African Queen Achieves Breakthrough in Settlement Negotiations at Noyem-Nyanfoman Project; 12 More Key Small Scale Licenses Relinquished

AFRICAN QUEEN MINES LTD. (the 'Company?) is pleased to announce
that documentation has now been executed providing for the
relinquishment of twelve additional licenses and/or applications
covering contiguous small scale mining licenses aggregating
approximately 300 acres on the Noyem A reef at its Noyem-Nyanfoman
Project on Ghana′s Ashanti Belt. Together with the seven licenses
covered by the prior settlements announced in the Company′s Press
Releases dated July 14, 2011 and July 27, 2011, the Company has now
reached accords covering 19 of the 26 small scale licenses in or near
the area of interest. The effect of the settlements to date is to return
control of the Noyem A reef and its historic resource area to the
Company so as to enable it to proceed with potential development of a
large-scale project.

In consideration for their relinquishment of rights, a one-time cash
payment is being made by the Company to each of the 12 small-scale
mining groups involved in the present transactions, namely, Nana Boafo
Kesse Ventures, Boafo Kesse Enterprise, A.D. Mohammed Enterprise, Evelyn
Korang Enterprise, Obiri Anima Enterprise, Torgbor Laryea Enterprise,
Akroman Enterprise, Abrimpong F/C Enterprise, Nabaab Mining Company,
Abass Torgbor Enterprise, M. Boaheman Enterprise, and Bamab Enterprise.
In addition, the Company′s Ghana operating subsidiary, AQ Ghana Gold
Limited, may purchase certain mining equipment on site and will endeavor
to hire to the greatest extent possible the small-scale miners who are
relinquishing their mining rights. The transaction is subject to final
approval by the Ghana Mining Commission ('MinCom?) under the Minerals
and Mining Act 2006, Act 703. MinCom has been involved in the
discussions to date. Negotiations are continuing with the holders of the
remaining small scale licenses in or near the area of interest and the
Company is optimistic that further settlements will be reached in the
near future. However, the Company believes it has now effectively
regained control of the key areas needed for exploration and development
of the project.

According to Irwin Olian, CEO of the Company, 'We are delighted that the
settlement process at Noyem-Nyanfoman has been proceeding in a positive
manner and are particularly grateful for the support of Nana Boafo Kesse
and the Nyanfoman Chief. We are moving ahead with plans to commence core
drilling on our key targets here this year, as the 19 settlements to
date, combined with our existing large scale license, give us access to
all of the areas targeted. Our ground exploration team is at work on the
property at this time and we expect to accelerate our efforts in the
coming weeks.?

The Noyem-Nyanfoman Gold Project. The License currently covers an
area of approximately 28.9 sq. km. located within the Birim North
District of Ghana′s Eastern Region, approximately 130 km. NW of Accra.
It is at the northeastern end of Ghana′s well-known, gold-producing
Ashanti Belt, near Newmont′s Akyem deposit which is presently under
development for production with a stated resource in excess of 8 Million
oz Au. In addition to its close proximity to Accra which facilitates
access, the Project is bisected in a NE-SW direction by a tarred road.
It has long been host to large numbers of artisanal miners and a dispute
with the small scale miners and local community has been ongoing for
many years prior to the Company′s involvement with the project. The
Company′s Phase 1 ground exploration program is presently underway and
core drilling is now planned to commence in several months.

The Akan Agreement. The Company′s rights to the Project are
subject to an Earn-In and Joint Venture Agreement (the 'Akan
Agreement?), with Marshall Islands′ private company Akan Exploration
Ltd. ('Akan?), under which the Company may earn up to a 75% interest in
the Noyem Gold Project by funding prescribed stages from exploration
through feasibility. Akan has the right to participate at its election
pro-rata after the Company has reached 60% ownership interest. The
Company is designated as manager and operator of the Project.

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, Ghana and Kenya for gold and other metals and
it is undertaking exploration in Botswana and Namibia for diamonds, gold
and other metals. In Mozambique the Company has approximately 230 sq.
km. under license for gold and metals under an agreement with another
company. In Ghana it has 28.9 sq. km. under license for gold. 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. The Company′s licenses in Botswana
comprise approximately 2890 sq. km. of diamond prospects. The Company′s
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. 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. The
Company has its executive offices in Vancouver, Canada. The Company was
incorporated under the laws of the Province of British Columbia, Canada
on April 30, 2008 and received the southern African net assets in a spin
off transaction related to the acquisition of Pan African Mining Corp.
by Asia Thai Mining Co., Ltd.

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: Germany - 49 (0) 21141
740411

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

Canada - 1 416 900 3634

carrie@africanqueenmines.com