Queenston Mining Inc.

Queenston Mining Inc.

February 23, 2009 15:54 ET

Queenston's $18 Million Financing Fully Subscribed

TORONTO, ONTARIO--(Marketwire - Feb. 23, 2009) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)(BERLIN:QMI) ("the Company") is pleased to state that its previously announced $18 million equity financing (the "Offering") is fully subscribed. Queenston Mining Inc. entered into an agreement with a syndicate of underwriters led by Primary Capital Inc. including Dundee Securities Corporation. National Bank Financial Inc. is also participating in the Offering as a sub-placement agent.

The underwriters agreed to purchase a combination of hard dollar units ("Hard Dollar Units") and flow-through shares ("Flow-Through Shares") for aggregate gross proceeds of $18,000,000 of which $10,000,000 was underwritten, and $8,000,000 was raised on an agency best efforts basis.

Each Hard Dollar Unit is priced at $3.85 and consists of one common share and one half warrant. Each full warrant entitles the holder to purchase one additional common share of the Company at a price of $5.00 for a period of 12 months from the date of closing. Each Flow-Through Share is priced at $4.40 per share.

The Company will pay the syndicate a cash commission equal to 6% of the gross proceeds and issue broker warrants to the syndicate to acquire that number of Hard Dollar Units that is equal to 6% of the offered securities sold at an exercise price of $3.83 per common share. The broker warrants expire 12 months after the closing date. The financing is scheduled to close on or about March 4, 2009 and is subject to approval by the Toronto Stock Exchange.

The proceeds from the financing will increase the Company's working capital to over $30 million and be used to accelerate its projects in the Kirkland Lake gold camp.

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