Queenstake Resources Ltd.

Queenstake Resources Ltd.

March 01, 2005 19:31 ET

Queenstake Resources Ltd. Announces New Issue


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUEENSTAKE RESOURCES LTD.

TSX SYMBOL: QRL
AMEX SYMBOL: QEE

MARCH 1, 2005 - 19:31 ET

Queenstake Resources Ltd. Announces New Issue

DENVER, COLORADO--(CCNMatthews - March 1, 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 it has filed a
preliminary short form prospectus in respect of the sale of a minimum of
Cdn$l5 million and a maximum of Cdn$20 million of unsecured convertible
debentures (the "Debentures") and/or common shares ("Shares") of
Queenstake (collectively, the "Securities") on a best efforts basis
through Sprott Securities Inc. and First Associates Investments Inc., as
co-lead agents (the "Agents") with pricing and certain other terms yet
to be determined (the "Offering"). The Securities are being offered
separately, but will be issued and sold only on the basis that the
minimum offering of Cdn$15 million of Securities are sold under the
Offering. In the event that any Debentures are to be sold under the
Offering, a minimum of Cdn$5 million principal amount of Debentures must
be sold, with the balance to constitute any combination of Debentures
and/or Shares.

The Company has granted to the Agents an option exercisable, in whole or
in part, until 48 hours prior to closing of the Offering, to offer and
sell up to an additional Cdn$10 million of additional Securities in such
combination of Debentures and/or Shares as elected by the Agents. 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 net proceeds of the offering will be used to fund Queenstake's
planned capital expenditures and general working capital for its Jerritt
Canyon mine operations. Any additional net proceeds will be used for
Jerritt Canyon district exploration and 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 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.

Queenstake's common shares are traded on the Toronto Stock Exchange
under the symbol "QRL" and on the American Stock Exchange under the
symbol "QEE".

Certain of the information contained in this news release constitute
"forward-looking statements". Such forward-looking statements include
the company's expectations related to the closing of the offering and
the use of proceeds. Forward looking statements are not statements of
historical fact and factors may cause the actual results, performance or
achievements of the Queenstake to be materially different from those set
forth in such statements.

SEC file number 0-24096

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Queenstake Resources Ltd.
    Chris Davie
    President and Chief Executive Officer
    (303) 297-1557 x107 or 800-276-6070
    chrisdavie@queenstake.com
    or
    Queenstake Resources Ltd.
    John Haigh
    Investor Relations
    (303) 297-1557 ext. 105 or 800-276-6070
    johnhaigh@queenstake.com
    www.queenstake.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.