SAS Declares Commercial Production at its Holt Mine

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

TORONTO, April 13 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce that the Holt Mine has now achieved commercial production after operating for 90 days at an average daily throughput of between 450 to 500 tonnes per day ("tpd"). Operational statistics will be provided in the Company's upcoming scheduled first quarter 2011 earnings release on or about May 6, 2011. The Holt Mine and Mill are located on the eastern portion of the Company's extensive land package in the Timmins Mining District.

During the second half of 2010 the Company commenced pre-production activities at the Holt Mine in order to bring the mine into production at the beginning of the second quarter this year. During 2011, ore will be extracted primarily from two zones (C-103 and Zone 4). Currently, production mining is occurring in the C-103 Zone and development work is being completed in Zone 4 with the objective to commence mining activities in this zone during the second half of the year. Production throughput is anticipated to increase from the initial rate of 500 tpd to 1,000 tpd around the end of this year. The Holt Mine, along with the Holloway and Hislop mines are targeted to produce between 85,000 to 95,000 ounces of gold for 2011.

"Commencing production at Holt was one of several major milestones in the rebuilding of SAS," said Jacques Perron, President & CEO of SAS. "This year remains a transitional year for the Company as we continue to ramp up the throughput at Holt to 1,000 tpd; and shift the mining areas at Holloway from the Blacktop Zone to the Smoke Deep Zone. We believe our first few quarters will be impacted by these changes; however, we are still on track to achieve our objectives. Now that we have completed our initial operational goals and commenced our targeted exploration programs, we can start to assess other opportunities in the region in order to add to the continued growth and success of SAS."


Qualified Person

Production at the Holloway, Hislop and Holt mines, and processing at the Holt Mill are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's Vice President & General Manager, East Timmins Operations. Mr. Middlemiss is the qualified person as defined by NI 43-101, and who has reviewed and approved this news release.


About SAS

SAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive land package in the Timmins mining district, northeastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada. SAS is focussed on developing its assets in the Timmins Camp, with three producing mines and aggressive exploration activities across 120km of land straddling the Porcupine-Destor Fault Zone.


FORWARD-LOOKING INFORMATION

This news release contains forward‐looking information and forward-looking statements (collectively, "forward-looking information") under applicable securities laws, concerning the Company's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward-looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results, including in respect of production levels and development at the Holt Mine during 2011; the completion of underground access to the Smoke Deep Zone and its contribution to production from the Holloway Mine; and the Company's gold production level in 2011. 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 expressed or implied by the forward‐looking information. Factors that may cause actual results to vary materially include, but are not limited to, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources, the ability to convert inferred resources into mineable reserves, unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; fluctuations in gold prices and exchange rates, insufficient funding or delays or inability to raise additional financing on satisfactory terms, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions, changes in conditions in the financial markets and an adverse Appeal Court decision on the Holt Royalty. Such forward-looking information is based on a number of assumptions, including but not limited to the expected timeline to complete pre-production activities, the availability of adequate financing, the level and volatility of the price of gold, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the ability to achieve capital and operating cost estimates and general business and economic conditions. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward‐looking information. SAS 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.



For further information:

For further information about St Andrew Goldfields Ltd., please contact:
Tel: 1-800-463-5139 or (416) 815-9855
Fax: (416) 815-9437
Website: www.sasgoldmines.com

Suzette N Ramcharan
Manager, Investor Relations
Email: sramcharan@sasgoldmines.com

Jacques Perron, President & CEO
Email: jperron@sasgoldmines.com

Ben AuCFO, VP Finance & Administration
Email: bau@sasgoldmines.com