Developing GOLD Assets in
North America

Ely Gold to Retain Chad Williams as a Strategic Advisor for the Northern Star Note Acquisition

May 3, 2011
Ely Gold & Minerals Inc. ("Ely Gold") is pleased to announce that it has entered into an agreement with Chad Williams P.Eng to act as strategic adviser to Ely Gold on the acquisition of the Senior Secured Notes ("Notes") issued by Northern Star Mining ("NSM") as announced by the Company on February 15, and March 4, 2011.

Mr. Williams was previously the CEO and President of Victoria Gold Corp., a high-growth gold exploration and development company with assets in North America. He has extensive experience as a highly-ranked financial analyst in the gold sector and was also Head of Mining Investment Banking at a Canadian brokerage firm. He is currently a Director of two other mining companies. Mr. Williams is a professional mining engineer and holds an MBA from McGill University. He is native of Montreal, Quebec.

"We are very pleased to have Chad's assistance in advancing this exciting portfolio of strategically located properties in Quebec", stated Ely Gold President & CEO Trey Wasser. "Chad was instrumental in crafting Victoria's rapid growth, and his experience in the global mining financial community, plus his deep understanding of the Abitibi region makes him a strong addition to our team. His track record of success and deep professional relationships ideally suits the kind of honest exploration and development approach we intend to apply to the NSM assets."

"The Abitibi Region of Quebec truly remains one of the most prospective regions in the world to explore for gold", said Mr. Williams, "and the NSM land package is definitively well positioned in attractive geologic terrain."

Ely Gold announced on March 4, 2011 that it had entered into two separate agreements giving it the right to acquire up to 65% of $41,093,488 of the outstanding Senior Secured Notes ("Notes") issued by Northern Star Mining ("NSM"). Under the referenced agreement, Ely Gold will initially purchase $4,806,634 principal value of Notes (Value at maturity: $6,609,121 plus accrued interest) for $4,806,634 in cash. Ely Gold will also purchase an option to acquire an additional $14,375,034 in Notes (Value at maturity: $19,765,671 plus accrued interest) for $17,860,681 in cash, exercisable until March 1, 2012, for $1,309,857.

The total cash due on closing under the agreements will be $6,616,491. Both agreements remain subject to financing, definitive documentation and required consents and approvals, including TSX Venture Exchange approval, and to further due diligence by Ely Gold.

NSM holds several mineral properties in the Abitibi Gold Belt in Quebec including the Malartic-Midway Property, as well as the Beacon Mill and other plant and equipment used in its mining operations (the "NSM Assets"). If the Note holders take possession of the NSM Assets, Ely Gold will become a participating co-owner of the NSM Assets, and will become manager and operator of the NSM Assets.

Further information on NSM and its assets, and the business case for the acquisition of the Notes, is set out in Ely Gold's news release dated February 15, 2011.

On Behalf of the Board of Directors

Signed "Trey Wasser"

Trey Wasser, President & CEO

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.