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Mr. Irwin Olian reports
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SETTLEMENT PROCESS PROGRESSING AT AFRICAN QUEEN'S NOYEM-NYANFOMAN PROJECT; 3 MORE SMALL SCALE LICENSES RELINQUISHED
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AfricanQueen Mines Ltd. has executed documentation providing for therelinquishment of three additional licenses and/or applications coveringsmall scale mining licenses aggregating approximately 73 acres on or inclose proximity to the Noyem A reef, with a view toward facilitatingdevelopment of a potential large scale mining project at itsNoyem-Nyanfoman Project on Ghana's Ashanti Belt. Together with the fourlicenses covered by the initial settlement with the Nyanfoman Chief,announced in the Company's Press Release dated July 14, 2011, theCompany has now reached accords covering 7 of the 26 small scalelicenses in the area of interest.
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In consideration for their relinquishment of rights, a one-timecash payment is being made by the Company to each of the 3 small-scalemining groups involved in the present transactions, namely, Jah BlessMining Company, Loyal Love Mining Limited and Yehowa Adom MiningCompany. In addition, the Company's Ghana operating subsidiary, AQGhana Gold Limited, may purchase certain mining equipment on site andwill endeavor to hire to the greatest extent possible the small-scaleminers who are relinquishing their mining rights. The transaction issubject to final approval by the Ghana Mining Commission ("MinCom")under the Minerals and Mining Act 2006, Act 703. MinCom has beeninvolved in the discussions to date. Negotiations are continuing withthe holders of the remaining small scale licenses in the area ofinterest and the Company is optimistic that further settlements will bereached in the near future.
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According to Irwin Olian, CEO of the Company, "With theencouragement of the Nyanfoman Chief and community leaders, momentum isnow building for further settlements with the small scale miners atNoyem-Nyanfoman. We are moving ahead with plans to commence coredrilling on a number of our key targets here this year, as the 7settlements to date, combined with our existing large scale license,give us good access to the areas targeted for drilling."
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The Noyem-Nyanfoman Gold Project. The License currently coversan area of approximately 28.9 sq. km. located within the Birim NorthDistrict of Ghana's Eastern Region, approximately 130 km. NW of Accra.It is at the northeastern end of Ghana's well-known, gold-producingAshanti Belt, near Newmont's Akyem deposit which is presently underdevelopment for production with a stated resource in excess of 8 Millionoz Au. In addition to its close proximity to Accra which facilitatesaccess, 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 disputewith the small scale miners and local community has been ongoing formany years prior to the Company's involvement with the project. TheCompany's Phase 1 ground exploration program is presently underway andcore drilling is now planned to commence in several months.
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The Akan Agreement. The Company's rights to the Project aresubject to an Earn-In and Joint Venture Agreement (the "AkanAgreement"), with Marshall Islands' private company Akan ExplorationLtd. ("Akan"), under which the Company may earn up to a 75% interest inthe Noyem Gold Project by funding prescribed stages from explorationthrough feasibility. Akan has the right to participate at its electionpro-rata after the Company has reached 60% ownership interest. TheCompany is designated as manager and operator of the Project.
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We seek Safe Harbor.