Queensland Mining Corporation L I M I T E D. Maiden JORC Resources Estimate for Horseshoe Copper Deposit, Duck Creek, South Cloncurry District

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1 ASX Release 12 October 2012 Maiden JORC Resources Estimate for Horseshoe Copper Deposit, Duck Creek, South Cloncurry District Total mineral resource at Duck Creek Project area of 1.47% Cu (0.2% Cu cutoff) and 0.13 g/t Au, containing some 14,134 tonnes of copper metal and 3,859 ounces of gold First copper sulphide deposit recorded in the Duck Creek area Previous drill results at Horseshoe ML 2778 (see ASX announcement 17 October 2011) o 2.66% Cu, 0.23g/t Au and 238ppm Co o Cu, 0.17g/t Au and 111ppm Co o Cu, 0.20g/t Au and 309ppm Co Resource Estimate Queensland Mining Corporation (QMC; ASX - QMN) announces that it has completed an initial resource estimate for its Horseshoe copper deposit within the Company s Duck Creek Project area. The Horseshoe copper deposit is located approximately 37 km southwest of Cloncurry in northwest Queensland and falls within the EPM EPM is in the name of Goldsearch Limited and is subject to a joint venture with QMC. (Figures 1 and 2) A total indicated and inferred mineral resource of 0.96 million tonnes at 1.47% Cu has been delineated by a 14-hole RC drilling program on ML 2778 totalling 1,810m completed in August 2011 (see ASX release on 17 October 2011), which forms the database for the current resource estimate (see Table 1). This is the first copper sulphide deposit recorded in the Duck Creek area and highlights the substantial prospectivity at depth of this well-known area with a long history of surface mining for copper oxides. Table 1: Horseshoe Mineral Resources as at 11 October 2012 (0.2% Cu cut-off grade) Category Tonnes (Mt) Cu (%) Co (ppm) Au (g/t) Cu (t) Co (lb) Au (oz) Indicated , , Inferred , ,200 2,874 Total , ,800 3,859 Suite 2, Level 24, 56 Pitt Street Sydney NSW 2000 AUSTRALIA FACSIMILE GPO BOX 4876 Sydney NSW 2001 AUSTRALIA WEBSITE 1

2 Figure 1: Regional location of the Horseshoe prospect Copper mineralization at Horseshoe is mainly characterized by chalcopyrite-pyrite mineralisation hosted by massive to semi-massive quartz veins occurring within sub-vertical to steeply south dipping shear zones striking approximately east-west, and as disseminations in the adjacent metavolcanic wall rock. The Duck Creek area hosts a significant number of these E-W shear zone systems, outcropping as resistant, silicified zones, typically with surface continuity >500m (Figures 4 and 5). 2

3 Figure 2: QMC s White Range project area, south Cloncurry district Horseshoe Mining Lease QMC s tenement holding in the Horseshoe area consists of five of wholly owned mining leases (ML 2778, ML 2777, ML 2540, ML 2537 and ML 2544) totalling 24 hectares and the surrounding EPM covering an area of 12km 2 (Figures 1 and 2). The EPM is subject to a joint venture with Goldsearch Limited, under which QMC has a right to earn in a 75% interest. Future Program QMC plans further drilling and project assessments with the aim of: Upgrading the resource category at deeper levels of the resource through in-fill drilling, which may support a scoping study; More closely defining the extent of mineralisation along strike to the west and down dip to the south through step-out drilling; Diamond core drilling to collect samples for preliminary metallurgical test work 3

4 We are very pleased to announce this maiden resource of 14,133 tonnes of contained copper said Howard Renshaw, MD of QMC We are planning follow-up drill programs in the Duck Creek area and working on the relevant permits to upgrade and expand the Horseshoe resource as the outlined mineralization is open along strike and at depth. More importantly, this resource occurs within a mining lease and is located only 2 km off the Mt Isa-Townsville railway line and sealed public road. In addition, there are other nearby sources of copper mineralization and the Horseshoe deposit could potentially be jointly developed to increase the copper production opportunity. This may provide an ideal opportunity for the Company to seek cash flow through mining, joint venture or a project sale. For further details please contact: Howard V. Renshaw (Managing Director) Tel: (+61 2) or visit our Website at: Competent Persons Statement Information in this report relates to Exploration Results and Mineral Resource estimates based on information compiled by Dr Guojian Xu and Mr Doug McLean. Dr Xu is a Member of the Australasian Institute of Mining and Metallurgy and a Fellow of the Society of Economic Geologists. He is a consultant to Queensland Mining Corporation Limited through Redrock Exploration Services Pty Ltd. Mr McLean is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee to Queensland Mining Corporation Limited. With respect to their respective contributions, these persons qualify as Competent Persons as defined in 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Xu and Mr McLean consent to the inclusion in this report of the matters based on the respective information provided by each of them, in the form and context in which it appears. 4

5 Appendix 1 Resource Estimation Methodologies The RC drillhole spacing was primarily a 25m by 25m pattern grading to a 30m by 80m pattern at depth. QMC s drillhole collar locations were surveyed using a differential GPS at sub-metre accuracy. A total of 58 downhole surveys were performed for the 2011 drilling program in Horseshoe. No diamond drilling has been undertaken in Horseshoe so that bulk density was determined using 13 rock samples collected from the stockpiled ore left over by previous mining operations near the Horseshoe pit. Specific gravity of 2.64 for oxide, 2.75 for transitional and 2.88 for fresh sulphide were measured by ALS Laboratory in Townsville. The mineral resource models were undertaken by block modelling within a wireframe snapped to the drillholes. The wireframe of mineralization was generated using a copper grade of =>0.2% Cu. Ordinary Kriging was used to estimate 3D blocks for Cu, Co and Au variables. Quantitative Kriging Neighbourhood Analysis was used to optimise parameters for the Kriging search strategies Top cuts of 6% Cu, 0.15% Co and 1g/t Au were used to treat the high-grade outliers of copper, cobalt and gold based on a review of the domain histogram and log probability. This estimation method combined with the search parameters used resulted in the first pass estimating approximately 30% of the domain block, this was considered sufficient for an Indicated Resource. The second and third passes have been categorised as Inferred Resources. The second pass estimated approximately 60% of the domain block with the third pass accounting for the remaining 5% of blocks. Table 2 list the results of the combined Indicated + Inferred estimations respectively at a range of cut-offs. The estimate at 0.2% Cu cut-off grade is mainly based on the type of mineralization in Horseshoe where sulphide-quartz veins normally exhibit a clear cut boundary with the host rocks and hence the cut-off grade has little impact on the overall tonnage and average grade of the resources from % Cu cut-off. Table 2: Horseshoe Mineral Resource tonnage-grade relationship as at 11 October 2012 Indicated and Inferred Resources Cutoff (Cu%) Tonnes Grade (Cu%) , , , , , , ,

6 , , , , , , , , , , A view of the resource model is shown in Figure 3. Figure 3: Plan view on resource classification of the Horseshoe deposit with drillhole traces (blue- Indicated; green-inferred, grey-unclassified). 6

7 Figure 4: Breccia vein showing quartz clasts cemented by massive sulphide (pyrite and chaclcopyrite) from the Horseshoe pit. Figure 5: Sulphide boulders at Horseshoe recovered from previous open pit mining operations 7

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