Newcrest Drill Program Underway on Queenstake's Carisla Property, Peru.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 10, 1997--QUEENSTAKE RESOURCES (TSE:QTR.) Queenstake Resources Ltd. is pleased to report that, 51 percent optionee, Newcrest Resources Inc. has completed 9 holes of a 14 hole, 3,500 metre reverse circulation and/or diamond drill program begun on February 20, 1997 on Queenstake's 2,600 hectare Carisla property, Huancavelica area of Peru.

Queenstake staked the property based on the identification of alteration anomalies indicative of bulk base and/or precious metals mineralization through processing of U.S. Landsat Thematic Mapper satellite images. Queenstake's ground reconnaissance programs confirmed the existence of clay and iron oxide alteration and more detailed mapping and sampling indicated the existence of substantial mineralized zones. Since optioning the property on October 28, 1996, Newcrest has, through additional geological mapping and geochemical sampling, as well as ground geophysics, outlined two targets for drilling by reverse circulation and/or diamond drilling.

One drill target, Porphyry Zone, is a gold plus copper target defined by altered and mineralized surface rocks, a geochemical anomaly and Induced Polarization and ground magnetic geophysical surveys. Eight drill holes have tested the 700x500 metre target to a depth of 150 to 200 metres. Results are pending. The target is a multi-hundred million ton deposit with values in gold plus copper.

The second target, Huarmimachay, one kilometre to the west of Porphyry Zone, is defined by a 300x600 metre geochemical gold anomaly in brecciated volcanic rocks of similar formation to Barrick's Pierina deposit in the Ancash region 300 kilometres to the north. Strongly silicified rocks at the surface and in the subsurface are now being tested with 6 angle holes to lengths of 250 to 350 metres. The target is a multi-million ounce gold deposit mineable by bulk open pit mine methods similar to Pierina.

The Carisla property is the most advanced exploration project in the 13 property Queenstake/Newcrest joint venture. Newcrest may earn a 51 percent interest in each of Queenstake's properties in the joint venture by completing the ranked earn-in expenditure relevant to each property. Newcrest may return any of the 13 properties after the first year spending commitment, but shall retain no interest. Newcrest's expenditure requirement to earn a 51 percent interest in all of the thirteen properties would total US$24.1 million. Newcrest has begun exploration on the remainder of the property portfolio with one or more drill prospects expected to be identified.

Queenstake is a Canadian public company actively exploring its extensive mineral property portfolio located in Chile, Mexico and Peru for precious and base metal deposits. Newcrest is an Australian public Company with production of approximately 600,000 ounces gold per year and developments in Eastern Australia and Indonesia, planned to essentially double their annual production rate. "James D. Mancuso" -0-

James D. Mancuso, President and Chief Executive Officer

CONTACT: Queenstake Resources Ltd.

James D. Mancuso, 604/684-1218

604/684-9959 (FAX)