TORONTO, ONTARIO--(Marketwire - July 24, 2012) - QUEENSTON MINING INC. (News - Market indicators)(OTCQX:QNMNF)(FRANKFURT:QMI) ("Queenston or the Company") is pleased to announce results of eight surface diamond drill holes (3,199 m) on the 100% owned AK property located in Kirkland Lake, Ontario. The drilling has both extended the deposit towards surface and west. The Company also announces the start of a deep drilling program on the property targeting an area below the deposit where potential may exist for South Mine Complex ("SMC") type mineralization that is currently being mined by Kirkland Lake Gold Inc. ("KL Gold") at the Macassa mine.

Highlights:

• 11.3 g/t Au over 4.2 m (AKC11-52)
• 8.2 g/t Au over 10.7 m including 14.5 g/t Au over 5.9 m (AKC12-60)
• 5.5 g/t Au over 10.1 m including 6.1 g/t Au over 8.8 m (AKC12-55)
• 3.1 g/t Au over 10.5 m including 5.3 g/t Au over 3.0 m (AKC11-53)
• 4.6 g/t Au over 5.1 m including 7.6 g/t Au over 3.0 m (AKC12-59)

These and other significant assay results from the recent phase of drilling are listed in Table 1 accompanying this news release.

To view Figure 1, "Vertical Long Section", please visit the following link: http://media3.marketwire.com/docs/qmi0724fig1.pdf.

Charles Page, President and CEO of Queenston states, "Drilling has intersected high-grade gold mineralization 100 m above the western portion of the AK deposit at 200 m below surface. This drilling is expanding the deposit that continues to remain open towards surface, to the west and to depth. The Company is also pleased to announce that drilling has commenced on the property targeting an area 700 m below the deposit that may structurally be linked to the SMC orebody currently being mined and explored by KL Gold on the adjacent Macassa mine. The initial pilot hole is in progress from which a series of wedge holes will be completed. The Company views the AK property as providing a source of feed to a future centralized milling complex to initially be constructed and support our flagship Upper Beaver project located 20 km to the east in Gauthier Township. The Company maintains a strong financial position with cash and short term investments of approximately $70 million with an additional $20 million due on August 30th and $30 million on December 3rd from the sale of our joint venture properties to Kirkland Lake Gold Inc."

About AK

The AK deposit consists of lode-style gold mineralization hosted by altered and pyritic Timiskaming volcanic and sedimentary rocks. The deposit strikes 070 degrees, dips vertically to steeply south and exhibits a westerly plunge. Gold mineralization is developed in 6 zones related to a vertical dipping structure referred to as the 103 Break. The core of the deposit is the AKB and AKC zones that host approximately 90% of the mineral resource where mineralization is characterized by cream to blue-grey coloured, brecciated and "wormy", quartz-ankerite veins and stockwork which contain up to 10% fine-grained pyrite and locally, lesser amounts of galena, chalcopyrite, sphalerite, molybenite and visible gold.

On September 9, 2011 an initial NI 43-101 mineral resource estimate for the AK deposit was reported. The report was prepared in accordance with NI 43-101 by Dave Gamble Geoservices Inc., of Kirkland Lake, Ontario. The mineral resource estimate incorporated 36 new surface diamond drill holes (18,510 m) drilled by the Company as well as historic holes (42,988 m) completed by previous operators Battle Mountain (Canada), Golden Dragon, Cyprus Minerals and Queenston prior to the 2010-2011 drilling program. Indicated and inferred mineral resources have been determined in six, vertically dipping gold zones that extend along the 103 Break for 1,100 m and to a depth of 585 m. The indicated resource contains 1,145,000 t grading 4.47 g/t Au (164,000 oz) and the inferred resource is 1,530,000 t grading 4.21 g/t Au (207,000 oz).

Drilling Results

The focus of the recent drilling was to target the western portion of the AK deposit above previous drill holes AKC10-13 (3.26 g/t Au over 25.1 m) and AK91-35 (5.29 g/t Au over 2.0 m) where the deposit remains open towards surface (see Fig. 1 attached for location of drill holes).

Hole AKC11-52 intersected the deposit 75 m above previous hole AKC10-13 assaying 11.32 g/t Au over 4.2 m and hole AKC11-53 intersect the deposit 90 m below AKC10-13 assaying 3.1 g/t Au over 10.5 m (including 5.42 g/t Au over 3.0 m and 4.64 g/t Au over 2.5 m). Hole AKC12-55 intersected mineralization between previous hole AKC10-13 and AK91-35 assaying 5.46 g/t Au over 10.2 m (including 6.05 g/t Au over 8.8 m). Hole AKC11-56 drilled 50 m west of AKC10-13 assayed 7.47 g./t Au over 0.8 m and 2.75 g/t Au over 4.5 m. Hole AKC12-60 intersected the deposit 130 m above previous hole AK10-01 assaying 8.20 g/t Au over 10.7 m (including 14.50 g/t Au over 5.9 m). Hole AKC12-61 twinned previous hole AK10-01 (1.66 g/t Au over 4.0 m) assaying 1.27 g/t Au over 7.0 m (including 2.37 g/t Au over 3.4 m). AKC12-59 drilled 80 m above AKC11-52 assayed 4.58 g/t Au over 5.1 m (including 7.58 g/t Au over 3.0 m). Hole AKC12-58A drilled 80 m above AKC12-55 assayed 5.30 g/t Au over 1.7 m.

Two holes AKC-54 and -57 tested the deposit 50 m and 100 m respectively below previous hole AK94-57 (2.21 g/t Au over 2.7 m) with assays pending. Further drilling is planned on the western portion of the deposit where the mineralization remains open to surface, to the west and to depth. One drill is currently operating on the property and has commenced a deep hole to test a target area below the AK deposit.

Deep Target

The northern portion of the AK property (an east-west strip of a portion of 6 mineral claims) forms part of the $60 million joint venture asset sale to KL Gold. As reported in a joint news release dated February 28, 2012, drilling intersected high-grade mineralization on this portion of the property that included 502.6 g/t Au over 0.3 m in hole 53-1925 and 64.5 g/t Au over 1.8 m in hole 53-1927. The drilling extended the SMC onto the JV lands to within 500 m of the AK deposit. The SMC is a new mineralized system that is being mined at Macassa and is described as flat lying, structurally controlled zones of finely disseminated pyrite, visible gold and telluride minerals that dip 25-50 degrees to the southeast towards Queenston' 100% owned AK property. The zones are hosted in trachyte tuff and syenitic porphyry intrusions and occur in a pyritic, sericite-carbonate alteration assemblage.

The similarities in the alteration assemblages and pyritic mineralization associated to the gold mineralization at both the SMC and AK deposits, combined with their proximity and spatial relationship to one another provides a deep exploration target beneath the AK deposit. To test this potential a deep drilling program has began with the first pilot-hole underway to a planned depth of 1300 m approximately 700 m below the AK deposit. From this hole a series of wedge holes are planned to explore the potential for SMC style mineralization.

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 AK project is supervised by Queenston's Senior Consulting Geologist, David Gamble 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 analyzed employing the appropriate gold fire assaying technique. For QA/QC purposes the Company as well as the lab submits 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 Senior Consulting Geologist and QP, David Gamble, 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 245 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 $70 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 is 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. Significant Assay Results from AK Drilling Program

Notes: The mineralized intervals in this news release are reported as core lengths. True widths of these intervals have not been determined but are believed to be between 60% to 80% of core lengths. Holes AKC12-54 and AKC12-57 are pending receipts of assays.