TORONTO, ONTARIO--(Marketwire - Sept. 5, 2012) - QUEENSTON MINING INC. (News - Market indicators)(OTCQX:QNMNF)(FRANKFURT:QMI) ("Queenston or the Company") is pleased to announce results from 17 surface diamond drill holes (11,048 m) completed on the 100% owned Upper Beaver property located in Kirkland Lake, Canada. The drilling continues to extend the new Footwall Zone and provides further definition of the Porphyry, North Contact and Q Zones.

Highlights:

• 18.4 g/t Au with 1.1% Cu over 22.0 m (UB12‐204W4) "Footwall Zone"
• 21.8 g/t Au over 13.0 m (UB12‐225W1) "Porphyry Zone"
• 12.8 g/t Au with 2.4% Cu over 5.0 m (UB12‐230) "Porphyry Zone"
• 7.8 g/t Au with 10.8% Cu over 2.3 m (UB12‐222W2) "Upper Footwall Zone"
• 18.1 g/t Au with 0.2% Cu over 4.0 m (UB12‐221) "Q Zone"
• 2.1 g/t Au over 91.0 m (UB12‐234) "North Contact Zone"
• 1.2 g/t Au with 0.2% Cu over 96.0 m (UB12‐227) "North Contact Zone"

Charles Page, President and CEO of Queenston said, "The third wedge hole into the Footwall Zone has intersected the best interval to date assaying 18.4 g/t Au with 1.1% Cu over 22.0 m extending this new zone over a dip length of 100 m where it remains open. Strong results were also intersected in the Porphyry Zone with infill hole UB12‐225W1 assaying 21.8 g/t Au over 13.0 m including an extremely high‐grade 1 m interval assaying 236.9 g/t Au. Closer to surface drilling continues to extend confidence in the Upper Footwall, North Contact and Q Zones. Six drills are operating at Upper Beaver as we prepare for an updated mineral resource and advance the project towards underground exploration and feasibility."

Details of the new drilling results are listed in Table 1 accompanying this news release. The location of the Footwall Zone and the drilling results are outlined in figures 1 and 2 accompanying this news release.

Footwall Zone

Wedge hole UB12‐200W4 intersected the Footwall Zone at a vertical depth of 1275 m and approximately 40 m above previous hole UB12‐200W3. The hole intersected a 22.0 m wide interval assaying 18.4 g/t Au with 1.1% Cu that included three sub‐intervals of 34.2 g/t Au with 0.7% Cu over 5.0 m, 41.4 g/t Au with 0.8% Cu over 3.2 m and 22.4 g/t Au with 2.9% Cu over 4.0 m. The new drilling has extended the Footwall Zone to a dip length approaching approximately 100 m (see figures 1 and 2) and includes previously reported hole UB12‐200W3 (6.0 g/t Au with 3.3% Cu over 10.0 m) and discovery hole UB12‐200W2 (7.5 g/t Au with 0.8% Cu over 36.0 m). The zone is located approximately 60 m below the deposit's main Porphyry Zone near the south‐eastern contact of the Beaverhouse Syenite Intrusive Complex. Drill‐hole UB12‐200W1 located 110 m below the discovery hole failed to intersect the zone and it is interpreted to have been drilled below the plunge of the mineralization. The deep Footwall Zone remains open along strike to the east, upwards and downwards along plunge.

Holes UB12‐222 and ‐222W2 intersected the Footwall Zone higher in the deposit at a depth of approximately 700 m assaying 4.9 g/t Au with 2.48% Cu over 2.0 m and 7.8 g/t Au with 10.8% Cu over 2.3 m respectively. These narrower intervals with good grade copper mineralization are 50 m apart and occur in the same plane approximately 600 m up‐dip of the deeper Footwall mineralization. Hole UB12‐222W1 did not reach the planned depth.

Porphyry Zone

Infill drilling on the Porphyry (East) Zone included five holes. The most significant intersection is in UB12‐225W1 assaying 21.8 g/t Au with trace Cu over 13.0 m (including 236.9 g/t Au over 1.0 m) at a depth of approximately 770 m. This intersection is located 25 m above pilot hole UB12‐225 (5.0 g/t Au with trace Cu over 8.0 m, including 11.6 g/t Au over 3.0 m), 50 m below UB07‐115 (15.1 g/t Au with 0.2% Cu over 3.3 m) and 50 m west of UB08‐126 (4.1 g/t Au with 0.2% Cu over 10.0 m). Holes UB12‐115 and ‐126 were previously reported. Other new infill holes on the east side of the deposit include UB12‐222 (7.0 g/t Au with trace Cu over 10.0 m), UB12‐224 (4.9 g/t Au with 0.28% Cu over 8.0 m) and UB12‐200W4 (5.1 g/t Au with trace Cu over 5.0 m).

On the west portion of the Porphyry Zone three holes were completed at a depth of approximately 450 m extending the zone 50 m closer to surface. The highlight is hole UB12‐230 where a 13.0 m interval assayed 7.1 g/t Au with 1.3% Cu (including 12.8 g/t Au with 2.4% Cu over 5.0 m). Other new holes in this area of the deposit at the same depth include UB12‐234 assaying 3.1 g/t Au with 1.5% Cu over 15.0 m (including 11.8 g/t Au with 0.31% Cu over 2.0 m and 2.9 g/t Au with 3.1% Cu over 7.0 m) located 30 m west of UB12‐230 and UB12‐231 located a further 120 m to the west assaying 3.6 g/t Au with 0.3% Cu over 4.0 m.

Contact Zones

The North Contact Zone is located north of the Porphyry Zone in the hanging wall of the deposit between 100 m to 400 m below surface. The drilling here continues to intersect broad zones of gold and copper mineralization highlighted by new results that include 2.1 g/t Au with trace Cu over 91.0 m (including 5.5 g/t Au over 13.0 m and 8.0 g/t Au over 5.0 m) in hole UB12‐234, 1.2 g/t Au with 0.2% Cu over 96.0 m in hole UB12‐227, 1.6 g/t Au with 0.2% Cu over 30 m in hole UB12‐230 and 1.2 g/t Au with 0.4% Cu over 21.0 m in hole UB12‐233.

In the moderately flat‐lying South Contact Zone an intersection in hole UB12‐221 assayed 1.6 g/t Au with 0.5% Cu over 32.0 m (including 5.7 g/t Au with 1.8% Cu over 7.0 m).

Q Zones

Highlights from the near surface Q Zone include three intervals in hole UB12‐221 assaying 1.0 g/t Au with 0.42% Cu over 21.0 m, 6.0 g/t Au with 0.2% Cu over 13.0 m (including 18.1 g/t Au with 0.2% Cu over 4.0 m) and 28.4 g/t Au with trace Cu over 1.0 m. Hole UB12‐223 also includes three intervals of 1.2 g/t Au with 0.6% Cu over 15.0 m, 1.5 g/t Au with 0.4% Cu over 22.0 m and 28.6 g/t Au with trace Cu over 1.0 m. Both these holes were drilled obliquely to the Q Zone to test for north‐south trending structural features. Hole UB12‐233 also intersected the Q Zone assaying 2.7 g/t Au with 0.4% Cu over 15.0 m. The Q Zone and Contact Zones offer near surface bulk mining opportunities.

Drilling Near Historic Workings

Two exploration holes targeted areas of historic interest apart from the current resource development activity. Hole UB12‐232 drilled near a 1920's exploration/production shaft intersected two shallow intervals within 50 m of surface assaying 4.1 g/t Au over 3.0 m and 13.1 g/t Au over 3.0 m (including 29.7 g/t Au over 1.0 m). Another exploration hole (UB12‐229) drilled below the site of an historic stamp mill intersected two mineralized intervals assaying 5.2 g/t Au over 6.0 m (including 25.8 g/t Au over 1.0 m) and 3.3 g/t Au with 0.6% Cu over 7.3 m (including 7.8 g/t Au with 1.6% Cu over 2.3 m). Further drilling is planned for both these areas.

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. Permits for a new 1,300 m deep shaft are anticipated shortly and detailed engineering, procurement and site preparation have commenced. The PEA studied the economics of building a 2,000 tonne per day mine/mill complex at Upper Beaver that would produce on average 120,000 oz of gold and 5.3 million pounds of copper annually with first production targeted in 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 in progress and is anticipated to be announced near the end of September to include drilling conducted in 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 Senior Geologist, Mark Masson, 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 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 has working capital of approximately $115 million including cash and short‐term investments of $90 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.

To view the figures associated with this release, please visit the following links:

Figure 1: http://media3.marketwire.com/docs/QMI94Figure1.pdf

Figure 2: http://media3.marketwire.com/docs/QMI94Figure2.pdf