Queenstake Resources Ltd.

Queenstake Resources Ltd.

March 14, 2005 20:26 ET

Queenstake Obtains Prospectus Receipt for Cdn $20 Million Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUEENSTAKE RESOURCES LTD.

TSX SYMBOL: QRL
AMEX SYMBOL: QEE

MARCH 14, 2005 - 20:26 ET

Queenstake Obtains Prospectus Receipt for Cdn $20
Million Offering

DENVER, COLORADO--(CCNMatthews - March 14, 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. (TSX:QRL)(AMEX:QEE) the "Company" has filed
and obtained a receipt for its final short form prospectus reflecting
that it has entered into an agreement with a syndicate of agents co-led
by Sprott Securities Inc. and First Associates Inc. and including
Wellington West Capital Markets Inc. pursuant to which the agents have
agreed to sell on a best efforts basis a maximum of Cdn$20 million of
units and a minimum of Cdn$15 million at a price of Cdn$0.30 per unit.
Each unit consists of one common share and one-half of one common share
purchase warrant. Each whole common share purchase warrant will be
exercisable to acquire one additional common share at a price of
Cdn$0.40 for a period of 24 months. The agents have the option to sell
on a best efforts basis an additional Cdn$10 million of units on the
same terms and conditions. The Offering remains subject to regulatory
approval and is expected to close on or about March 23, 2005, but, in
any event not later than March 31, 2005.

The Company has previously reported that gold production for 2005 is
forecast to be 275,000 ounces. Total cash costs are expected to be
estimated and that estimate will be released to the market in the near
future. It will remain the 6th largest United States gold producer, with
all of its costs continuing to be expressed exclusively in United States
dollars.

The Company also wishes to clarify a press release made late last
Friday, March 11, 2005. Pursuant to a request by the British Columbia
Securities Commission, the Company was complying with a request from
that Commission that it make it abundantly clear that the financial
information released by the Company on March 8, 2005, was unaudited.
That news release may have been misconstrued. Queenstake's management
categorically states that it will release its annual audited financial
statements prior to March 31, 2005 and that it currently anticipates no
material changes from its previously released unaudited financial
information.

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.

SEC file number 0-24096


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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 TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.