Queenstake Resources Ltd.

Queenstake Resources Ltd.

March 23, 2005 11:49 ET

Queenstake Closes Cdn$30,000,000 Equity Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUEENSTAKE RESOURCES LTD.

TSX SYMBOL: QRL
AMEX SYMBOL: QEE

MARCH 23, 2005 - 11:49 ET

Queenstake Closes Cdn$30,000,000 Equity Financing

DENVER, COLORADO--(CCNMatthews - March 23, 2005) - Queenstake Resources
Ltd. (TSX:QRL)(AMEX:QEE) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Queenstake Resources Ltd. ("Queenstake") announces that pursuant to a
final short form prospectus dated March 11, 2005, it has successfully
closed its equity financing at the maximum offering amount of Cdn$20
million (the "Offering") through a syndicate of agents co-led by Sprott
Securities Inc. and First Associates Inc. and including Wellington West
Capital Markets Inc (the "Agents"). In addition the Agents also confirm
the exercise of their over-allotment option, bringing the total gross
proceeds to Cdn$30 million. The total Offering consisted of 100 million
units (the "Units") with each Unit consisting of one common share and
one half of one common share purchase warrant at a price of Cdn$0.30 per
Unit. Each whole common share purchase warrant (50 million warrants in
total) can be exercised to acquire one additional common share at a
price of Cdn$0.40 for a period of 24 months. If at any time after six
months from the closing of this Offering, the weighted average trading
price of the Common Shares on the Toronto Stock Exchange (the "TSX") (or
such other exchange or trading market on which the Common Shares
principally trade) is Cdn$0.52 or more per Common Share for a period of
thirty consecutive trading days, then, upon notice by the Company, the
holders of such warrants must exercise their warrants within thirty days
or they will expire and will no longer be valid. The agents received a
5% commission on the gross proceeds of the offering.

Queenstake has previously forecasted that estimated gold production in
2005 will be 275,000 ounces. It is expected to remain the 6th largest
gold producer in the United States, with all of its operating cost
expressed exclusively in United States dollars.

The net proceeds of the offering will be used to fund Queenstake's
planned capital expenditures, district exploration, and general working
capital for its Jerritt Canyon mine operations. Any additional net
proceeds will be used for general corporate working capital.

The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.

Queenstake Resources Ltd. is a gold mining and exploration company based
in Denver, Colorado. Its principal asset is the Jerritt Canyon District
in Nevada, acquired in June 2003. The Jerritt Canyon District consists
of four underground mines, a 1.5 million ton per year capacity
processing facility and a 100 square mile land package that represents
some of the most exciting gold exploration ground in Nevada. Jerritt
Canyon has produced more than 7,000,000 ounces of gold since 1981.

Forward-Looking Statements - This news release contains "Forward-Looking
Statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended and the Private Securities
Litigation Reform Act of 1995. All statements, other than statements of
historical fact, included in this release, and Queenstake's future plans
are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Forward-looking
statements are based on the estimates and opinions of management on the
date the statements are made, and Queenstake does not undertake any
obligation to update forward-looking statements should conditions or
management's estimates or opinions change.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Queenstake Resources Ltd.
    John Haigh
    (303) 297-1557 ext. 105 or Toll Free: 1-800-276-6070
    info@queenstake.com
    www.queenstake.com
    The Toronto Stock Exchange has neither reviewed nor accepts
    responsibility for the adequacy or accuracy of this release.