Barrick Options Queenstake's Northern Ancash Peru Properties.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Sept. 24, 1997--QUEENSTAKE RESOURCE (TSE QTR.) -- Queenstake Resources Ltd. is pleased to announce that an agreement in principal has been reached on terms with Minera ABX Exploraciones, S.A., Barrick Gold Corporation's Peruvian subsidiary ("Barrick") for a joint venture on Queenstake's properties located in the northern Ancash District, Peru. Barrick will have an option to fund US$4,500,000 to earn a 51 percent interest in 53,800 hectares of Queenstake property near and along trend with Barrick's Pierina orebody acquired by them in 1996 through their purchase of Arequipa Resources. Pierina is reported to contain proven and probable reserves of 6.5 million ounces gold with projected initial production of 750,000 ounces of gold per year in 1999 at an average cost of $50 per ounce of gold. The agreement in principal with Barrick is subject to the successful negotiation and execution of definitive agreements that the Company anticipates will be completed in the near future.

The 63 properties subject to the joint venture total 53,800 hectares (the "Properties") and are owned 100 percent by Minera IRI Peru, S.A., the Company's wholly owned subsidiary. Queenstake and Barrick are equal landholders in the 100-kilometer long northern Pierina trend as noted on the attached map. Barrick, through its knowledge of the geology at Pierina and the surrounding areas, is in a unique position to explore Queenstake's properties, much of which is covered by post-mineral volcanic rocks, gravel, soil and glacial moraine. Barrick's recently completed airborne geophysical survey has already identified targets that may reflect Pierina type of mineralization on both Barrick and adjacent Queenstake properties. Exploration work is to begin immediately.

Barrick may earn a 51 percent interest in each of the 63 properties by completing staged exploration expenditures on the Properties beginning with a commitment to spend U.S.$300,000 between now and May 30, 1998. To maintain the option Barrick must spend an additional U.S.$1,000,000 in the second year, U.S.$1,400,000 in the third year and U.S.$1,800,000 in the fourth and final year. Barrick may return any of the Properties after the first year, or if after the first year, prior to completing its earn-in expenditures, but shall retain no interest.

Upon earn-in by Barrick, Queenstake will have the option to fund 49 percent of ongoing programs or dilute its interest. If either party elects to dilute its interest to 30 percent, and the other party elects to proceed, then it will be required to carry the non-contributing party through to a positive decision to mine.

The Properties are a fraction of those held by Queenstake in Peru. The Company holds an additional 174,000 hectares of mineral concessions, and continues an aggressive exploration program on its own. Currently, drilling is in progress on the Conchaturio gold project in the Andahuaylas District (QTR NR97-16, September 22, 1997), reconnaissance and project work is underway in the southern extension of the Ancash trend, mapping continues on the Mamanina gold-copper project east of the Sierra Blanca and initial exploration activities have begun on other prospects.

Queenstake is extremely pleased to be involved in Peru with Barrick, one of the world's premier gold mining companies. Barrick's knowledge of the geology and exploration potential of the Ancash trend, plus their upcoming development and production at Pierina make them a valuable partner. Terms of the joint venture are favorable in that either party may participate at approximately 50/50 if a viable deposit is discovered, and in case of a major discovery, Queenstake can elect to be carried through to a decision to mine. We look forward to a long and successful relationship with Barrick. -O- "James Mancuso" James Mancuso, Chairman and Chief Executive Officer

Note: Location map available from the Company at the phone number listed below.

CONTACT: Queenstake Resources Ltd.

James Mancuso, 604/684-1218

604/684-9959 (FAX)

http://www.queenstake.com

E-mail: [e-mail]