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Queenston Mining Inc. – 2008 First Quarter Results and Update

Queenston Mining Inc. – 2008 First Quarter Results and Update

May 21, 2008, Toronto, Ontario…. Queenston Mining Inc. (QMI-Toronto, Frankfurt, Stuttgart, Berlin) (“Queenston” or the “Company”) is pleased to announce financial results for the period ended March 31, 2008. The complete unaudited Interim Consolidated Financial Statements and Management’s Discussion and Analysis are available at the Queenston website ( and on the Company’s SEDAR filings (

Queenston maintains a strong balance sheet that was recently fortified as a result of a $10 million financing completed in March. As at March 31, 2008, the Company reports assets of $53 million consisting of $32 million in property and $20 million in cash, cash equivalents, short-term investments. The majority of the Company’s cash and cash equivalents are held in Banker Acceptances which are short-term promissory notes that are guaranteed by Canadian Banks. Queenston has no long-term debt.

Queenston’s net earnings and basic earnings per share were $1.1 million and $0.02 for the three months ended March 31, 2008. The earnings were the result of reporting $1.4 million in future recoveries of income tax related to the issuance of flow-through shares in 2007.

The Company’s financial position has been further enhanced through the recent exercise of warrants relating to the May 2007 financing. A total of 1,600,500 warrants at $2.25/share and 306,000 broker warrants @ $1.92/share were exercised in the second quarter netting the Company $4.2 million. As a result, the current cash and cash equivalent position of the Company as at May 20, 2008 is approximately $23.2 million with 52,558,287 shares outstanding (57,543,860 on a fully diluted basis).

Queenston is a mineral exploration and development company with a primary focus on gold in two historic mining camps, Kirkland Lake, Ontario and Cadillac, Quebec. Approximately $1.5 million was incurred in exploration on the Kirkland Lake properties to the end of March as part of the Company’s $9 million, 2008 budget. Corporate and exploration highlights in the first quarter of 2008 include:

• Queenston and Kirkland Lake Gold Inc. (“KL Gold”) purchase the Kirkland Lake West property adjoining the Macassa mine from Newmont Mining Corporation of Canada Inc. for $1 million. (Feb. 6, 2008 news release (“NR”))
• Queenston and KL Gold announced high-grade drill results on the South Claims, 50% - 50% JV property including: 87.1 g/t Au over a core length of 6.6 m (hole 53-909) and 27.7 g/t Au over a core length of 15.0 m (hole 53-901). (Feb. 13, 2008 NR)
• Queenston and Globex Mining Enterprises Inc. reported a high-grade NI 43-101 mineral resource of 243,200 t grading 17.3 g/t Au at the Ironwood deposit, Cadillac, Quebec. (March 3, 2008 NR)
• Closing of $10 million financing (2.5 million shares @ $4/share) (March 19, 2008 NR)
• Resource definition drilling completed on Upper Beaver project reporting significant drill intersections including:
• 14.3 g/t Au with 0.8% Cu over a core length of 21.2 m (hole UB08-127) and 8.7 g/t Au with 0.2% Cu over a core length of 25.0 m (hole UB08-124W) (April 9, 2008 NR)
• Deep drilling initiated at Upper Beaver and on the AK property adjacent to new Queenston-KL Gold discovery.

Queenston has 3 diamond drill rigs operating on its properties in the Kirkland Lake camp with a fourth to be added during the second quarter.

In the eastern portion of the camp the Company’s strategy is to advance four, 100% owned gold deposits (Upper Beaver, McBean, Anoki and Upper Canada) towards production employing a central milling facility. At Upper Beaver two drills are currently testing deep geophysical targets that occur on trend and below a large gold-copper mineralized corridor. As the deeper drilling proceeds, a NI 43-101 mineral resource study is in progress compiling information from 134 diamond drill holes (97,065 m) completed on the property over the past three years. The mineral resource calculation is being performed by the independent geological and engineering firm Watts, Griffis and McQuat of Toronto and is anticipated to be completed by the end of June. Queenston has also initiated metallurgical studies on the Upper Beaver mineralization to assist in the economic evaluation of the deposit. Historic recoveries of gold and copper from previous operations were 94% and 95% respectively.

At the McBean mine, a NI-43-101 resource definition - exploration drilling program will commence in June. Approximately 50,000 ounces (“oz”) of gold has been previously produced from the McBean pit and there remain historic resources of 835,000 tonnes (“t”) grading 5.1 grams per tonne (“g/t”) gold (“Au”) (measured and indicated) and 1,835,200 t grading 6.5 g/t (inferred). Adjacent to McBean is the Anoki gold deposit that hosts a NI 43-101 measured and indicated mineral resource of 522,300 t grading 5.7 g/t and an inferred resource of 141,800 t grading 6.2 g/t. Exploration and resource definition drilling will also commence this year at the Upper Canada mine where previously 1.5 million oz of gold were produced at an average grade of 11 g/t. An historic resource of 1.9 million t grading 7.0 g/t remains at Upper Canada and has potential to expand.

In the western portion of the camp the Company maintains joint ventures with KL Gold on three properties adjacent to the Macassa mine. In 2006, KL Gold made a significant new gold discovery on the Macassa property (the south Mine complex (“SMC”)) that currently hosts in excess of 1 million ounces of gold and continues to grow. The SMC was recently extended onto the jointly owned South Claims property where advanced underground exploration is in progress including drifting and underground diamond drilling. Adjacent to and west of the South Claims, Queenston is continuing with a deep surface diamond drill program on the 100% owned AK property targeting the down-dip projection of the South Mine Complex. Early results at AK indicate the presence of a similar geological environment that hosts the SMC at Macassa.

In the Cadillac gold camp Queenston and joint venture partner Globex are advancing the Ironwood deposit to determine its economic viability. The deposit contains a NI 43-101 inferred resource of 243,200 t grading 17.3 g/t Au and currently metallurgical testing is in progress to determine gold recoveries.

This news release was reviewed by Queenston’s Chief Geologist and qualified person Wayne Benham, P. Geo.

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. A more detailed discussion of the risks is available in the “Annual Information Form” filed by the Company on SEDAR at

For further information, contact:

Charles E. Page, P. Geo., President and CEO
Hugh D. Harbinson, Chairman
Andreas Curkovic, Investor Relations
(416) 364-0001 (ext. 224)
(416) 364-0001 (ext. 225)
(416) 577-9927