St. Eugene Announces Drill Results at the Amisk Gold Joint Venture Project, Saskatchewan

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

TORONTO, ONTARIO -- (Marketwire - Jan. 6, 2012) - St. Eugene Mining Corporation Limited (TSX VENTURE: SEM) (“St. Eugene“ or the “Company“) announces the remainder of its 2011 exploration results from the Amisk Gold Joint Venture Project (the “Amisk Gold JV“) in northeastern Saskatchewan. Highlights from the program include:

- 6.24 grams of gold per tonne and 23.5 grams of silver per tonne over 12.0 metres and 3.39 percent zinc and 0.91 percent lead over 1.81 metres in hole AL-11-318

- 1.95 grams of gold per tonne and 14.9 grams of silver per tonne over 18.95 metres in AL-11-319

A total of 20 holes comprising 6,480 metres were drilled during the fall program. The remaining 6 holes are presented in Table 1 below. The program tested from surface to in excess of 700 metres depth and was designed to expand the limits of the Amisk Gold deposit as well as infill within the northern and eastern portion of the deposit.

Mineralization intercepted in the drilling is consistent with the current resource model and is associated with a sequence of quartz porphyritic, rhyolitic lapilli tuffs and basaltic tuffs and argillite hosting disseminations, stringers and semi-massive intervals of pyrite, sphalerite, galena, tetrahedrite, pyrrotite and chalcopyrite.

Drill hole AL-11-319 confirmed continuity of gold mineralization within the southeastern portion of the deposit as well as demonstrated the potential for expansion to the east and southeast. Four holes were completed evaluating the continuity of the system to depths in excess of 700 metres. Hole AL-11-318 intercepted significant mineralization at depth with intercepts of up to 71.74 metres at 0.60 grams of Au per tonne as well as a 1.81 metre interval of 3.39 percent zinc and 0.91 percent lead in the hanging wall, 250 metres west of the deposit.


Table 1: 2011 fall drill results from the Amisk Gold JV.

Hole Easting Northing Az/Dip From
(m) Length(m) Au
(g/t) Ag
(g/t) Zn(%) Pb(%)
AL-11-315 676999 6066416 184/-62 87.94 12.22 1.32 6.7 - -
Incl 95.08 1.92 5.42 30.8 - -
AL-11-316 676868 6066443 177/-58 92.00 37.00 0.49 2.2 - -
AL-11-317 676769 6066515 178/-58 256.00 16.50 1.37 5.7 - -
incl 257.00 3.00 5.28 22.4 - -
AL-11-318 676444 6066436 166/-66 69.00 1.81 0.17 11.5 3.39 0.91*
and 311.00 12.00 6.24 23.5 - -
incl 313.85 1.15 62.00 224.0 - -
and 643.50 71.74 0.60 4.0 - -
incl 699.50 14.00 1.64 11.8 - -
and 728.00 37.00 0.61 2.2 - -
incl 763.00 2.00 5.71 22.0 - -
and 809.39 10.61 1.65 2.6 - -
incl 809.39 2.21 6.06 8.5 - -
AL-11-319 676744 6065948 97/-47 53.00 32.00 0.98 7.1 - -
incl 68.00 1.00 8.95 39.7 - -
and 159.50 29.00 0.59 5.6 - -
and 206.50 21.00 1.28 8.5 - -
incl 223.00 1.50 11.30 45.3 - -
and 339.00 18.95 1.95 14.9 - -
incl 348.00 3.01 7.38 57.7 - -
AL-11-320 676709 6065787 105/-47 NSI - -

Note: Intervals noted are intercepted width not true width, have been calculated using a 0.3 g/tonne cut-off and are uncut. True width is variable between 60 and 100 percent of drilled width. They may include internal dilution intervals of up to 10 metres. NSI - No Significant Intercept. * Note that lead assays are preliminary and subject to further check sampling.

A location map of the Amisk Gold JV and a detailed plan map showing current drill results can be viewed at St. Eugene's website www.steugenemining.ca.

The Amisk Gold JV is a joint venture between Claude Resources Inc. (“Claude“) and St. Eugene. St. Eugene holds a 35% participating interest in the Amisk Gold JV and Claude holds a 65% interest and is the operator of the joint venture.

As at December 31, 2011, Claude held an approximate 9.7 percent interest in the common shares of St. Eugene. On October 25, 2011, Claude and St. Eugene jointly announced that they had entered into a definitive agreement pursuant to which Claude proposes to acquire, by way of a court-approved plan of arrangement, all of the shares of St. Eugene that it does not already own. The agreement was subsequently amended on November 30, 2011 and December 14, 2011. The plan of arrangement will be voted on at St. Eugene's annual general and special meeting of shareholders on January 17, 2012 at 4:00pm (Toronto time) at the Toronto Board of Trade. If shareholder and court approval is obtained and all conditions of closing are satisfied or waived, the transaction is expected to close on or before January 24, 2012. Information relating to the definitive agreement and St. Eugene's annual general and special meeting of shareholders can be found under St. Eugene's profile at www.sedar.com.

Brian Skanderbeg, P. Geo., Vice President Exploration, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of Claude.

Tania Ilieva, P. Geo., Vice President, Exploration, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of St. Eugene.


ABOUT ST. EUGENE

St. Eugene is a Toronto-based exploration company that is actively exploring for and developing gold properties, both in Manitoba and Saskatchewan. The Company's three main assets are the Tartan Lake Gold Mine Project (“Tartan Lake“) in Manitoba (100% interest), and, in Saskatchewan, the Amisk Gold Joint Venture Project (35% interest St. Eugene - 65% interest Claude) and the Amisk North Gold Project (100% interest). All three assets are located in the prolific Flin Flon Greenstone Belt.

Tartan Lake's independent NI 43-101 resource estimate (completed by MineTech International Ltd. and released on November 8, 2010) resulted in an indicated mineral resource of 1,000,000 tonnes at 4.0g/t Au (130,000 ounces) and an additional inferred mineral resource of 1,900,000 tonnes at 3.9g/t Au (240,000 ounces).

The Amisk Gold JV's independent NI 43-101 resource estimate (completed by SRK Consulting (Canada) Inc. and released April 4, 2011) resulted in an indicated mineral resource of 921,000 ounces at 0.95 g/t AuEq and an additional inferred mineral resource of 645,000 ounces at 0.70 g/t AuEq. A total of 548,100 ounces is attributed to St. Eugene for this project.



CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of St. Eugene contains statements that constitute “forward-looking statements.“ Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause St. Eugene's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,“ “plans,“ “anticipates,“ “believes,“ “intends,“ “estimates,“ “projects,“ “potential“ and similar expressions, or that events or conditions “will,“ “would,“ “may,“ “could“ or “should“ occur. Forward-looking statements in this document include statements regarding St. Eugene's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which St. Eugene has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from St. Eugene's expectations. St. Eugene undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.


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Contact Information

St. Eugene Mining Corporation Limited
Jennifer Boyle, B.A., LL.B
President and Chief Executive Officer
T: (647) 344.3158 or C: (416) 904.2714
jennifer@capexgroupinc.com
www.capexgroupinc.com