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Queenston Mining research and analysis

Contributed by eResearch

Queenston Mining Inc. (¡°Queenston¡± or the ¡°Company¡±) is a Canadian mineral exploration and development company focused on the historic Kirkland Lake Gold Camp, Ontario and the Cadillac Gold Camp, Quebec. The Company¡¯s assets include six, 100%-owned gold deposits that are in various stages of exploration and development.

INVESTMENT HIGHLIGHTS

Largest land holding, with 11 known gold deposits, in the Kirkland Lake Camp, a major gold camp with a 100 years of history.

NI 43-101 resource estimate includes 1,464,000 oz. (grading 5.0 g/t Au) Measured and Indicated, and 1,939,000 oz. (grading 5.2 g/t Au) Inferred.

Historic resources total 235,000 oz. (grading 6.60 g/t Au) Measured and Indicated, and 680,000 oz. (grading 4.80 g/t Au) Inferred.

Projects are located in established mining jurisdictions, providing an infrastructure advantage. Strong balance sheet with $90 million cash.

PROPERTIES

Queenston¡¯s project portfolio contains advanced gold properties, the majority of which are located in Kirkland Lake, Ontario and Cadillac, Quebec, and shown in the summary table below.

Queenston has one of the largest land-holdings in the Kirkland Lake Gold Camp, with 35 continguous properties having a total area of 220 square kilometers. Collectively, the properties host 11 gold deposits containing current and historic mineral resources of 4.2 million ounces (in all three categories). Queenston¡¯s objective is, eventually, to prove up a mineral esource of 6 million oz. Au.

Queenston has two formerly-producing gold properties in the Cadillac Gold Camp, strategically located adjacent to two operating gold mines of Agnico-Eagle Mines Limited. The Wood-Pandora property is jointly owned with Globex Mining Enterprises Ltd., while the Pandora property is 100%-owned by the Company. Collectively, the properties host 7 gold deposits containing current and historic mineral resources of 715,000 oz. (527,000 net to Queenston).

2012 CORPORATE OBJECTIVES:

Queenston¡¯s major objectives in 2012 are as follows:

1. Advance the Upper Beaver property towards a feasibility study

- Development planned with new shaft sinking program.

- Continue to delineate orebody and explore for more high grade ounces.

- Commissioned for a stand-alone mine project targetting 150,000 oz/year.

2. Accelerate exploration on inventory of satellite deposits targetting the potential for 8 million oz

- $25 million spent on exploration in 2011 (180,000 m of drilling with 14 rigs).

- $25 million raised for same level of exploration in 2012.

- Begin to advance deposits towards feasibility with planned underground development.

3. Begin new deposit exploration on massive land holdings

- Step up exploration activity to focus on the discovery of new deposits along known gold structures.

1. Kirkland Lake, Ontario

The focus of Queenston is the Kirkland Lake Gold Camp. Located on the Ontario-Quebec border, the Kirkland Lake Gold Camp is noted for its prolific production of gold, 37 million oz., and famous for its high grades. Historic gold recovery is 95% in the region.

2. Queenston¡¯s Mineral Resources

NI 43-101 resources are 1,464,000 oz. (grading 5.0 g/t Au) Measured and Indicated, and 1,939,000 oz. (grading 5.2 g/t Au) Inferred.

RECENT DEVELOPMENTS

January 5, 2012 ¨C Philip Ng named as Chief Operating Officer

December 20, 2011: The release of drill results at Upper Beaver indicate wide, significant intersections of gold mineralization expanding both the deep Porphyry Zone and the near-surface Q Zone, North and South Contact Zones. December 1, 2011: Diamond drilling intersected high©\grade gold mineralization on the Rand Property outlining a new gold system on the western portion of the Company¡¯s holdings in the Kirkland Lake Gold Camp, Ontario.

October 11, 2011: The results of a five hole, 2,405 meter drill program undertaken on the 50%-50% Wood Pandora joint venture property (with Globex Mining) were released. Four of the holes were completed to follow up the drilling results from twelve previous holes announced earlier in 2011. New holes W-11-89 to -92 all intersected gold  values within or adjacent to the Cadillac Break. One of the deepest holes of the program, W-11-92, intersected a 4.9 m interval assaying 28.86 g/t gold including 121.70 g/t gold over 1.1 m at approximately 350 m below surface.

eResearch Analysts on this report:
Stephen P. Mussart, B.A. (Economics), MBA
Bob Weir, B.Sc., B.Comm., CFA