in Timmins, Ontario and Eskay Creek, British Columbia.

The flow-through shares issued pursuant to the foregoing will be subject to a four-month hold period.

St Andrew (TSX:SAS) is a gold mining and exploration company producing gold from its Stock Gold Complex in Timmins, Ontario and from its Nixon Fork project 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 48.3% equity interest in the New Zealand-based gold explorer Glass Earth Limited.

FORWARD-LOOKING STATEMENTS

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, 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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