Queensland Minerals Ltd.

Queensland Minerals Ltd.

July 15, 2008 10:01 ET

Queensland Minerals Update on Exploration Program Encouraging Results From the Dingo Peak Copper-Gold Discovery in North Queensland, Australia

LONGUEUIL, QUEBEC--(Marketwire - July 15, 2008) - Queensland Minerals Ltd. (TSX VENTURE:QML) (the "Company") is pleased to report further results from recently completed diamond drilling over three projects in North Queensland. The main highlight is drill hole DHDD07 at Dingo Peak that returned 52 meters at 0.66 g/t Au with 0.60% Cu including 8 meters at 2.03 g/t Au with 1.57% Cu in breccia above a porphyry system.

The Company's ongoing campaign is to evaluate copper-gold (Cu-Au) mineralization in highly prospective porphyry style breccias at Dingo Peak and high sulphidation epithermal zones at Anastasia, as well as precious metals in two other local prospects. These prospects are located in the Chillagoe region as shown on Figure 1 below.

Figure 1. (QML Project locations in North Queensland) is available at the following address: http://media3.marketwire.com/docs/Figure1_QML.pdf

Dingo Peak Prospect

This recently recognized Cu-Au porphyry prospect is located within the Company's 100% owned Mungana project approximately 35 km south of the old Red Dome mine and Kagara Ltd's new Mungana porphyry deposit. The Dingo Peak geological setting shown in Figure 2, contains a number of significant prospect targets including a large (1200m by 1000m) porphyry-related system in the south exhibiting a halo of elevated gold and copper geochemistry within marginal sheeted quartz veins and milled breccias surrounding an altered rhyolite porphyry intrusive core.

Figure 2. (Dingo Peak Prospect Geological outline) is available at the following address: http://media3.marketwire.com/docs/Figure2_QML.pdf

The porphyry system lies in the southern part of a 2.5 km long by 1.5 km wide geochemical and geophysical anomalous zone that includes several other large poorly tested sub volcanic targets comprised of variably altered and mineralized breccias and vein systems in metamorphics intruded by quartz porphyry dykes.

Initial diamond drilling of two diamond drill holes for 266 meters reported in April 2008 gave very positive values of 39 meters at 0.42% Cu and 0.8 g/t Au from 119 m in DHDD05, including 23 meters at 0.55% Cu and 1.25 g/tAu and 4.6 g/t Ag to 142 m, and also 10 meters at 2.04 g/tAu, 4 g/t Ag and 0.5% Cu from 130 m. This discovery hole showed that the strongly anomalous surface geochemistry defined by previous explorers and the Company was enhanced at shallow depth within milled breccias and overprinting porphyry-type veins.

The latest round of core drilling comprising three holes DHDD06-08 for 835 meters completed in May 2008 was focused around DHDD05 to test a series of mineralized breccias exposed on the northern flank of Dingo Peak as shown in Figure 3.

Figure 3. (Dingo Peak Porphyry Prospect Drill plan) is available at the following address: http://media3.marketwire.com/docs/Figure3_QML.pdf

All holes intersected significant copper mineralization, but to date results have only been received for DHDD07 that was sited 35 m north and beneath DHDD05 in order to test depth extensions of the known mineralization and similar untested breccias to the south, refer section in Figure 4.

Drillhole DHDD07 provided a very encouraging result with stronger grade/thickness parameters than the previous shallower drilling, indicating the mineralization is improving with depth.

Best assays from this hole were:

101 to 153m, 52 m at 0.66 g/t Au with 0.60% Cu, including

101 to 111m, 10 m at 0.65 g/t Au with 0.85% Cu,

120 to 130m, 10 m at 0.97 g/t Au with 0.49% Cu,

145 to 153m, 8 m at 2.03 g/t Au with 1.57% Cu

Detailed assay results are provided in Table 4 in the Appendix.

Figure 4. (Dingo Peak Prospect Drilling Section) is available at the following address: http://media3.marketwire.com/docs/Figure4_QML.pdf

Recent interpretation by consultant Dr. Gregory Corbett (FAIG RPGeo) suggests the prospect displays many of the features indicative of an above porphyry environment, and speculates the mineralized breccias intersected in recent drilling to be vector features towards an attractive larger source Cu-Au porphyry target at depth (Figure 5).

Figure 5. (G. Corbett's conceptual model for Dingo Porphyry Prospect) is available at the following address: http://media3.marketwire.com/docs/Figure5_QML.pdf

The extent and controls to the porphyry type veining and sulphide breccias at Dingo Peak is of prime importance in understanding the potential size of the deposit near surface and at depth. The Company proposes to achieve this by ongoing detailed mapping, infill geochemistry and IP geophysics up to September, and then reverse circulation/core drilling focused to test the obvious near surface zones and their extensions at depth. Limited drilling has been done on this major system. The objective of the planned systematic surveys and proposed follow-up drilling is to define at least one if not several substantial resource targets.

In order to initially assess the sulphide potential below 150 m depth, the Company plans to conduct a deep penetrating IP survey the coverage of which is subject to the results of a current review of the previous gradient array IP work by an experienced consultant.

The Company expects that in addition to the 2.5 km by 1.5 km long existing grid coverage the survey will extend 1 km further east to incorporate a new prospective porphyry target in the 15 Mile Creek area. Ongoing infill Niton soil surveys have defined enhanced copper zones in the southern prospect area and Niton geochemistry will be used elsewhere to define base metal anomalous zones where there is no current geochemical coverage.

Anastasia Prospect

At Anastasia, a detailed diamond drilling program involving 23 drill holes ALD014-ALD036 totaling 5,596 meters was completed between January and April 2008 over the wet season. The drillhole location plan is shown in Figure 6.

Figure 6. (Anastasia Prospect Geology and Drilling Plan) is available at the following address: http://media3.marketwire.com/docs/Figure6_QML.pdf

This program evaluated the strike and depth extensions of the breccia and stockwork veined metasediments in this gold-polymetallic system. Detailed results of the first 18 holes were previously reported in April.

From March-June 2008, the Company completed the remaining scheduled five drill holes and final results have been received for all holes in this program. Collar details are provided in Table 3 and locations in Figure 5. Significant results for these holes are summarized in Table 1 below. Full details are presented in Table 4 in the Appendix.

The deposit is characterized by irregular, steeply dipping mineralized zones mainly within psammitic host horizons that are associated with silicification, quartz veining, brecciation and sericitic alteration. The mineralogy is indicative of a high-sulphidation hydrothermal system of mixed mesothermal to epithermal character, overprinted by later low-sulphidation porphyry-type veins of probable Permo-Carboniferous age.

Table 1. (Summary of Significant drill intersections - April to June 2008) is available at the following address: http://media3.marketwire.com/docs/Table1_QML0715.pdf

Recent drilling has been focused on identifying contiguous zones of sulphide mineralization by drilling along sections 50 m apart and testing the zones to 200 m depth. Results confirm that below the oxide zone, mineralization extends to depth in one to three linear NNW trending, (1-10m thick) steeply dipping polymetallic silica-sulphide zones, mostly in psammitic breccia or amphibolite.

The best intersection to date from the 2008 program is from ALD018:

8.0m at 2.44g/t Au, 1.49% Cu from 226.8m including

0.9m at 3.14g/t Au, 9.8% Cu

This mineralization occurs within grey chalcedonic quartz breccia central to the prospect and is open at depth.

On the NE side of the prospect the best new intersection is 7 meters at 1.44 g/t Au, 38 g/t Ag, 4.02% Cu from 73 m in ALD027. This high-sulphidation intersection lies close to the suspected NE feeder zone structure for this prospect and may be a displaced eastern extension of the strongly mineralized central zone breccia intersected in ALD004. The promising ALD027 zone was tested at depth by ALD033 and along strike by ALD034, however its extensions proved to be limited by the rhyolite dome to the south and by underlying granite that contains only minor porphyry style veining. Both proximal and distal to the feeder structure is a series of low-sulphidation Pb-Zn or Cu porphyry type quartz vein intersections that overprint the hotter epithermal mineralization. This mineralization may be more extensive at depth or in the nearby granite and remains to be fully evaluated.

To the west of the prospect an isolated IP anomaly within lower Scardons ignimbrites was tested by three holes ALD023, 024 and 032 refer Figure 6. All holes intersected altered basement metamorphic breccias below 100 metres of volcanic cover, but only ALD024 located significant sulphides with an intersection of 1.5m of 0.25g/t Au, 50 g/t Ag from 176m. This suggests the Anastasia system may be more extensive under the volcanic cover to the west.

During the next few weeks, the Company plans to reinterpret the assay sections and evaluate the resource potential of the Anastasia prospect. If justified, further drilling or surface surveys may be undertaken in the second half of 2008.

Reedy Creek Project (Echo Resources)

In early 2008, the Company entered into an Option Agreement entitling the Company to earn up to an 80% interest in Echo Resources Limited Reedy Creek Project which surrounds the Anastasia prospect area and covers 230km2 in the prospective northern Scardons Igneous Complex and adjacent metamorphics shown in Figure 7.

Work to date includes GIS data compilation, geological reconnaissance and 1124 meters of core drilling in two prospects known as Sulphide Cap and Firegrass Creek.

Figure 7. (Reedy Creek (Echo JV Area) and Anastasia) is available at the following address: http://media3.marketwire.com/docs/Figure7_QML.pdf

Sulphide Cap Prospect

This interesting polymetallic prospect comprises a Pb-Zn-As-Ag-Cu mineralized breccia pipe 150 m long and up to 100 m wide within silica-sericite altered and polymetallic quartz veined amphibolite grade metamorphics located 13 km NW from Anastasia.The prospect is characterized by a strong focussed IP anomaly, a magnetic low and well defined base metal geochemistry. Previous explorers have drilled six diamond core holes to outline the prospect breccia, but the mineralization was inadequately tested for precious metals both near surface and below 200m depth. In addition, high-grade Au and Ag values recorded in overprinting quartz veins proximal to the breccia may represent a separate target and the strike extent of this structurally controlled system remains untested.

To date, the Company has completed three core holes SCDH07-09 totalling 808 meters that tested the breccia system from surface down to 400 m depth, refer Figures 8 & 9.

Results for these holes are summarized in Table 2 and all significant assay details are presented in Table 5 in the Appendix.

Figure 8. (Sulphide Cap drilling Plan) is available at the following address: http://media3.marketwire.com/docs/Figure8_QML.pdf

All holes were well mineralized within drusy open-spaced quartz, and zoning is apparent with arsenopyrite associated precious metals stronger down to 100 m depth, and pyrrhotite associated galena and sphalerite stronger at deeper levels.

Table 2. (Sulphide Cap Assay Highlights) is available at the following address: http://media3.marketwire.com/docs/Table2_QML0715.pdf

Figure 9. (Sulphide Cap East-West Cross Section SCDH07-09) is available at the following address: http://media3.marketwire.com/docs/Figure9_QML.pdf

Although extensive basemetal values were intersected, the precious metal values are relatively modest, so ongoing exploration will focus on defining new targets along the prospective ENE structural corridor including a precious metal rich higher level breccia or vein system. Currently a Niton soil survey is in progress that should outline any significant targets for detailed evaluation.

Firegrass Creek Prospect

Located 6 km northwest from Anastasia, this silver bearing high-level volcanic target was tested by 2 diamond holes FCDH1 & 2 for 316 meters. The holes were sighted to test the continuance of silver mineralization intersected by previous shallow RC drilling within an extensive As-Ag soil anomaly in an area of poor outcrop. The Company's objective was to core the silver mineralization to better understand its lithological and structural controls including any basement mineralization.

Both these holes were stopped short of their target depth due to limited water supply, however they intersected pervasive clay-pyrite alteration in rhyolitic ignimbritic volcanics of the Lower Scardons Group that contain Niton anomalous Ag-As mineralization. Assay results are awaited to confirm if the silver levels are sufficient to warrant further detailed evaluation of this poorly understood system.

Geological logging suggests a steep structural and breccia control to this mineralization even though the pyrite alteration is pervasive. Niton soil geochemical surveys are recommended to delineate a more extensive Au-Ag-As epithermal mineralization target.It is considered that this prospect is a distal expression of high level hydrothermal activity from an underlying basement-hosted Ag-(Au) polymetallic system similar to Silver Hills-3M ozs (Au Eq) in Northern Queensland or Bowden's (59Mt@49g/t Ag) in New South Wales.

Other Projects

During the next few months, the Company plans to carry out shallow air track drilling programs at several new intrusive-related gold projects located to the west of Chillagoe, (Figure 1). These early stage projects include Mungana Porphyry, Barkers and Williamstown. Shallow air track drilling may also be done at Sybil Graben following receipt of results from systematic sampling of epithermal veins that is currently in progress. Should significant precious metal results be achieved in the proposed shallow drilling, then a follow-up program of reverse circulation and diamond core drilling will be initiated to test these systems at depth.

Quality Assurance

Queensland Minerals Ltd has put in place a rigorous QA/QC program using best industry practice. Elements of the program include chain of custody of samples, standard and blank samples submitted to SGS Analabs in Townsville, Australia. Results from the QA/QC program have to date been satisfactory.

Qualified Person

The technical information contained in this release was compiled by QML staff under the guidance of Mr. Al Marton, a corporate member of the Australasian Institute of Mining and Metallurgy, who has consented to the inclusion of such technical information in the form it appears in this release. Mr. Marton, geologist of Juldex Pty Ltd., is also a director of Queensland Minerals Ltd. Mr. Marton is a qualified person under National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101").

Forward Looking Statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control, including, but not exclusively, statements regarding potential mineralization, exploration results, completion of work program and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed throughout the Company's Prospectus dated February 21, 2007, particularly in the section entitled "Risk Factors".

For more information about the Company and its projects, please refer to the NI 43-101 Technical Report dated February 20, 2007 and other documents available on SEDAR (www.sedar.com) or via the Company's website at (www.queenslandminerals.com).

Table 3. (QML Drillhole Collar survey data - June Quarter 2008), Table 4. (Anastasia Project. Significant assay intersections in ALD021-036) and Table 5 (Reedy Creek project (Echo). Sulphide Cap DDH Results) are available at the following address: http://media3.marketwire.com/docs/Table_3_4_5_QML0715.pdf

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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