African Queen Mines Expands Presence in Kenya: Signs Earn-in and JV Agreement for Ugunja Gold Project in Kenya′s Lakeland District

AFRICAN QUEEN MINES LTD. (the 'Company?) is pleased to announce
that it has now entered into an Earn-in and Joint Venture Agreement (the
'Agreement?), through its wholly-owned operating subsidiary AQ Kenya
Gold Limited ('AQKGL?), with Kenyan private company KENYA DISCOVERY
LIMITED ('KDL?), covering exploration, development and exploitation of
the Ugunja Gold Project (the 'Project?). The Project is the subject of
Special License No. 227 (the 'License?), granted to KDL by the
Commissioner of Mines and Geology in the Government of the Republic of
Kenya (the 'Commissioner?) on September 30, 2005, which was renewed on
January 5, 2011, and covers exclusive rights to prospect and explore
within an area of approximately 625 sq. km in the Busia, Siaya and
Kakamega areas (aka the Lakeland District) located N of the shores of
Lake Victoria in Western Kenya.

The License area has been the site of significant artisanal mining and
comprises low-grade metasedimentary rocks, chiefly argillites,
sandstones and conglomerates. These are part of the late Archaean age
Kavirondian Group. They overlie Nyanzian age greenstones which include
banded iron formation (BIF) and dominantly metabasaltic lithologies. The
presence of massive sulphide lenses as well as gold in quartz veins and
BIF horizons is anticipated. The License abuts the Ugandan border on the
W, where active gold mining continues.

Under the terms of the Earn-In and Joint Venture Agreement with KDL, the
Company may earn up to an 85% interest in the Project by funding
prescribed optional stages from exploration through feasibility. In
addition, the Company is required to make four payments to KDL to secure
its rights under the Agreement in the sum of U.S. $25,000 each
commencing after the completion of Phase 1 and continuing upon
completion of subsequent stages. The Company is designated as manager
and operator of the Project on behalf of the joint venture partners,
subject to full consultation with KDL on all material aspects of the
Project. KDL has agreed to transfer the License to AQKGL upon the
Company′s election to proceed to Phase 3 and payment of the above rights
payments. The Agreement has now been approved by the Commissioner and
AQKGL′s Phase 1 Work Program has also been submitted for approval.

Phase 1 of the Project, scheduled to get underway as soon as
practicable, is a ground exploration program comprised of stream, soil
and rock sampling, mapping, trenching, pitting and sample analysis,
together with review of geophysics and historic data, as well as such
additional studies as the parties shall agree. The objective of the
Phase 1 Exploration Program is to assess the overall geologic structure
of the License area and the likelihood of a commercially viable gold
deposit within the License area, as well as to identify discreet drill
targets for a Phase 2 core drilling program. The costs for Phase 1,
estimated at up to U.S. $200,000, are being paid by the Company. The
Company earns a 25% interest in the Project by paying all costs of Phase
1. The Project is being managed on behalf of the Company by Senior
Consulting Geologist Mr. Pete Siegfried (M.Sc., MAusIMM), a qualified
person.

According to Irwin Olian, CEO of the Company, 'We are delighted to be
expanding our presence in Kenya by moving forward with the Ugunja Gold
Project in the Lakeland District, just to the North of Lake Victoria.
The project is in close proximity to our new Kenya administrative
headquarters in Kisumu, which is the focal point for our exploration
activities in Western and Southwest Kenya including the Rongo Gold
Fields Project. The geology is exciting and we have developed a strong
relationship with our JV partner KDL as well as the Government of Kenya
in the past few months during our preliminary studies and due diligence
review. We have been welcomed by the Prime Minister of Kenya as well as
the Commissioner, local mining department officials and church and
community leaders in the Kisumu area. We anticipate a very positive
relationship with the people of the Kisumu area and Kenya, who will
share in the benefits of our success.?

About African-Queen

The Company is an exploratory resource company with diversified mineral
properties in Southern 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 737 sq. km. of gold and other
minerals licenses under agreements with two companies. 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

Phone: 604-899-0100

Fax:
604-899-0200

President and CEO

tigertail@africanqueenmines.com

or

Carrie
Howes

Phone: Germany - +49 (0) 21141 740411

U.K. - +44 (0) 870
490 5443

Canada - +1 416 900 3634

Corporate Communications

carrie@africanqueenmines.com