Mr. Logan Anderson reports

ST. JAMES GOLD CORP. (CSE: LORD) ANNOUNCES PROPOSED SHARE CONSOLIDATION

St. James Gold Corp.'s board of directors has approved a consolidation of the company's issued and outstanding common shares on the basis of one postconsolidation common share for five preconsolidation common shares.

The board of directors believes that the consolidation will improve the company's capital structure and better position the company to attract investment and pursue future financing opportunities.

The company currently has 39,535,628 common shares issued and outstanding, and, if completed, the proposed consolidation would reduce the number of issued and outstanding common shares to approximately 7,907,126, subject to adjustment for rounding. No fractional shares will be issued in connection with the consolidation. Instead, any fractional share interest resulting from the consolidation will be rounded down to the nearest whole share if the fraction is less than one-half and rounded up to the nearest whole share if the fraction is equal to or greater than one-half, and no cash consideration will be paid in respect of fractional shares. The exercise or conversion price and the number of common shares issuable under the company's outstanding stock options, warrants and other convertible securities will be proportionately adjusted in accordance with their respective terms.

Completion of the consolidation is subject to acceptance by the Canadian Securities Exchange.

Pursuant to the company's articles, the consolidation has been approved by the company's board of directors and does not require the approval of the shareholders. The company will not be changing its name or trading symbol in connection with the consolidation.

Following the filing of all necessary documentation with the CSE in respect of the proposed consolidation, the company will issue a news release announcing the effective date of the proposed consolidation, the new Cusip number and ISIN for the postconsolidation common shares, and all other relevant details regarding the proposed consolidation.

About St. James Gold Corp.

St. James Gold is a publicly traded company listed on the Canadian Securities Exchange under the trading symbol LORD, in the United States market listed on the OTCQB under LRDJF and on the Frankfurt Stock Exchange under BVU3. The company is focused on creating shareholder value through the discovery and development of economic mineral deposits by acquiring prospective exploration projects with well-delineated geological theories, integrating all available geological, geochemical and geophysical data sets, and financing efficient exploration programs. The company currently holds: (i) a 100-per-cent stake in 29 claims, covering 1,791 acres, in the Gander gold district in north-central Newfoundland, located adjacent to New Found Gold Corp.'s Queensway North project; and (ii) a 100-per-cent stake in nine claims and an option to acquire a further 100-per-cent interest in 19 claims, covering a total 1,730 acres, in central Newfoundland.

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