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Queenston Closes $10 Million Financing

Queenston Mining Inc. has closed the private placement financing announced in Stockwatch on Feb. 26, 2008. The financing was led by Primary Capital Inc., with National Bank Financial, Wellington West Capital Markets Inc. and Evergreen Capital Partners Inc. as parties (collectively the agents). Gross proceeds from the sale of 2.5 million flow-through shares of the company, priced at $4 per share, amounted to $10-million.

The company paid the agents a cash commission equal to 6 per cent of the gross proceeds, and issued 150,000 broker warrants to the agents, to acquire 150,000 common shares of the company, exercisable at $3.65 per share within 12 months of March 19, 2008.

As a result of the financing, the company's cash resources has increased to approximately $20-million. 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 an 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) toward 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-per-cent joint venture. The first phase drilling results have intersected high-grade gold mineralization on the South claims, including 25.7 grams per tonne gold over a core length of 15.0 metres in hole 50-901, 151.5 g/t gold over a core length of 1.2 m in hole 53-908, 87.1 g/t gold over a core length of 6.6 m and 86.7 g/t gold over a core length of 5.1 m in hole 53-909 (see news in Stockwatch on Feb. 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-per-cent-owned, Amalgamated Kirkland property.

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