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African Queen Announces Private Placement

08.07.2011  |  Business Wire

AFRICAN QUEEN MINES LTD. (the 'Company?) is pleased to announce a
non-brokered private placement offering to raise gross proceeds of up to
CAD $2 million. Under the terms of the private placement, the Company
will offer for sale up to 8,000,000 Units (the 'Units?) at CAD $0.25 per
Unit. The Company may, in its discretion, increase the size of this
offering by up to 20% to a maximum of 9,600,000 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 $0.40 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 July, 2011.


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 and metal projects in Mozambique, Kenya
and Ghana, 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 and West Africa. It is exploring its properties
in Mozambique, Kenya and Ghana for gold and other metals and it is
undertaking exploration in Botswana and Namibia for diamonds, gold and
other metals. The Company′s licenses in Botswana comprise approximately
2890 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 850 sq. km. under license for
gold and metals, and a further 737 sq. km. of gold and other minerals
licenses under agreements with two other 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.

ON BEHALF OF THE BOARD OF DIRECTORS OF

AFRICAN QUEEN MINES, LTD.

'Irwin Olian?


Irwin Olian


Chairman & CEOThe 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

E-mail:
tigertail@africanqueenmines.com

Phone:
(604) 899-0100

Fax: (604) 899-0200

or

Carrie Howes,
Corporate Communications

Email: carrie@africanqueenmines.com

Phone:
Germany - 49 (0) 21141 740411

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

Canada
- 1 416 900 3634



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