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MinecashcostsofUS$772perounceandaroyaltycostofUS$137perounce,foratotalcashcostperounceofgoldsold(3)ofUS$909perounceinthefourthquarter.

Minecashcostsfor2011wereUS$960perouncewitharoyaltycostofUS$120perounce,foratotalcashcostperounceofgoldsold(3)ofUS$1,080.

Minecashcostsincreasedin2011duetothedelayinstartupattheHoltMineandthetransitioninminingareasattheHollowayMine,compoundedbyahighroyaltycostduetotheincreaseinthepriceofgold.However,cashcostsimprovedby20%overthepreviousquarterin2011,andareexpectedtoreducefurtherthroughout2012.

Earnedcashmarginfrommineoperations(1)of$18.7millioninthefourthquarter,and$37.5millionfor2011.

Anincreaseof$6.7millionor56%incashmarginfrommineoperations(1)whencomparedtopreviousquarterin2011,asaresultoftheincreaseinthroughputandanincreaseinoregrade.

OperatingcashflowbeforerepaymentofGoldNotes(1)of$17.1million,or$0.05onapersharebasis,forthefourthquarter,and$35.0million,or$0.10onapersharebasis,forannual2011.

Arecordyearofoperatingcashflowsincetherestartofmineoperationsin2009,anincreaseof58%overthepreviousquarter,andanincreaseby$9.1millionoverthepreviousyear.

Holtachievedcommercialproductionatthebeginningofthesecondquarterof2011.

Commencedcommercialproductionatourflagshipmine,whichsawprogressiverampupthroughout2011,fromtheinitial500tonnesperday(“tpd”).

SmokeDeepZoneattheHollowayMinecommencedproductioninOctober.

Productioncommencedinthewesternportionofthezoneandcontributedapproximately18%oftheHollowaymine’sthroughputfortheyear.Developmentcontinuestowardstheeasternportionofthezoneandproductionratesandoregradeareanticipatedtoincreasein2012.

Incurredtotalcapitalexpendituresatthethreeoperationsof$8.6millioninthequarter,and$33.8millionfor2011.

AtHislop,theCompanyspentcapitalexpendituresof$10.7millionin2011and$0.7millionduringthefourthquarterastheoverburdenstrippingwassubstantiallycomplete.Ongoingminecapitalisexpectedtobeminimal.

MinedevelopmentandcapitalexpendituresfortheHoltMineandMill,andtheHollowayMineduringthefourthquarterand2011were$7.9millionand$23.1million,respectively.

FinalizedanupdatedresourceestimatefortheTaylorProjectwhichwasutilizedaspartofapre‐feasibilitystudyoutlining173,000ouncesofprobablereservesattheWestPorphyryZone.

Incurred$2.7millionin2011toadvancetheTaylorProjecttowardsthepre‐feasibilitystage.TheTaylorpre‐feasibilitystudyoutlines985,000tonnesatanaveragegradeof5.01g/tAufor173,000ouncesofcontainedgoldintheWestPorphyryZone.Theresultsofthepre‐feasibilitystudyarebeingreleasedconcurrentlywiththispressrelease.

InMay2011,theCompanyreceivedafavourablerulingfromtheOntarioCourtofAppealconcerningtheHoltRoyalty.

ReceivingthisfinaljudgementsuccessfullyremovesthecontingentliabilitywhichsignificantlyimprovestheeconomicsoftheHoltMineandtheCompany’svalue.

InMay 2011, SAS employees celebrated 1millionhoursworkedwithoutalosttimeaccident.

TheCompanyachievedaminesafetyrecord,andcontinuestooperatewithoutaLostTimeAccident.

Asummaryofthe2011MineralResourcesandMineralReservesestimateasatDecember31,2011,are included as part of the Company’s Management Discussion and Analysis for 2011, which isbeing filed today, February 16, 2012, and is available under the Company’s profile on SEDAR atwww.sedar.com,andontheCompany’swebsiteatwww.sasgoldmines.com.


HoltMine,OperationsandFinancialReview(seeOperatingandFinancialStatisticsonpage12)In the fourth quarter, the Holt Mine (“Holt”) produced 11,421 ounces of gold from processing67,778tonnesoforeataheadgradeof5.57g/tAu,whichwassubstantiallyderivedfromZone4.Sincethecommencementofcommercialproductionatthebeginningofthesecondquarterin2011,Holtproduced26,941ouncesofgoldfromathroughputof188,872tonnesatagradeof4.74g/tAu.Mill recoveries in the fourth quarter and in 2011of 94.1% and 93.5%, respectively,were at theexpectedlevel.Minedevelopmentinthefirsthalfof2011wasnegativelyimpactedbyafourmonthdelayinrampup of operations due to the limited availability of skilledmanpower and equipment issues. Theimplementation of an underground employee training program in the second quarter of 2011,coupled with improved equipment availability, resulted in a 36% increase in developmentproductivityover the firsthalfof2011,and theminecurrentlyhas its full complementofskilledworkers.Theminingrateduring2011rampedupfromtheinitial500tonnesperday(“tpd”)inthesecondquarter,andcontinuedtoprogresstowardstheanticipatedsteadystaterateofproductionof1,000tpdexpectedbytheendofthefirstquarterof2012,whichwillpositivelyimpactunitcosts.During the second and third quarter of 2011,most of the production orewas derived from theC‐103 Zone, which achieved lower than expected grade. The head grade saw a steady increaseduringthelastfewmonthsof2011,astheC‐103Zonewasdepletedattheendofthethirdquarter,andtheminesawbetterdevelopmentgradeore fromZone4coupledwithproductionorewhichwasinlineorbetterthanthereservegradeof4.34g/tAu(asofDecember31,2010).Holtachievedacashmarginfrommineoperations(1)of$12.1millionduringthefourthquarter.Theminesawasteadyincreaseinthroughputquarteroverquarter;whichledtoconsecutivedecreasesinmine‐sitecostpertonnemilled(1)of$15pertonnefromthesecondquarterof2011tothethirdquarter,andanother$11pertonneinthefourthquarter.Inconjunctionwiththeimprovementinoregrade in the thirdand fourthquarters, totalcashcostperounceofgoldsold (1)decreasedbyUS$377per ounce andUS$292per ounce, respectively. TheCompany expects operating costs atHoltwillcontinuetodecreaseastheminingrateincreasestowardsitssteadystatelevels.Holtisexpectedtocontributeapproximately50%oftheannualgoldproductionfor2012.HollowayMine,OperationsandFinancialReview(seeOperatingandFinancialStatisticsonpage13)TheHollowayMine(“Holloway”)produced6,126ouncesofgoldinthefourthquarterfromthreeareas, the Lightning Zone (“Lightning Zone”), Blacktop Footwall Lower Zone (“BFWL”), and theSmokeDeepZone (“SmokeDeep”).During2011,approximately45%ofproductionwasderivedfromLightning,37%fromtheBFWL,andinthefourthquarter,18%fromSmokeDeep.Productionwasnegativelyimpactedthroughout2011duetotheshiftinminingfromtheBFWLandLightningzones, while preparing Smoke Deep for production. Ramp development at Smoke Deep wascompleted during the third quarter of 2011, and production commenced at the end of October2011.Millrecoveryof84.1%inthe fourthquarterwasslightly lowerthananticipatedduetotheprocessingofgraphiticorefromtheBFWLandtheslowerleachkineticsassociatedwithorefromthewesternportionofSmokeDeep,whereinitialproductionwasderivedfrom.


Goldsalesfor2011were23,698ouncesor61%lowerthanthe61,447ouncesofgoldsoldin2010duetothereasonsmentionedabove.Cashmarginfrommineoperations(1) forthefourthquarterand for 2011were $4.1million and $12.0million, respectively. Mine site cost per tonnemilledincreasedby14%from$86pertonnein2010to$98pertonnein2011,whichwasattributabletoa40%decreaseinthroughputwhencomparedto2010,partiallyoffsetbytheimprovedefficienciesin operating activities at themine. The Company expects mine site cost per tonne in 2012willreduceasproductionratesatSmokeDeepcontinuetoincrease,andtheminedoregradeimproves.Hollowayisexpectedtocontributeapproximately30%oftheannualgoldproductionfor2012.HislopMine,OperationsandFinancialReview(seeOperatingandFinancialStatisticsonpage14)TheHislopMine(“Hislop”)produced4,803ouncesofgoldinthefourthquarterof2011.TheheadgradefortheHislopMineinthefourthquarterincreasedbyapproximately15%fromthepreviousquarterand13%over2010.Theoregrademinedcontinued to improve in the fourthquarterasmining progressed deeper and into the eastern portion of the pit. Mill recovery in the fourthquarter of 83.0%was negatively impacted by processing a higher portion of ore that requires afinergrind.OperationsatHislopwereimpactedsincethesecondquarterof2011,bytheadditionaloverburdenremovalandwasterockminingactivitiesasaresultofoverburdenslopefailuresduringtheyear,anddelayedstrippingoftheeasternportionofthepit.Rehabilitationactivitiescommencedinthethirdquarterandarenowcomplete,andalloverburdenhasbeenstripped.Wasterockminingwasreducedinthesecondhalfof2011butremainedhigherthanexpectedduetothechangeinminingsequence required to accommodate overburden stripping activities. The strip ratio for 2012 isexpectedtodecreaseto3.8,whichislowerthanthelife‐of–minestripratioof4.8.Goldsalesinthefourthquarterwere4,985ounces,and19,806ouncesfor2011,87%higherthanthe 10,592 ounces of gold sold in 2010 (as the mine only commenced commercial miningoperations in the secondhalf of2010).Hislop contributed gold sales revenueof $31.2million in2011ascomparedto$12.1millionin2010,a150%increaseduetotheincreaseinthroughputandthe improvement in ore grade as mentioned above, as well as a 39% increase in the averagerealizedpriceperounceofgoldsold(1).Minesitecostspertonnemilledincreasedby14%from$51per tonne in2010to$58per tonne in2011,whichwasattributable to theadditionalwasterockminingactivitiesmentionedabove.TheCompanyexpectstheremaininglife‐of‐mineminesitecostper tonne milled to remain closer to $59 per tonne. The higher cost is primarily due to thecomplexityoftheorebody,therockhardnessandtheincreasedfuelcosts.Productioncashcostperounceofgoldsoldinthefourthquarterand2011wasUS$1,196perounceandUS$1,272perounce,respectively.TheCompanyanticipatesthecashcostperounceofgoldsoldfortheHislopMineduring2012,willremainatthelevelexperiencedinthefourthquarterof2011,despite a lower strip ratio, as a consequence of the increase inmine operating costsmentionedabove.Hislopisexpectedtocontributeapproximately20%oftheannualgoldproductionfor2012.


TaylorProjectAsofDecember31,2011,theCompanycompletedanupdatedresourceestimateandcalculationofmineralreservesfortheTaylorProject(“Taylor”),aspartofpreparationforaPre‐feasibilitystudy.The study outlinedmineral reserves for theWest Porphyry Zone (“WPZ”) of approximately 1.0milliontonnesatagradeof5.45g/tAucontainingapproximately173,000ouncesofgold,includedwithinmeasured and indicatedmineral resources (which include theWest Porphyry and ShootZone)totalling2.6milliontonnesgrading5.42g/tAufor457,000ouncesofcontainedgoldintheindicated category, and 1.9 million tonnes grading 3.96 g/t Au for 246,000 million ounces ofcontainedgoldintheinferredcategory.Resultsof thePre‐feasibilitystudyarebeingreleasedconcurrentlywiththe financial informationonFebruary16,2012.ANational Instrument43‐101compliant technical reportwillbeavailableunder the Company’s profile on SEDAR at www.sedar.com and on the Company’s website atwww.sasgoldmines.comonorbeforeMarch30,2012.ExplorationProgramsThe Company recently released its plans for its 2012 exploration program which will focus ontargets that lienear theHolloway‐Holt andHislopMinesandwhichhas an initial budgetof $7.0million. Drilling has resumed on two targets, the Ghost Zone near Holt, and the Hislop NorthProject,andresultswillbereleasedastheybecomeavailable.CapitalResourcesSAS achieved a record year for cash flow from operations of $23.4 million since the restart ofminingoperationsinthefourthquarterof2009.TheCompanyendedtheyearwithcashof$17.6million,however,workingcapitaldecreasedduringthethirdquarter,andinthefirstninemonthsof the year, as a result of a four‐month delay in the development of Holt, and the additionaloverburdenandwasterockremovalactivitiesatHislop.Theseoperationalissuesarenowresolved,and cash flow from operations in the future periods is expected to improve. The Companygenerated$37.5millionincashmarginfrommineoperations(1)and$35.0millioninoperatingcashflowbeforerepaymentoftheGoldNotes(1). Conference Call Information AconferencecallwillbeheldonFridaymorning,February17,2011at10:00a.m.(EDT)todiscussthe fourth quarter and annual 2011 results. Participants may join the call by dialling toll free1‐866‐212‐4491or1‐416‐800‐1066forcallsfromoutsideCanadaandtheUS.TheCompanywillpost accompanying power point slides for the call, please visit the website for more detailedinformationandanywebcastlinks(www.sasgoldmines.com).Arecordedplaybackofthecallwillalsobeavailableviathewebsiteandwillbepostedwithin24hoursofthecall.

6

Qualified Person Production at the Holt, Holloway and Hislop mines, and processing at the Holt Mill are beingconducted under the supervision of DuncanMiddlemiss, P.Eng, the Company’s Vice President &GeneralManager, East Timmins Operations. The calculation of Mineral Reserves and the Taylorpre‐feasibilitystudywascompletedbytheCompanyunderthesupervisionofPierreRocque,P.Eng,the Company’s Director of Engineering. The exploration programs on the Company’s variousmineral properties are under the supervision of Craig Todd, P.Geo, the Company’s ExplorationManager. Messrs. Middlemiss, Rocque and Todd are qualified persons as defined by NationalInstrument43‐101,andhavereviewedandapprovedthisnewsrelease.Non‐GAAPMeasuresThe Company has included the non‐GAAP performance measures: adjusted net earnings (loss);operatingcashflowbeforerepaymentsofGoldNotes;averagerealizedpriceperounceofgoldsold;totalcashcostperounceofgoldsold;cashmargin frommineoperations;andmine‐sitecostpertonnemilledthroughout thispressrelease,whichdonothavestandardizedmeaningsprescribedby International Financial Reporting Standards (“IFRS”) and are not necessarily comparable toothersimilarlytitledmeasuresofothercompaniesduetopotentialinconsistenciesinthemethodofcalculation. The Company believes that, in addition to conventional measures prepared inaccordance with IFRS, the Company and certain investors use this information to evaluate theCompany’sperformance.Accordingly, it is intendedtoprovideadditional informationandshouldnot be considered in isolation or as a substitute for measures of performance prepared inaccordance with IFRS. Refer to pages 8‐11 of this press release for a discussion and thereconciliation of these non‐GAAP measurements to the Company’s 2011 Annual FinancialStatements.TheunauditedBalanceSheets,StatementsofOperationsandStatementsofCashFlows fortheCompany forthethreeandtwelvemonthsendedDecember31,2011,canbe foundonpages15‐17.

To review the complete 2011 Annual Financial Statements and the Annual Management’sDiscussionandAnalysis for2011,please seeSAS’s SEDAR filingsunder theCompany’sprofile atwww.sedar.comortheCompany’swebsiteatwww.sasgoldmines.com.AboutSASSAS(operatingas “SASGoldmines”) isagoldminingandexplorationcompanywithanextensiveland package in the Timminsmining district, northeastern Ontariowhich lieswithin the Abitibigreenstonebelt,themostimportanthostofhistoricalgoldproductioninCanada.SASisfocussedondevelopingitsassetsintheTimminsCampwiththreeproducingminesandaggressiveexplorationactivitiesacross120kmoflandstraddlingthePorcupine‐DestorFaultZone.

ForfurtherinformationaboutStAndrewGoldfieldsLtd.,pleasecontact:Tel:1‐800‐463‐5139or(416)815‐9855;Fax:(416)815‐9437;Website:www.sasgoldmines.com

Suzette N Ramcharan Manager, Investor Relations Email: [email protected]

Jacques Perron President & CEO Email:[email protected]

Ben Au CFO, VP Finance & Administration Email:[email protected]

7

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 Company’s production budgets, and planned gold production levels at the Holt, Holloway and the Hislop mines in 2012; the improvement in throughput and reduction in unit costs at the Holt Mine; the improvement in the ore grade and production rates, and reduction in costs at the Holloway Mine; the improvement in the ore grade and the stabilization in costs at the Hislop Mine; the anticipated manpower levels at the Company’s mining operations (and the ability to achieve same); the extent of exploration programs in 2012; the improvement in the Company’s cash flow from operations; and the availability of a NI 43‐101 technical report on the Taylor Project, and the timing 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 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 www.sedar.com.

‐30‐

8

NON‐GAAPMEASURESAdjustednetearnings(loss)Adjustednetearningsarecalculatedbyremovingthegainsandlosses,resultingfromthemark‐to‐market revaluationof theCompany’sgold‐linked liabilitiesand foreigncurrencypriceprotectionderivatives, one‐time gains or losses on the disposition of non‐core assets and expenses andsignificanttaxadjustmentsnotrelatedtocurrentperiod’searnings,asdetailedinthetablebelow.Adjusted net earnings does not constitute a measure recognized by IFRS and does not have astandardizedmeaning defined by IFRS andmay not be comparable to information in other goldproducers’reportsandfilings.TheCompanydisclosesthismeasure,whichisbasedonitsFinancialStatements,toassistintheunderstandingoftheCompany’soperatingresultsandfinancialposition.

AmountsinthousandsofCanadiandollars,exceptpershareamounts 2011 2010 2011 2010

Netincome(loss)perFinancialStatements 12,921$ (235)$ 17,173$ 2,090$Reversalofincomeandminingtaxassetvaluationallowance (433) ‐ (18,455) ‐Mark‐to‐marketloss(gain)ongold‐linkedliabilities (1,414) 2,010 3,347 6,630Mark‐to‐marketloss(gain)onforeigncurrencyderivatives (3,436) (796) 3,869 (1,327)Proceedsfrominsuranceclaim ‐ ‐ (338) ‐Loss(gain)onthedivestitureofnon‐coreassets (1,049) ‐ 304 ‐Write‐downofminingassets ‐ ‐ 300 263Secureddebentureparticipationfee ‐ ‐ ‐ 756Adjustednetearnings 6,589$ 979$ 6,200$ 8,412$

Weightedaveragenumberofsharesoutstanding(000s)Basic 368,067 362,311 367,912 343,082Diluted 368,739 366,645 369,945 345,854

Adjustednetearningspershare‐basicanddiluted 0.02$ 0.00$ 0.02$ 0.02$

ThreemonthsendedDecember31, YearendedDecember31,

OperatingcashflowbeforerepaymentofGoldNotesSASusesthefinancialmeasureoperatingcashflowbeforerepaymentofGoldNotestosupplementtheinformationincludedinitsFinancialStatements.ThepresentationofoperatingcashflowbeforerepaymentofGoldNotesdoesnotconstituteameasurerecognizedbyIFRSandisnotmeanttobeasubstitute for cash flow from operations or cash flow from operating activities presented inaccordance with IFRS, but rather should be evaluated in conjunction with such IFRSmeasures.OperatingcashflowbeforerepaymentofGoldNotesexcludesthenon‐cashvalueofgolddeliveredtotheCompany’sGoldNoteholders.

The term operating cash flow before repayment of Gold Notes does not have a standardizedmeaningprescribedbyIFRS,andthereforetheCompany’sdefinitionsareunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies.Managementbelievesthatthepresentationofoperating cash flow before repayment of Gold Notes provides useful information to investorsbecause it excludes the repayment of Gold Notes (which will be retired at the end of 2012) inworkingcapitalitems,andisabetterindicationoftheCompany’scashflowfromoperationsandisconsidered by Management to be meaningful in evaluating the Company’s past financialperformance and its future prospects. The Company believes that conventional measures ofperformancepreparedinaccordancewithIFRSdonotfullyillustratetheabilityoftheCompany’soperatingminestogeneratecashflow.

9

AmountsinthousandsofCanadiandollars,exceptpershareamounts 2011 2010 2011 2010

OperatingcashflowperFinancialStatements 13,981$ 6,697$ 23,446$ 14,853$RepaymentofGoldNotes 3,083 2,585 11,522 11,035OperatingcashflowbeforerepaymentofGoldNotes 17,064$ 9,282$ 34,968$ 25,888$

Weightedaveragenumberofsharesoutstanding(000s) 368,067 362,311 367,912 343,082

Pershareamounts 0.05$ 0.03$ 0.10$ 0.08$


Notes:(1) PershareamountsarecalculatedbydividingtheoperatingcashflowbeforerepaymentsofGoldNotesbytheweightedaverage

numberofsharesoutstandingforeachperiod

TotalcashcostperounceofgoldsoldTotal cash cost per ounce of gold sold is a non‐GAAP performance measure and may not becomparabletoinformationinothergoldproducers’reportsandfilings.TheCompanyhasincludedthisnon‐GAAPperformancemeasurethroughoutthisdocumentastheCompanybelievesthatthisgenerally accepted industry performancemeasureprovides a useful indication of the Company’soperational performance. The Company believes that, in addition to conventional measurespreparedinaccordancewithIFRS,certaininvestorsusethisinformationtoevaluatetheCompany’sperformance and ability to generate cash flow. Accordingly, it is intended to provide additionalinformation and should not be considered in isolation or as a substitute for measures ofperformance prepared in accordancewith IFRS. The following table provides a reconciliation oftotalcashcostsperounceofgoldsoldtoproductionexpensespertheFinancialStatementsforthethreemonthsandyearended2011:

AmountsinthousandsofCanadiandollars,exceptwhereindicated 2011 2010 2011 2010

Mine‐sitecostsperFinancialStatements 18,452$ 14,017$ 66,098$ 41,497$

ProductionroyaltiesperFinancialStatements(2) 3,285 1,392 8,222 5,418Totalcashcosts 21,737$ 15,409$ 74,320$ 46,915$

Dividedbygoldouncessold(1) 23,368 17,952 69,528 70,461

Totalcashcostperounceofgoldsold(Canadiandollars) 930$ 858$ 1,069$ 666$

AverageCAD:USDexchangerate 1.02$ 1.01$ 0.99$ 1.03$

Totalcashcostperounceofgoldsold(US$) 909$ 850$ 1,080$ 646$

Breakdownoftotalcashcostperounceofgoldsold(US$)

HoltMine(2)

Minecashcosts 556$ N/A 785$ N/ARoyaltycosts 166 N/A 167 N/A

722$ N/A 952$ N/AHollowayMineMinecashcosts 853$ 596$ 894$ 485$Royaltycosts 192 108 167 87

1,045$ 704$ 1,061$ 572$

HislopMine(2)

Minecashcosts 1,196$ 1,192$ 1,272$ 1,152$Royaltycosts ‐ ‐ ‐ ‐

1,196$ 1,192$ 1,272$ 1,152$TotalMinecashcosts 772$ 772$ 960$ 570$Royaltycosts 137 78 120 76

909$ 850$ 1,080$ 646$


10

Notes:(1) Includesgoldouncesdelivered toGoldNoteholders;andafterdeducting1,578ouncesofgold fromtheHislopMineand1,408

ouncesfromtheHoltMinewhiletheoperationswereinpre‐production.

(2) TheHislopMine commencedcommercialoperationson July1,2010, and theHoltMinecommencedcommercialoperationsonApril1,2011.

Mine‐sitecostpertonnemilledMine‐sitecostpertonnemilledisanon‐GAAPperformancemeasureandmaynotbecomparabletoinformation in other gold producers’ reports and filings. As illustrated in the table below, thismeasureiscalculatedbyadjustingProductionCosts,asshowninthestatementsofoperationsforinventory level changesand thendividingby tonnesprocessed through themill. Since total cashcostperounceofgoldsolddatacanbeaffectedbyfluctuationsinforeigncurrencyexchangerates,Management believes that mine‐site cost per tonne milled provides additional informationregarding the performance of mining operations and allows Management to monitor operatingcosts on amore consistent basis as the per tonnemilledmeasure eliminates the cost variabilityassociatedwith varying production levels.Management also uses thismeasure to determine theeconomicviabilityofminingblocks.Aseachminingblockisevaluatedbasedonthenetrealizablevalueofeachtonnemined,inordertobeeconomicallyviable,theestimatedrevenueonapertonnebasismustbeinexcessofthemine‐sitecostpertonnemilled.Managementisawarethatthispertonnemilledmeasureisimpactedbyfluctuationsinproductionlevelsandthususesthisevaluationtool in conjunction with production costs prepared in accordance with IFRS. This measuresupplementsproductioncostinformationpreparedinaccordancewithIFRSandallowsinvestorstodistinguish between changes in production costs resulting from changes in production versuschangesinoperatingperformance.

AmountsinthousandsofCanadiandollars,exceptpertonneamounts 2011 2010 2011 2010

HoltMine(2)(3)

Mine‐sitecosts 6,936$ N/A 20,223$ N/A

Inventoryadjustments(1) (483) N/A (124) N/AMine‐siteoperatingcosts 6,453$ N/A 20,099$ N/A

Dividedbytonnesoforemilled 67,778 N/A 188,872 N/A

Mine‐sitecostpertonnemilled 95$ N/A 106$ N/A

HollowayMineMine‐sitecosts 5,418$ 7,667$ 20,949$ 30,797$

Inventoryadjustments(1) (181) (1,048) (944) (1,351)Mine‐siteoperatingcosts 5,237$ 6,619$ 20,005$ 29,446$

Dividedbytonnesoforemilled 56,225 82,659 204,258 340,593

Mine‐sitecostpertonnemilled 93$ 80$ 98$ 86$

HislopMine(2)(3)

Mine‐sitecosts 6,098$ 6,351$ 24,926$ 10,700$

Inventoryadjustments(1) (563) (1,117) 269 (95)Mine‐siteoperatingcosts 5,535$ 5,234$ 25,195$ 10,605$

Dividedbytonnesoforemilled 92,794 98,333 432,087 208,920

Mine‐sitecostpertonnemilled 60$ 53$ 58$ 51$


11

Note:(1) Thisinventoryadjustmentreflectsproductioncostsassociatedwithunsoldbullionandin‐circuitinventory.

(2) TheHislopMine commenced commercial operations on July 1, 2010 and theHoltMine commenced commercial operations onApril1,2011.

(3) Excludes43,458tonnesofdevelopmentoreprocessedwhiletheHoltMinewasinpre‐productionproducing5,435ouncesofgoldin2011;and55,930tonnesofdevelopmentoreprocessedwhiletheHislopMinewasinpre‐productionproducing2,075ouncesofgoldin2010.

CashmarginfrommineoperationsCash margin from mine operations is a non‐GAAP measure which may not be comparable toinformationinothergoldproducers’reportsandfilings.Itiscalculatedasthedifferencebetweengoldsalesandproductioncosts(comprisedofmine‐siteoperatingcostsandproductionroyalties)pertheCompany’sFinancialStatements.TheCompanybelievesitillustratestheperformanceoftheCompany’s operating mines and enables investors to better understand the Company’sperformanceincomparisontoothergoldproducerswhopresentresultsonasimilarbasis.AveragerealizedpriceperounceofgoldsoldAveragerealizedpriceperounceofgoldsoldisanon‐GAAPmeasureandiscalculatedbydividinggoldsalesasreportedintheCompany’sFinancialStatementsbythegoldouncessold.Itmaynotbecomparabletoinformationinothergoldproducers’reportsandfilings.

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OperatingandFinancialStatistics–HoltMineAmountsinthousandsofCanadiandollars,exceptwhereindicated Q42011 Q32011 Q22011 Q12011 Annual2011 Annual2010

Tonnesmilled 67,778 66,556 54,538 43,458 232,330 23,257Headgrade(g/tAu) 5.57 5.01 3.39 4.15 4.63 2.92Averagemillrecovery 94.1% 93.4% 92.5% 93.6% 93.5% 92.5%

Goldproduced(ounces) 11,421 10,012 5,508 5,435 32,376 2,022

Commercialgoldproductionsold(ounces)(1) 12,175 8,870 4,979 ‐ 26,024 1,408

Goldsales 21,060$ 15,449$ 7,284$ N/A 43,793$ N/A

Cashmarginfrommineoperations(2) 12,054$ 6,625$ 581$ N/A 19,260$ N/A

Mine‐sitecostpertonnemilled(2) 95$ 106$ 121$ N/A 106$ N/A

Totalcashcostperounceofgoldsold(USdollars)(2):Minecashcosts 556$ 833$ 1,255$ N/A 785$ N/ARoyaltycosts 166 181 136 N/A 167 N/A

Totalcashcostperounceofgoldsold(2) 722 1,014 1,391 N/A 952 N/ADepreciationanddepletion 129 134 130 N/A 132 N/ATotalproductioncostperounceofgoldsold(USdollars) 851$ 1,148$ 1,521$ N/A 1,084$ N/A

AverageCAD:USDexchangerate 1.02 0.98 0.97 0.99 0.99 1.03

Capitalexpenditures 4,250$ 1,841$ 1,963$ 1,740$ 9,794$ 8,546$

Notes:(1) TheHoltMinecommencedpre‐productionactivitiesinthesecondhalfof2010andwasputintocommercialproductiononApril1,

2011. The operating results for the Holt Mine prior to April 1, 2011, were classified as site maintenance and pre‐productionexpenditures.

(2) Seepages8‐11 fornon‐GAAPmeasurements.

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OperatingandFinancialStatistics–HollowayMineAmountsinthousandsofCanadiandollars,exceptwhereindicated Q42011 Q32011 Q22011 Q12011 Annual2011 Annual2010



Commercialgoldproductionsold(ounces)(1) 6,208 5,130 4,996 7,364 23,698 61,447

Goldsales 10,750$ 8,828$ 7,272$ 9,996$ 36,846$ 77,133$

Cashmarginfrommineoperations(2) 4,116$ 2,931$ 1,822$ 3,115$ 11,984$ 40,824$

Mine‐sitecostpertonnemilled(2) 93$ 98$ 90$ 111$ 98$ 86$

Totalcashcostperounceofgoldsold(USdollars)(2):Minecashcosts 853$ 960$ 964$ 834$ 894$ 485$Royaltycosts 192 212 164 114 167 87

Totalcashcostperounceofgoldsold(2) 1,045 1,172 1,128 948 1,061 572Depreciationanddepletion 368 540 462 345 418 180Totalproductioncostperounceofgoldsold(USdollars) 1,413$ 1,712$ 1,590$ 1,293$ 1,479$ 752$


Capitalexpenditures 3,666$ 2,938$ 2,986$ 2,779$ 12,369$ 5,070$

Notes:(1) TheHollowayMinecommencedproductioninOctober2009.

(2) Seepages8‐11fornon‐GAAPmeasurements.

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OperatingandFinancialStatistics–HislopMineAmountsinthousandsofCanadiandollars,exceptwhereindicated Q42011 Q32011 Q22011 Q12011 Annual2011 Annual2010

Overburdenstripped(m3) 103,346 300,249 472,214 291,307 1,167,116 581,287

Tonnesmined(ore) 107,827 109,457 114,849 117,138 449,271 293,624(waste) 599,330 738,054 1,303,072 927,216 3,567,672 2,014,541

707,157 847,511 1,417,921 1,044,354 4,016,943 2,308,165

Waste‐to‐OreRatio 5.6 6.7 11.3 7.9 7.9 6.9



Commercialgoldproductionsold(ounces)(1) 4,985 5,260 5,185 4,376 19,806 10,592

Goldsales 8,625$ 9,068$ 7,579$ 5,947$ 31,219$ 12,052$

Cashmarginfrommineoperations(2) 2,527$ 2,432$ 1,000$ 334$ 6,293$ 1,351$

Mine‐sitecostpertonnemilled(2) 60$ 59$ 55$ 61$ 58$ 51$

Minecashcostperounceofgoldsold(2) 1,196$ 1,286$ 1,311$ 1,301$ 1,272$ 1,152$Depreciationanddepletion 177 150 104 95 134 39Totalproductioncostperounceofgoldsold(USdollars) 1,373$ 1,436$ 1,415$ 1,396$ 1,406$ 1,191$


Capitalexpenditures 701$ 2,822$ 5,244$ 1,885$ 10,652$ 6,134$

Notes:(1) Pre‐productionactivitiestopreparetheHislopMinecommencedinearly2010andwerecompletedattheendofthesecondquarter.

TheHislopMinebeganproductiononJuly1,2010.TheoperatingresultsfortheHislopMinepriortoJune30,2010,wereclassifiedasexplorationorsitemaintenanceandpre‐productionexpenditureswhereappropriate.

(2) Seepages8‐11fornon‐GAAPmeasurements.

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BalanceSheets(unaudited)StAndrewGoldfieldsLtd.ExpressedinthousandsofCanadiandollars

December31,2011 December31,2010

AssetsCurrentassets:

Cashandcashequivalents 17,617$ 32,412$Restrictedcash 1,739 1,093Accountsreceivable 1,717 10,694Inventories 6,369 5,081Derivativeassets 103 1,955Prepaymentsandotherassets 900 1,694

28,445 52,929

Explorationandevaluationassets 24,658 23,309Producingproperties 60,067 46,357Plantandequipment 45,737 42,401Reclamationdeposits 8,538 8,471Restrictedcash 1,641 1,641Deferredtaxassets 20,365 ‐Otherassets 716 996

190,167$ 176,104$

LiabilitiesandShareholders'EquityCurrentliabilities:

Accountspayableandotherliabilities 12,754$ 15,885$Employee‐relatedliabilities 4,057 2,535Derivativeliabilities 1,914 ‐Currentportionoflong‐termdebt 14,413 10,623Currentportionofcapitalleaseobligations 32 18

33,170 29,061

Long‐termdebt 5,356 14,838Capitalleaseobligations 67 5Assetretirementobligations 10,678 10,156Deferredtaxliabilities ‐ 125

49,271 54,185

Shareholders'equity:Sharecapital 98,556 218,482Sharecapitaltobeissued ‐ 832Contributedsurplus 18,968 42,972Warrants 878 878Stockoptions 3,128 3,724Retainedearnings(deficit) 20,011 (144,675)Accumulatedothercomprehensiveloss (645) (294)

140,896 121,919190,167$ 176,104$

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StatementsofOperations(unaudited)StAndrewGoldfieldsLtd.ExpressedinthousandsofCanadiandollarsexceptpershareinformationorotherwiseindicated

2011 2010 2011 2010

Goldsales 40,435$ 24,761$ 111,858$ 89,185$

Operatingcostsandexpenses:Minesiteoperating 18,452 14,017 66,098 41,497Productionroyalty 3,285 1,392 8,222 5,513Sitemaintenanceandpre‐production 180 315 264 2,229Exploration 1,443 2,419 8,367 7,154Corporateadministration 1,277 1,362 6,203 6,612Depreciationanddepletion 5,014 4,142 16,665 12,991Write‐downofminingassets ‐ ‐ 300 263

29,651 23,647 106,119 76,259Operatingincome 10,784 1,114 5,739 12,926

Financecosts (1,112) (892) (4,304) (7,377)Mark‐to‐marketgain(loss)ongold‐linkedliabilities 1,414 (2,010) (3,347) (6,630)Mark‐to‐marketgain(loss)onforeigncurrencyderivatives 3,436 796 (3,869) 1,327Foreignexchangegain(loss) (1,120) 311 1,134 1,179Gain(loss)ondivestitureofnon‐coreassets 1,049 (304) ‐Financeincomeandother 42 107 687 172Income(loss)beforetaxes 14,493 (574) (4,264) 1,597Deferredtaxes (1,572) 339 21,437 493Netincome(loss)fortheperiod 12,921$ (235)$ 17,173$ 2,090$

Othercomprehensiveincome(loss)

(50) (209) (351) (174)Comprehensiveincome(loss)fortheperiod 12,871$ (444)$ 16,822$ 1,916$

0.04$ (0.00)$ 0.05$ 0.01$

Weightedaveragenumberofsharesoutstanding(000's)Basic 368,067 362,311 367,912 343,082Diluted 368,739 366,645 369,945 345,854


Unrealizedlossonavailableforsaleinvestments,netoftaxofnilforallperiods

Basicanddilutedearningspershareattributabletoshareholders

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StatementsofCashFlows(unaudited)StAndrewGoldfieldsLtd.ExpressedinthousandsofCanadiandollars

2011 2010 2011 2010Cashprovidedby(usedin):

Operatingactivities:Netincome(loss)fortheperiod 12,921$ (235)$ 17,173$ 2,090$Itemsnotaffectingcash:

Deferredtaxes 1,572 (339) (21,437) (493)Mark‐to‐market(gain)lossongold‐linkedliabilities (1,414) 2,010 3,347 6,630Implicitinterestongold‐linkedliabilities 956 762 3,720 5,505Mark‐to‐market(gain)lossonforeigncurrencyderivatives (3,436) (796) 3,869 (1,327)RepaymentofGoldNotes (3,083) (2,585) (11,522) (11,035)Depreciationanddepletion 5,014 4,142 16,665 12,991Write‐downofminingassets ‐ ‐ 300 263Loss(gain)onthedivestitureofnon‐coreassets (1,049) ‐ 304 ‐Share‐basedpayments 327 337 1,530 1,295Financecosts 131 125 522 500

Changeinnon‐cashoperatingworkingcapitalandother 2,042 3,276 8,975 (1,566)13,981 6,697 23,446 14,853

Investingactivities:Additionstoexplorationandevaluationassets (184) (542) (3,005) (993)Minedevelopmentexpenditures (8,544) (6,911) (24,799) (14,905)Additionstoplantandequipment (2,134) (4,001) (8,085) (6,241)Proceedsfromthedivestitureofnon‐coreassets ‐ ‐ 50 75Interestearnedonreclamationdeposits (17) (32) (67) (32)Cashcollateralizedforbankingfacilities (381) (153) (646) (1,475)

(11,260) (11,639) (36,552) (23,571)Financingactivities:

Sharepurchasewarrantsandstockoptionsexercised 88 3,820 190 7,055Privateplacementsofcommonshareunits ‐ ‐ ‐ 28,938Shareissueexpense ‐ ‐ ‐ (1,704)Sharepurchaseplancontributions ‐ ‐ ‐ 203Repaymentofsecureddebentures ‐ ‐ ‐ (7,555)Advanceroyaltypayments (534) (403) (1,848) (1,363)Capitalleasepayments (7) (17) (31) (88)

(453) 3,400 (1,689) 25,486

Increase(decrease)incashandcashequivalentsfortheperiod 2,268 (1,542) (14,795) 16,768Cashandcashequivalents,beginningofperiod 15,349 33,954 32,412 15,644Cashandcashequivalents,endofperiod 17,617$ 32,412$ 17,617$ 32,412$


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