Highlights Of Drilling Results

• 905-05: 13.07 g/t Au (7.43 g/t cut) over 31.6 metres

• 905-21: 11.10 g/t Au (10.72 g/t cut) over 8.9 metres 8.75 g/t Au (7.79 g/t cut) over 6.3 metres, including 18.97 g/t Au

• 945-01: (16.07 g/t Au cut) over 2.0 metres

• 945-03: 18.35 g/t Au over 2.2 metres

"These recent Smoke Deep results are positive and encouraging", said Duncan Middlemiss, President & CEO of SAS. "As the reserve base is limited, the down dip extension of Smoke Deep is significant and could potentially extend the mine life at Holloway."

Smoke Deep

Underground drilling at Smoke Deep commenced earlier this year from underground drill platforms (situated on the 865m Level, 905m Level, 925m Level and most recently the 945m Level), to test for the mineralized extensions of the zone further to the east, west and down dip. The drill program has been successful and drilling continues to extend the Smoke Deep deposit along strike to the east. This drilling has effectively extended the known mineralized strike length of the deposit by approximately 200 meters to the east for a total strike length of 500 metres.

In July 2013, a surface drill tested the down dip and easterly plunge component of the zone. Surface hole GH13-027 returned 4.94 g/t Au over 4.1 metres, including 6.21 g/t Au over 2.8 metres. This intersection is typical Smoke Deep mineralization, associated with the mafic volcanic and ultramafic volcanic contact. It is located approximately 375 metres directly east of the current Smoke Deep resource model and 160 metres below the current drill platform elevation. Drilling has demonstrated that the Smoke Deep mineralization appears to be wider, possesses a stronger alteration halo, is more consistent in grade and displays a 20 degree change in azimuth to the east at depth.

SAS recently extended the 945m Level hangingwall drill drift both to the east and west to provide a drill platform, with drilling in progress to test for the mineralized extensions both to the east, west and at depth.

Drilling, Assaying and QA/QC

Underground drilling at Smoke Deep is performed by Boreal Drilling based in Val-d’Or, QC. Core samples consist of BQ calibre split core, which is submitted to the Company’s Holt Mine assay laboratory for gold analysis. Sample size used for analysis consists of 30 grams of sample material (1 Assay Ton). The laboratory employs an industry standard fire assay sample preparation with an atomic absorption finish. SAS employs an industry accepted QC /QA program consisting of certified reference standards and blanks that are inserted into the sample stream, which represent approximately 5% of the total sample population. Mineralized samples are routinely sent to an external laboratory for comparative laboratory analysis.