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Queenston Mining Inc.: Queenston Announces $14 Million Financing

^{Published on 2009-09-01 14:57:59 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2009) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("the Company") announced today that it has entered into an agreement with Primary Capital Inc., as lead agent on behalf a syndicate of agents (collectively, the "Agents") in connection with the offering of 2 million units of the Company for gross proceeds of up to $14 million. Each unit is priced at $7.00 and will consist of one flow through share and one warrant (the "Unit"). Each warrant will entitle the holder to purchase one additional common share of the Company at a price of $7.50 for a period of 18 months from the date of closing. One million Units of the offering are on a private placement guaranteed basis and up to one million Units are on a best efforts basis. The flow-through shares will be offered by way of private placement to accredited investors in the Province of Ontario.

The Company will pay the syndicate a cash commission equal to 6% of the gross proceeds and issue broker warrants to the Agents to acquire that number of Units that is equal to 6% of the offered securities sold at an exercise price to be determined at the close of market today. The broker warrants expire 12 months after the closing date.

The proceeds from the financing will increase the Company's working capital to $40 million and be used to continue with its high level exploration projects located in the Kirkland Lake gold camp. The private placement is scheduled to close on or about September 15, 2009 and is subject to approval by the Toronto Stock Exchange.

Queenston is a Canadian mineral exploration and development company with a primary focus on its vast land holdings in the historic Kirkland Lake gold camp. Our strategy is to continue the accelerated exploration that has led to new discoveries at the Upper Beaver, McBean and AK properties. The plan is to return to producer status through the advancement of four 100% owned gold deposits in Gauthier Township (Upper Beaver, McBean, Anoki and Upper Canada) and through five joint ventures with Kirkland Lake Gold Inc.

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 ].