Queenston Mining Inc QNMNF

RE: agnico buys in

[Tdrooley]

So much for my guesses.

Both Boards have approved the transaction.

Under the terms of the Subscription Agreement Agnico-Eagle will purchase a total of 6,603,774 Units at C$5.30 per Unit for proceeds to Queenston of C$35 Million in cash. Each Unit consists of one common share and one half of a share purchase warrant of Queenston. Each whole share purchase warrant entitles the holder to purchase one common share of Queenston at $6.45 for a period of 36 months. The transaction is expected to close on November 1, 2010 and is subject to completion of definitive documentation and other customary closing conditions including regulatory approval. As a result of the private placement Agnico-Eagle will own 8.83% of Queenston's issued and outstanding shares and 11.47% on a fully diluted basis. In addition to the private placement Queenston and Agnico-Eagle will enter into a Technical Services Agreement that will provide Queenston access to Agnico-Eagle's geological and engineering mining team.