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Queenstake Announces Closing of US$10 Million Private Placement from Newmont

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DENVER, April 13 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd.
(Amex: QEE; TSX: QRL) has closed its equity private placement with Newmont
Canada Limited (Newmont), a subsidiary of Newmont Mining Corporation
(NYSE: NEM; TSX: NMC), whereby Newmont purchased 28.51 million Queenstake
common shares at Cdn$0.41 per share for gross proceeds of US$10 million. With
this purchase, Newmont owns approximately 4.9% of Queenstake's basic
outstanding common shares.



As part of the private placement, Newmont received warrants that can be
exercised to acquire up to 28.51 million common shares of Queenstake at a
price of Cdn$0.55 for a four-year period, which would generate Cdn$15.7
million in cash if exercised.



In addition, affiliates of Newmont are conveying three of their Nevada
exploration properties, including the Shwin Ranch project along the
Cortez-Battle Mountain Trend, to Queenstake. Another affiliate of Newmont is
selling concentrates and ore from its Nevada operations to Queenstake for
processing at its Jerritt Canyon roasting and milling facility in Northeastern
Nevada. The contract calls for the purchase of approximately 500,000 tons of
concentrates and ore per year over two years. Ore purchases with Newmont may
continue for up to three more years if Queenstake has the spare processing
capacity.



Dorian L. (Dusty) Nicol, President and Chief Executive Officer of
Queenstake, said, "We are pleased to have closed this significant transaction.
The timely closing allows us to immediately optimize utilization of our
Jerritt Canyon milling and roasting facility. It also allows us to accelerate
exploration early in the field season."



Net proceeds from the private placement will be used to fund exploration
and for other corporate purposes. Queenstake was advised in this transaction
by Blackmont Capital Inc. and will pay advisory fees in connection with the
transaction.



The securities referenced herein have not been and will not be registered
under the United States Securities Act of 1933 and may not be offered or sold
in the United States, unless an exemption from registration is available.
After a contractual six-month holding period, the shares held by Newmont may
be freely traded in Canada.




Queenstake Resources Ltd. is a gold mining and exploration company based
in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon
mining operations and district 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 and represents 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 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, estimates and projections of future gold
production, processing rates and cash operating 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.




SOURCE Queenstake Resources Ltd.



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

Copyright 2002 The Globe and Mail