DENVER, Jan. 18 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd.'s (TSX: QRL, Amex: QEE) recently completed exploration program(1) at the Starvation Canyon project intercepted high grade mineralization with substantial intervals, extending the mineralized zone to the south. Two holes, TJ-216C and TJ-242, had intercepts of 60 feet of 0.357 ounce of gold per ton (opt) or 18.3 meters of 12 grams of gold per tonne (gpt), and 45 feet of 0.413 opt or 13.7 meters of 14 gpt, respectively. Commenting on the drill results, Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake, said, "These results from the Starvation Canyon project reinforce our belief that this project has tremendous potential to become another substantial Jerritt Canyon deposit at a higher grade than most of our current mine reserves. The two holes with high-grade mineralized intervals in excess of 0.35 opt (>12 gpt) were particularly significant as they lie on the southern edge of the mineralized zone, which remains open to the south and southeast. We will pursue step out drilling and further definition drilling beginning in spring 2006." In October through early December 2005, 27 drill holes totaling 15,544 feet (4,737.8 meters) of reverse circulation(2) and core drilling(2) were completed at Starvation Canyon, located 12 miles southwest of the Jerritt Canyon mill on private land owned by Queenstake. This second phase of 2005 drilling was designed to extend the margins of the deposit as well as better define areas within the resource shape through tighter spaced drilling. The results from the drilling program will be incorporated into the resource block modeling(3) for calculation of indicated and inferred resources(3) for year-end 2005. The mineralized zone at Starvation Canyon lies above the water table in an area of steep topography and could be readily accessed by portal from the hillside. Mineralization remains open along both directions (northeast and southwest; northwest and southeast) of each of the two principal controlling structures. Starvation Canyon appears to be part of a mineralized trend with a strike length of approximately 4.5 miles. This trend appears comparable geographically and geochemically to the mineralized trends in the northern and central parts of the Jerritt Canyon district that have combined to produce over seven million ounces of gold since 1981. Of the 27 holes drilled in this program, 13 intercepted 10 feet (3.1 meters) or more of gold mineralization with an average grade above 0.15 opt (5 gpt); these holes are tabulated in the following table. Table 1: Starvation Canyon Results Highlights(2),(4),(5) From To Length Grade Hole # Dip (feet) (feet) (feet) (opt) Drill Type TJ-210 -90 500 520 20 0.296 RC TJ-212 -90 600 630 30 0.380 RC TJ-214 -90 630 645 15 0.210 RC TJ-215C -90 650 660 10 0.167 Core TJ-216C -90 660 720 60 0.357 Core TJ-221 -90 165 175 10 0.208 RC TJ-230A -80 450 460 10 0.303 RC TJ-232C -80 430 495 65 0.292 Core TJ-233 -90 305 315 10 0.300 RC TJ-241 -90 390 405 15 0.293 RC TJ-242 -90 400 445 45 0.413 RC TJ-243 -90 425 455 30 0.233 RC TJ-244 -90 340 350 10 0.154 RC Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon district in Nevada. Jerritt Canyon has produced over seven million ounces of gold since 1981. Current production at the property is from underground mines. The Jerritt Canyon district comprises over 100 square miles of geologically prospective ground and represents one of the largest contiguous exploration properties in Nevada. Notes: (1) A complete data set, from which the drill results highlighted in this news release were derived, is available as an Appendix to this news release under the Investor Information/News section on the Company's website, http://www.queenstake.com/. (2) Surface drilling uses either core or reverse circulation methods for near-mine and surface exploration programs at Jerritt Canyon. Reverse circulation drilling has demonstrated accuracy in ore control definition drilling and for resource conversion at Jerritt Canyon's mines. However, reverse circulation drilling can result in a lower degree of confidence and less geologic information than core drilling. (3) "Resources" or "resource" used in this news release are as defined in National Instrument 43-101 of the Canadian Securities Administrators and are not terms recognized or defined by the U.S. Securities and Exchange Commission (SEC). For further information, please refer to the risk factors and definitions of reserves and resources in the Company's filings on SEDAR and with the SEC on the Company's website, http://www.queenstake.com/. The Qualified Person for the technical information contained in this news release is Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake. The Starvation Canyon gold resource block model is constrained within an interpreted 3-dimensional geologic wireframe boundary and uses an Inverse-Distance to the third power interpolation algorithm. This methodology is the same as was used for the EOY 2004 resource calculation. However, the new drilling data has allowed for adjustments to the wireframe boundaries and refinement of the search ellipse orientation, resulting in greater continuity of high-grade mineralization. (4) Samples from surface drilling were analyzed using standard fire assay techniques at American Assay Laboratories in Nevada. Intercepts are reported as drilled and are not necessarily "true width." (5) A description of the geology, sampling procedures and the Company's laboratory Quality Assurance/Quality Control procedures are described in the Company's National Instrument 43-101 Technical Report filed on SEDAR on February 23, 2005. This report is available under Investor Information/Financial Information/SEDAR Filings at http://www.queenstake.com/. For further information call: Wendy Yang, 303-297-1557 ext. 105 800-276-6070 Email -- Web -- http://www.queenstake.com/ Cautionary Statement -- This news release contains "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of reserves and resources, (ii) estimates and opinions regarding geologic and mineralization interpretation and (iii) estimates of exploration investment and scope of exploration programs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements, in particular the estimates do not include input cost increases that could occur in the future. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Queenstake does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, which are described in the Company's 2004 Annual Report on Form 40-F on file with the Securities and Exchange Commission as well as the Company's other SEC filings. APPENDIX Map 1: Starvation Canyon Project (Photo: http://www.newscom.com/cgi-bin/prnh/20060118/LAW019 ) http://www.newscom.com/cgi-bin/prnh/20060118/LAW019 http://photoarchive.ap.org/ DATASOURCE: Queenstake Resources Ltd. CONTACT: Wendy Yang of Queenstake Resources Ltd., +1-303-297-1557, ext. 105, or +1-800-276-6070, Web site: http://www.queenstake.com/

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