Queensland Minerals Ltd.

Queensland Minerals Ltd.

October 19, 2010 08:30 ET

Queensland Minerals Ltd. Announces Closing of Debt Settlement

LONGUEUIL, QUEBEC--(Marketwire - Oct. 19, 2010) - Queensland Minerals Ltd. (TSX VENTURE:QML) ("Queensland" or the "Company") announces that it has closed the debt settlement with its bankers (the "Bank") first announced December 2, 2009 (the "Debt Settlement").

In connection with the Debt Settlement, under which the Company's outstanding debt to the Bank was extinguished in its entirety, the Company has (i) transferred to the Bank all of its interest in restructured asset-backed commercial paper notes held by it (which investments replaced the Canadian third-party asset-backed commercial paper previously held by Queensland) and (ii) issued to the Bank 222,222 common shares, 222,222 share purchase warrants exercisable at $0.42 for a period of two years from closing (subject to a right of accelerated expiry in favour of the Company under certain conditions) and 416,666 share purchase warrants exercisable at $0.30 for three years from closing. The Debt Settlement has been accepted by the TSX Venture Exchange.

All securities issued pursuant to the Debt Settlement are subject to hold periods under Canadian securities laws expiring February 19, 2011.

"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."

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

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