SAS REPORTS 2010 YEAR END AND FOURTH QUARTER RESULTS, 2010 RECONCILIATION OF RESOURCES AND RESERVES AND PROVIDES 2011 PRODUCTION GUIDANCE

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

All dollar amounts are stated in Canadian dollars, unless otherwise indicated

TORONTO, Feb.

22 /CNW/ - St Andrew Goldfields Ltd.

(T-SAS), ("SAS" or the "Company") reports net income of $8.0 million, or $0.02 on a per share basis for fiscal 2010, and adjusted net earnings⁽¹⁾ of $14.2 million or $0.04 on a per share basis.

SAS generated operating cash flow before repayment of Gold Notes⁽¹⁾ of $25.9 million for 2010 and $9.3 million in the fourth quarter.

2010 Highlights:

• Earned net income of $8.0 million or $0.02 per share in 2010.
  
  Adjusted net earnings⁽¹⁾ of $14.2 million or $0.04 per share.
  
  
• Produced 70,433 ounces of gold from two operating mines and from processing development ore from the Holt Mine which is currently advancing towards production.
  
  
• Sold 70,461 ounces of gold⁽²⁾ at an average realized price⁽¹⁾ of US$1,237 per ounce and at a cash cost⁽¹⁾ of US$654 per ounce of gold sold.
  
  
• Generated operating cash flow before repayment of Gold Notes⁽¹⁾ of $25.9 million.
  
  
• Completed $28.9 million in equity financings.
  
  
• Retired the outstanding $7.6 million principal amount of secured debentures and repurchased 23.5% of the face value of the senior secured Gold Notes for a value of $5.7 million.
  
  
• Accelerated exploration programs at the Holloway Mine - Smoke Deep and Deep Thunder zones, Taylor Project, and the Garrison Creek Project.

"We are very pleased with the progress we have made over the past few years, and I am proud of our team being able to bring our three assets online during 2010, as well as expand on our exploration programs," said Jacques Perron, President & CEO of SAS.

"Although we faced some operational challenges, we are confident that we will be able to improve the performance of our three mines going forward, and will continue to strive for better results.

We also note that manpower is becoming a challenge as competition for skilled labour in the area has increased, and it will remain our focus to retain existing personnel and attract new personnel in the coming months.

We are diligently working towards achieving our objectives for 2011."

Holloway Mine Operational Review (see Operation and Financial Statistics on page 12)

The Holloway Mine ("Holloway") produced 11,069 ounces of gold in the fourth quarter, and 57,459 for fiscal 2010.

Production for the fourth quarter was below expectations due to lower grade as well as ore dilution at the Blacktop Zone.

The impact in the shortfall in gold production was partially offset by a higher realized gold price during the quarter.

Mine-site cost per tonne milled⁽¹⁾ achieved for the fourth quarter of 2010 was $80 per tonne, which remains below the 2010 average of $86 per tonne, as a result of the process improvement initiatives established at the mine since mid 2010.

Total cash cost per ounce of gold sold increased by US$240 per ounce in the fourth quarter of 2010, and US$108 per ounce for fiscal 2010 when compared to a total cash cost of US$464 per ounce of gold sold as achieved in the fourth quarter of 2009, due to the non-occurrence of custom toll milling revenues and the weakness in the in the United States dollar relative to the Canadian dollar, offset partially by inventory level changes and reduced mine-site costs.

Hislop Mine Operational Review (see Operation and Financial Statistics on page 13)

Pre-production activities at the Hislop Mine ("Hislop") commenced in early 2010, and were completed at the end of the second quarter of 2010.

The timeline to bring the Hislop Mine into production was three months behind the Companys expectation due to permitting delays.

Gold production for fiscal 2010 was below target due to the start up delay and grade control, ore crushing and throughput issues as discussed below.

In 2010, the processed ore grade was negatively impacted by higher than expected dilution and the continuity of the ore zones in the northwest section of the pit; however, as mining proceeds to the lower benches of the pit and throughout the mine life, the mined ore grade is expected to increase.

Rigorous grade control procedures have been established at the mine (which include blasthole and muck sampling in conjunction with on site geological and technical resources), to optimize the blasting and mucking activities, and improve the ore grade.

Mill feed of 98,333 tonnes in the fourth quarter was approximately 11% below the throughput achieved in the third quarter mainly due to ore sequencing within the open pit, hardness of the ore and in addition, mill capacity being utilized by the Holt Mine development ore.

Ore head grade achieved during the quarter was slightly improved from previous quarters, but remained below the reserve head grade of 2.05 g/t Au due to the reasons mentioned above.    

Mine-site cost per tonne milled⁽¹⁾ at the Hislop Mine during the fourth quarter of 2010 was $53 per tonne, $8 per tonne higher than the life-of-mine target of $45 per tonne.

Mine-site cost per tonne milled was $51 per tonne for the 2010 fiscal year which was $6 per tonne higher than the life-of-mine target.

This was due to lower mill throughput mainly related to the optimization of the crushing size, and mine sequencing as discussed above.

Site crusher tests were completed in September, and the new crusher configuration has since been implemented which has resulted in an improvement in throughput; however, the mill was unable to achieve the targeted milling rate due to the hematitic portions of the ore reserve being very hard and abrasive.

Total cash cost per ounce of gold sold⁽¹⁾ for the quarter was US$1,247 an ounce and US$1,213 an ounce for fiscal 2010, which was the result of the lower ore grade and low throughput for the periods.

The Company expects the total cash cost per ounce of gold sold⁽¹⁾ will be reduced over time once the ore grade in the pit improves.

Holt Mine Pre-production Update

The Company commenced pre-production activities at the Holt Mine ("Holt") in the second half of 2010 with an objective of bringing the mine into commercial production at the beginning of the second quarter of 2011.

Development activities since the third quarter of 2010 were focused on track rehabilitation on the 1075m level, completion of rehabilitation of the C-103 Zone, and development headings and the commencement of ore and waste development in late September.

The development of a ventilation raise in Zone 4 commenced in the fourth quarter and is now complete.

Lateral development on the 925m level will commence in February, and ore and waste development for the zone is scheduled to follow.

Production from Zone 4 is expected to begin during the second quarter of 2011.

The C-103 Zone is currently 66% developed and the Company started to extract ore from this zone in December 2010.

Equipment rehabilitation commenced in the second half of 2010 and included the hoist upgrade, electrical upgrades and reinstallation, mobile equipment rehabilitation, and enhancements to the communications system.

At the end of 2010, there were 54 full time SAS employees at the Holt Mine.

Recruitment of skilled miners and trades people continues to be both a priority and a challenge; however, the Company anticipates that the Holt Mine will have a full complement of approximately 125 miners, tradesmen, and technical staff in the first quarter of 2011.

______________________

2010 Year End Statement of Mineral Resources and Mineral Reserves

SAS reports mineral reserves of 0.7 million ounces of gold within measured and indicated mineral resources of 2.8 million ounces of gold plus inferred mineral resources of 1.1 million ounces of gold as of December 31, 2010, as outlined in the tables below:

Notes:

Notes:

Holloway - Mineral reserves for Holloway decreased from approximately 121,000 ounces of gold to 18,000 ounces of gold due to mining operations (~66,000 in-situ ounces of gold mined during 2010), unrecorded previous mining at the Lightning Zone and poor geologic continuity in the Blacktop Zone.

Similarly, the measured and indicated mineral resources decreased from approximately 190,000 ounces to 86,000 ounces of gold.

The inferred mineral resources increased from approximately 91,000 ounces to 209,000 ounces (an increase of 130%) due primarily to the inclusion of the Smoke Deep Zone ("Smoke Deep").

Hislop - Mineral reserves for Hislop remained essentially unchanged as the decrease in the ounces of gold resulting from mining operations (~13,000 in-situ ounces of gold mined during 2010), was replaced with the conversion of existing measured and indicated mineral resources within the West Pit to mineral reserves (~31,000 ounces of gold).

The December 31, 2010, mineral reserves contain more tonnage and an approximate 10% decrease in grade compared to previous mineral reserves estimates due to additional dilution estimates.

The measured and indicated mineral resources were reduced by approximately 7% as a result of depletion from mining operations.

Holt Mine - Mineral reserves at Holt showed a year-to-year increase of approximately 25,000 in-situ ounces of gold.

Additional drilling was used to re-calculate the ore grades from the various mining areas.

The increase in tonnage and ounces includes ore from new areas, which increased overall tonnage by 17%, ounces by 5% and reduced the overall grade by 11%.

The mineral resources for the Holt Mine increased for similar reasons.

2011 Outlook and Exploration Update

SAS estimates annual gold production of 85,000 - 95,000 ounces of gold for 2011 from three mining operations:

Ore from all three mines will be processed at the Companys Holt Mill.

Mining operations at Holloway will transition from current mining areas into the Smoke Deep Zone as mineral resources in this zone are converted to mineral reserves.

Activities at Holt are expected to ramp up from 500 tonnes per day ("tpd") to approximately 1,000 tpd towards the end of the year.

Hislop is expected to continue to operate at current levels.

Exploration activities will increase in 2011 with a planned budget of $10 million and approximately 66,000 metres of drilling at various targets including:

• underground drilling at the Smoke Deep Zone which will recommence once development of the decline ramp gives access to the area that lies to the west of the current known extent of the mineralized zone (which is expected to commence in the first quarter), and to conduct exploration drilling further to the east, along strike and down-dip where it remains untested;
  
  
• surface drilling east of the Blacktop Zone will follow up on significant results (hole 410-058 which intersected 11.62 g/t Au over 14.4 metres and hole 410-061 which intersected 6.55 g/t Au over 19.7 metres) returned from limited underground exploration;
  
  
• surface drilling at the Deep Thunder Zone will systematically step-out further to the east while expanding the current zone of gold mineralization;
  
  
• the second phase of drilling on the Taylor Project will follow up on new zones of mineralization encountered during the 2010 drill program;
  
  
• continued drilling at Garrison Creek in order to better define and delineate the potential for gold mineralization along the Garrison Fault that hosts the syenite and into the host volcanic and sedimentary rocks; and
  
  
• surface drilling on the newly optioned Plato property in Holloway Township (which lies in close proximity to the Deep Thunder Zone).

SAS currently has eight drills turning and will be providing drilling results from these exciting projects throughout the year.

The Company will also continue to assess other opportunities in the district that fit with the current mix of properties.

Qualified Persons

The revised calculation of Mineral Resources completed by the Company as well as the exploration programs on the Companys various mineral properties are under the supervision of Michael Michaud, P.Geo, the Companys Vice President of Exploration.

The revised calculation of Mineral Reserves was completed by the Company under the supervision of Pierre Rocque, P.Eng, the Companys Director of Engineering.

Production at the Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the Holt Mine are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Companys Vice President & General Manager, East Timmins Operations.

Messers.

Michaud, Rocque, and Middlemiss are qualified persons as defined by NI 43-101, and have reviewed and approved this news release.

⁽¹⁾ Non-GAAP Measures

The Company has included non-GAAP performance measures, adjusted earnings, cash flow from operations before repayments of Gold Notes, average realized price and total cash costs per ounce of gold sold, cash margin from mine operations and mine-site cost per tonne milled throughout this press release which do not have standardized meanings prescribed by GAAP and are not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the method of calculation.

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Companys performance.

Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Refer to pages 8-10 of this press release for a discussion and the reconciliation of these non-GAAP measurements to the Companys consolidated financial statements for the three months and the year ended December 31, 2010

To review the complete Audited Consolidated Financial Statements for the year ended December 31, 2010, and the 2010 Annual Managements Discussion and Analysis, please see SASs SEDAR filings available under the Companys profile at www.sedar.com and on its website at www.sasgoldmines.com.

Consolidated Financial Statements for the three months and the year ended December 31, 2010, to follow NON-GAAP MEASURES

About SAS

SAS (operating as SAS Goldmines), is a Canadian based gold mining and exploration company with an extensive land package in the Timmins mining district, Northeastern Ontario, Canada, which lies within the world famous Abitibi greenstone belt, the most important host of historical gold production in Canada.

SAS is focused on developing its assets in the Timmins camp, with current and near-term production and exploration activities across 120 km 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 Companys business, operations, financial performance, condition and prospects, as well as managements 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 regarding improved operating performance in 2011 at the Companys three mines, current estimates of reserves and resources, the planned gold production levels at the Holloway Mine and the Hislop Mine; the improvement in the ore grade, mill throughput and reduction in costs at the Hislop Mine; pre-production development and the commencement of production at the Holt Mine, the timing thereof and targeted production levels for 2011; the anticipated manpower levels at the Holt Mine (and the ability to achieve same); the Companys ability to attract and maintain adequate, skilled manpower to operate the Holloway, Holt and Hislop Mines; and the planned exploration programs for 2011, and budgeted costs thereof.

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 Companys expectations with respect to gold prices during the tenure of the Companys Gold Notes; 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.

Non-GAAP Measures

Adjusted net earnings (loss)

Adjusted net earnings (loss) are calculated by removing the gains and losses, net of income tax, resulting from the mark-to-market revaluation of the Companys gold-linked liabilities and foreign currency price protection derivative contracts, and one-time gains or losses on the disposition of non-core assets and expenses, as detailed in the table below.

Adjusted net earnings (loss) does not constitute a measure recognized by GAAP and does not have a standardized meaning defined by GAAP and may not be comparable to information in other gold producers reports and filings.

The Company discloses this measure, which is based on its financial statements, to assist in the understanding of the Companys operating results and financial position.

Amounts in thousands of Canadian dollars, except per share amounts		Three months ended December 31,										Year ended December 31,
					2010				2009				2010				2009
Net income (loss) for the period				$	369			$	462			$	8,017			$	(21,973)
Change in fair value of gold delivery commitment and embedded derivative instruments associated with the Gold Notes					1,346				2,696				5,055				2,047
Change in fair value of gold delivery commitment associated with the advance royalty payment					665				868				1,445				1,376
Change in fair value of derivative foreign exchange contracts					(796)				(442)				(1,327)				(628)
Write down of mining assets					-				-				263				339
Participation fee paid to Secured debenture holders					-				-				756				-
Net loss on disposal of non-core assets					-				-				-				641
Total adjusted net earnings (loss)				$	1,584			$	3,584			$	14,209			$	(18,198)
Weighted average number of shares outstanding (in thousands)
Basic					362,311