Queenstake Resources Ltd (qee)

[Justin]

James444ct, Yes hope we do gap tomorrow and keep running to the 52 week High of .55. Gold is up 14.00 today.

[PENNYPRINCE 1]

Nice day gap and pop with serious volume maybe we gap again tomorrow.

[Justin]

Queenstake Drilling Extends High-Grade Gold Mineralization
at Mahala Deposit

Denver, Colorado — August 16, 2006 — Queenstake Resources Ltd. (TSX:QRL, AMEX:QEE) has intercepted high-grade gold mineralization in underground exploration drilling along extensions of mineralized trends at the Mahala deposit (Smith Mine). Results included intercepts 40 feet grading 1.82 ounces of gold per ton (opt) or 12.2 meters of 62 grams of gold per tonne (gpt) and 30 feet of 0.91 opt (9.1 meters of 31 gpt) along the Mahala Dike Trend and located in close proximity to the current development drift at Smith.

Commenting on the exploration results, President and Chief Executive Officer Dorian L. (Dusty) Nicol said, “These are some of the most impressive drill results Queenstake has received from its near-mine underground program. These positive results are expected to provide resource and reserve additions this year and to extend the mine life at Smith beyond 2008. We are excited that these high-grade mineralized drill intercepts are within 180 feet of the current development drift and are currently adapting our mine plans to include initial mining of these mineralized extensions in the fourth quarter of 2006.”

The extensions of high-grade mineralization along the Mahala Dike Trend remain open along strike to the northwest and southeast, and will be followed up with additional drilling.

In addition, positive results from underground drilling at the prospective R4 Dike Trend at the Smith Mine has indicated an extension of high-grade mineralization, including separate core drill intercepts of 29 feet of 0.47 opt (9 meters of 16 gpt) and 20 feet of 0.56 opt (6 meters of 19 gpt). These intercepts are within 150 feet of the current development drift in the R4 Dike Trend. The mineralized extension is open along strike to the northwest, and will be followed up with additional drilling.

All results highlighted in this news release are outside of the Company’s year-end 2005 mineral resource boundary. (Refer to the Appendix Map 1 and 2 for the location of Mahala and the R4 dike trends.) These results will be incorporated in new mine models that will be used in the estimation of reserves and resources(1) for year-end 2006. These drill intercepts at Mahala and R4 trends are significantly higher grade than the average grade of Mahala’s measured and indicated mineral resources at year-end 2005, which were 420,600 tons at a grade of 0.296 opt (124,360 contained ounces), and indicate the potential for enhancing the average grade at year-end 2006.

Underground reverse circulation(2) and core(2) drilling results highlighted in this news release were part of the near-mine exploration program(3) conducted at the Smith Mine from April through July 2006. Eighty-two holes, totaling 20,092 feet, were drilled, consisting of 20 core holes for 8,267 feet and the rest from reverse circulation drilling.

[golden08]

Very nice. It goes with my long time belief that there is alot of gold on that 119 square mile chunk of land. As more funds become available i believe we will see alot of drill results coming in the future. Good work QEE keep em coming.

[NYBob]

Queenstake Drilling 40 feet grading Au 1.82 oz of Gold
per ton (opt) -



Queenstake Drilling Extends High-Grade Gold Mineralization -
at Mahala Deposit -
Wednesday August 16, 9:09 am ET
DENVER, Aug. 16 /CNW/ --

Queenstake Resources Ltd. -
(Amex: QEE - News; TSX: QRL - News) -
has intercepted high-grade gold mineralization in underground
exploration drilling along extensions of mineralized trends at
the Mahala deposit (Smith Mine).

Results included intercepts 40 feet grading 1.82 ounces of gold
per ton (opt) or 12.2 meters of 62 grams of gold per tonne
(gpt) and 30 feet of 0.91 opt (9.1 meters of 31 gpt) along
the Mahala Dike Trend and located in close proximity to the
current development drift at Smith.

http://biz.yahoo.com/cnw/060816/co_queenstake_gold.html?.v=1


Jerritt Canyon Tour -

http://www.queenstake.com/page.php?ID=275

http://www.investorshub.com/boards/board.asp?board_id=5466

http://www.investorshub.com/boards/board.asp?board_id=5404

[Justin]

Queenstake Drilling Extends High-Grade Gold Mineralization at Mahala Deposit
Wednesday August 16, 9:00 am ET

DENVER, Aug. 16 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd. (Amex: QEE - News; TSX: QRL - News) has intercepted high-grade gold mineralization in underground exploration drilling along extensions of mineralized trends at the Mahala deposit (Smith Mine). Results included intercepts 40 feet grading 1.82 ounces of gold per ton (opt) or 12.2 meters of 62 grams of gold per tonne (gpt) and 30 feet of 0.91 opt (9.1 meters of 31 gpt) along the Mahala Dike Trend and located in close proximity to the current development drift at Smith.

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Commenting on the exploration results, President and Chief Executive Officer Dorian L. (Dusty) Nicol said, "These are some of the most impressive drill results Queenstake has received from its near-mine underground program. These positive results are expected to provide resource and reserve additions this year and to extend the mine life at Smith beyond 2008. We are excited that these high-grade mineralized drill intercepts are within 180 feet of the current development drift and are currently adapting our mine plans to include initial mining of these mineralized extensions in the fourth quarter of 2006."

The extensions of high-grade mineralization along the Mahala Dike Trend remain open along strike to the northwest and southeast, and will be followed up with additional drilling.

In addition, positive results from underground drilling at the prospective R4 Dike Trend at the Smith Mine has indicated an extension of high-grade mineralization, including separate core drill intercepts of 29 feet of 0.47 opt (9 meters of 16 gpt) and 20 feet of 0.56 opt (6 meters of 19 gpt). These intercepts are within 150 feet of the current development drift in the R4 Dike Trend. The mineralized extension is open along strike to the northwest, and will be followed up with additional drilling.

All results highlighted in this news release are outside of the Company's year-end 2005 mineral resource boundary. (Refer to the Appendix Map 1 and 2 for the location of Mahala and the R4 dike trends.) These results will be incorporated in new mine models that will be used in the estimation of reserves and resources(1) for year-end 2006. These drill intercepts at Mahala and R4 trends are significantly higher grade than the average grade of Mahala's measured and indicated mineral resources at year-end 2005, which were 420,600 tons at a grade of 0.296 opt (124,360 contained ounces), and indicate the potential for enhancing the average grade at year-end 2006.

Underground reverse circulation(2) and core(2) drilling results highlighted in this news release were part of the near-mine exploration program(3) conducted at the Smith Mine from April through July 2006. Eighty-two holes, totaling 20,092 feet, were drilled, consisting of 20 core holes for 8,267 feet and the rest from reverse circulation drilling.

Table 1: Smith Mine-Mahala Deposit Significant Results(4),(5)

From To Length Grade Drill
Hole # (feet) (feet) (feet) (opt) Type(2)
Mahala Dike Trend
C40531 50 70 20 0.652 RC
C40538 50 80 30 0.908 RC
C40545 60 100 40 0.528 RC
C40551 60 100 40 1.821 RC
LX-656 350 365 15 0.328 Core
LX-658 360 375 15 0.615 Core
LX-661 405 440 35 0.56 Core
R4 Dike Trend
LX-646 130 155 25 0.383 Core
LX-647 131 160 29 0.473 Core
LX-649 120 140 20 0.562 Core


Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon gold operations in Nevada. Jerritt Canyon has produced over 7.5 million ounces of gold from open pit and underground mines since 1981. Current production at the property is from underground mines. The Jerritt Canyon District comprises 119 square miles (308 square kilometers) of geologically prospective ground controlled by Queenstake, representing one of the largest contiguous exploration properties in Nevada.

Notes:

(1) Mineral "resources" or "resource" used in this news release are as defined in National Instrument 43-101 of the Canadian Securities Administrators and are not terms recognized or defined by the U.S. Securities and Exchange Commission (SEC). Mineral resources are not reserves and do not have demonstrated economic viability. For further information, please refer to the risk factors and definitions of mineral reserves and resources in the Company's filings on SEDAR and with the SEC on the Company's website, www.queenstake.com. The Qualified Person for the technical information contained in this news release is Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake.

(2) Underground drilling uses either core or reverse circulation (RC) methods for near-mine exploration programs at Jerritt Canyon. Reverse circulation drilling has demonstrated accuracy in ore control definition drilling and for resource conversion at Jerritt Canyon's mines. However, reverse circulation drilling can result in a lower degree of confidence and less geologic information than core drilling.

(3) A complete data set, from which the drill results highlighted in this news release were selected, is available as an Appendix to this news release under the Investor Information/News section on the Company's website, www.queenstake.com.

(4) Results presented in this news release were analyzed using standard fire assay techniques at the Company's Jerritt Canyon laboratory. Intercepts are reported as drilled and are not necessarily "true widths," which have not yet been calculated.

(5) A description of the geology, sampling procedures and the Company's laboratory Quality Assurance/Quality Control procedures are described in the Company's National Instrument 43-101 Technical Report filed on SEDAR on May 4, 2006. This report is available under Investor Information/Financial Information/SEDAR filings at www.queenstake.com or at www.sedar.com under the Company's name.

For further information call:
Wendy Yang, 303-297-1557 or 800-276-6070
Email - [e-mail]
Web - www.queenstake.com

Cautionary Statement -- This news release contains "Forward-Looking Statements" within the meaning of applicable Canadian securities legislation and Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of mineral reserves and resources, (ii) estimates and opinions regarding geologic and mineralization interpretation, (iii) timing of project advancement and (iv) timing of commencement of production from a deposit. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements, in particular the estimates do not include input cost increases that could occur in future. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Queenstake does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, which are described in the Company's 2005 Annual Information Form filed on SEDAR and 2005 Annual Report on Form 40-F on file with the Securities and Exchange Commission as well as the Company's other regulatory filings.


Source: Queenstake Resources Ltd.

[Justin]

QEE is looking stronger this morning. Looks like we may start moving up slowly as to not draw attention to the stock. JMHO
52 week high is .55

[golden08]

But then there isnt much interest in most miners this time of year. Im a diehard holder here and ive bought more here recently. Patience is what it takes. The Queen will not make you rich overnight. Unless you have a crystalball and see a buyout coming. Patience Patience.

[Justin]

No Interest in this stock ?

[Justin]

kmp9643, when volume gets over 2 million maybe we take off. Hope so anyhow!

[kmp9643]

I agree Arkie it is a longer term hold thought we would get a big spike then a pull back.

[Justin]

kmp9643, looks to be coming back some now. It looks like a longer term hold, than a quick bump in PPS. I would have thought it would have taken off too.

[kmp9643]

Can't believe its trading flat after its first profitable quarter. I think it will go much higher when gold rises, this is historically a down period for gold.

[Justin]

Queenstake Generates Positive Cash Flow in Second Quarter
Monday August 14, 8:00 am ET

DENVER, Aug. 14 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd. (TSX: QRL, Amex: QEE) generated net income of $731,000 from gold sales of 51,216 ounces in the second quarter of 2006, compared to a net loss of $5.6 million in the second quarter of 2005. Queenstake had record revenues of $32.2 million for the second quarter.

During the second quarter, the Company's Jerritt Canyon operations in northeastern Nevada produced 50,421 ounces of gold at cash operating costs per ounce of $461, a 69% increase in production and a 17% improvement in costs per ounce from the first quarter of 2006. Second quarter production and costs were impacted by a 12-day mill refurbishment shut down in April 2006. Since the shut down, the mill has been operating uninterrupted at near capacity.

Highlights from the 2006 second quarter included:

* Operating cash flow, after working capital changes, was $2.6 million;

* Cash and cash equivalents at June 30, 2006 totaled $10.5 million;

* Working capital improved by $2.6 million from year-end 2005 and by
$9.7 million from the end of the first quarter 2006 to $7.4 million at
June 30;

* Capitalized mine development footage was significantly ahead of plan;
and

* Jerritt Canyon marked its 25th anniversary as a gold producer and its
7.5-millionth ounce of gold produced.


Commenting on the results, Queenstake President and Chief Executive Officer Dorian L. (Dusty) Nicol said, "With an average realized gold price of $627 per ounce and cash operating costs per ounce of $461, our cash margin was $166 per ounce for the quarter, the best since we acquired Jerritt Canyon in mid-2003. We remain an unhedged US gold producer. Queenstake is one of the most leveraged gold equities, allowing maximum investment exposure to the gold price and to our continuing exploration success."


Operating Highlights 2Q 2006 2Q 2005 1H 2006 1H 2005
Gold ounces produced 50,421 54,156 80,294 108,923
Gold ounces sold 51,216 50,560 79,704 101,410
Average realized gold price ($/oz) $627 $428 $597 $398
Cash operating costs per ounce(1) $461 $371 $497 $372
Ore tons mined 188,283 234,625 417,246 515,260
Tons processed 271,857 316,800 422,085 628,234
Grade processed (opt) 0.22 0.21 0.23 0.21
Process recovery 86.0% 87.3% 86.3% 86.6%

(1) Cash operating costs per ounce is a non-GAAP measure intended to
complement conventional GAAP reporting. Management believes that cash
operating costs per ounce is a useful indicator of a mine's
performance. Please refer to Table 5 of the Management Discussion
and Analysis on file at www.sedar.com and www.sec.gov for further
information.



Financial Review

For the second quarter of 2006, the Company reported net income of $731,000, compared with a net loss of $5.6 million in the year ago quarter. Revenues were $32.2 million from 51,216 ounces of gold sold at an average realized price of $627 per ounce during the quarter, which is a 47% higher realized gold price than in the year ago quarter.

Cash operating costs per ounce were $461 in the second quarter, 24% higher than the 2005 second quarter due mainly to higher labor, contractor, energy and commodity costs, mill gear repairs and lower gold production. Over the past 12 months, cash operating costs were impacted by $3 million in rising commodity costs, including fuel, electric power, commodities and freight, $2.1 million in higher labor costs from wage increases and higher than anticipated overtime, and $4 million from increased contractor costs. These factors accounted for increases in cash operating costs per ounce of $52 in the past 12 months.

Depletion was lower at $3.9 million during the quarter than a year ago as a result of lower gold production, with an additional $0.1 million expensed due to the reduction of ore stockpiles and work-in-process inventory levels from the first quarter.

Second quarter corporate general and administrative costs were $1.3 million compared with $0.8 million in the year ago quarter. The increase was primarily due to professional advisory services related to Sarbanes-Oxley compliance and financial consulting.

Cash flow from operations, after working capital changes, was $2.6 million in the second quarter, compared with cash used in operations of $5.3 million in the 2005 second quarter. Net cash generated before changes in non-cash working capital was $5.6 million, compared with $0.4 million in the year ago quarter and negative $1.8 million in the first quarter of 2006.

During the quarter, the Company closed its equity private placement with Newmont, raising $10 million on April 13, 2006. Cash and cash equivalents were $10.5 million on June 30, 2006.

The Company invested $6.7 million in capital expenditures during the second quarter, principally in underground mine development, $0.4 million for an additional underground exploration drill and in purchasing and refurbishing plant and equipment, including an unanticipated $0.9 million related to the mill refurbishment.

Operations Review

During the second quarter, Jerritt Canyon produced 50,421 ounces of gold, slightly less than called for by the 2006 operating plan. Production was negatively affected by a 12-day mill refurbishment shut down in April, which resolved the first quarter's mechanical issues.

In the second quarter, Jerritt Canyon mined 274,961 tons, of which 188,283 tons were ore. The mining rate and ore tons mined were lower than expected as a result of a greater emphasis on underground development in view of the build-up of ore stockpiles at the mill from the first quarter, longer haul distances at the SSX-Steer Mine and additional required dewatering at the Smith Mine. In addition, further underground development was required to optimize mining of stopes in the Mahala deposit at Smith in the second half of 2006. Capitalized mine development footage of 2,868 feet for the Jerritt Canyon mines was significantly ahead of the 2006 plan.

At the mill, 271,857 tons were processed with an 86% average recovery during the second quarter of 2006. Due to first quarter's build up of the Jerritt Canyon mined ore in stockpiles adjacent to the mill, during the second quarter, the mill was able to run at near capacity entirely from Jerritt Canyon mined and stockpiled ore without the need to supplement with purchased ore from Newmont. The 81% increase in throughput from the first quarter of 2006 was due to increased mill availability with the seasonal weather improvement, running two roasters simultaneously and completion of the mill repairs and refurbishment.

The temporary mill interruptions in the first quarter and in April 2006 resulted in the rescheduling of the processing of the stockpiled ore through the rest of the year. At the end of the second quarter, there was an estimated 12,000 contained ounces of Jerritt Canyon ore in lower-grade stockpiles.

Exploration Update

Queenstake invested $1.1 million in exploration during the second quarter with four surface drill rigs working at the Jerritt Canyon District, including two rigs at Starvation Canyon project in the southern part of the district. On August 3, the Company announced one of the best drill intervals in the three-decade history of Jerritt Canyon exploration of 140 feet with an average grade of 0.46 ounce of gold per ton (opt) or 43 meters of 16 grams of gold per ton (gpt). This interval included an intercept of 70 feet of 0.6 opt (21 meters of 22 gpt). This discovery of high-grade gold mineralization at Starvation Canyon is located between two known mineral resource zones and could represent a newly identified northwest trending gold-bearing structure.

The Company is evaluating development of an exploration drift that could more rapidly advance the Starvation Canyon project using underground drill platforms. Preliminary designs indicate that an 800-foot drift would reach the known boundary of the west zone. A decision regarding the exploration drift is expected in the fourth quarter of 2006.

The near-mine exploration program, comprising both surface and underground drilling, continues and the Company expects to announce updated results during this quarter.

Other Business

The Company's auditors Staley, Okada & Partners of Vancouver have merged with PricewaterhouseCoopers (PwC) and Staley Okada will operate under the PwC name, effective August 1, 2006. Following the audit firms' merger announcement, Michael Smith resigned as a Director of Queenstake, as he feels it is appropriate to step down from the Board of Directors to avoid any potential conflict as he is a retired partner of PwC. Mr. Smith, who was elected to the Board in 2004, was chairman of the Audit Committee and a member of the Disclosure Committee of the Board.

Robert L. Zerga, Chairman of Queenstake, said, "It is with reluctance that we accept Mike's resignation as he was a conscientious and hard-working Board member. We will miss his valuable contribution to Board, Audit Committee and Disclosure Committee discussions."

The Corporate Governance and Nominating Committee of the Board will be reviewing qualified candidates to fill this vacancy.

2006 Outlook

For the full year 2006, the Company has lowered its Jerritt Canyon production estimate from 200,000-220,000 ounces of gold to 180,000-200,000 ounces, reflecting the first and second quarter mill-related production shortfalls, delays in accessing ore at the underground mines in the second quarter and the need to process ore purchased from Newmont in the second half of 2006. Cash operating costs per ounce for 2006 continue to be adversely affected by increases in basic commodity prices. The operations are sensitive to increases in diesel, propane and electric power, all of which have experienced significant increases through the first half of 2006. At current energy and commodity prices, cash operating costs per ounce are expected to continue at approximately $460.

Exploration expenditures are expected to be $8 million in 2006, compared with $3.9 million in 2005. Capital expenditures in 2006 are estimated to be approximately $21 million, compared with $21.6 million in 2005. Estimated capital expenditures for the year include approximately $15 million for capitalized mine development, which has increased from higher contractor and commodity costs, $1 million for the unbudgeted new pinion gear and bull gear spares, $2.5 million for underground exploration drilling and the remaining for a new underground drill, a road grader and equipment refurbishment. Ongoing corporate general and administrative costs are estimated at approximately $4.0 million in 2006. The Company expects to fund the balance of these estimated expenditures from existing cash and expected cash flow from operations for 2006.

Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon gold operations in Nevada. Jerritt Canyon has produced over seven-and-a-half million ounces of gold from open pit and underground mines since 1981. Current production at the property is from underground mines. The Jerritt Canyon District comprises 119 square miles (308 square kilometers) of geologically prospective ground controlled by Queenstake, representing one of the largest contiguous exploration properties in Nevada.

For further information call:
Wendy Yang 303-297-1557 ext. 105
800-276-6070
Email - [e-mail] web - www.queenstake.com

Cautionary Statement -- This news release contains "Forward-Looking Statements" within the meaning of applicable Canadian securities law requirements and Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of future gold production, processing rates and cash operating costs, (ii) estimates of savings or cost reductions, mill refurbishment and maintenance costs, (iii) estimates related to financial performance, including cash flow, capital expenditures, exploration and administrative costs, (iv) estimates and projections of reserves and resources, (v) estimates and opinions regarding geologic and mineralization interpretation, (vi) estimates of exploration investment, scope of exploration programs and timing of project advancement, commencement of production and availability of drills and other equipment, and (vii) estimates of reclamation and closure costs. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, operational risks, mine development, production and cost estimate risks and other risks which are described in the Company's most recent Annual Information Form filed on SEDAR (www.sedar.com) and Annual Report on Form 40-F on file with the Securities and Exchange Commission (SEC; www.sec.gov) as well as the Company's other regulatory filings. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Mineral "resources" or "resource" used in this news release are as defined in National Instrument 43-101 of the Canadian Securities Administrators and are not terms recognized or defined by the U.S. Securities and Exchange Commission (SEC). Mineral resources are not reserves and do not have demonstrated economic viability. For further information, please refer to the risk factors and definitions of reserves and resources in the Company's filings on SEDAR and with the SEC on the Company's website, www.queenstake.com. The Qualified Person for the technical information contained in this news release is Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake. The Company's technical report on reserves and resources with respect to Canadian National Instrument 43-101 was filed on SEDAR on May 4, 2006. This report is available under Investor Information/Financial Information/SEDAR filings at www.queenstake.com or at www.sedar.com under the Company's name.


INTERIM CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
Unaudited
For the For the
Three Months Ended Six Months Ended
(In Thousands of U.S. Dollars, June 30 June 30
except per share amounts) 2006 2005 2006 2005

Gold sales $32,153 $21,669 $47,918 $43,375
Costs and expenses
Cost of sales 24,369 19,503 40,890 39,139
Depreciation, depletion and
amortization 3,931 4,866 7,201 10,353
Non-hedge derivatives 24 618 207 1,140
Exploration 1,124 861 1,324 1,385
General and administrative 1,284 843 2,356 3,200
Accretion of reclamation and
mine closure liability 293 134 587 266
Stock-based compensation 838 341 914 425
31,863 27,166 53,479 55,908
Income (loss) from operations 290 (5,497) (5,561) (12,533)

Interest expense 43 278 106 325
Other income, net (275) (209) (523) (395)
Foreign exchange (gain) loss (112) 77 (158) 259
(Gain) loss on disposal of
assets (97) -- (97) --
Loss on write down of assets -- -- 166 --
(441) 146 (506) 189
Net income (loss) $731 $(5,643) $(5,055) $(12,722)

Net Income (loss) per share -
basic and diluted $0.00 ($0.01) ($0.01) ($0.03)

Weighted average number of shares
outstanding (000's) - basic 576,634 563,833 563,282 467,946



INTERIM CONSOLIDATED STATEMENTS OF DEFICIT
Unaudited
For the Three Months For the Six Months
Ended June 30 Ended June 30
(In Thousands of U.S. Dollars) 2006 2005 2006 2005

Deficit, beginning of period -
as previously reported $(88,646) $(70,268) $(82,860) $(63,189)
Net Income (loss) 731 (5,643) (5,055) (12,722)
Deficit, end of period $(87,915) $(75,911) $(87,915) $(75,911)



INTERIM CONSOLIDATED BALANCE SHEETS June 30, December 31,
(In Thousands of U.S. Dollars) 2006 2005
ASSETS Unaudited
Current assets
Cash and cash equivalents $10,452 $10,225
Trade and other receivables 983 463
Inventories 12,838 6,519
Marketable securities 13 13
Prepaid expenses 560 1,499
Total current assets 24,846 18,719

Restricted cash 26,930 27,165
Mineral property, plant and
equipment, net 50,839 45,692
Other assets 3,801 1,763
Total assets $106,418 $93,339

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $16,022 $11,063
Other current liabilities 1,398 2,846
Total current liabilities 17,420 13,909

Other long-term obligations 4,469 2,117
Reclamation and mine closure 26,607 26,382
Total liabilities 48,496 42,408

Shareholders' equity
Common shares, no par value,
unlimited number authorized
Issued and outstanding
582,476,489 (2005 - 550,021,360) 142,952 131,804
Contributed surplus 2,871 1,973
Convertible securities 14 14
Deficit (87,915) (82,860)
Total shareholders' equity 57,922 50,931
Total liabilities and
shareholders' equity $106,418 $93,339



INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
For the For the
Three Months Six Months
Ended June 30 Ended June 30
(In Thousands of U.S. Dollars) 2006 2005 2006 2005
OPERATING ACTIVITIES
Net loss $731 $(5,643) $(5,055) $(12,722)
Non-cash items:
Depreciation, depletion and
amortization 3,931 4,866 7,201 10,353
Write down of assets -- -- 166 --
(Gain) on disposal of assets (97) -- (97) --
Accretion of reclamation and
mine closure liability 293 134 587 266
Amortization of non-hedge
derivatives 6 618 10 1,140
Write down of non-hedge
derivatives 18 -- 197 --
Stock-based compensation 838 340 914 424
Foreign exchange loss (112) 77 (158) 259
Loss on sale of marketable
securities -- -- -- 38
Write down of marketable
securities -- 4 -- 4
5,608 396 3,765 (238)
Changes in non-cash working
capital:
Inventories (822) (1,562) (5,637) (2,349)
Accounts receivable and
prepaid accounts (76) 340 419 (306)
Accounts payable and
accruals (2,071) (4,438) 7,112 (9,462)
Cash provided by (used in)
operating activities 2,639 (5,264) 5,659 (12,355)

INVESTING ACTIVITIES
Property, plant and equipment
expenditures (6,724) (1,980) (14,959) (7,061)
Proceeds from sale of assets 21 -- 21 --
Sale of marketable securities -- -- -- 442
Reclamation costs incurred (362) -- (362) --
Restricted cash 506 (132) 235 (251)
Cash (used in) investing
activities (6,559) (2,112) (15,065) (6,870)

FINANCING ACTIVITIES
Common shares issued, net of
costs 11,402 6,938 11,131 30,349
Notes payable and leases (503) (115) (1,498) (390)
Deferred financing costs -- -- -- --
Cash provided by (used in)
financing activities 10,899 6,823 9,633 29,959

Net increase (decrease) in cash
and cash equivalents 6,979 (553) 227 10,734
Cash and cash equivalents,
beginning of period 3,473 17,419 10,225 6,132
Cash and cash equivalents, end
of period $10,452 $16,866 $10,452 $16,866



Source: Queenstake Resources Ltd.

[golden08]

They should be positive this quarter or next. My thoughts are this quarter. A double would sure be nice. A triple by early 07 are my thoughts.

[kmp9643]

If they are to meet guidance for the year they should do about 60,000 ounces this quarter, I think if they actually post a profit we get at least a double.

[golden08]

Bob any thoughts as to how much we will see?

[NYBob]

Queenstake Announces Second Quarter 2006 Results -
Conference Call -



DENVER, Aug. 11, 2006
(Canada NewsWire via COMTEX News Network) --

Queenstake Resources Ltd. -
(TSX: QRL; Amex: QEE) -
will announce its second quarter 2006 results on Monday,
August 14th and will hold a conference call hosted by
President and Chief Executive Officer Dorian (Dusty) Nicol
to review the quarter highlights at 1:00 p.m.
Eastern Daylight Time that day.


The conference call may be accessed by telephone:
United States and Canada
(Toll-Free): 1-888-459-5609
International (Toll): 1-973-321-1024

The conference call may also be accessed via
the Queenstake web site at -

http://www.queenstake.com

under the Audio Webcast Link on the homepage.

A replay of this call will be available for a limited time
on the Queenstake web site or by calling:
United States and Canada (Toll Free): 1-877-519-4471
International (Toll): 1-973-341-3080
Replay Pin Number: 7710813

Queenstake Resources Ltd. -
is a Gold mining and exploration company based in Denver,
Colorado.
Its principal asset is the wholly owned -
Jerritt Canyon Gold operations in Nevada.

Jerritt Canyon has produced over seven million ounces
of Gold from open pit and underground mines since 1981.

Current production at the property is from underground mines.

The Jerritt Canyon District comprises 119 square miles
(308 square kilometers) of geologically prospective ground,
controlled by Queenstake, representing one of the largest
contiguous exploration properties in Nevada.



Jerritt Canyon Tour -

http://www.queenstake.com/page.php?ID=275


For further information call:

Wendy Yang 303-297-1557 ext. 105

800-276-6070

Email - [e-mail] web - www.queenstake.com

SOURCE: Queenstake Resources Ltd.

Wendy Yang of Queenstake Resources Ltd.,
[phone], ext. 105, or
[phone],
[e-mail]

http://biz.yahoo.com/prnews/060811/laf034.html?.v=57

http://www.investorshub.com/boards/board.asp?board_id=5466

http://www.investorshub.com/boards/board.asp?board_id=5404

[golden08]

Good read Thanks for the link

[NYBob]

Replacement is the new growth in Gold industry -

http://www.mineweb.net/gold_silver/869154.htm

http://www.investorshub.com/boards/board.asp?board_id=5466

[golden08]

Bob patience has finnaly paid off. Now we will reap the benifits. Its been a long wait, Im glad I bought more at .34. If we get good earnings this quarter it may double from here. As it should.

[NYBob]

Queenstake Drills 140 Feet of 0.46 opt Gold at
Starvation Canyon Mine -



Thursday August 3, 9:00 am ET
DENVER, Aug. 3 /PRNewswire-FirstCall/ --

A recently completed surface drill hole by
Queenstake Resources Ltd.
(TSX: QRL - News; Amex: QEE - News)
at the Starvation Canyon project identified one of
the best intervals of high-grade gold mineralization
in the history -
of Jerritt Canyon exploration:
140 feet with an average grade of 0.46 ounce of gold
per ton (opt) or 43 meters of 16 grams of gold per tonne
(gpt), beginning at 280 feet (85 meters) from surface.

This interval includes an intercept of 70 feet
of 0.63 opt (21 meters of 22 gpt),
which in turn includes 40 feet of 0.87 opt
(12 meters of 30 gpt).



Jerritt Canyon Tour -
http://www.queenstake.com/page.php?ID=275

Commenting on this exploration result,
President and Chief Executive Officer
Dorian L. (Dusty) Nicol said,
"This exciting discovery of additional high-grade gold
mineralization at Starvation Canyon is significant due
to its location, as much as its thickness and grade.

The 140-foot interval at 0.46 opt is located between
the two known gold resource zones and could represent
a newly identified northwest trending gold-bearing
structure.

It is also considerably higher grade than our -
Starvation Canyon Mine -
estimated measured and indicated resources of 676,400 tons
at 0.28 opt (190,700 contained ounces).

We are following up with additional step-out drilling
intended to extend the west zone of Starvation Canyon."

Starvation Canyon's Gold Resources -
are contained in two northwest trending zones
(see the Appendix:
Map 1), which currently extend 1,700 feet (518 meters)
and are open in several directions.

The currently defined resource is within a prospective
4.5-mile (7.2 kilometer) corridor of gold occurrences
in favorable geologic settings.

This trend appears comparable geologically and geochemically
to the mineralized trends in the northern and central parts
of the Jerritt Canyon district that have combined to produce over 7.5 million ounces of gold since 1981.

Two reverse-circulation rigs are drilling at the project,
with a core rig expected to be added to the program later
this year. Queenstake expects to invest $3 million in exploration at Starvation Canyon in 2006.

The project is located on Queenstake's private land, approximately 12 miles southwest of the Jerritt Canyon mill.

The Starvation Canyon Mine deposit -
lies above the water table in an area of steep topography
and could be easily accessed by development of a drift
from the hillside.

Evaluation of Starvation Canyon Exploration Drift

Mr. Nicol added,
"With a very large area of favorable geology for exploration drilling, we are optimistic about resource additions at Starvation Canyon and advancing the project to production within the next two years.

We are currently evaluating development of an exploration
drift that could more rapidly advance the project from underground drill platforms.

Preliminary designs indicate that an 800-foot drift would
reach the known boundary of the west zone.

We expect to make a decision regarding the exploration
drift in the fourth quarter of 2006."

The exploration results(1) from surface reverse circulation drilling in the west zone described in this news release
are outside of the boundary of estimated resources(2) identified at year-end 2005 (refer to the March 5, 2006
news release announcing estimated mineral reserves(2)
and resources).

The table below provides highlights from a completed drilling campaign of three 500-foot (152-meter) holes in the west
zone of Starvation Canyon.

Drill hole TJ-248 was approximately 80 feet east of the
eastern boundary of the West Zone at Starvation Canyon
and drill hole TJ-246 was approximately 300 feet
(91 meters) west of TJ-248.


Table 1: Starvation Canyon West Zone Drill Results Highlights(1),(3),(4)

Dip From To Interval Grade Drill
Hole # (feet) (feet) (feet) (opt) Type*
TJ-246 -90 410 420 10 0.224 RC
TJ-247 -90 380 390 10 0.150 RC
TJ-248 -90 280 420 140 0.459 RC
including 285 355 70 0.625 RC
with 305 345 40 0.871 RC
and 390 420 30 0.547 RC

* RC denotes reverse circulation drilling



Drilling is ongoing in other parts of Starvation Canyon for which results will be reported later this year. Drill testing of some prospective targets at Starvation Canyon has been hampered this year by a lack of sample recovery at the targeted depths using reverse circulation drilling. Testing of these areas awaits the arrival of a core drilling rig.

Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado.

Its principal asset is the wholly owned
Jerritt Canyon gold operations in Nevada.

Jerritt Canyon has produced over 7.5 million ounces of gold
from open pit and underground mines since 1981.
Current production at the property is from underground mines.

The Jerritt Canyon District comprises 119 square miles
(308 square kilometers) of geologically prospective ground controlled by Queenstake, representing one of the largest contiguous exploration properties in Nevada.

Notes:
(1) A complete data set, from which the drill results highlighted in this
news release were selected, is available as an Appendix to this news
release under the Investor Information/News section on the Company's
website, www.queenstake.com.
(2) Mineral "resources" or "resource" used in this news release are as
defined in National Instrument 43-101 of the Canadian Securities
Administrators and are not terms recognized or defined by the U.S.
Securities and Exchange Commission (SEC). Mineral resources are not
reserves and do not have demonstrated economic viability. For further
information, please refer to the risk factors and definitions of
reserves and resources in the Company's filings on SEDAR and with the
SEC on the Company's website, www.queenstake.com. The Qualified
Person for the technical information contained in this news release is
Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of
Queenstake.
(3) Results presented in this news release were analyzed using standard
fire assay techniques at the American Assay Lab in Elko and Reno.
Intercepts are reported as drilled and are not necessarily "true
widths," which have not yet been calculated.
(4) A description of the geology, sampling procedures and the Company's
laboratory Quality Assurance/Quality Control procedures are described
in the Company's National Instrument 43-101 Technical Report filed on
SEDAR on May 4, 2006. This report is available under Investor
Information/Financial Information/SEDAR filings at
http://www.queenstake.com
or at www.sedar.com under the Company's name.

For further information call:
Wendy Yang, 303-297-1557 ext. 105
800-276-6070
Email - [e-mail]
Web -
http://www.queenstake.com

Cautionary Statement - This news release contains "Forward-Looking Statements" within the meaning of applicable Canadian securities regulations and Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of reserves and resources, (ii) estimates and opinions regarding geologic and mineralization interpretation, (iii) timing of project advancement, (iv) timing of commencement of production from a deposit, and (iv) timing of availability of drills and other equipment. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements, in particular the estimates do not include input cost increases that could occur in future. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Queenstake does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, which are described in the Company's 2005 Annual Information Form filed on SEDAR and 2005 Annual Report on Form 40-F on file with the Securities and Exchange Commission as well as the Company's other regulatory filings.


Source: Queenstake Resources Ltd.

http://biz.yahoo.com/prnews/060803/lath044.html?.v=67

http://www.investorshub.com/boards/board.asp?board_id=5404

http://www.investorshub.com/boards/board.asp?board_id=5466

[PENNYPRINCE 1]

I added today at .34

[golden08]

BOB. Here are a few for you to check into,as you are very informed you may already have. GPXM interesting molybdenum play. CGR oil and gold play and a company with alot of potential.Also im with you on FMNJ big time and QEE what a buying op.Got some MORE for sure.And as always im an NXG addict.Als got BGO filled at 5 even what a deal.Also like EZM and CDE.But am trying to get them on the cheap.Good luck and GOOD HUNTING.

[NYBob]

Queenstake Res DL (6/30/2006 2:08 PM)
T.QRL Last: 0.43 Change: +0.025(+6.17%) Volume: 898.94 k
Last Trade: 1:46

http://www.investorshub.com/boards/quotes.asp?ticker=t.qrl

http://www.investorshub.com/boards/board.asp?board_id=5466

Queenstake Resources Ltd DL (6/30/2006 1:59 PM)
QEE Last: 0.38 Change: 0.00(0.00%) Volume: 906.6 k Last Trade: 1:51

http://www.investorshub.com/boards/quotes.asp?ticker=qee

http://www.investorshub.com/boards/board.asp?board_id=5466

http://www.investorshub.com/boards/board.asp?board_id=5404

[PENNYPRINCE 1]

Thanks

[artie]

QUEENSTAKE ANNOUNCES FIRST QUARTER 2006 RESULTS CONFERENCE CALL

Denver, Colorado - May 9, 2006 - Queenstake Resources Ltd. (TSX: QRL; AMEX:QEE) will announce its first quarter 2006 results on Wednesday, May 10th and will hold a conference call hosted by President and Chief Executive Officer Dorian (Dusty) Nicol to review the quarter highlights at 1:00 p.m. Eastern Daylight Time that day.

The conference call may be accessed by telephone:
United States and Canada (Toll-Free): 1-866-672-2663
International (Toll): 1-973-582-2822

The conference call may also be accessed via the Queenstake web site at www.queenstake.com, under the Audio Webcast Link on the homepage.

A replay of this call will be available for a limited time on the Queenstake web site or by calling:
United States and Canada (Toll Free): 1-877-519-4471
International (Toll): 1-973-341-3080
Replay Pin Number: 7360912

[PENNYPRINCE 1]

QEE looks ready to pop again here.

[PENNYPRINCE 1]

Lets hope this continues a little farther. I didnt sell any. Looking for more. Good Luck.

[artie]

YES JAMES
AND A GREAT DAY FOR QRL AND GOLD WE CANNOT FORGET THAT

[PENNYPRINCE 1]

Artie nice day for QEE.

[artie]

INVEST IN THE QUEEN

http://www.northernminer.com/jrMining/pdfs/QUEENSSTEAK.pdf

[mmayr]

James. . .

You are going to be one happy man in a couple years. Hang in there. Dusty is doing a fine job of turning this ship around and the market couldn't be any better. However, gold is WAY overbought right now. Just hang in there should there be a correction.

Peace,

[PENNYPRINCE 1]

Added a little more at .43

[PENNYPRINCE 1]

Nice bid ask this mornng. I am betting on a new high TODAY.

[artie]

New York Hard Assets Investment Confere
by: arthur7440
Long-Term Sentiment: Strong Buy 04/29/06 07:48 pm
Msg: 4374 of 4374

New York Hard Assets Investment Conference
May 15, 2006 to May 16, 2006

Conference Location:
New York Marriott Marquis
1535 Broadway
New York, NY 10036

Come visit us at booth #916. A presentation by Dorian (Dusty) Nicol, Queenstake's President and CEO, will be held at 8:45 a.m. on Monday, May 15th.

Find out more information about the conference at http://iiconf.com/

[artie]

European Gold Forum 2005 on Thursday, A
by: arthur7440
Long-Term Sentiment: Strong Buy 04/29/06 06:59 pm
Msg: 4373 of 4374

11:10 AM Queenstake Resources
click the icon to play archived audio:


http://events.onlinebroadcasting.com/denvergold/042606/frameset.php?file=queenst ake&co=queenstake&player=win

[PENNYPRINCE 1]

Thanks Artie I hope you are right. The chart looks great and actually wouldnt be surprised to see another gap up.

[PENNYPRINCE 1]

Thanks Artie I hope you are right. The chart looks great and actually wouldnt be surprised to see another gap up.

[PENNYPRINCE 1]

Thanks Artie I hope you are right. The chart looks great and actually wouldnt be surprised to see another gap up.

[artie]

James

it will be worth the wait,

[PENNYPRINCE 1]

Artie I wish we could get going, the chart looks great and sitting on a lot added at .41 I am surprised we havent started a new run yet. Holding and trying to be patient.

[artie]

WHY NEWMONT NEEDS QUEENSTAKE

Newmont Mining Corporation First Quarter 2006 Results

OPERATING HIGHLIGHTS



NEVADA First Quarter 2006 First Quarter 2005

Consolidated gold sales
(000 ounces) 535.0 588.6
Equity gold sales (000 ounces) 489.3 557.5
Consolidated costs applicable to
sales ($/ounce) $395 $309



In Nevada, gold ounces sold decreased 9% during the first quarter of 2006 compared with the same period in 2005, primarily as a result of a 14% decrease in mill ore grade. The decrease in mill ore grade resulted from mining lower grades at the Midas and Deep Post underground mines. Mill throughput was lower as a result of 14 days of unplanned downtime at Mill 5. Costs applicable to sales per ounce increased 28%, primarily due to a decrease in ounces produced and increased labor, diesel, cyanide and underground contract service costs, as well as a change in accounting for deferred stripping.

http://www.resourceinvestor.com/pebble.asp?relid=18996

[artie]

Investment News Update

Dear Investor,

Gold’s on fire — surging nearly $43 just in the past 3 days this week ... dipping sharply today ... and getting ready for the next big surge to my target of $740! So right now, you have a nice, convenient entry point PLUS the opportunity for blow-out profit potential.

Don't miss it! We’re in the great gold price explosion I've been telling you about for so long. It's dramatic. It's gaining momentum. And it's probably going to be even
bigger than the great gold bull market of the late 1970s!

Indeed, everything I see tells me that ...

This gold boom has got very long legs ... with a huge footprint, carrying nearly all natural resources to record highs. Silver has just surged to its highest level in 25 years. Copper has jumped to the highest level in history. Oil, uranium, zinc, even tungsten are going berserk.

This boom harbors INCREDIBLE profit potential, provided you don’t wait around, and provided you make the right choices. That’s why I’m sending you this urgent flash right now.

At this critical juncture, I want to make sure you’re in the right place at the right time. And just in case you missed one or more of my recent alerts, I want to make sure you’re on board with my top picks.

I’ll give my main one to you in just a moment. But first, let me tell you why I’m so convinced this boom has such long legs and offers such huge profit potential, even if you’re just getting on board right now.

The Case for $2,000 Gold

Gold is still so grossly undervalued, it’s a joke.

In terms of today’s dollars, gold reached $2,176 in 1980.

And that was at a time when the demand for gold was far less sustainable than it is today ... and the supplies far more abundant.

In other words ...

Gold will have to nearly quadruple — to more than $2,000 an ounce — just to regain the same purchasing power it had 26 long years ago!

Look. If history teaches us anything, it’s that no record stands forever on Wall Street. And right now, the action in the market is telling me the day gold breaks its record is coming a lot sooner than most people think!

[artie]

Hettygreen

take a look at the info on this!

http://www.investorshub.com/boards/board.asp?board_id=5466

It should help you

[artie]

UNhedged

[hettygreen]

Case for QEE Read here:

Company………………………… …. Mrkt Cp (mil) … TTM Rev (mil) … Net Mrgn … P/E 4/18/06 … Price 4/18/06 … 52 wk Hgh … 52 wk Lw
BHP Billiton Limited (BHP)….. …. $140,368.00 ………. $29,217.00 … 27.4% ………. 18.1x ………. $14.94 ………. $16.55 ………. $4.80
Falconbridge Ltd., (FAL)…………. …. $14,669.34 ………. $8,148.00 … 10.8% ………. 15.2x ………. $39.52 ………. $39.81 ………. $15.42
Cleveland Cliffs, Inc. (CLF)……….. …. $2,038.58 ………. $1,739.50 … 16.3% ………. 9.6x ………. $134.00 ………. $141.00 …….. $93.00
Highveld Steele/Vanadium (HSVLY) …. $1,472.35 ………. $1,172.18 … 23.6% ………. 5.4x ………. $14.94 ………. $16.55 ………. $4.80
Northern Orion Res (USA) (NTO)…… …. $752.78 ………. $46.76 … 94.4% ………. 18.9x …………… $5.07 ………….. $5.10 ………. $2.09
Cadence Resource Group (CDNR)….. .. $456.90 ………. $6.12 ………. -99.3% ………. ………. ……… $5.65 ………. $7.44 ………. $1.86
Taseko Mines Limited (TGB)……… …. $385.46 ………. $112.74 ………. 28.5% ………. 14.1x …….. $3.59 ………. $3.70 ………. $0.80
Metallica Resources (MRB)………….. …. $257.78 ………. $4.72 ………. -101.30% …….. ………. … $3.20 ………. $2.43 ………. $0.82
Queensake Res ((USA) (QEE)……. …. $254.55 ………. $90.17 ……… -11.7% ………. -9.11 ………… $0.44 ………….. $0.46 ………. $0.15
Great Northern Iron Ore (GNI)………. …. $209.97 ………. $18.36 ………. 85.6% ………. 13.4x ……… $139.98 ………. $141.00 ………. $93.50
Pacific Rim Mining (PMU)……………… …. $56.18 ………. $9.03 ………. 9.00% ………. ………. ……… $0.84 ………. $1.10 ………. $0.43
Golden Cycle Gold Corp (GCGC)……. …. $38.49 ………… $0.00 ………. 0.00% ………… ………. ……… $3.95 ………. $4.00 ………. $1.90
Canyon Resources Group (CAU)……. …. $31.17 ………. $5.02 …………. -428.80% …… ………. ……… $0.89 ………. $1.15 ………. $0.57

[hettygreen]

Anyone have the PE on this Co.?
Are they hedged at all?

[PENNYPRINCE 1]

Thanks and good luck. Take a look at 2 oils I hear good things about both PRVB,great chart, and APXR a crap shoot with a great asset.

[artie]

No James

l hold QRL on TSX l average 68 cents, l donot need anymore shares as l have just under 1 ml