St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

May 05, 2008 16:47 ET

St Andrew Sells a 6.1% Interest in Glass Earth Gold Limited

OAKVILLE, ONTARIO--(Marketwire - May 5, 2008) -

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

St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") announces that it has agreed to sell, 9,424,000 of its current holding of approximately 45.5 million common shares in Glass Earth Gold Limited ("Glass Earth") to Herbert Abramson ("Abramson"), the Chairman of the Company, on a private sale basis, at a price of $0.11 per share, for proceeds of approximately $1.04 million. The transaction is expected to close on or about May 12, 2008. The average closing price of the Glass Earth shares on the TSX Venture Exchange for the five days ended May 2, 2008 was $0.103.

On April 7, 2008, the Company filed a notice of intention to sell up to 25.0 million Glass Earth shares and to date the Company has sold 20.0 million Glass Earth shares. On April 30, 2008, the Company filed an updated notice of intention to sell up to 25.5 million Glass Earth shares, which includes 5.0 million shares unsold pursuant to the original notice. Following completion of the sale to Abramson, St Andrew will have sold approximately 29,429,000 Glass Earth shares to private investors, of which 22,891,000 Glass Earth shares will have been sold to related parties of St Andrew. St Andrew sold these Glass Earth shares as part of its revised business plan to focus its efforts on the development of the Holloway-Holt Mine located in Ontario, Canada, to be financed by the divestiture of non-core assets such as its investment in Glass Earth shares. Depending on market conditions and other factors, the Company may make further dispositions of its holdings in Glass Earth shares in the future.

After completion of the sale to Abramson, St Andrew will continue to hold a 23.3% interest in Glass Earth.

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 23.3% 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.

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, 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 should refer to the Company's Annual Information Form filed at www.sedar.com for a further discussion of such risks, uncertainties and factors. 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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