Queenstake Resources Ltd: Initial Drill Results Extend Magistral High Grade Zone.

Business Editors

DENVER--(BUSINESS WIRE)--March 11, 2002

Queenstake Resources Ltd. (TSE:QRL) has received initial assay results of its ongoing drill program at its Magistral gold project in Sinaloa, Mexico. The drill program is designed to test for further extensions along strike and down dip of the high grade La Prieta zone (in the Samaniego Hill area). Drilling of this zone (previously reported in News Release 01-6) in late 2001 identified a substantial increase in the extent of this high-grade zone, which remained open along strike and down dip at the conclusion of that program.

The ongoing program will consist of approximately 4,500 meters of Reverse Circulation drilling. Holes are being drilled on contiguous sections that in general are spaced at 25 meters. Holes are planned to intersect the structures at approximately 30 meter spacing on dip. Samples are collected at 1.5 meter intervals and are collected on site by ALS Chemex, who analyze the samples using standard fire assay procedures.

As of this date, 13 holes of the current program, totaling approximately 2,170 meters, have been drilled. Assays have been received from 6 of these holes and are reported on the attached tabulation. The most significant intercept is 25.5 meters @ 7.02 grams gold per tonne in Hole 748, located on the section adjacent to the 21 meters @ 9.99 grams gold per tonne reported in News Release 01-6. Drill results to date continue to indicate substantial continuity of a high grade (greater than 5 grams of gold per tonne) zone within the La Prieta structure. The high grade zone remains open along strike and down dip.

Mineralized intercepts are reported as drilled widths. Holes were drilled at inclinations ranging from 85 degrees to vertical. The La Prieta structure appears to be nearly horizontal in the zone currently being drilled, therefore drilled widths are believed to not differ substantially from true widths.

The current drilling program will be completed by early April 2002. At that time, results from this program together with results from the drilling completed late last year will be incorporated in a new block model and recalculation of resource and reserves will be carried out. These results are expected to add to the resource and reserve, increasing the life and enhancing the overall economics of the project.

On the basis of the currently calculated reserve of 6.15 million tonnes at 1.86 grams gold per tonne (which does not include any of the 2001 or current drilling), Queenstake, in conjunction with its joint venture partner, has commenced mine construction. The mine will consist of a 1 million tonne per year facility that is expected to produce at least 40,000 ounces per year over a minimum mine life of 6.5 years at an average cash cost of US$180 per ounce. Construction is well advanced, with access roads complete and clearing and grubbing substantially complete. Most of the mining equipment and all of the metallurgical plant is also now on site. Visit the Company's web site at www.queenstake.com to see photos and to monitor our progress as we build a new gold mine in Mexico.

Magistral Drill Results

Section Hole  Inclination From    To  Drilled  Grade Including  Grade
number  number                         Width   gpt      (m)     gpt
               (degrees)   (m)    (m)   (m)    gold             gold
----------------------------------------------------------------------
41       751      90      140.2  164.2  24.0   2.11     4.5     5.84
41       748      90      126.5  167.0  40.5   5.01    25.5     7.02
40       746      90      137.1  171.6  34.5   2.68     6.0     6.63
39       743      85      117.3  129.3  12.0   3.98     6.0     7.12
37       740      90      117.3  120.3   3.0   1.09
36       739      90       91.4  100.4   9.0   5.11
----------------------------------------------------------------------

(1) gpt = grams per tonne

The TSE has neither reviewed nor accepts responsibility for the adequacy or accuracy of this release.