African Queen Announces Private Placement

AFRICAN QUEEN MINES LTD. (the 'Company?) is pleased to announce a
non-brokered private placement offering to raise gross proceeds of up to
CAD $4.875 million. Under the terms of the private placement, the
Company will offer for sale up to 7,500,000 Units (the 'Units?) at CAD
$0.65 per Unit. The Company may, in its discretion, increase the size of
this offering by up to 20% to a maximum of 9,000,000 Units.

Each Unit will consist of one Common Share of the Company and one-half
of one share purchase warrant (the 'Warrants?), where each whole Warrant
will allow the subscriber to purchase one additional Common Share of the
Company for a period of two years from the date of closing. The exercise
price shall be CAD $0.85 per Share. The Company may, in its discretion,
pay a cash finders fee of up to 7% of the total gross proceeds of the
offering. The offering is anticipated to close in one or more tranches,
with the first closing anticipated to take place during October, 2010.

The Units issued upon the closing of the private placement will be
subject to a 4-month hold period. The private placement is subject to
the acceptance of the TSX Venture Exchange.

Proceeds from the private placement will be utilized for funding work
programs on the Company′s gold projects in Mozambique, Kenya and Ghana,
and on its diamond projects in Botswana and Namibia, as well as
potential property acquisitions and working capital.

About African-Queen

The Company is an exploratory resource company with diversified mineral
properties in Southern, East and West Africa. It is exploring its
properties in Mozambique, Kenya and Ghana for gold and other metals and
it is exploring its properties in Botswana and Namibia for diamonds. The
Company′s licenses in Botswana and Namibia comprise approximately 9208
sq km of diamond prospects. In Mozambique it has approximately 230 sq km
of gold and other metals licenses under an agreement with another
company. In Kenya it has approximately 112 sq. km. of gold and other
minerals licenses under an agreement with another company. Its
operations in Botswana are carried out through its operating subsidiary,
PAM Botswana (Pty) Ltd.; its operations in Namibia are carried out
through its operating subsidiary PAM Minerals Namibia (Pty) Ltd.; its
operations in Mozambique are carried out through its subsidiary PAM
Mocambique Limitada and its operations in Ghana are carried out through
its subsidiary AQ Ghana Gold Limited. Its operations in Kenya are being
carried out through its operating subsidiary AQ Kenya Gold Limited. The
Company has its executive offices in Vancouver, Canada.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of the
information contained herein. The statements made in this press release
may contain certain forward-looking statements that involve a number of
risks and uncertainties. Actual events or results may differ from the
Company′s expectations.

African Queen Mines Ltd.

Irwin Olian, President and CEO

Phone:
604-899-0100

Fax: 604-899-0200

tigertail@africanqueenmines.com

or

Carrie
Howes, Corporate Communications

Phone: Düsseldorf - +49 (0) 1722
1234 47

Phone: London - +44 (0) 7780 602 788

carrie@africanqueenmines.com