Toronto, Canada March 4, 2013

Transcription

1 NEWS RELEASE SAS REPORTS ADDITIONAL DRILLING RESULTS FOR THE HISLOP NORTH AND SMOKE DEEP ZONES AND SIGNIFICANT INITIAL RESULTS FROM THE HISLOP PIT COMPLEX AND NEW SEDIMENT ZONE AT THE HOLLOWAY MINE Hislop Pit Returns g/t Au over 9.6 Metres; Sediment Zone Returns 5.60 g/t Au over 8.1 Metres Toronto, Canada March 4, 2013 St Andrew Goldfields Ltd. (T-SAS), ( SAS or the Company ) is pleased to announce drilling results from the Hislop North Project ( Hislop North ), northwest of the Hislop Mine, the Hislop Pit depth extension drilling ( Hislop Pit Complex ), additional drilling results from the Smoke Deep Zone ( Smoke Deep ) and Sediment Zone at the Holloway Mine. HIGHLIGHTS OF DRILLING RESULTS Hislop Pit Complex HP12-001: HP12-002: Hislop North H12-035: H : Smoke Deep Zone : : GH Sediment Zone GH13-001: GH12-001: 2.25 g/t Au over 11.1 metres g/t Au over 9.6 metres (uncut) or g/t Au over 9.6 metres (cut) including g/t Au over 7.5 metres (uncut) or g/t Au over 7.5 metres (cut) g/t Au over 3.7 metres 7.70 g/t Au over 6.2 metres 5.85 g/t Au over 11.4 metres 6.83 g/t Au over 13.6 metres 8.64 g/t Au over 7.9 metres 3.46 g/t Au over 12.2 metres including 4.39 g/t Au over 6.6 metres 5.20 g/t Au over 4.0 metres 5.60 g/t Au over 8.1 metres Notes: All lengths reported at Hislop North, Hislop Pit Complex, Smoke Deep and the Sediment Zone are reported as core length as true width is not available at this time. Assays at Hislop North and Hislop Pit Complex are cut to g/t Au. Assays at Smoke Deep and Sediment zones are cut to g/t Au. We are encouraged with the recent drilling results from the Hislop North and Smoke Deep follow up drilling, and excited with the initial results from drilling at depth below the Hislop Pit and the discovery of a new zone at Holloway, said Jacques Perron, President and CEO of SAS. We believe that the Hislop Property has great potential for additional zones which could extend mining in this area. Our focussed exploration efforts have returned consistent results. We expect to drill

2 approximately 60,000 metres during 2013 to continue to assess the exploration potential of our East Timmins properties. Hislop Property The Hislop Property has a long history of exploration and development as well as production in , , , and , and from 2010 to present. SAS purchased the property in 1993 and actively explored and developed the property. Historical mining was conducted via shaft, ramp and shallow pits. Several gold bearing zones occur on the property over a strike length of about 1,200 metres following the fault contact between mafic flows to the north, and ultramafic rocks to the south. Gold is associated with the margins of feldspar porphyritic syenite dikes that have intruded the mafic and ultramafic rocks. The dikes are generally conformable to the contact between the mafic and ultramafic rocks striking west to northwest and dipping steeply to the north. The mineralized areas have been called from west to east, the West Pit, Shaft Zone and the East Pit. Two settings and styles of gold mineralization are present at the Hislop property. Gold occurs on the south side of the syenite dike complex in the carbonate and carbonate breccia rock which separates the syenite dikes from the less altered ultramafic volcanic rocks to the south side. Gold also occurs on the north contact of the syenite dike complex in quartz veinlets, stockworks and fractures in hematite altered and syenitized mafic metavolcanic rocks. Recent drilling north of the property boundary, approximately 500 metres northwest of the Hislop Pit Complex has identified the 147, and Grey Fox mineralized zones (see Brigus Gold Corp s press release dated September 10, and 12, 2012, available under the Company profile on SAS believes it has traced these structures onto the south side of the property boundary. Hislop North (Refer to Figure 1 for a Plan View of Hislop North drilling results) Drilling continues with two rigs positioned along the northern Hislop property boundary which returned near surface intersections over significant widths intercepted in hole H returning 7.70 g/t Au over 6.2 metres. Drilling continues to follow-up on previously reported intersections in hole H which returned g/t Au over 24.0 metres including g/t Au over 5.9 metres, and H which returned 4.45 g/t Au over 9.0 metres (see press release dated December 10, 2012, available under the Company s profile on SEDAR at or on the website at Hole H returned g/t Au over 3.7 metres, including a high grade value of g/t Au over 0.8 metres (uncut) or g/t Au over 0.8 metres (cut). The zones are hosted within a brecciated albitic mafic volcanic with significant quartz veining and disseminated pyrite. The mineralized intercepts are situated directly along strike from the 147 and Grey Fox South mineralized trend. Expansion of the mineralization remains open in all directions and the Company expects to continue drilling on both target areas into the second quarter of this year. SAS completed a series of geophysical surveys over the Hislop North area in 2012, consisting of both ground magnetics and borehole and ground Induced Polarization (IP) surveys. Aggressive follow-up on these recent drill results and geophysical targets is continuing. Significant assay intercepts from the recent Hislop North drilling program are summarized in the table below:

3 Hole Number Hislop North 2013 Surface Drilling Program UTM (NAD27) Degrees Intersection (Metres) Core Length Easting Northing Elevation Azimuth Dip From To (Metres) Gold Grade H including H including And And Notes: All lengths are reported as core length as true width is not available at this time. All high grade assays capped at 32.00g/t. (g/t) Hislop Pit Complex (Refer to Figure 2 for a longitudinal view of the Hislop Pit Complex drilling results) In late 2012, SAS initiated a drilling program to test for possible mineralized extensions situated below the West Pit. SAS is pleased to report assay results from the program which intersected a strongly silicified, sulphidized and mineralized syenite. Hole HP returned g/t Au over 9.6 metres (uncut), including g/t Au over 7.5 metres (uncut), situated approximately 75 metres below the bottom of the current West Pit and 40 metres to the northwest of previous historical drilling. The mineralized zone remains open along strike and at depth. A widely spaced first pass drill program is underway by SAS to test for mineralized extensions below the East and West pits at the Hislop Pit Complex. One drill continues to actively follow-up on these assay intercepts. Significant assay intercepts from the recent surface drilling program on the Hislop Pit Complex are summarized in the table below: Hole Number Hislop Pit Complex 2013 Surface Drilling Program UTM (NAD27) Degrees Intersection (Metres) Core Length Easting Northing Elevation Azimuth Dip From To (Metres) Gold Grade HP including HP And including Notes: All lengths are reported as core length as true width is not available at this time.: All high grade assays capped at 32.00g/t. (g/t) Smoke Deep Holloway Mine (Refer to Figure 3 for a longitudinal section of Smoke Deep drilling) Underground drilling east of Smoke Deep commenced earlier this year to test the possible eastern and down dip extension of the zone from the underground drift on the 780m Level elevation ramp. The drill program continues to extend the Smoke Deep deposit both along strike and further to the east. This drilling has effectively extended the known mineralized strike length of the deposit an

4 additional 50 meters for a total strike length of 500 metres. Surface drilling was conducted to test the up dip component of the Smoke Deep Zone. Recent assay results include hole GH (drilled from a collared hole at the Ghost Zone), which returned 3.46 g/t Au over 12.2 metres including 4.39 g/t Au over 6.6 metres. This intersection is typical of Smoke Deep mineralization, associated with the mafic volcanic-ultramafic volcanic contact, and is approximately 400 metres directly above the current Smoke Deep resource model and approximately 200 metres below surface. SAS recently extended the hangingwall drift to the east to provide a drill platform, with drilling in progress from both underground and surface to test for the mineralized extensions both to the east and at depth. Significant assay results for the underground drilling program at Smoke Deep are summarized in the table below: Hole Number Smoke Deep 2013 Underground Drilling Program Holloway Mine Grid Degrees Intersection (Metres) Core Length Easting Northing Elevation Azimuth Dip From To (Metres) Gold Grade And And And including including including And And And Notes: All lengths are reported as core length as true width is not available at this time. All high grade assays capped at g/t Au. (g/t)

5 Sediment Zone Holloway Mine, New Discovery (Refer to Figure 4 for a longitudinal section of the current Sediment Zone and Smoke Deep drill results; refer to Figure 5 for a geological cross section which shows both the geological setting and spatial relationship of the recently reported Sediment Zone and Smoke Deep Zone assay results) Deep surface drilling was initiated in late 2012 to test the down-dip component of Smoke Deep. During this program, drilling intersected a steeply south dipping, silicified, pyritic zone hosted within the sedimentary unit and SAS has named this new zone the Sediment Zone. The first hole of the program, Hole GH returned assays grading 5.60 g/t Au over 8.1 metres. Additional follow-up drilling by SAS has continued to intercept the newly discovered zone with recent drilling extending the mineralization over a strike length of 750 metres with a 250 metre vertical height. The new Sediment Zone is situated approximately 250 metres in the Hangingwall (south) of Smoke Deep. The zone is significant because it can be easily accessed and drilled using existing development from the 550 metre drift or 780 metre level at the Holloway Mine. The Sediment Zone remains open in all directions with two surface drills currently following up on these mineralized zones. Significant assay results from the surface drilling program at the Sediment Zone are summarized in the table below: Hole Number Sediment Zone 2013 Surface Drilling Program Holloway Mine Grid Degrees Intersection (Metres) Core Length Easting Northing Elevation Azimuth Dip From To (Metres) Gold Grade GZ And GZ And GH including including GH including GH including Notes: All lengths are reported as core length as true width is not available at this time. All high grade assays capped at 25.00g/t. (g/t) Drilling, Assaying and QA/QC Surface drilling was conducted by Forage Orbit Garant Drilling Services Inc. Analytical work for surface drilling conducted on the Smoke Deep and Sediment zones were performed by Laboratoire Expert Inc., located in Rouyn-Noranda, QC, and analytical work for Hislop North and the Hislop Pit Complex were performed by Agat Labs Limited, in Mississauga, ON, both accredited labs. Underground drilling at Smoke Deep is performed by Boreal Drilling and analytical work is performed at the company s Holt mine assay laboratory. SAS employs an industry accepted QC/QA program consisting of certified reference standards and blanks that are inserted into the sample stream, which represent approximately 5% of the total sample population.

6 Qualified Person The exploration programs on the Company s various mineral properties are under the supervision of Doug Cater, P. Geo, the Company s VP, Exploration. Mr. Cater is a qualified person as defined by NI , and 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, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada. SAS owns and operates the Holt, Holloway and Hislop mines with annual gold production of approximately 100,000 ounces. The Company is also advancing the Taylor Project and is conducting aggressive exploration across 120km of land straddling the Porcupine-Destor Fault Zone. For further information about St Andrew Goldfields Ltd., please contact: Tel: or (416) ; Fax: (416) ; Website: Suzette N Ramcharan Director, Investor Relations sramcharan@sasgoldmines.com Jacques Perron President & CEO jperron@sasgoldmines.com Ben Au CFO, VP Finance & Administration bau@sasgoldmines.com 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 the timing and extent of the Company s exploration programs; and the potential for additional discoveries at the Hislop Property. 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; unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; the Company s dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; insufficient funding or delays or inability to raise additional financing on satisfactory terms if required; operational hazards and risks, including the inability to insure against all risks; changes in laws, regulations and the risks of obtaining necessary licenses and permits; changes in general economic conditions and changes in conditions in the financial markets. Such forward looking information is based on a number of assumptions, including but not limited to 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, the ability of the Company to retain and attract qualified personnel, the sufficiency of the Company s cash reserves and operating cash flow to complete planned development and exploration activities, the availability of additional financing on acceptable terms if and as required and the level of stability of 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. A description of these risks and uncertainties are can also be found in the Company s Annual Information Form obtained on SEDAR at

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