Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI

Queenston Mining Inc.

April 25, 2007 10:54 ET

Queenston to Raise $9.4 Million to Fund Accelerated Activity in Kirkland Lake

TORONTO, ONTARIO--(CCNMatthews - April 25, 2007) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("the Company") announces a financing to raise up to $9,375,000 in gross proceeds (the "Offering") consisting of up to $5,550,000 of hard dollar units ("Hard Dollar Units") and up to $3,825,000 of flow-through shares ("Flow-Through Shares"). Each Hard Dollar Unit is priced at $1.85 per and will consist of one common share and one half warrant. Each full warrant will entitle the holder to purchase one additional common share of the Company at a price of $2.25 for a period of 12 months from the date of closing. Each Flow-Through Share is priced at $2.25 per share.

The Company has engaged Primary Capital Inc. ("Primary") as agent to complete the financing. The Company will pay Primary a cash commission equal to 6% of the gross proceeds and issue broker warrants allowing Primary to acquire that number of Hard Dollar Units that is equal to 6% of the aggregated number of Flow-Through shares and Hard Dollar Units that are sold in the Offering. The broker warrants are exercisable at $1.85 per Unit within 12 months of the closing. The financing is scheduled to close on or before May 16, 2007 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 the Company has added a third drill rig to the 100% owned Upper Beaver project where a NI 43-101 resource definition program has been underway since January. In the western portion of the camp, as announced in a news release dated April 17, 2007, the Company purchased 4 key mineral claims with joint venture partner Kirkland Lake Gold Inc. ("KL Gold") adjacent to the Macassa Mine property. These claims cover the southern projection of a high-grade gold deposit, the "New South Mine Complex", currently being explored and developed by KL Gold. The 50% - 50% joint venture plans advanced underground exploration on the new south claims which will include driving a crosscut on the 5300' level of the Macassa Mine onto the claims where diamond drill stations will be established to target the New South Mine Complex.

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

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