Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI
BERLIN : QMI

Queenston Mining Inc.
Newstrike Resources Ltd.
TSX VENTURE : NR

Newstrike Resources Ltd.

August 27, 2009 13:14 ET

Queenston and Newstrike Consolidate Claims Adjoining the Commodore Property in Kirkland Lake

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2009) - Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)(BERLIN:QMI) ("Queenston") and Newstrike Resources Ltd. (NR-TSXV) ("Newstrike") announce that they have entered into an addendum to the existing joint venture agreement on the Commodore property located in Lebel and Gauthier townships in the Kirkland Lake gold camp.

Pursuant to the addendum the following property interests are to be contributed to the Newstrike - Queenston joint venture (the "Joint Venture"): (i) six patented mineral claims known as the Morris claims to be contributed by Newstrike: and (ii) seven patented mineral claims and four unpatented mineral claims, collectively the Queenston claims, to be contributed by Queenston. As additional consideration for the contribution made to the Joint Venture by Queenston, Newstrike has agreed to issue 600,000 common shares to Queenston. The transaction remains subject to the approval of the TSX Venture Exchange.

Earlier this month the Joint Venture announced the completion of purchasing the original Commodore property ("Egg claims") plus an additional four claims ("Boundary claims") (see News Release dated August 14, 2009 available on SEDAR at www.sedar.com). As a result of the addendum, the Joint Venture property now totals 57 mineral claims comprising 25 patented and 32 unpatented claims (see the Commodore Property Map attached and available on Queenston's web site at www.queenston.ca and Newstrike's website at www.newstrikeresources.com).

The Morris claims are located west of the Commodore property and hosts the Morris mine that historically produced approximately 17,000 ounces of gold and 29,300 ounces of silver from 1936-1941. The Queenston claims located both south and west connect the Commodore property to the Morris claims and protect the down-dip potential of the Commodore and HG gold zones. The combined property now covers a length totaling seven kilometers along a favourable assemblage of Timiskaming rocks that elsewhere in the camp hosts the historic 24 million ounce Kirkland Lake Main Break gold deposits 8 km to the west and the 1.5 million ounce Upper Canada gold mine 3 km to the east. Two gold structures, the Upper Canada Break and 03 Break trend across the southern and central portions of the combined Joint Venture property and host the best potential for gold mineralization.

The primary area of alteration and mineralization on the property occurs along the Upper Canada Break at a volcanic-sedimentary contact on the southwestern portion of the property where in 1995-96 exploration drilling by previous owners, Sudbury Contact Mines Limited, discovered the Commodore Zone. This gold zone hosts an historic mineral resource of 669,500 t grading 2.4 g/t Au including 278,500 t grading 3.8 g/t Au. The resource was calculated by W.A. Hubacheck Consultants Limited in a report dated January 1997 filed with the Ontario Ministry of Northern Development and Mines. This resource is not compliant to National Instrument 43-101 and should not be relied upon as it has not been verified by a qualified person. West of the Commodore Zone the HG gold zone was discovered in a single drill hole by Sudbury Contact along the Upper Canada Break assaying 43.5 g/t Au over a core length of 1.5 m.

Four target areas on the Joint Venture property have potential to host significant gold mineralization. Targets 1 and 2 represent the Upper Canada Break in the vicinity of the Sudbury Contact discoveries where both shallow gold zones remain open along strike and to depth. Target area 3 is located along the 03 Break where there exists an untested, 2 km long IP geophysical anomaly located 500 m east and along trend of the past producing Morris mine. The 4th target is located in the central portion of the property where a coincident volcanic-sediment contact and IP anomaly exists adjacent to a syenite body.

The Joint Venture plans to begin in September a first phase exploration program consisting of linecutting and diamond drilling budgeted at approximately $530,000. The program will include a total of 18 diamond drill holes totaling 3,800 m.

Charles E. Page, P. Geo. is the qualified person responsible in preparing this news release.

About Queenston

Queenston has assembled significant land packages in proven Canadian mining camps and its strategy is to return to producer status. The first step is in progress through the advancement of its primary gold assets in Kirkland Lake, Ontario (Upper Beaver, McBean, Anoki and Upper Canada) towards NI 43-101 resource status. In the western portion of the Kirkland Gold camp, Queenston is carrying out deep exploration targeting the new South Mine Complex with joint venture partner Kirkland Lake Gold Inc. on the South Claims property and on its 100% owned AK property. Queenston is well financed with working capital of $29 million and maintains interests in 21 contiguous properties in the Kirkland Lake camp totaling approximately 14,500 hectares in 950 mineral claims. The Company's exploration-development budget for 2009 is $10 million employing eight diamond drill rigs.

About Newstrike

Newstrike is an early stage gold exploration company with property assets located primarily in the Kirkland Lake area of Ontario. The Company owns a 50% interest in the Commodore property and a 25% interest in the Swansea property. The Company's strategy is to carry out exploration on their advanced properties with the purpose of defining economic deposits. Newstrike has working capital of approximately $1.1 million.

Queenston's Forward Looking Statements

Except for historical information this News Release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the "Annual Information Form" filed by the Company on SEDAR at www.sedar.com

Newstrike's Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial know and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

To view "Newstrike - Queenston Commodore Property Map", please visit the following link:

http://media3.marketwire.com/docs/qmi_map_827.pdf

Neither the TSX Venture Exchange nor its Regulations Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Queenston Mining Inc.
    Charles E. Page, P. Geo.
    President and CEO
    (416) 364-0001 (ext. 224)
    or
    Queenston Mining Inc.
    Hugh D. Harbinson
    Chairman
    (416) 364-0001 (ext. 225)
    or
    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Email: Info@queenston.ca
    Website: www.queenston.ca
    or
    Newstrike Resources Ltd.
    John A. Pollock
    President and CEO
    (416) 628-6556
    or
    Newstrike Resources Ltd.
    Donald Rankin
    Director
    (416) 628-6556
    Website: www.newstrikeresources.com