St. Augustine Gold and Copper Limited
TSX : SAU

August 12, 2011 05:00 ET

St. Augustine Gold & Copper Limited Announces Positive New Drill Data, 80% Completion of the Feasibility Drill Program and Site Audit Report on the King-king Project

SPOKANE, WASHINGTON--(Marketwire - Aug. 12, 2011) - St. Augustine Gold and Copper Limited (TSX:SAU) is pleased to announce the intersection of highly mineralized sample intervals in two recently completed drill holes (SAG01 and SAG02) with resulting assays that compare favorably with the gold and copper grades predicted by the block model from the mineral resource estimate disclosed in the NI 43-101 October 2010 Technical Report. These results are supported by a positive third party site visit audit report on the overall King-king Project drilling and geology programs. Andy Russell, President and CEO, states, "These intercepts confirm the high quality and integrity of the existing King-king data. The grades in SAG01 are extremely compelling with 99 meters of greater than 1 g/t gold and 1.1% copper."

King-king is a world class copper and gold porphyry deposit with measured and indicated resources of 792 million tonnes grading 0.37 g/t gold, 0.28% copper and 0.815 g/t eq. gold (October 2010 Technical Report for King-king). The King-king deposit is a porphyry copper-gold deposit hosted by hornblende-biotite diorite porphyritic rocks that intrude interbedded sediments, submarine volcanic rocks, and volcanoclastic sediments. Copper and gold mineralization occurs at or near the apex of the composite diorite intrusive complex within the intrusive rocks and extending well into the surrounding wall rocks. The majority of the copper mineralization consists of chalcopyrite and bornite. Gold is relatively abundant in the oxide zone above the deposit's main sulfide zone, and also occurs in the sulfide zone in free form in close association with bornite and other sulfides.

Equivalent g/t gold (Eq Au) levels are used in various places in this release to illustrate the combined effect of the two metals in this project, gold and copper. The following calculations were applied to calculate the Eq Au in the oxide ore and the sulfide ore:

Eq Au (Oxide) = Gold + 1.399 x Total Copper

Eq Au (Sulfide) = Gold + 1.668 x Total Copper

These equations were derived from the parameters listed in the table below that was taken directly from the October 2010 Technical Report for the King-king Project.

To view Table 1-2 - Economic Parameters for Kingking, please click the following link: http://media3.marketwire.com/docs/STAGC_Kingking.pdf

The current drill hole database consists of 276 holes representing 89,922 meters of drilling with an average drill hole spacing ranging from 94 to 125 m. The lower extent of the deposit is often open, with numerous historic holes that terminated in ore grade mineralization. The potential for discovery of additional mineral resources in both the undrilled portion of the deposit as well as in outlying areas of the mineral property tenement is regarded as excellent.

The King-king drilling to support metallurgical, geotechnical and hydrogeological components of the King-king feasibility study is progressing well, with 80% of the 15 hole program completed. The four metallurgical core holes have been completed to collect samples for additional metallurgical testing that St. Augustine anticipates will confirm current process designs developed based on samples from existing core tested in the first half of 2011. Five holes (80% of plan) of the planned 6 have been completed for the open pit geotechnical evaluation. Three of the planned five hydrogeological holes have been completed for the project's hydrogeological assessment.

Analytical results for SAG01 and SAG02, two of three holes completed to date that were designed for confirmation of the October 2010 mineral resource estimate and to provide core for metallurgical test work have been received from Intertek Lab in Muntinlupa City, Philippines.

Drill hole SAG01 is an angle hole (azimuth: 205 degrees, dip: -66 degrees) drilled in the central eastern portion of the copper-gold deposit. The grades for various intervals are illustrated in Table 1 below including those predicted by tracing the hole in the block model.

Table 1 – Copper and Gold Grades in SAG01

Data Source Interval Dist. (m ) g/t Au %Cu g/t Eq Au Comments
From (m ) To (m )
Drill Core 0 600 600 0.299 0.368 0.868 Collar to pit bottom
Drill Core 141 240 99 1.03 1.14 2.82 Interval greater than 2 g/t Eq Au
Drill Core 159 216 57 1.42 1.31 3.45 Within the 99 m interval
Drill Core 171 183 12 2.35 1.76 4.96 Within the 99 m interval
Block Model 0 600 600 0.144 0.255 0.533 Collar to pit bottom
Block Model 165 310 145 0.156 0.441 0.818 Significant interval

SAG0 2 is an angle hole (azimuth: 184 degrees, dip: -71 degrees) located in the central part of the deposit that laboratory results show also has significant thicknesses of Eq. Au mineralization. The grades for various intervals are illustrated in Table 2 below including those predicted by tracing the hole in the block model.

Table 2 – Copper and Gold Grades in SAG02

Data Source Interval Dist. (m ) g/t Au %Cu g/t Eq Au Comments
From (m ) To (m )
Drill Core 0 455 455 0.129 0.197 0.443 Collar to pit bottom
Drill Core 45 195 150 0.166 0.295 0.624 Significant interval
Drill Core 45 84 39 0.142 0.476 0.808 Within the 150 m interval
Drill Core 111 156 45 0.182 0.317 0.711 Within the 150 m interval
Block Model 0 455 455 0.145 0.280 0.597 Collar to pit bottom
Block Model 148 211 63 0.107 0.463 0.878 Significant interval

Table 3 summarizes the assays from drill holes SAG01 and SAG02 by material type.

Table 3 – Summary Assay Information for SAG01 and SAG02 to TD

Hole Id Mineralized Intercept
From (m ) To (m ) Length (m ) Cu ( %) Au (ppm ) Eq. Au (ppm )
SAG01
oxide 0 162 162 0.44 0.293 0.919
ox-sulf mix 162 180 18 1.54 1.745 3.909
sulfide 180 651 471 0.27 0.235 0.685
SAG02
oxide 0 27 27 0.05 0.072 0.141
ox-sulf mix 27 87 60 0.39 0.117 0.667
sulfide 87 456 369 0.18 0.136 0.444

The project's drilling contractor is DrillCorp, Carmona Cavite, Philippines. The assay laboratory is Intertek Testing Services, Muntinlupa City, Philippines. The geotechnical core testing company is Geotechnica, Manila, Philippines. These firms are currently primarily focused on collecting and analyzing additional data and samples for the geotechnical, hydrogeological, and metallurgical studies that will form the basis of the feasibility-level mine design (pit slope stability study), process design (sulfide flotation concentrator study), tailing disposal system design, as well as supply information for the waste rock and tailing characterization and for evaluating surface and underground water impacts and mitigation plans for the feasibility study.

Additionally, the Company has received a positive site audit report from Donald Earnest, PG and President of Resource Evaluation Inc. (REI), Tucson, AZ (consultant on the feasibility study team). As part of continued operations and the current feasibility study work program, there will continue to be an on-going audit and review of King-king's site management data collection process and procedures. The current drill program, core handling, and assaying procedures at the drill-site and core storage facility, and the activities at the independent laboratory facilities for sample preparation and analysis are being conducted with the highest standards of quality control to assure accurate results in order to maintain the project's existing integrity.

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Mr. David Harvey, a Qualified Person under NI 43-101, has reviewed the geological and drill hole contents of this press release. Mr. James J. Moore, P.E., a Qualified Person under NI 43-101, has reviewed the contents of this press release.

A NI 43-101 compliant technical report entitled "King-king Copper-Gold Project Mindanao, Philippines" dated October 12, 2010 and prepared by Michael G. Hester, FAusIMM of Independent Mining Consultants, Inc., Donald F. Earnest, P.G., of Resource Evaluation, Inc. and John G. Aronson of AATA International, Inc. has been filed by the Company on www.sedar.com.

For further information about the Company, please refer to the Company's filings on SEDAR (www.sedar.com).

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation, the use of net proceeds are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainties relating to the completion of a bankable feasibility study; uncertainty of estimates of capital and operating costs, recovery rates production estimates and estimated economic return; the need for cooperation of government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the informational circular of the Company dated November 19, 2010 filed with Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.

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