VANCOUVER, BRITISH COLUMBIA, June 12 /CNW/ - Elias Mines Ltd. ("the
Company") (TSX VENTURE:SLI) (ISIN CA7849211080) provides initial assay results
from 106 rock samples collected during the ongoing Phase I exploration program
at the Vilcoro Gold Property ("the Property") located in north-central Peru.
Geneva has an option to earn a 66% interest in the Property from St. Elias.

    Gold assays from the 106 rock samples ranged from 0.018 to 842 g/t across
an average sample width of 1.48 meters. Discounting a double-checked assay
value of 842 g/t Au (24.55 opt Au) obtained across a 0.9-m-wide structure, the
105 remaining samples had a weighted arithmetic average grade of 3.0 g/t gold.
No under-limit (less than 5ppb Au) assays were obtained, and only 6 samples
returned assays of less than 0.1 g/t gold. Anomalous gold is associated with
anomalous silver (average 5.35 g/t), manganese (average 6,839 ppm), antimony
(average 2,954 ppm), arsenic (average 725 ppm) and mercury (average 5.35 ppm),
suggesting an epithermal affiliation.

    Almost all samples were collected from five historic underground workings
denominated Tunnel Manto (which is actually a labyrinth of tunnels), Tunnel
Eucalipto, Tunnel Juan, Tunnel Alto and Tunnel Loro. To date, approximately
170 meters of underground working have been sampled on the Property.

    Sampling in Tunnel Manto, Tunnel Eucalipto and Tunnel Juan has identified
a continuous zone of gold-silver mineralization measuring 120 meters in an
east-west direction, 25 meters in a north-south direction and open to the
east, west and south. Approximately 1,000 meters along strike and to the east
of Tunnel Manto, previous reconnaissance exploration identified an area of
anomalous soils carrying up to 0.49 g/t Au, 2,647 ppm manganese, 557 ppm
arsenic, 249 ppm antimony, and 2.01 ppm mercury. This is precisely the
signature of anomalous elements in the tunnel samples, suggesting that
mineralization might extend for a considerable distance to the east.

    Management is very pleased with the initial results of the Phase I
exploration program on the Property, which is now continuing with an emphasis
on determining the extent of the mineralized zones by trenching and detailed
soil sampling.

    Sample preparation and analytical work was undertaken at ALS Chemex SA
laboratory (an ISO-certified facility) in Lima, Peru, using standard industry
practice fire assay with an atomic absorption finish. Seven over-limit
(greater than10 g/t Au) samples were re-assayed using a gravimetric finish.
One extremely high-grade (842 g/t Au) sample was double-checked using a
gravimetric finish. All samples were also analyzed for 35 additional elements
utilizing ICP after aqua-regia digestion.

    The Vilcoro Gold Property comprises 1,600 hectares and lies along the
same geological belt of Tertiary rocks that hosts many multi-million-ounce
deposits in northern Peru such as Newmont's Yanacocha Mine (+40 million oz
gold) and Barrick's Pierina deposit (8 million oz. gold). The Property is
favourably located adjacent to the claim block that covers the Lagunas Norte
mine (+9 million oz gold) recently put into production by Barrick Gold in the
Alto Chicama mining district of central Peru.

    The technical information contained in this news release has been
verified by John Brophy, P.Geo., a Canadian geologist residing in Peru, who is
a qualified person as defined in "National Instrument 43-101, Standards of
Disclosure for Mineral Properties."

    For additional information on St. Elias and its projects, please visit us
at www.steliasmines.com or call 1-888-895-5522 (toll free US and Canada).

    ST. ELIAS MINES LTD.

    (signed "Lori McClenahan")

    Lori McClenahan,

    President

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of the contents of this
document.

    This News Release may contain forward-looking statements including, but
not limited to, comments regarding the timing and content of upcoming work
programs, geological interpretations, potential mineral recovery processes,
etc. Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.

For further information:

For further information: Elias Mines Ltd. Lori McClenahan, 888-895-5522