African Queen Closes $2.04 Million First Tranche of Private Placement

AFRICAN QUEEN MINES LTD. (the 'Company?) is pleased to announce
the closing of the first tranche of its previously announced
non-brokered private placement which has raised gross proceeds of CAD
$2,041,465. Under the terms of the private placement, the Company has
issued 3,140,716 Units (the 'Units?) at CAD $0.65 per Unit.

Each Unit consists of one common share of the Company and one-half of
one share purchase warrant (the 'Warrants?). Each whole Warrant entitles
the holder to purchase one additional common share of the Company at an
exercise price of CAD $0.85 until November 1, 2012. The Company paid
cash finders′ fees of CAD $137,256, representing 6.72% of the aggregate
proceeds of the offering. The Units are subject to a 4-month hold period
in Canada expiring March 2, 2011.

It is anticipated that a second tranche of the private placement,
offering up to an additional 4,359,284 Units, will close mid-November
2010.

According to Irwin Olian, CEO, 'It is gratifying to see the strong
investor response to our private placement, which has resulted in
closing of our first tranche in very short order. The $2 Million raised
will cover our budgeted exploration programs for 2011. At the same time,
we will now allow the second tranche to provide additional discretionary
funding for acceleration of key programs, select acquisitions and
working capital. We are excited with progress now underway at King
Solomon and Rongo Gold Fields and this funding will permit us to
continue our way forward with all due speed.'

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.

ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN QUEEN MINES, LTD.

'Irwin Olian?

Irwin Olian

Chairman
& CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

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

E-mail:
tigertail@africanqueenmines.com

Phone:
(604) 899-0100

Fax: (604) 899-0200

or

Carrie Howes,
Corporate Communications

Email: carrie@africanqueenmines.com

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

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