News Column

SAS reports Q2 2014 production results of 22,505 ounces of gold and provides notice of earnings release and conference call

July 10, 2014

TORONTO, July 10, 2014 /CNW/ -St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report second quarter 2014 production of 22,505 ounces of gold from its Holt, Holloway and Hislop mines. The Company's annual production guidance for 2014 is between 75,000 85,000 ounces of gold.

"We had another strong quarter of production and remain on track to meet our 2014 guidance, said Duncan Middlemiss, President & CEO of SAS. "With just under 47,000 ounces produced year to date, we are well positioned to meet our production objectives, and we continue to strive to reduce costs and increase margins."

Q2 2014 Production Results



Tonnes

Milled

Head Grade

(g/t Au)

Average Mill Recovery

Rate

Gold Produced

(ounces)

Holt

106,281

4.70

94%

15,140

Holloway

40,932

4.09

91%

4,893

Hislop

47,785

2.14

75%

2,472

Q2 2014 Production

194,998

3.95

91%

22,505

YTD 2014 Production

383,258

4.15

92%

46,866





Holt Mine ("Holt")

Holt produced 15,140 ounces of gold derived from Zone 4 on the 925m Level and 1075m Level mining areas and Zone 6 on the 775m Level. Head grade of 4.70 g/t Au, and mill recoveries of approximately 94% were both in line with expectations.

Holloway Mine ("Holloway")

Holloway produced 4,893 ounces of gold from the Smoke Deep Zone. The head grade of 4.09 g/t Au and mill recovery rate of approximately 91% were slightly below expectations. Encouraging diamond drill results continued to confirm the continuation of the zone below the 925m Sublevel and along strike to the east (see press release dated July 8, 2014, available under the Company's profile on www.sedar.com or on the website at www.sasgoldmines.com).

Hislop Mine ("Hislop")

Hislop produced 2,472 ounces of gold in Q2 2014. The head grade averaged 2.14 g/t Au, which was slightly above the reserve grade for the mine (2.05 g/t Au). Mill recovery for Hislop during the quarter averaged approximately 75%, due to the processing of a significant amount of ore containing a fine gold size fraction. Operations ceased at the beginning of the quarter as the reserves in the West Pit are depleted.

2014 Second Quarter Earnings and Conference Call

The Company will release its 2014 second quarter results after market close on Wednesday August 13, 2014, and will hold a conference call on Thursday August 14, 2014, at 10:00 AM EST. The Company invites you to participate in the upcoming conference call to discuss its second quarter financial and operating results for 2014.

Participants may join the call via webcast at www.sasgoldmines.com. A playback of the conference call will be available via the website and will be posted within 24 hours of the call. For more information regarding the annual meeting and the conference call please visit the SAS website.

Qualified Person

Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations are being conducted under the supervision of Marc-Andre Pelletier, P. Eng., the Company's General Manager of Operations. Mr. Pelletier is a qualified person as defined by National Instrument 43-101, 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, northeastern 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 and produced approximately 100,000 ounces of gold in 2013. The Company is also advancing the Taylor Project and is conducting aggressive exploration 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 achieving its 2014 production guidance.

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 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 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 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 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.

SOURCE St Andrew Goldfields Ltd.


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