Queenstake Resources Ltd.

Queenstake Resources Ltd.

June 03, 2005 09:44 ET

Queenstake Resources Ltd. Announces $6 Million Bought Deal

TORONTO, ONTARIO--(CCNMatthews - June 3, 2005) -


QUEENSTAKE RESOURCES LTD. (TSX:QRL) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. and First Associates Investments Inc., and including Wellington West Capital Markets Inc. and Canaccord Capital Corporation pursuant to which the underwriters have agreed to purchase 21,428,600 common shares on an underwritten basis, at a price of $0.28 per common share for aggregate gross proceeds to QUEENSTAKE RESOURCES ("Queenstake") of $6,000,008. The underwriters have the option to purchase an additional 14,285,700 common shares at the issue price at any time prior to the closing date for additional gross proceeds of $3,999,996.

Queenstake will file a short form prospectus with the securities regulatory authorities in all Provinces of Canada to qualify the common shares for distribution. The Offering is expected to close on or about June 22, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.

Net proceeds will be used to accelerate underground development and for exploration at Jerritt Canyon.

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 application 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 company based in Denver, Colorado. Its principal asset is the Jerritt Canyon Mine in Nevada, acquired in June 2003. The Jerritt Canyon Mine 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.

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