NEWS RELEASE SAS ANNOUNCES SUCCESSFUL EXPLORATION RESULTS FOR HOLT AND HOLLOWAY PROPERTIES: Successful Phase 2 drilling at Holt Zone 4 extends mineralized corridor to north New Drill Results Extend Holloway s Smoke Deep Zone to the east Mineralization outlined below existing Mattawasaga Pits Toronto, Canada May 7, 2015 St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ( SAS or the Company ) is pleased to provide an exploration update which includes assay results from both its Phase 2 deep surface drill program, targeting Zone 4 ( Zone 4 ) mineralization, the Mattawasaga Pit drilling program at its 100% owned Holt Mine ( Holt ), and underground drilling at the Smoke Deep Zone ( Smoke Deep ) at the Holloway Mine ( Holloway ). Highlights of Drilling Results Phase 2 Zone 4 Deep West Extension (Surface drilling): ZN4-15-002W-1 3.37 g/t Au over 23.6 metres including 6.04 g/t Au over 5.4 metres ZN4-15-003 4.78 g/t Au over 6.6 metres Mattawasaga Pit (Surface drilling): MAT 6(pit) 3.12 g/t Au over 16.3 metres including 11.87 g/t Au over 1.4 metres. MAT-17 (pit) 1.66 g/t Au over 37.0 metres including 3.10 g/t Au over 4.6 metres. Holloway Smoke Deep (Underground drilling): 945-033 21.05 g/t Au (20.12 g/t Au cut) over 6.0 metres. 945-063 8.27 g/t Au over 8.1 metres and 12.52 g/t Au over 1.5 metres. Notes: All drillhole core intercepts are reported as core length as true widths are not known at this time. Zone 4 assays are cut to 32.00 g/t Au, Smoke Deep assays are cut to 25.00 g/t Au. These results are encouraging on all fronts. The continuation of successful drilling results at the Zone 4 Deep West Extension further demonstrates the potential for growth within this mineralized corridor between the McKenna and Ghostmount faults. Company-wide we have added nearly one million ounces of inferred resources in the fourth quarter of 2014 and we believe further additions are likely. Positive drill results at the Mattawasaga Pit will be incorporated into a geological model to determine the viability of these results in a near mill mining scenario, which would potentially contribute to our objective of maximizing capacity at the Holt Mill. Additionally, the Holloway Smoke Deep results demonstrate that the mineralized zone continues down plunge and the mine exploration efforts are focused on locating more mineralized material to expand this zone and expected mine life commented Duncan Middlemiss, President and CEO of SAS. 1
Holt - Phase 2 Zone 4 Deep West Extension Drill program Recent 2015 surface exploration drilling programs on the Holt property continue to follow-up on the Zone 4 Deep West Extension targeting multiple flat-lying, en-echelon mineralized zones and ultimately targeting mineralization associated with the westerly strike projection of Zone 4 (the most significant production horizon being mined at Holt). Assay results from Phase 1 of this drill program were reported by SAS on October 9, 2014 and January 15, 2015 (See press releases, available under the Company s profile on www.sedar.com or on the Company s website at www.sasgoldmines.com.) Phase 1 drilling resulted in a total of 3 mineralized zones being defined (Zone 4 Lower / NBS and Vertical zones) and resulted in a 2014 year-end inferred mineral resource addition of 5.5 million tonnes grading 4.82 g/t Au containing 0.86 million ounces of gold (excludes V-93 and DL zones). These zones remain open with additional mineral potential available along strike to the east, west and both up-and down dip. Phase 2 drilling commenced in mid-january to address the following exploration objectives; to infill gaps in the drill coverage, to better define the geometry of the mineralized zones and to test the McKenna Fault (northern side of the mineralized corridor) for mineral potential. Refer to Figure 1. Figure 1: Holt Zone 4 Drill program longitudinal section (looking north) showing mineralized zones. In the first quarter of 2015 ( Q1 2015 ), three surface holes and associated wedge cuts totaling approximately 5,000 metres ( m ) were completed on the Zone 4 West target. Hole ZN4 15-003 which targeted the up-dip extension of Zone 4 mineralization, returned assays of 4.78 g/t Au over 6.6 m. This intercept occurred approximately 145 m north of the initial assay intercept in drillhole WE14-001 which returned 9.97 g/t Au over 11.2 m. Drillhole ZN4 15-002 Wedge- 1 intersected 2
both the NBS Zone and Zone 4 mineralization 300 m to the east and returned assays of 3.37 g/t Au over 23.6 m including 6.04 g/t Au over 5.4 m. These recent drill results indicate that Zone 4 and NBS zone mineralization extends from the Ghostmount Fault to the south northward towards the McKenna Fault zone. The mineralization remains open both along strike and up-dip to the north. A drill isometric and cross-section showing the positions of the drill holes is found in Figure 2 and 3 (below). The mineralized zones (which are readily recognizable in core) consist of a quartz breccia zone containing approximately 3-5% disseminated pyrite hosted within a sericitic and hematite altered mafic volcanic host rock. Zone 4 mineralization consists of multiple, en-echelon shallow dipping zones (20 South) which are structurally controlled between the McKenna Fault to the north and the Ghostmount Fault to the south. Recent drilling targeted Zone 4 mineralization further north than any previous holes, confirming continuous mineralization extending to the northern half of the fault corridor. Previous drilling focused within 150-200 m of the Ghostmount fault, on the southern half of the corridor. In light of the recent discoveries the zone remains open within the corridor to the north, along strike and down the plunge. Refer to Figure 2 for an isometric view of Zone 4 surface and underground drill intercepts. Figure 2: Holt Zone 4 Deep Extension isometric view looking north 3
Figure 3: Holt Zone 4 Cross-sectional view looking east showing recent drill intercepts Table 1: Phase 2 Holt Zone 4 Deep West Extension surface drill program assay results COLLARS - UTM NAD 83 BHID Easting Northing Elevation Azimuth Dip From To Length(m) Au (g/t) Au (g/t CUT) / Comment Z415-001 592005 5372409 300 359-73 1065.5 1067.3 1.8 3.40 Vertical And 1128.0 1133.0 5.0 4.57 Core Z415-001W1 1123.5 1129.5 6.0 2.74 NBS And 1144.0 1146.5 2.5 3.77 Z415-002 591840 5372443 300 350-75 1179.7 1183.6 3.9 2.78 Zone 4 Z415-002W1 1149.4 1173.0 23.6 3.37 NBS / Zone 4 Including 1151.6 1157.0 5.40 6.04 Z415-003 591767 5372785 300 255-73 1176.0 1182.6 6.60 4.78 Zone 4 Z415-003W1 1155.5 1156.1 0.60 28.73 NBS zone And 1163.5 1165.0 1.50 8.01 Zone 4 Notes: All lengths are reported as core length as true width is not available at this time. Assays are cut to 32.00 g/t Au. 4
Holt Mattawasaga Pit Drill program The Mattawasaga Zone is situated 500m east of the Holt Shaft. Historical production records indicate 213,000 tonnes grading 2.68 g/t Au for a total of 18,341 ounces of gold were extracted from the two pits by a historical operator in the early 1990 s. In Q1 2015, SAS drilled 20 holes totaling 3,150 m which was designed to target Mattawasaga Zone mineralization situated below and west of the historical west pit. Typical Holt style mineralization was reported in holes below the western edge of the West Pit where wide zones of moderate gold grades were reported. Significant program assay results were returned in holes MAT-17 which returned 1.66 g/t Au over 37.0 m, MAT-06 which returned 3.12 g/t Au over 16.3 m and MAT-18 which returned 2.20 g/t Au over 11.9 m. A complete list of all program assay results is found in Table 2 (at the end of this press release). Refer to Figure 4 for an isometric view of Mattawasaga Pit surface drill intercepts. Figure 4: Isometric view looking NE showing recent drill results. Holloway Smoke Deep Underground Drill program 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 located on the 945m Sub-level. The drill program was successful, and continues to extend the Smoke Deep deposit both along strike further to the east and down plunge. This drilling has effectively extended the known mineralized strike length of the Smoke Deep deposit by 50 m for a total strike length of 550 m. Recent assay results include hole 945-033, which returned 21.05 g/t Au (20.12 g/t cut) over 6.0 m and including hole 945-063 which returned 8.27 g/t Au over 8.1 m. These drill intersections are typical Smoke mineralization, associated with the mafic volcanic / ultramafic volcanic contact. 5
SAS recently extended the hanging wall drift to the east to provide a drill platform, with drilling in progress from underground set-ups to test for the mineralized extensions both to the east and at depth. This zone remains open to the east with additional drilling planned to follow-up on the strike extension of this target. A list of assay results from the smoke Deep drill program is found attached at the end of this release. Refer to Figure 5 for a longitudinal section of Smoke Deep drilling. Figure 5: Holloway Smoke Deep Longitudinal showing recent drill results. Drilling, Assaying and QA/QC Surface drilling at Holt Zone 4, Mattawasaga and underground drilling at Holloway Smoke Deep zones was performed by Asinii Drilling based in Notre dame du Nord QC. Analytical work for Holt Zone 4 West was performed by Lab Expert Inc. located in Rouyn-Noranda, QC. Samples consisted of half sawn NQ caliber core. Gold analysis was conducted using 30 gram samples (1AT portions) with gold grades determined by standard fire assay preparation and a gravimetric finish. Analytical work for core samples from the Mattawasaga and Smoke Deep drill programs was performed at SAS s Holt mine assay lab and at Swastika Labs located in Swastika, ON. Samples consisted of whole BQ caliber sized core. Gold analysis was conducted using 30 gram samples (1AT portions) with gold grades determined by standard fire assay preparation and a gravimetric finish. SAS employs an industry accepted QA/QC 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 of Exploration. Mr. Cater is a qualified person as defined by NI 43-101, and has reviewed and approved this news release. 2015 Annual Meeting of Shareholders and First Quarter Earnings Call The Company will hold the annual meeting of shareholders on Wednesday, May 13, 2015 at 11:00 AM EDT, and will release its 2015 first quarter financial results after market on Tuesday, May 12, 2015. The Company invites you to participate in its conference call to discuss its first quarter financial and operating results for 2015. The conference call will take place on Wednesday May 13, 2015 at 2:00 PM EDT. Participants may join the call via webcast at www.sasgoldmines.com or call in toll free at 1-866- 212-4491. A playback of the conference call will be available via the website and will be posted within 24 hours of the call. 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 and Holloway mines. The Company is also advancing the Taylor Project and is conducting an aggressive exploration program across 120km of land straddling the Porcupine-Destor Fault Zone. Appendices Table 2: Holt Mattawasaga Pit drill program assay results Holt Mine Grid Core BHID Easting Northing Elevation Azimuth Dip From To(m) Length(m) AU_GPT MAT-01 10933 9524 5000 5-58 67.7 70.9 3.2 1.50 And 76.7 81.2 4.5 2.41 And 99.5 101.5 2.0 2.32 And 109.4 110.0 0.6 12.68 MAT-02 10938 9529 5000 5-47 48.8 75.9 27.1 1.67 Including 48.8 51.9 3.1 4.55 MAT-03 10927 9532 5000 12-45 48.5 71.5 23.0 1.97 Including 62.5 71.5 9.0 3.12 MAT-05 10931 9561 5000 12-58 16.7 19.0 2.3 2.49 And 26.4 46.0 19.6 1.65 7
Including 40.1 46.0 5.9 3.32 MAT-06 10931 9517 5000 19-53 66.7 83.0 16.3 3.12 Including 66.7 68.1 1.4 11.87 Including 78.3 83.0 4.7 4.59 MAT-07 10921 9579 5000 2-42 NSV MAT-08 10914 9570 5000 2-54 19.3 20.3 1.0 3.15 MAT-09 10958 9508 5000 9-47 86.9 93.6 6.7 2.95 And 103.0 104.0 1.0 2.13 MAT-11-01 10948 9618 4999 15-45 NSV MAT-11-02 10948 9618 4999 17-59 NSV MAT-11-03 10948 9618 4999 20-80 NSV MAT-12 10921 9579 5000 34-45 32.4 33.0 0.6 2.17 MAT-13 10921 9579 4998.89 34-54 NSV MAT-14 10981 9486 5000 10-47 165.4 167.6 2.2 2.28 MAT-15 11021 9579 5000 339-45 158.0 159.0 1.0 2.17 And 169.7 173.9 4.2 2.28 Including 169.7 170.7 1.0 2.56 Including 172.6 173.9 1.3 4.49 And 186.9 195.0 8.1 1.53 Including 190.2 195.0 4.8 1.98 MAT-16 11064 9473 5000 12-45 149.0 153.0 4.0 1.66 And 165.5 176.3 10.8 1.94 Including 165.5 169.3 3.8 4.04 Including 173.7 176.3 2.6 1.65 And 178.4 179.4 1.0 2.02 And 190.4 195.7 5.3 7.22 MAT-17 11112 9504 5000 350-45 131.3 168.3 37.0 1.66 Including 131.3 132.8 1.5 2.14 8
Including 136.8 141.4 4.6 3.10 Including 143.7 146.6 2.9 4.25 Including 155.3 156.6 1.3 1.71 Including 158.5 160.4 1.9 3.41 Including 163.4 168.3 4.9 2.52 MAT-18 11121 9522 5000 320-45 103.2 115.1 11.9 2.02 Including 106.4 111.0 4.6 3.37 126.3 127.5 1.2 6.87 155.1 168.0 12.9 1.84 Including 157.3 162.3 5.0 2.88 181.1 186.0 4.9 1.60 MAT-19 11132 9541 5000 335-45 89.7 105.8 16.1 2.20 Including 89.7 96.7 7.0 2.40 Including 100.0 105.8 5.8 2.80 126.6 135.1 8.5 2.28 Including 126.6 130.4 3.8 3.34 Including 133.1 135.1 2.0 2.40 141.2 145.1 3.9 2.37 MAT-20 Notes: All lengths are reported as core length. True width is approximately 60% of core length. Assays are cut to 25.00 g/t Au. NSV = no significant values NSV Table 3: Holloway Smoke Deep 945 sub-level drill results. BHID Easting Northing Elevation Azimuth Dip From (m) To(m) Length(m) AU_GPT AU_G/T Cut 25 g/t 945-14 7242.82 4456.95 2374 343-17 41.4 41.7 0.3 5.04 945-16 7317.25 4455.64 2366 348-20 85.4 90.5 5.1 14.74 11.75 945-17 7317.25 4455.64 2366 348-32 106.0 106.7 0.7 4.08 945-18 7317.25 4455.64 2366 348-45 93.0 94.0 1.0 4.08 And 104.0 104.8 0.8 5.70 945-19 7312.5 4453.96 2366 0-24 76.1 77.8 1.7 3.03 including 77.5 77.8 0.3 9.00 9
And 88.5 91.9 3.4 3.05 including 88.5 90.0 1.5 4.93 And 100.8 107.3 6.5 5.59 including 101.5 106.0 4.5 7.44 945-20 7312.5 4453.96 2366 0-55 37.9 38.8 0.9 6.08 945-21 7325 4458.39 2366 0-34 104.5 105.9 1.4 9.92 945-22 7337.5 4462.81 2366 0-18 4.3 5.5 1.2 4.90 And 9.9 10.2 0.3 6.89 And 12.5 14.0 1.5 3.41 And 70.4 84.4 14.0 5.47 including 70.4 76.4 6.0 8.01 including 79.5 81.1 1.6 6.91 including 82.5 84.4 1.9 7.11 And 87.7 88.8 1.1 20.9 And 90.2 91.5 1.3 11.66 And 101.8 103.7 1.9 17.57 13.16 945-23 7337.5 4462.81 2366 0-30 15.0 16.5 1.5 8.61 And 58.9 60.2 1.3 5.82 And 101.0 101.9 0.9 11.42 945-24 7337.5 4462.81 2366 0-45 95.5 97.1 1.6 3.89 And 108.9 112.8 3.9 3.42 945-25 7340.35 4463.81 2366 6-25 6.8 7.3 0.5 4.18 And 8.5 9.8 1.3 6.62 And 15.7 16.2 0.5 9.95 And 97.1 99.0 1.9 3.88 And 101.4 102.0 0.6 5.01 And 116.7 117.0 0.3 10.48 945-27 7341.36 4464.17 2366 15-22 9.2 9.9 0.7 9.94 And 13.2 14.2 1.0 4.25 And 15.0 15.5 0.5 8.90 And 111.5 114.6 3.1 4.17 945-28 7341.36 4464.17 2366 15-39 14.6 15.3 0.7 10.36 And 24.7 25.9 1.2 5.69 10
945-29 7341.36 4464.17 2366 15-55 41.3 43.2 1.9 3.37 And 99.3 100.3 1.0 3.08 And 120.1 120.5 0.4 10.28 945-30 7344.59 4465.31 2366 20-2 54.3 54.7 0.4 6.22 And 96.1 105.6 9.5 6.38 including 96.1 97.6 1.5 15.10 including 98.6 105.6 7.0 5.23 945-31 7344.59 4465.31 2366 20-37 6.0 6.3 0.3 22.48 And 16.1 16.6 0.5 6.74 And 99.3 100.0 0.7 4.97 And 105.7 107.0 1.3 3.95 And 122.1 123.2 1.1 7.44 945-32 7344.59 4456.31 2366 20-64 48.3 50.1 1.8 3.62 And 99.5 100.2 0.7 3.60 And 131.0 132.7 1.7 4.29 945-33 7344.59 4456.31 2366 25-7 98.6 104.6 6.0 21.05 20.12 And 109.4 114.0 4.6 5.26 945-34 7344.59 4465.31 2366 25-33 13.9 17.8 3.9 4.39 And 103.7 122.3 18.6 6.82 6.15 945-35 7344.59 4456.31 2366 25-56 32.6 33.4 0.8 4.20 945-36 7345.38 4464.53 2366 36-20 117.9 138.3 20.4 4.59 including 124.1 138.3 14.2 4.80 including 117.9 120.0 2.1 7.85 945-37 7345.44 4464.26 2367.32 46-18 15.3 17.1 1.8 4.99 945-38 7243.43 4456.62 2374 326-6 92.6 98.7 6.1 4.46 including 92.6 96.6 4.0 5.44 including 97.2 98.7 1.5 3.50 945-39 7325 4458.39 2366 0 33 102.0 103.0 1.0 13.86 And 104.6 105.5 0.9 4.25 And 116.2 117.7 1.5 4.59 11
945-40 7337.5 4462.81 2366 0 35 113.3 114.8 1.5 4.36 And 123.1 123.6 0.5 3.39 And 125.9 126.7 0.8 3.69 And 143.8 148.3 4.5 9.23 5.28 including 144.1 145.4 1.3 28.66 9.77 945-41 7337.5 4462.81 2366 0 29 105.0 107.0 2.0 5.90 And 125.2 127.0 1.8 5.79 945-43 7340.35 4463.81 2366 6 25 124.6 125.1 0.5 3.41 And 125.7 126.3 0.6 3.17 945-45 7344.59 4465.31 2366 20 37 121.3 121.8 0.5 7.80 945-47 7344.59 4465.31 2366 25 32 121.0 121.8 0.8 4.00 945-48 7244.94 4457.19 2375.23 343-25 87.2 87.7 0.5 7.37 945-49 7244.63 4457.28 2375.33 326-22 96.0 100.9 4.9 5.70 945-50 7241.49 4456.68 2374 317-9 109.9 117.7 7.8 10.11 9.64 945-52 7340.35 4463.81 2366 6 2 5.5 7.7 2.2 4.96 And 9.9 10.4 0.5 4.27 And 89.7 90.5 0.8 4.74 And 93.3 97.0 3.7 8.37 8.35 including 93.3 95.9 2.6 11.06 11.03 including 96.7 97.0 0.3 4.55 945-54 7243.43 4456.62 2374 317-20 51.6 52.0 0.4 3.82 And 110.5 125.4 14.9 6.65 including 110.5 116.0 5.5 4.78 including 118.3 125.4 7.1 9.54 945-55 7243.43 4456.62 2374 317-31 116.7 120.2 3.5 5.05 including 116.7 118.9 2.2 7.46 945-61 7412.5 4466.44 2367.5 0 12 93.4 94.3 0.9 10.56 945-62 7412.5 4466.44 2366.5 0-12 112.0 113.0 1.0 3.12 12
945-63 7412.5 4466.44 2365.5 0-44 114.1 122.2 8.1 8.27 And 127.0 128.5 1.5 12.52 945-64 7412.5 4466.44 2364.5 0-58 NO SIGNIFICANT VALUES 945-65 7425 4467 2367.5 0 2 NO SIGNIFICANT VALUES 945-66 7425 4466.63 2366.5 0-33 106.5 109.6 3.1 3.63 945-67 7425 4466.63 2365.5 0-50 121.8 126.9 5.1 9.21 And 130.5 131.4 0.9 4.46 And 134.9 137.3 2.4 7.00 945-68 7437.5 4466.83 2368 0-18 116.0 116.3 0.3 7.31 945-69 7437.5 4466.83 2366 0-43 100.8 102.0 1.2 6.53 And 111.8 113.4 1.6 6.51 945-78 7439.94 4466.83 2365 33-16 100.1 101.2 1.1 8.28 And 141.7 142.3 0.6 3.89 Note: Drillholes 945-70 through 945-77 are in progress. 13
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 Keyvan Salehi, P. Eng., MBA Vice President, Corporate Development and Technical Services ksalehi@sasgoldmines.com Duncan Middlemiss, P. Eng. President & CEO dmiddlemiss@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, forwardlooking 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 the expansion of mineralized zones at the Holt and Holloway properties, and the completion of additional drilling at the Holt and Holloway properties. 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, unanticipated operational or technical difficulties which could increase the time necessary to complete the exploration and development initiatives, escalate operating and/or capital costs and reduce anticipated production levels; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company s dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, 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 sufficiency of the Company s cash flow and financial reserves to carry out its planned exploration programs, the ability to attract and retain qualified personnel to conduct its exploration programs and operate its mines 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. 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 forwardlooking 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 further description of the risks and uncertainties facing the Company may also be found in the Company s Annual Information Form available on SEDAR at www.sedar.com. -30-14