Queenston Mining Inc.

Queenston Mining Inc.

December 06, 2006 10:02 ET

Queenston Announces NI 43-101 Resource Drill Program at Upper Beaver Combined with a Financing of up to $3 Million

TORONTO, ONTARIO--(CCNMatthews - Dec. 6, 2006) - Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) announces that it will commence a 40,000 m diamond drill program at the 100% owned Upper Beaver property located near Kirkland Lake, Ontario. The program is designed to further delineate new zones of gold and copper mineralization discovered on the property in order to complete a NI 43-101 mineral resource.

Since mid-2005, a total of 73 drill holes have been completed outlining multiple gold-copper zones lying adjacent to and below the Upper Beaver Mine that previously produced 130,000 oz. of gold intermittently from 1919-71. The most significant zones include the Upper Porphyry Zone (20.3 g/t Au with 2.0% Cu over 10.7 m in drill hole UB05-16), Lower Porphyry (18.4 g/t Au with 1.1% Cu over 3.7 m in hole UB05-16), Lower Gauthier (26.8 g/t Au over 3.0 m in hole UB06-68), Syenite Breccia (6.7 g/t Au with 2.2% Cu over 3.0 m in hole UB06-67) and North Basalt (11.3 g/t Au with 0.7% Cu over 4.2 m in hole UB06-60). The true width of the above drill intersections is approximately 75% of the core length and full details of these previously released results are posted on the Company's website (www.queenston.ca).

The new drill program will commence in January with three rigs and will be supervised by Queenston's Chief Geologist and qualified person Wayne R. Benham, P. Geo., employing a QA/QC program consistent with National Instrument 43-101 and industry best practices.

Queenston also announces that it has negotiated a non-brokered private placement financing with individuals for up to 2,000,000 Units at a price of $1.50 per Unit for gross proceeds of $3,000,000. Each Unit will consist of one flow-through common share and one-half non-flow-through share purchase warrant. Two half warrants are exercisable for one common share at a price of $1.75 per share over a 12 month period. A finder's fee on a portion of this transaction will be paid to an arms-length third party. Proceeds of the financing will be applied to the advanced drilling program on the Upper Beaver property.

Queenston Mining Inc. is actively exploring for gold in northeastern Ontario and northwestern Quebec with working capital of $4.5 million, debt free and with 38,725,316 common shares issued. Queenston's shares trade on the Toronto (TSX), Frankfurt and Stuttgart Stock Exchanges under the symbol QMI.

Forward Looking Statements

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.

Contact Information