Ely Gold Announces Royalty Reduction Agreement

February 23, 2010

Ely Gold & Minerals Inc. (the "Company") announced on November 19, 2009 that it had entered into amending agreements providing for the deferral of payments required under two agreements relating to its Mount Hamilton project, located 65 kilometers west of Ely, Nevada.

Under the first agreement, it was agreed that the times for making various payments to Augusta Resource Corporation ("Augusta") in respect of the Company's acquisition of DHI Minerals Inc. ("DHI") would be extended. Under the second agreement, it was agreed that the time for making the next payment to Centennial Minerals Company LLC ("Centennial") under the lease agreement (the "Lease") relating to the Centennial property would be extended. DHI is the Company's wholly-owned subsidiary which holds the rights to the Mount Hamilton Property and the lease of the adjacent Centennial property.

The Company has now negotiated a further amendment of the Lease to reduce the net smelter returns royalty currently provided for under the Lease to 2.7% from what would otherwise be 8% at the current price of gold. As consideration for the reduction, the Company has agreed to pay US$1,500,000 to Centennial in three installments over two years and to issue to Centennial warrants (the "Centennial Warrants") exercisable to purchase up to 4,000,000 shares of the Company for $0.25 each for three years. The Company has a call option exercisable to purchase up to 3,000,000 shares acquired by Centennial on any exercise of the Centennial Warrants for $1.25 per share for 130 days after the relevant exercise date until 18 months after the date of issue of the Centennial Warrants, and, after the earlier of the Date of Commencement of Commercial Production from the Centennial property and December 15, 2011 Centennial has a put option exercisable to require the Company up to 3,000,000 shares acquired by Centennial on any exercise of the Centennial Warrants for $1.25 per share.

The proposed amendments to the Purchase Agreement and Lease, and the proposed issuance of the securities provided for therein are subject to acceptance by the TSX Venture Exchange of filings to be made by the Company in respect of same. Any shares acquired by Augusta or Centennial pursuant to the exercise of warrants issued to them will be subject to a four month hold period from the date of issuance of such warrants.

On Behalf of the Board of Directors

Signed "Stephen Kenwood"

Stephen Kenwood, President

For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.

E-mail: [email protected]; Website: www.elygoldandminerals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.