Activity Report FOR THE QUARTER ENDED 31 March 2009

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1 Activity Report FOR THE QUARTER ENDED 31 March 2009 Highlights, QMC s business plans, priority and focus: Gold Projects The Mt Freda gold mine drilling and economic assessment with the view to recommence production which will be supported by Gilded Rose gold mine plant and infrastructure and other QMC high grade gold mining leases High Impact Copper projects ( Gold, Cobalt, Uranium, Manganese credits from various projects) 1. To drill Flamingo copper mine leases (IOCG) where previously 25 holes have been drilled for 3045 metres by MIM during 1990 to MIM s significant drill hole intersections of copper and gold grades to a depth of 166 metres which were reported in the Prospectus. Dr Guojian Xu has reported that a drill program is recommend along strike and to depth could deliver the potential for a serious iron oxide, copper, gold resource. 2. Iron oxide copper gold leases to be drilled and evaluated are Evening Star, Morris Creek, Jessivale EPMs 3. Young Australian, Mt Norma, Mt McNamara copper mines to increase resources and bring into JORC 4. All the drilling is subject to capital availability and budgetary approval, Drill locations and pads have already been prepared. Geological, exploration and technical report: Due to the significantly extended wet season in the Mt Isa area, the quarter from 1/1/2009 to 31/3/2009 was mainly focused on data review, compilation, reporting and business development through active evaluation of available opportunities and project financing. 1. Project data review and compilation: Mt Freda gold ML2741, Jessievale EPM16078 and Morris Creek EPM15706; 2. Reporting: completion of annual report for EPM15879 Mt Norma ; 3. Site and access preparation for drilling in 2009; 4. Review and assessment of a number of copper mining projects are carried out during the period in line with QMC s policy of mergers and acquisition, joint venture and securing the oxide copper for the Mt Norma copper processing operation MicroMine modelling following last season s drilling program and previous drilling programs at Evening Star, Mt Freda, Mt Norma, Flamingo and Young Australian were carried out, and in most cases, drill programs and site locations for the current season have been identified and prepared in reports for the board and plans of operations for the mines department. Site preparation as well has been prepared for drilling in Tommy Creek which is adjoined Cudeco s Rockland s discovery and Mt McNamara located south of Cloncurry in the Duck Creek project area. Queensland Mining Corporation Limited ABN:

2 QMC s priority and focus is on drilling and moving its resources into JORC categories. Top priorities are: Flamingo copper mining leases (IOCG mineralisation) Mt Freda Gold Mine, Young Australian copper mining leases (answer slates), Mt Norma copper mining leases (iron stones), Evening Star copper gold mining lease (IOCGU mineralisation), Morris Creek (IOCG), Mt McNamara (IOCG) and Jessivale (IOCG). The Mt Freda gold mine s previous drilling has been re-accessed, and 11 hole drill program is proposed through re-interpretation of the geology and geometry of the mineralization. Mt Freda is open at depth and along strike to the east. Mt Freda has some 50 RC and 20 Diamond holes that have been drilled into the ore body and significant resources were previously reported by the former mining company owners. QMC is currently evaluating and engaging consultants to complete a scoping study for the recommencement of gold production at Mt Freda based on 40,000oz per year and depending on the grade up to 50,000oz per year. Initial mine life is 3 years high-grade, 5 years medium grade. Based on current gold price, the net operating cash flow would be around $700/oz, revenues between $25- $30 million per year. Capital requirement is estimated between $6-$10m and working capital for start of operation of $4-$5m. During the next 3 months, a scoping study will be carried out to clarify the resources, capital requirement, operational expenditure, method of processing and recoveries which will require metallurgical studies to determine the ultimate processing plant and design for recoveries. The Flamingo copper mine and leases hold significant potential for increasing the resource already identified by the pervious owners who drilled a depth of 170 meters, results which were reported in the Prospectus Jan MicroMine Modelling suggests that the ore body is a deep plunging ore body that could be up to 350 metres in depth and 400 meters in strike length. If the ore body continues to depth and along strike a significant resource would be identified. The Young Australian drill locations following MicroMine Modelling have been planned and the program is ready for the current drill season. Most of the drilling will be in-fill drilling and to drill the western lens of the ore body. The target recourse as outlined from previous drilling and modelling indicates a resource of 4-5 million tonnes at an average grade of % Cu, the drilling program will provide JORC category resources. Corporate Finance QMC is currently placing 27 million shares at 8cent/share and has called a General Meeting of shareholders as at 30 Apr 09 to seek approval for the following 3 months to place up to 60 million shares for working capital, repayment of convertible notes, carrying out the drilling program as listed above, and to enable QMC to enter into opportunities of mergers and acquisitions of copper projects and/or mining leases. Yours sincerely, Howard V. Renshaw Managing Director Queensland Mining Corporation Limited ABN:

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