Queensland Minerals Ltd.

Queensland Minerals Ltd.

October 13, 2010 15:29 ET

Queensland Minerals Announces Closing of Private Placement for $4 Million

LONGUEUIL, QUÉBEC--(Marketwire - Oct. 13, 2010) - Queensland Minerals Ltd. (TSX VENTURE:QML) ("Queensland" or the "Company") is pleased to announce that it has closed its previously-announced non-brokered private placement (see news releases of August 30, 2010 and October 12, 2010) (the "Financing").

The Company has issued 13,333,360 units ("Units") at a price of $0.30 per Unit for gross proceeds of $4,000,008. Each Unit consists of one common share of Queensland and one common share purchase warrant ("Warrant"). Each Warrant may be exercised to acquire one additional common share at a price of $0.42 per common share for a period of 24 months from the date of distribution, subject to the Company's right to accelerate the Warrant exercise. The Company will have the right, commencing 180 days after the closing date of the Financing, to accelerate the expiry date of the outstanding Warrants if the closing price of the common shares of the Company on any stock exchange in Canada is higher than $1.00 for 20 consecutive trading days in which case the Warrants will expire on the 30th day after the date on which notice of such acceleration is provided by the Corporation to the holders of Warrants. In connection with securing the conditional acceptance of the TSX Venture Exchange of the Financing, the Company has agreed not to exercise its acceleration right in circumstances where the exercise of the Warrants could cause a holder to then hold in excess of 19.99% of the issued shares of the Company, other than in circumstances where the Company obtains shareholder approval to that exercise. Insiders of the Company purchased an aggregate of 11,269,193 Units under the Financing. No finder's fees or commissions were paid in connection with the Financing.

Under applicable Canadian securities laws, all securities issued under the Financing are subject to a hold period expiring February 13, 2011.

The Company intends to use the proceeds raised from the Financing for general working capital. Among general corporate purposes, the Company will spend a portion of the proceeds on the properties in Serbia including mineral licenses related to the Surdulica molybdenum project, the Tulare copper and gold project and other early stage projects located in Serbia (the "Serbian Assets"), in accordance with the option agreement entered into between Dundee Precious Metals Inc. ("DPM") and Queensland dated October 4, 2010 (see news release of October 12, 2010) (the "DPM Option"). Exercise of the DPM Option is subject to a number of conditions, including but not limited to all required regulatory and required shareholder approvals. The Company cannot provide any assurance that the DPM Option will be successfully exercised.

Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website at www.queenslandminerals.com.

Forward-Looking Information

This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Forward looking information is based upon assumptions (including, but not limited to, assumptions about the Serbian Assets) by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to capital markets and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. In particular, there can be no assurance that the DPM Option will be exercised. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

"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."

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