TORONTO, ONTARIO--(Marketwire - June 27, 2012) - QUEENSTON MINING INC. (News - Market indicators)(FRANKFURT:QMI)(OTCQX:QNMNF) ("Queenston or the Company") is pleased to announce results from 6 surface Diamond drill holes (3,081 m) from the 100% owned Upper Beaver property located in Kirkland Lake, Canada. The drilling confirms the new, deep Footwall Zone and continues to show positive results from both the near surface exploration on the Contact and Q Zones and infill drilling program on the Porphyry Zone.

Highlights

• 7.4 g/t Au with 4.5% Cu over 7.0 m (UB12-200W3) ("Footwall Zone")
• 7.2 g/t Au over 5.6 m (UB12-207W3) ("Footwall Zone")
• 39.1 g/t Au over 5.0 m and 26.5 g/t Au over 4.0 m (UB12-210W2) ("Porphyry Zone")
• 2.2 g/t Au with 0.25% Cu over 55.0 m (UB12-220) ("North Contact Zone")
• 1.9 g/t Au with 0.45% Cu over 29.0 m (UB12-220) ("South Contact Zone")
• 1.1 g/t Au with 0.12% Cu over 43.0 m (UB12-218A) ("Q Zone")

Charles Page, President and CEO of Queenston, said, "New wedge hole UB12-200W3 further establishes the deep Footwall Zone with another impressive intersection assaying 4.7 g/t Au with 2.7% Cu over 13.0 m including a high grade 7 m interval of 7.4 g/t Au with 4.5% Cu. The new Footwall Zone contains some of the highest grade copper mineralization we have seen in the deposit to date with individual assay intervals as high as 9.4% Cu over 2.0 m. In addition, continued success from both the shallow and infill drilling program expands the deposit and drives continuity confidence. Drilling continues with six rigs as we prepare for an updated mineral resource in the third quarter."

Details of the new drilling results are listed in Table 1 accompanying this news release.

New Footwall Zone

New wedge hole UB12-200W3 intersected the Footwall Zone 30 m above discovery hole UB12-200W2 at a vertical depth of approximately 1325 m. The hole intersected a 13.0 m wide, enriched copper zone assaying 4.7 g/t Au and 2.7% Cu that included 6.0 g/t Au with 3.3% Cu over 10 m or 7.4 g/t Au with 4.5% Cu over 7.0 m. This new hole extends the Footwall Zone above UB12-200W2 that intersected 7.5 g/t Au with 0.8% Cu over 36.0 m including 11.0 g/t Au with 2.8% Cu over 5.0 m and 9.8 g/t Au with 0.5% Cu over 21.0 m (see News Release dated May 15, 2012). One drill continues to target this new deep zone that remains open along strike, upward and to depth. 

Hole UB12-207W3 also intersected the Footwall Zone assaying 7.2 g/t Au with trace Cu over a width of 5.6 m at a depth of approximately 550 m. This interval occurs in the same plane and some 850 m up-dip of the deep intersection encountered in UB12-200W3. As part of the infill drilling program our holes are targeting both the main Porphyry Zone and the Footwall Zone. 

Infill Drilling

New results from the infill drilling program designed to both upgrade and expand the resource include two high-grade, Porphyry Zone intervals in hole UB12-210W2 assaying 39.1 g/t Au with trace Cu over 5.0 m (including 309.8 g/t Au over 0.6 m) and 26.5 g/t Au with trace Cu over 4.0 m. These intersections are located approximately 40 m above the previous Porphyry intersection in hole UB12-210W1 assaying 4.6 g/t Au with 0.1% Cu over 12.0 m. Other Porphyry Zone intersections include 13.9 g/t Au with trace Cu over 1.0 m in hole UB12-207W3. Two drills continue to complete the infill program as part of the resource update planned later in the third quarter. 

Near Surface Exploration

Highlights from drilling completed closer to surface include a Q Zone interval assaying 1.1 g/t Au with 0.1% Cu over 43.0 m in hole UB12-218A and two intersections in hole UB12-219 returning 2.2 g/t Au with 0.3% Cu over 55.0 m in the North Contact Zone and 1.9 g/t Au with 0.5% Cu over 29.0 m in the South Contact Zone. Three rigs continue to define this mineralization adjacent to the old mine workings.

About Upper Beaver

As a result of a positive Preliminary Economic Assessment ("PEA") prepared by P&E Mining Consultants Inc. of Brampton, Ontario (see news release dated February 16, 2012) the Company is advancing the Upper Beaver project to Advanced Exploration and feasibility. The permitting for a new 1,300 m deep shaft is underway and site preparation is planned for the third-quarter of 2012. The PEA studied the economics of building a 2,000 tonne per day mine/mill complex at Upper Beaver that would produce 120,000 oz of gold and 5.3 million pounds of copper annually with first production targeted in mid-2016.

The PEA incorporated the mineral resource at Upper Beaver that was announced in May 2011 containing 3,074,000 t grading 7.0 g/t Au (690,000 ounces ("oz")) with 0.5% Cu (36.6 million pounds ("M lbs")) (Indicated) and 3,093,000 t grading 6.2 g/t Au (616,000 oz) with 0.4% Cu (28.0 M lbs) (Inferred). The mineral resource does not include drill results after December 31, 2010. During 2011 an additional 84 drill holes and wedge holes (41,019 m) were drilled on the project both upgrading and extending the footprint of the deposit. A resource update is planned for the third quarter of 2012 and will include the drilling conducted in calendar 2011 and 2012. 

Quality Control

The design of the Queenston's drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of Queenston's geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The Upper Beaver project is supervised by Queenston's Vice President Exploration, William McGuinty, P.Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2011 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Swastika Laboratories of Swastika, Ontario and Accurassay Laboratories Ltd. of Thunder Bay, Ontario and analyzed employing the appropriate gold fire assaying techniques. For QA/QC purposes the Company as well as the lab submit standards and blanks every 25 samples. Approximately 5% of sample rejects and/or pulps are sent to other laboratories for check assaying.

This news release was reviewed by Queenston's Vice President Exploration and QP, William McGuinty, P. Geo.

About Queenston

Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 230 km² of prime exploration lands. The Company's assets include six 100%-owned gold deposits, all with NI 43-101 compliant mineral resources and ongoing exploration and development. The objective of the Company is to advance the flagship Upper Beaver project towards feasibility and production. The Upper Beaver project is currently being permitted for Advanced Exploration leading to new shaft development beginning in 2012. The Company is also very active in exploring and advancing the other five 100%-owned deposits that will provide additional feed for a central milling facility. The Company currently has cash and short-term investments of approximately $75 million, no debt and a fiscal 2012 budget for exploration of $25 million and $10 million for advanced exploration.

FORWARD LOOKING STATEMENTS

This news release may contain certain statements regarding future events, results or outlooks that are considered forward looking statements within the meaning of securities regulation. These forward looking statements reflect management's best judgment based on current facts and assumptions that management considers reasonable and include the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential" and "should". Forward looking statements contain significant risks and uncertainties. A number of circumstances could cause results to differ materially from the results discussed in the forward looking statements including, but not limited to, changes in general economic and market conditions, metal prices, political issues, permitting, environmental, exploration and development success, continued availability of capital and other risk factors. The forward looking statements contained in this document are based on what management believes to be reasonable assumptions, however, we cannot assure that the results will be compatible to the forward looking statements as management assumes no obligation to revise them to reflect new circumstances. The Corporation has no knowledge that would indicate the information is not true or incomplete and the Corporation assumes no responsibility for the accuracy and completeness of the information. Readers should not place reliance on forward looking statements. More information concerning risks and uncertainties that may affect the Company's business is available in Queenston's most recent Annual Information Form and other regulatory filings of the Company at www.sedar.com.

Table 1. Upper Beaver Assay Results (June 2012)

NOTE: True widths are interpreted based on drill-hole intercepts and interpreted orientations of intersected lithologies and are estimated at 65-80% of the core length interval. Assays are uncut. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time.