Queenston's Upper Beaver Project

NICHOLAS CAMPBELL, Canaccord Genuity (07/14/2009)
"The Upper Beaver project is one of four wholly owned projects that Queenston is developing in the Kirkland Lake gold camp. In 2008, the company reported an initial NI 43-101 compliant resource for Upper Beaver, including indicated resources of 1.4 million tons of 8.5 g/t gold (capped) and 0.43% copper and inferred resources of 1.1 million tons grading 7.7 g/t gold (capped) and 0.39% copper. Total contained gold resources (all categories) are 637,800 ounces of gold.

Last week, the company reported assay results from Hole UB09-100W1, an infill drill hole testing near the base of the current mineral resource designed to upgrade inferred resources into the indicated category. Hole UB09-100W1 returned 37.3 meters grading 9.4 g/t Au and 0.60% Cu from the Porphyry zone (true width estimated at 33.8 meters). This intercept included a 12.5 meter interval grading 16.0 g/t Au and 1.1% Cu and a 7.7 meter interval grading 11.3 g/t Au and 0.5% Cu.

Two previously released drill results returned high-grade mineralized intercepts 200 and 350 meters below the existing mineral resource. The Upper Beaver Porphyry zone remains open below a vertical depth of 1,300 meters. Cumulatively, the results have demonstrated the potential to upgrade and expand the mineral resource at the Porphyry zone of the Upper Beaver project. The Porphyry zone currently represents 82% of the current mineral resource estimate.

Hole UB09-100W1 is the first hole released from the 20,000 meter 2009 drill program that is currently ongoing at the Upper Beaver project to upgrade and expand the current mineral resource."

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