Claude Resources Announced It Has Approached St. Eugene Mining Corporation With A Proposal To Enter Into A Letter Of Intent For A Share Exchange Transaction For 100% Premium

Claude Resources CGR today announced it has approached the Board of Directors of St. Eugene Mining Corporation with a proposal to enter into a letter of intent for a share exchange transaction for 100% of St. Eugene at a significant premium to its trading price. St. Eugene is a gold exploration company whose main assets include its 35 percent joint venture interest in the Amisk Gold Project in Saskatchewan (65 percent owned by Claude) and its 100 percent owned Tartan Lake Gold project in the Flin Flon area, Manitoba. As the largest shareholder of St. Eugene (holding 11.7 million common shares or approximately 9.7 percent of the basic shares outstanding), Claude is disappointed by the strategic direction of St. Eugene evidenced by the recent announcement, and subsequent suspension, of a highly dilutive private placement with Churchill Natural Resource Partners L.P. that would have resulted in loss of control of St. Eugene at a discount to its trading price.