Queenston Mining Inc.

Queenston Mining Inc.

February 26, 2008 08:17 ET

Queenston Announces $10 Million Guaranteed Flow-Through Financing

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2008) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("the Company") announced today that it has entered into an agreement with a syndicate of underwriters led by Primary Capital Inc. with National Bank Financial, Wellington West Capital Markets Inc. and Evergreen Capital Partners Inc. as parties (collectively the "Agents"). The Agents have agreed to buy 2,500,000 flow-through shares of Queenston at a price of C$4.00 per share for aggregate gross proceeds of $10,000,000.

The Company will pay the syndicate a cash commission equal to 6% of the gross proceeds and issue broker warrants to the Agents to acquire that number of common shares that is equal to 6% of the aggregate number of Flow-Through Shares that are sold in the Offering. The broker warrants are exercisable at $3.65 per share within 12 months of the closing. The financing is scheduled to close on or about March 18, 2008 and is subject to approval by the Toronto Stock Exchange.

The proceeds from the financing will be used to accelerate the Company's gold projects located in the Kirkland Lake gold camp. In the eastern portion of the camp (Gauthier Township), the Company is completing a definition drilling program at the Upper Beaver project in preparation for a NI 43-101 Technical Report that will include a new mineral resource. The Company's objective in Gauthier Township is to advance four gold deposits (Upper Beaver, Anoki, McBean and Upper Canada) towards feasibility with the goal to build and feed a central milling facility.

In the western portion of the camp (Teck Township), the Company is participating with Kirkland Lake Gold Inc. in an advanced underground exploration program targeting the "New South Mine Complex" adjacent to the Macassa mine property on the South Claims 50%-50% joint venture. The first phase drilling results have intersected high-grade gold mineralization on the South Claims including 25.7 grams per tonne ("g/t") gold ("Au") over a core length of 15.0 meters ("m") in hole 50-901, 151.5 g/t Au over a core length of 1.2 m in hole 53-908, 87.1 g/t Au over a core length of 6.6 m and 86.7 g/t Au over a core length of 5.1 m in hole 53-909 (see news release dated February 13, 2008). Also in Teck Township adjacent to the South Claims joint venture property, the Company continues a deep drilling program targeting from surface the "New South Mine Complex" on the 100% owned, Amalgamated Kirkland property.

Queenston's Cautionary Note Regarding NI 43-101 and Forward Looking Statements

The disclosure in this news release has been reviewed, verified and compiled by its President, Charles E. Page, P. Geo. a "qualified person" for the purposes of NI 43-101.

Except for historical information this News Release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the "Annual Information Form" filed by the Company on SEDAR at www.sedar.com.

Contact Information

  • Queenston Mining Inc.
    Charles E. Page, P. Geo.
    President and CEO
    (416) 364-0001 (ext. 224)
    Queenston Mining Inc.
    Hugh D. Harbinson
    (416) 364-0001 (ext. 225)
    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Email: Info@queenston.ca
    Website: www.queenston.ca