The company said the Mines and Geological Department of the Republic of Kenya has now renewed special license No. 287, granted to the company’s joint venture partner Abba Mining, for a further period of two years to January 22, 2014.

The original license was issued to Abba in January 2010, for an initial term of two years.

In addition, African Queen said the boundaries of the license were changed to reflect the settlement agreement entered into by Abba and B & M Mining Company earlier this year, by reducing the area covered by the license by 15 square kilometres to 97 square kilometres.

The news today allows the company to move forward with its drilling and exploration programs at Odundu for the next two years.

“We are delighted to have the full support of the Kenya Mines and Geological Department for our Odundu project and other exploration projects in Kenya," said CEO Irwin Olian.

The Odundu property covers an area of approximately 97 square kilometres in the Kanango gold mining area of the Migori District of Nyanza Province near Lake Victoria.

The project is situated some 380 kilometres by road from the capital city of Nairobi and 60 kilometres north of the border with Tanzania, forming part of the rich Lake Victoria Greenstone Belt that hosts gold deposits including African Barrick Gold's Bulyanhulu and North Mara Mines and AngloGold Ashanti's Geita Mine.

Earlier this month, the company said that Alkili Minerals Services has initiated its 2,000 metre core drilling program at the Odundu property.

The company previously completed a program of regional exploration including mapping, sampling trenching and ground and airbourne geophysics on the property.

In February and March of this year, seven trenches totaling 520 metres and covering a northwest-southeast strike of approximately 580 metres were excavated perpendicular to the main shear zone.

Broad zones of mineralized material were recorded in all seven trenches, as wide as 40 metres. Gold assay results obtained from samples from the main artisanal pit located between trenches A1 and B1 ranged between 2.12 grams per tonne (g/t) gold and 35.0 g/t. Intermediate values recorded within this range were 2.43 g/t, 3.0 g/t, 8.33 g/t, and 9.70 g/t gold, the company said.

Initially, six core drill holes totaling approximately 1,300 metres have been positioned to test the gold mineralization within an anomalous area of the northwest-southeast trending shear zone traversing the property.

This shear zone was initially discovered through the company's preliminary field reconnaissance work and later delineated through airborne and ground geophysics programs.

The remainder of the drilling program, provisionally set at 2,000 metres with plans to expand based on results, will test the extensions of the shear zone and other prospective targets within the property.

Under a joint venture agreement with Kenyan-based Abba Mining Company, African Queen can earn up to an 85 percent interest in the project by funding prescribed optional stages from exploration through feasibility.

The company is also the manager and operator of the property.

Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.

Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited.

The company’s shares rose 13.51 percent to 21 cents late Tuesday.

The company said Todhunter has recently served as the VP of financial administration, and served as the finance manager of both African Queen and its predecessor, Pan African Mining Corp., since May 2005.

Todhunter has extensive accounting and finance experience, dealing with the complexities of both private and public corporations, said African Queen, adding that she has spent the last thirteen years working with public companies, predominantly those in the mining industry.

"We are grateful to Mark Lotz for his contributions to African Queen over the past nine months and wish him all the best in his other endeavors," said the company’s CEO Irwin Olian.

"At the same time, Jennifer Todhunter has been a very able and popular member of our senior financial administration for the past seven years. She is well qualified to move into her new position as CFO, and we welcome her in this role."

Lotz will remain as a financial consultant for African Queen until August 2012.

Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals. Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited.

On Monday, the company announced that Alkili Minerals Services has initiated its 2,000 metre core drilling program at the company’s Odundu property in southwest Kenya's Rongo Gold Fields.

African Queen, which said that core drilling of the first hole is now underway, previously completed a program of regional exploration including mapping, sampling trenching and ground and airbourne geophysics.

In February and March of this year, seven trenches totaling 520 metres and covering a northwest-southeast strike of approximately 580 metres were excavated perpendicular to the main shear zone.

Broad zones of mineralized material were recorded in all seven trenches, as wide as 40 metres, the company said.
Last month, the company closed the second tranche of a private placement financing, raising a total of $2.41 million in proceeds.

Funds will be used for the drill program at Odundu, as well as the current drill program at its Noyem-Nyanfoman project on Ghana’s Ashanti Belt, and for potential property acquisitions and working capital.

The company, which said that core drilling of the first hole is now underway, previously completed a program of regional exploration including mapping, sampling trenching and ground and airbourne geophysics.

The Odundu property covers an area of approximately 97 square kilometres in the Kanango gold mining area of the Migori District of Nyanza Province near Lake Victoria.

The project is situated some 380 kilometres by road from the capital city of Nairobi and 60 kilometres north of the border with Tanzania, forming part of the rich Lake Victoria Greenstone Belt that hosts gold deposits including African Barrick Gold's Bulyanhulu and North Mara Mines and AngloGold Ashanti's Geita Mine.

In February and March of this year, seven trenches totaling 520 metres and covering a northwest-southeast strike of approximately 580 metres were excavated perpendicular to the main shear zone.

Broad zones of mineralized material were recorded in all seven trenches, as wide as 40 metres. Gold assay results obtained from samples from the main artisanal pit located between trenches A1 and B1 ranged between 2.12 grams per tonne (g/t) gold and 35.0 g/t. Intermediate values recorded within this range were 2.43 g/t, 3.0 g/t, 8.33 g/t, and 9.70 g/t gold, the company said.

Channel sampling and logging of the trenches are now complete and assay results are pending, African Queen added.

Initially, six core drill holes totaling approximately 1300 metres have been positioned to test the gold mineralization within an anomalous area of the northwest-southeast trending shear zone traversing the property.

This shear zone was initially discovered through the company's preliminary field reconnaissance work and later delineated through airborne and ground geophysics programs.

The remainder of the drilling program, provisionally set at 2,000 metres with plans to expand based on results, will test the extensions of the shear zone and other prospective targets within the property.

Gold mineralization on the property appears to be associated with rich sulfide mineralization that is now being explored over a strike of approximately 1.5 kilometres, the company said.

"We are delighted that drilling is now underway at Odundu in Kenya's Rongo Gold Fields. Odundu is an exciting target that marks the beginning of our ambitious long-term exploration plans for Kenya," said CEO Irwin Olian.

Holes OD1 and OD2, the first two holes of the core drilling program, are planned to achieve depths of 260 and 230 metres, respectively.

Holes OD3 and OD4 will be drilled at a distance of 120 metres towards the southeast and are planned to achieve depths of 260 and 190 metres, respectively. Holes OD5 and OD6 will be drilled towards the southeast of the main artisanal workings to depths of 240 and 150 metres, respectively.

The company said that the exploration program at Odundu will be refined as results from both the trench sampling and drilling become available.

Ultimately, a conceptual geological model to explain the gold mineralization on the property will be incorporated into future exploration phases.

Under a joint venture agreement with Kenyan-based Abba Mining Company, African Queen can earn up to an 85 percent interest in the project by funding prescribed optional stages from exploration through feasibility.

The company is also the manager and operator of the property.

Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.

Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited.

Last month, the company said it closed the second tranche of a private placement financing, raising a total of $2.41 million in proceeds. Funds will be used for the drill program at Odundu, as well as the current drill program at its Noyem-Nyanfoman project on Ghana’s Ashanti Belt, and for potential property acquisitions and working capital.

The agreement with Kenya-based Alkili Minerals Services will see the completion of an initial 2,000 metre core drilling program at the property, which covers an area of roughly 97 square kilometres in the Kanango gold mining area of the Migori District near Lake Victoria.

The project is situated some 380 kilometres by road from the capital city of Nairobi and 60 kilometres north of the border with Tanzania, forming part of the rich Lake Victoria Greenstone Belt that hosts African Barrick Gold’s Bulyanhulu and North Mara Mines, and AngloGold Ashanti’s Geita Mine.

Mobilization is currently underway, with drilling slated to start shortly, the company said.

African Queen added that further metres could be added based on results received.

The initial holes are planned to range generally from 80 to 200 metres in depth, with a view toward confirming the gold mineralization associated with a prominent northwest-southeast trending shear zone, which was initially discovered through the company’s preliminary field work and further delineated through airborne and ground geophysics programs.

The drill campaign will also test extension from such a shear zone and other prospective targets within the region.

Gold in the shear zone at Odundu appears to be associated with rich sulfide mineralization, the company said, and has been explored over a strike of around 1.5 kilometres so far.

In February, African Queen reported what it called "favourable" results from ground geophysics and surveys at Odundo. The company said that positive sampling and geochemical results, combined with positive ground and airborne geophysics studies, pointed to a number of "highly prospective targets" that it planned to drill test.

“We are delighted to be moving forward with drilling at Odundu, which we view as an exceptional target," said CEO Irwin Olian.

"The convergence of positive geochemical and geophysics data from our initial exploration activities suggests a high probability of success in our upcoming reconnaissance drill program.”

Under a joint venture agreement with Kenyan-based Abba Mining Company, African Queen can earn up to an 85 percent interest in the project by funding prescribed optional stages from exploration through feasibility.

The company is also the manager and operator of the property.

Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.

Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited.

Last week, the company said it closed the second tranche of a private placement financing, raising a total of $2.41 million in proceeds. Funds will be used for the drill program at Odundu, as well as the current drill program at its Noyem-Nyanfoman project on Ghana’s Ashanti Belt, and for potential property acquisitions and working capital.

Funds will also be used for a drill program at its Odundu property in southwest Kenya’s Rongo Gold Fields, and for potential property acquisitions and working capital.

"We are extremely grateful to the many investors who have participated in our financing during this challenging period in the junior mining industry," African Queen chief executive Irwin Olian said in a statement on Friday. 

"The offering was oversubscribed and the company utilized its overallotment option to accommodate additional investor demand. This financing provides the company with all the funds anticipated for its budgeted programs in Ghana and Kenya this year, as well as discretionary working capital."

In early March, the mineral explorer said it plans to raise $1.98 million through a non-brokered private financing. The Vancouver-based miner said it would offer nine million units priced at 22 cents a unit. The company also noted it may boost the offering by 20 percent to 10.8 million units.

African Queen said it will use funds from the offering to finance development at its Odundu property in Kenya’s Rongo Gold Fields, and for its Noyem-Nyanfoman property in Ghana.

The company, under a joint venture deal with Akan Exploration, can earn a 75 percent stake in the Noyem-Nyanfoman gold project by funding prescribed stages from exploration through feasibility. African Queen is the operator of the project.

Last September, the company arrived at a settlement for an additional 12 mining claims at its Noyem-Nyanfoman gold project. The 12 claims cover about 300 acres on the Noyem A reef in Ghana's Ashanti Belt. This followed settlements in July 2011 for an additional seven of the 26 mining claims that conflicted with its prospecting license for the gold property.

The initial phase is planned to be a minimum of 2,000 metres, and will be expanded on a "result-contingent" basis, the company said.

The drill program is being carried out by affiliates of Energold Drilling Corp. (CVE: EGD), and will be overseen by the company's  senior technical team, including Dr. Andy Moore and Pete Siegfried, and by personnel from consulting firm Remote Exploration Services.

The first holes will range generally from 100 to 200 metres in depth, with the aim of testing and confirming the gold mineralization previously discovered by predecessors of Newmont Mining Corp. on the Noyem A reef in the eastern portion of the concession, where an historic inferred gold resource of approximately 1.1 million ounces of gold was established down to a depth of 550 metres by Bonsai Gold Holdings.

The program will also test new targets elsewhere on the license area, developed through the company’s own exploration programs over the past two years.

“We are excited that drilling is now underway at Noyem-Nyanfoman and look forward to successfully building on the positive results previously achieved by Newmont and its predecessors," said African Queen CEO, Irwin Olian.

"We are particularly excited to drill some of the new targets our team has generated away from the historic resource area, as they have the potential to significantly enhance the resource potential of the property.”

The Noyem-Nyanfoman license currently covers an area of approximately 28.9 square kilometres located within the Birim North District of Ghana’s Eastern Region, approximately 130 kilometres northwest of Accra.

It is at the northeastern end of Ghana’s gold-producing Ashanti Belt, near Newmont’s Akyem deposit, which is currently under development for production - with a stated resource in excess of 8 million ounces of gold.

The property has also long been host to large numbers of artisanal miners.

African Queen can earn up to a 75 percent interest in the project under an earn-in and joint venture agreement with Akan Exploration, by funding prescribed stages from exploration through feasibility.

The African-focused mineral explorer is designated as manager and operator of the project.

Earlier this week, African Queen reported what it called "favourable" results from its preliminary field work and airborne geophysics at its Odundo property in southwest Kenya's Rongo Gold Fields.

The results are being used for target generation for the company's upcoming core drilling program at the site. African Queen said that positive sampling and geochemical results, combined with positive ground and airborne geophysics studies, have pointed to a number of "highly prospective targets" that it is planning to drill test.

The results are being used for target generation for the company's upcoming core drilling program at the site.

African Queen said that positive sampling and geochemical results, combined with positive ground and airborne geophysics studies, have pointed to a number of "highly prospective targets" that it is planning to drill test.

“The convergence of positive geochemical and geophysics data at Odundu suggests a high probability of success in our upcoming reconnaissance drill program," said CEO Irwin Olian.

"We are excited to be moving forward now.”

The Odundu property covers an area of approximately 97 square kilometres in the Kanango gold mining area of the Migori District of Nyanza Province in Southwest Kenya near Lake Victoria.

The project is situated some 380 kilometres by road from the capital city of Nairobi and 60 kilometres north of the border with Tanzania, forming part of the Lake Victoria Greenstone Belt - which hosts known gold deposits including African Barrick Gold’s Bulyanhulu and North Mara Mines, and AngloGold Ashanti’s Geita Mine

The airborne magnetic and radiometric survey at the property showed north-west, south-east trending structures and a "prominent shear zone" traversing the Odundu property. A grab sample from an artisinal pit located within the shear zone revealed a high value of 69 grams per tonne (g/t) of gold, and other grab samples yielded gold values ranging between 6.08 and 10.10 g/t gold.

Several smaller structural splays diverging from the main shear zone were also detected, the company said.

To date, only a small portion of the shear zone traversing the Odundu property has been explored, African Queen added.

To follow up on the airborne magnetic anomaly, the company initiated a program including a detailed ground magnetic survey, geological mapping covering roughly six square kilometres, and sampling and gold analysis.

The ground magnetic survey confirmed the existence of the shear zone/fault system detected by the airborne survey, the company said, with anomalous gold values from the termite mound samples located within and peripheral to the shear zone ranging between 0.50 parts per billion (ppb) and 669 ppb. gold.

In addition, African Queen said arsenic anomalies were detected approximately 200 metres and 1.3 kilometres north-west of the pit.

These initial favorable results prompted the company to undertake a 3D Resistivity and Induced Polarization (IP) survey of the Odundu area, completed by Akili Minerals Services.

The company said that a zone of high chargeability over an approximate strike of 1.5 kilometres by 100 metres wide was detected by the IP survey, within the shear zone/fault system, with the results appearing related to a rich sulfide zone associated with gold.

"Identification of this shear zone, which encompasses abandoned and active mining operations and demonstrates initial high gold values, is highly encouraging," African Queen said in a statement.

"A trenching program is now being completed with a view toward examining the possibility of further gold potential along the shear zone extensions. This trenching program was initiated recently and is progressing well."

Ultimately, the trenching data is expected to clarify the nature and surface extent of the mineralization, the structural detail, as well as to complement the planned core drilling program.

The Odundo property is held under an earn-in and joint venture agreement with Kenya-based Abba Mining Company. African Queen has the right to earn up to an 85 percent interest in the project under the deal by funding optional stages from exploration through feasibility.

The African-focused mineral explorer is designated as manager and operator of the project.

In late November last year, African Queen said that, together with its joint venture (JV) partner, Abba Mining, it had reached a settlement agreement related to its land dispute with Linear Metals Corp (TSE:LRM), and Linear's JV partner, B&M Mining, earlier this year.

In February of 2011, African Queen and Abba filed for a prohibition order, claiming that the 15-square kilometre area covered by Linear and B&M's Special License No. 214, is also covered by their own Special License No. 287, which African Queen and Abba had received in January.

The area that was in question covers the Kamwango prospect in the Rongo area of the Migori mining district in Kenya.

Under the terms of the settlement agreement, B&M remains the beneficial owner of the license No. 214, covering the area of 15 square kilometers in the Rongo area, subject to a one percent net smelter royalty (NSR) payable to African Queen, and a one percent NSR payable to Abba.

Abba, meanwhile, remains the beneficial owner of the license No. 287, which roughly covers 97-square kilometres surrounding the No. 214 area.

The area reserved to Abba, and thereby African Queen, includes the target known as Odundu, while the area reserved to B&M includes the target known as Kamwango.

The High Court of Kenya in Kisumu has now issued orders effectuating the settlement and ending the litigation, African Queen said.

In addition, as part of the agreement, African Queen said it has now furnished Linear with all of its technical information related to Special License No. 214, and has therefore received the sum of U.S.$150,000 in cash, plus 949,658 shares of Linear common stock as consideration.

A final payment of $150,000 is due in 12 months from Linear, African Queen added.

"We are delighted that legal details of the Rongo settlement are now complete and are looking forward to commencing our core drilling program at Odundu in the near future," said African Queen CEO, Irwin Olian.

At the end of 2011, the company said that after completing a review of its portfolio of exploration properties, it has established plans to develop two gold projects in Ghana and Kenya, while abandoning plans for two diamond properties in Africa.

In order to prioritize its projects for development in 2012, as well as to build shareholder value, African Queen said it will begin core drilling programs at its Noyem-Nyanfoman gold project in Ghana, and at the Odundo target on its Rongo project in Kenya.

However, its Tsau diamond project in Botswana and its Namibian diamond project did not survive the chopping block.

Last month, it had inked a contract for a core drilling program at its Noyem-Nyanfoman project, after legal settlements in the region cleared the way for accelerated exploration and development. An initial 2,000 metre program is planned, slated to begin later in February.

African Queen Mines is an exploratory resource company with diversified mineral properties in Southern, East and West Africa. In Kenya, it has approximately 850 square kilometres under license for gold and metals, and a further 737 square kilometres of gold and other minerals licenses under agreements with two other companies.

Mobilization of rigs is to start before the end of the month, with drilling slated to begin in mid-February, the company said.

An initial 2,000 metre program is planned, with further metres to be added by the company on a "result contigent basis", it added.

The company has executed a formal deal with E-Drilling Ghana and E.Global Drilling Corp, units of Energold Drilling (CVE:EGD), with the program to be overseen by African Queen's senior technical team and by consulting firm Remote Exploration Services.

The initial holes are to range from 100 to 200 metres in depth, and will focus on testing the gold mineralization previously discovered by prior owners Newmont Mining Corp on the Noyem A reef on the eastern portion of the concession, where a historic inferred resource of around 1.1 million ounces of gold was established.

The drilling campaign will also test new targets elsewhere on the license area, developed through the company's own exploration program over the past two years.

"After many months of exploratory work and protracted negotiations with the local community and small scale miners, we are delighted to be able to move forward now with drilling at the Noyem-Nyanfoman Project," said CEO Irwin Olian.

"We view this as a unique opportunity to build value for our shareholders and joint venture partner, Akan Exploration, as well as the local community.

"Our hope is that our drilling and exploration efforts will lead to development of a successful commercial mining operation that will contribute significantly to the economic growth of the region as well as the well-being and prosperity of the local community and Nyanfoman people."

The Noyem-Nyanfoman gold project license currently covers an area of approximately 28.9 square kilometres, located within the Birim North District of Ghana's Eastern Region, approximately 130 kilometres northwest of Accra.

It is at the northeastern end of Ghana's well-known, gold-producing Ashanti Belt, near Newmont's Akyem deposit, which is now under development for production with a stated resource in excess of 8 Million ounces of gold.

The project has also long been host to large numbers of artisanal miners, the company said.

African Queen, under a joint venture agreement with Akan Exploration, can earn a 75 percent interest in the Noyem-Nyanfoman gold project by funding prescribed stages from exploration through feasibility. African Queen is designated as manager and operator of the project, and holds the license on behalf of the joint venture partners.

Last September, African Queen arrived at a settlement for an additional 12 mining claims at its Noyem-Nyanfoman gold project in Ghana. The 12 claims cover approximately 300 acres on the Noyem A reef in Ghana's Ashanti Belt. This followed settlements in July 2011 for an additional seven of the 26 mining claims that conflicted with its prospecting license for the gold property.

A total of 18 holes were drilled as part of last year's "dry season" program, totaling roughly 2,346 metres. The campaign was designed to test the Bulasho target and several others on trend, and included step-out drilling from the Mankombiti Zone.

The company said gold, copper and silver mineralization continued to be intersected in most of the holes, but the grades and widths intersected were not seen as significantly advancing the size of the potential resource at the project.

However, African Queen also said drilling did in fact confirm the regional continuity of the gold and copper anomalies previously traced on surface, with in excess of three kilometres of strike length remaining to be tested, as well as other regional targets to be explored.

The King Solomom project is located within the central parts of the Mesoproterozoic Fingoe Belt in western Tete Province, Mozambique.

The company has been engaged in considerable exploration at the site, including detailed mapping, ground geophysics and detailed grab sampling, over the last two years, as well as the completion of over 5,000 metres of diamond core drilling from 2010 to 2011.

The 2011 drill program was focused on extending the known mineralization towards the west, as well as testing the importance of structural shoots which may have developed during later deformation.

The company said the results of the latest drill program confirmed the presence of mineralization for over two kilometres along strike and down dip, similar to the mineralization found in 2010.

In addition, a second style of mineralization, similar to that encountered last year at the Eiland prospect, was also drilled. This target, known as the Bulasho target, comprises narrow shear zones associated with pervasive iron carbonate alteration, African Queen said.

Significant intersections from the 2011 program at Bulasho include 0.20 metres of 4.10 parts per million (ppm) of gold and 1.9 ppm silver, as well as 1.6% copper in hole B07, and 0.20 metres of 30.94 ppm gold, 10.3 ppm silver, and 0.42% copper in hole B01.

The 2011 program also included drilling on Mankombiti East, where a substantial conductor was apparent on the IP data that had not been previously drilled. Two boreholes were targeted to hit this conductor, and only the second hole did this. Anomalous gold values ranging between 0.2 grams per tonne (g/t) and 0.4 g/t characterised this entire interval, while within this interval two zones of copper enrichment occured and included 3.5 metres at 1% copper, and a narrower zone 5 metres below with one metre at 1.2% copper.

This target will form part of the exploration focus for further drill planning next year, the company said.

“The results of our 2011 drill program at King Solomon did not encounter the grades and widths of mineralization hoped for at the new targets, but were productive in confirming continuation of the gold, copper and silver mineralization which characterizes this regional trend," said CEO Irwin Olian.

"We will embark on further ground exploration and mapping next dry season in order to identify new drill targets.  There’s a lot of smoke at King Solomon; now we’ve got to find the fire.”

The King Soloman project is the subject of a joint venture agreement signed in July 2009 with Optimetal, covering the exploration and development of prospecting license No. 884L, which spans an area of roughy 230 square kilometres.

African Queen has diversified mineral properties in Southern, East and West Africa. It is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.

In order to prioritize its projects for development in 2012, as well as to build shareholder value, African Queen said it will begin core drilling programs at its Noyem-Nyanfoman gold project in Ghana, and at the Odundo target on its Rongo gold field project in Kenya.

However, its Tsau diamond project in Botswana and its Namibian diamond project did not survive the chopping block.

In a statement to investors, African Queen said: "As a junior resource company with a large portfolio of highly prospective exploration properties and seasoned technical team, but facing relatively difficult industry financial conditions, management believes it is important to prioritize our projects.

"We can best build shareholder value by focusing our efforts and financial resources on those projects holding out the most promise and periodically dropping projects which do not demonstrate sufficiently positive results to warrant our continued development efforts."

Since the diamond projects failed to meet the necessary milestones, African Queen will relinquish its licenses to the properties, it said.

In Botswana, two features were identified on the Tsau project as a possible source of diamond soil anomalies. However, soil sampling, magnetic and gravity ground geophysical surveys, as well as core drilling found no anomalies.

Similarly, at the Namibian project, aeromagnetic data uncovered 18 targets. Follow up exploration, however, did not intersect any diamond-bearing anomalies.

At the two gold properties, African Queen said it has already identified drill targets through work programs completed in 2011. Legal settlements in the regions have also cleared the way for accelerated exploration and development.

Preparation is currently underway, and drilling is slated to begin in the first quarter of 2012.

African Queen also said that further exploration programs during 2012 will be undertaken at the King Solomon project in Mozambique, and at its Ugunjka gold project and the Karameri metals project, each in Kenya. The company is currently studying these assets to determine optimal programs for each project.

On the TSX-Venture Exchange, African Queen shares spiked 18.52 percent to $0.16, as of 11:42 am EDT Friday.

In February, African Queen and Abba filed for a prohibition order, claiming that the 15-square kilometre area covered by Linear and B&M's Special License No. 214, is also covered by its own Special License No. 287, which African Queen and Abba had received in January.

The area in question covers the Kamwango prospect in the Rongo area of the Migori mining district in Kenya.

Under the terms of the new agreement, B&M will remain the beneficial owner of the license No. 214, covering the area of 15 square kilometers in the Rongo area, subject to a one percent net smelter royalty (NSR) payable to African Queen, and a one percent NSR payable to Abba.

Abba will, meanwhile, remain the beneficial owner of the license No. 287, which roughly covers 97-square kilometres surrounding the No. 214 area.

All parties involved have also agreed to withdraw all civil actions related to the licenses.

Additionally, Linear will acquire the technical information related to the license No. 214 area from African Queen, for $500,000 in total. Upon receipt of the information, African Queen will receive $150,000 in cash. Subject to regulatory approvals, it will receive $200,000 in Linear common shares, with the remaining $150,000 cash payable 12 months following the date of the first payment.

The agreement allows Linear and African Queen to move forward with their respective exploration programs in Kenya, with Linear retaining rights to the Kamwango prospect while African Queen retains rights to the Odundu prospect.

Mark Lotz will serve as the new CFO and director of the company, replacing Limor Rubin, who has resigned to pursue other interests as she re-locates overseas. Rubin will remain on as financial consultant for the company for one year.

Lotz is a chartered accountant, with more than 17 years of experience in the minerals sector and related securities business.

He has held CFO and other senior financial positions with many well known mining and exploration companies, as well as two Vancouver-based securities firms.

Prior to that, Lotz served as a financial compliance officer for the Vancouver Stock Exchange, after four years as a senior auditor with Coopers and Lybrand, focusing on the mining and tax sectors.

The second appointment is Jennifer Todhunter, who will now become VP of Financial Administration, having served as finance manager for the company since 2005.

Todhunter, who has spent the last 10 years working with publicly traded companies mostly within the mining industry, has knowledge in accounting and finance dealing.

"Jennifer has contributed significantly to our success over the years and we are delighted to recognize her contributions through this appointment,” said African Queen's CEO, Irwin Olian.

Vancouver-based African Queen is an exploratory resource company with diversified mineral properties in Southern West Africa. It is exploring its properties in Mozambique, Kenya and Ghana for gold and other metals.

Under the terms of its private placement, the company issued 9.6 million units at $0.25 each.

Each unit consists of one common share and one-half of one share purchase warrant, with each whole warrant entitling the holder to purchase one additional  share of the company at a price of C$0.40 until August 8, 2013.

"We are grateful to the 36 investors who, individually and collectively, have chosen to support our efforts during this most difficult and volatile financial environment," said CEO Irwin Olian.

"This has led to the offering being oversubscribed, to the extent that we exercised the full 20% over-allotment option.

"The funds raised today will permit the company to move forward aggressively with our planned exploration and drilling programs in Mozambique, Ghana and Kenya.”

Pinetree Capital acquired 2 million shares and one million share purchase warrants, giving the small-cap investor a near 11% stake, if warrants are exercised.

African Queen Mines has diversified mineral properties in Southern and West Africa, exploring for diamonds, gold and other metals.

The chief, Nana Ansah Sasraku Nipa Pepprah IV, signed an accord that will see African Queen earn four of the 26 licenses in question, paving the way for speedy settlements of the remaining conflicting licenses, it said. The four small-scale mining licenses cover 88.78 acres in close proximity to the Noyem A reef.

In March, African Queen received a one-year extension on its prospecting license that covers 28.9 square kilometres in the Birim north district of Ghana's eastern region, and in the northeastern end of the gold-producing Ashanti Belt.

Since then, 26 small-scale mining claims have been identified that are potentially in conflict with the development of African Queen's planned large-scale mining project. The company has since been in negotiations with the owners of the claims to achieve settlements.

In exchange for the four licenses, the Vancouver, B.C.-based company will make a one-time cash payment to each of the groups owning the four claims, including Nana Ansah Sasraku Mining Group, Kwadzo Frimpong Mining Group, Ntoboase Bethel Mining Company, and Nyanfomang Youth Mining Group.

"The current settlement marks an important milestone for African Queen and sets the stage for accelerated exploration and development of the Noyem-Nyanfoman Gold Project, with core drilling slated for later this year," said African Queen CEO, Irwin Olian, who expressed the company's gratefulness towards the Nyanfoman Chief.

"[The Chief's] vision of a large-scale gold project benefiting his community and the region as a whole contributed to this initial settlement and should lead to strong cooperation between the company and its joint venture partner, Akan, with the local community going forward."

The settlement also provides for African Queen's operating subsidiary, AQ Ghana Gold, to purchase certain mining equipment on site. AQ Ghana Gold will also endeavor to hire as many small-scale miners who are giving up their rights to the property as possible, it said.

African Queen, under a joint venture agreement with Akan Exploration, can earn a 75% interest in the Noyem-Nyanfoman gold project. African Queen is designated as manager and operator of the project, and holds the license on behalf of the joint venture partners.

The offering will consist of 8 million units at 25 cents each. The company said it may increase the size of the placement by up to 20%, to a maximum of 9.6 million units.

Each unit consists of one common share of African Queen and one-half of one share purchase warrant, with each whole warrant giving subscribers the right to purchase one additional share for a period of two years from the date of closing. The exercise price for the warrant is set at 40 cents per share.

The offering is expected to close in one or more tranches, with the first closing anticipated to take place this month, African Queen said.

Proceeds will be used to fund work programs on the company’s gold and metal projects in Mozambique, Kenya and Ghana, as well as potential property acquisitions and working capital.

African Queen is a Canadian-based exploratory resource company with diversified mineral properties in Southern West Africa. It is exploring its properties in Mozambique, Kenya and Ghana for gold and other metals.

The Rongo gold project covers an area about 112 kilometres in the Kanango gold mining area of the Migori district of Nyanza Province and is situated some 380 kilometres by road from the capital city of Nairobi.

The purpose of the survey is suss out drill targets and delineate the sulphide rich zone, where previous ground magnetic surveys and field exploration work have shown gold content as high as 669 parts per billion (ppb), the company said.

The ground geophysics survey is a 3-D resistivity and induced polarization survey of key targets, comprised of 5 lines measuring a total of 3,375 linear meters. The survey will be conducted by Akili Minerals Services, a Kenyan-based company, and is expected to wrap up in 30 days.

African Queen's rights to the Rongo Gold Fields project stem from a joint venture agreement with Kenyan-based Abba Mining, under which the company can earn an 85% stake in the property by funding stages from exploration through feasibility. As part of the joint venture, African Queen has been designated as manager and operator of the project.

Currently, however, a licensing dispute between Abba and B & M Mining continues to be adjudicated by the High Court of Kenya in Kisumu, over a 15 square kilometre portion of Abba's project's license for Rongo.

On March 31, the High Court granted Abba an interim right to continue work on the Kamwango prospect of the Rongo Gold Fields property without interference from B&M Mining.

African Queen said today it expects a favourable outcome for Abba from such litigation, but in any event, has identified "highly prospective targets" outside of the disputed area.

African Queen Mines has diversified mineral properties in Southern and West Africa, exploring for diamonds, gold and other metals.

The drill program will cover 3,000 metres of the King Solomon project, which is subject to a 2009 earn-in and joint venture agreement with Swiss-based OptiMetals Trading.

The agreement covers exploration, development and exploitation of approximately 230 square kilometres in the centre of the Mesoproterozoic Fingoe Belt.

African Queen currently holds a 51% interest in the property, the prospecting license for which is valid until May 2015, and can earn up to an 85% interest by funding additional prescribed stages through feasibility.

At the end of May, the company began the drilling of the first drill hole, MW07.

“We are very excited to be resuming drilling at King Solomon at this time, as we look forward to building upon the encouraging results already generated by our initial reconnaissance drill program last year," said CEO Irwin Olian.

MW07 is approximately 50 metres down dip from drill holes MW01 and MW02, both of which had encountered encouraging mineralization in the company's 2010 reconnaissance core drilling program.

The Vancouver, B.C.-based company has identified mineralization consisting of gold-copper-silver, with associated zinc, lead and iron in the area. There has also been anomalous content of bismuth found, African Queen said.

"The exploratory and geophysics work we have recently completed suggests that the area to the West may host significantly richer copper, gold and silver mineralization over wider zones and we are looking forward to results from upcoming drill testing of this area along strike, and in several new zones which we have identified," Olian added.

African Queen, which is also exploring properties in Kenya, Ghana, Botswana and Namibia for diamonds, gold and other metals, said upcoming holes at the property will be drilled between 120 and 200 metres in depth, and will largely be focused to the west of the 2010 program.

The region is known as Karameri in the West Pokot District in Western Kenya, near the border with Uganda.

The license area is roughly 240 kilometres north of the city of Kisumu, where the company maintains its principal base of operations in the region and manages joint ventures for the Rongo and Ugunja projects.

Karameri is said to be prospective for copper, gold, iron ore and nickel, and remains largely underexplored, with the last comprehensive exploration work conducted during the 1930s.

The company's planned upcoming exploration program on the license area will include detailed mapping and dating of rock types, which are similar to the rocks observed at African Queen's King Solomon project in Mozambique, it said.

The phase one campaign is now being laid out, and will begin after the company receives all required environmental permits.

“We are very gratified to have been granted the Karameri License by the Commissioner," said CEO Irwin Olian.

"This allows us to expand our gold and metals exploration efforts in Western Kenya.

"We are now working on three properties in the region out of our Kisumu headquarters and are striving to create a success for all concerned through well-conceived and funded programs.”

African Queen explores for diamonds, gold and other metals through mineral properties in Southern and West Africa.

In Kenya, aside from the 850 square kilometre license, it has a further 737 sq. km. of gold and other minerals licenses.

Shares in the company rose more than 3% to $0.33 as of 12:37pm EST.

The Noyem-Nyafoman gold project covers an area of about 28.9 square kilometres, located inside the Birim North district of Ghana’s Eastern Region, about 130 kilometres northwest of Accra.

The phase one work program will cover a geological mapping of the license area, paying particular attention to the location of all current and historical artisanal mining sites. Mapping will be designed to also provide information on the strike extent of the project.

This work will be followed by extensive soil sampling, trenching and pitting, with particular focus on the hinge zone previously identified on the Noyem A target, and the highly prospective areas of Noyem B.

In addition, the company has now signed a contract to carry out an airborne geophysical survey, comprising up to 2370 line kilometres, over the license area.

The company said the work will look for future targets for a core drilling program, planned for later this year.

The Noyem-Nyafoman license area has long been host to large numbers of artisanal miners, and in October 2008, a shed-off area of 8.98 square kilometres was reserved for small scale mining.

However, issues still remain unresolved with a number of the local small scale miners whose claims may be in conflict with the “contemplated” development of a large scale project.  Settlement negotiations are continuing.

African Queen said though in a statement today that it has identified other prospective targets on the license area, which will be the focus of the 2011 work program, and will not involve any areas of potential conflict.

The news prompted a 40% increase in the company's shares on Wednesday, to trade at $0.35 near market close.

African Queen is exploring its properties in various regions of Africa for diamonds, gold and other metals.

Initial work includes ongoing stream and termite-mound soil sampling, along with detailed mapping, designed to identify potential targets at the site for a later drill program, the conmpany said.

To date, more than 1,100 termite-mound soil samples have been collected, as well as more than 150 stream samples from the license area. All samples will be sent to a lab in Cape Town, South Africa for gold and base metals analysis. Mapping should be completed this week.

Ugunja has been the site of significant artisanal mining, and and the company expects that the property will contain massive sulphide lenses, as well as gold-in-quartz veins.

Vacnouver-based African Queen, which is currently the operator of the project, can earn up to 85% of Ugunja from Kenya Discovery Limited by funding optional stages from exploration through feasibility.

The prospecting permits cover ground exploration work, as well as airborne geophysical survey on the license, comprising up to 2,370 line kilometres.

The company said equipment and personnel are now being mobilized, with a view toward beginning work as soon as possible. A core drilling program is planned for this year after the preliminary targeting work is completed.

The Noyem-Nyafoman gold license covers an area of roughly 28.9 square kilometres, located within the Birim North District of Ghana's eastern region. It is at the northeastern end of Ghana's gold-producing Ashanti Belt, near Newmont Mining's Akyem deposit, which is currently under development for production.

The property has long been host to a large number of artisanal miners. African Queen said there remain issues to be resolved with a number of these miners near one corner of the license area, whose claims may be in conflict with the company's planned development. Settlement negotiations are continuing.

African Queen, which holds the license to the project under a joint venture agreement, has the option to earn up to a 75% interest in the property from Akan Exploration.

The one-year extension sets the stage for the Vancouver-based company to begin its 2011 exploration program on the property, details of which have already been submitted to the mining commission. The company said work will begin once it receives approval.

The license, which was recently transferred to African Queen Mines' subsidiary from Newmont Mining, covers an area of approximately 28.9 square kilometres within the Birim north district of Ghana's eastern region.

The property lies at the northeastern end of Ghana's gold-producing Ashanti Belt, near Newmont's Akyem deposit, which is now under development for potential production.

The company said the license area has long been host to large numbers of artisinal miners, which could pose some challenges with respect to future development.

"There remain issues to be resolved with a number of the local small scale miners whose claims may be in conflict with contemplated development of a large scale project, and settlement negotiations have been progressing and are ongoing," African Queen Mines said in a statement Thursday.

The company, under a joint venture agreement with Akan Exploration, can earn a 75% interest in the Noyem-Nyafoman gold project. African Queen is designated as manager and operator of the project, and holds the license on behalf of the joint venture partners.

The project is under a special license, which was given to KDl in 2005 by the Kenyan government and covers exclusive rights to explore an area of roughly 625 sq kilometres in the Busia, Siaya and Kakamega areas in western Kenya.

The license area has been the site of much artisanal mining, and is expected to contain massive sulphide lenses and gold-in-quartz veins. The Ugunja project is located in the Lakeland District, just to the north of Lake Victoria.

"The project is in close proximity to our new Kenya administrative headquarters in Kisumu, which is the focal point for our exploration activities in Western and Southwest Kenya including the Rongo Gold Fields Project," said African Queen CEO Irwin Olian.

"The geology is exciting and we have developed a strong relationship with our JV partner KDL as well as the Government of Kenya in the past few months during our preliminary studies and due diligence review."

Under the terms of the agreement, African Queen can earn up to 85% of the Ugunja project by funding optional stages through exploration to feasibility. African Queen is also required to make a total of four payments totaling $100,000 over the period.

African Queen will be the operator of the property, and will also be given rights to the license should the company choose to proceed to phase three of the agreement.

Phase one of the project, which is scheduled to begin shortly and is anticipated to cost US$200,000, will include a ground exploration program of stream, soil and rock sampling, mapping, trenching and sample analysis. The first part of the program will be designed to assess the overall geologic structure of the license area, as well as to identify drill targets for the next phase of the campaign.

In exchange for funding the first phase of the project, African Queen will hold a 25% stake.

Vancouver-based African Queen is exploring in Mozambique, Kenya and Ghana for gold and other metals and in Botswana and Namibia for diamonds.

Abba's request for the prohibitive order will be heard on March 3, 2011, the company said.

To date, a phase 1 exploration program has been completed at Rongo, and the companies are now preparing targets for a core drilling program - expected to begin within the next few months.

Vancouver-based African Queen is exploring properties in Mozambique, Kenya and Ghana for gold and other metals, and in Botswana and Namibia for diamonds.  In Kenya, it has approximately 112 sq. km. of gold and other minerals licenses.  

"We are excited about our prospects for success in Kenya and are looking forward to our field exploration programs here in 2011," said Olian.

"We have received a warm welcome from the Kenyan Government at the highest levels and greatly appreciate the opportunity we have been granted to expand our operations here."

The meeting between Olian and the prime minister was one from a series due to take place this week between senior management of the company and various government officials.

The conversations will also focus on the future of the mining sector in Kenya in general, said African Queen.

Currently, African Queen is exploring its Rongo Gold Fields project, located in the Kanango gold mining area of the Migori district under a joint venture with Kenyan partner Abba Mining.

The company is also in negotiation on several joint ventures for other projects, and has applications pending for exploration licenses covering a number of prospective areas in the region.

Separately, the company said that CEO Olian will be appearing on national television in Kenya at 9:00 P.M. on Sunday, February 6, 2011, on KTN's "Money and Power."

Vancouver-based African Queen explores for gold and other metals at its properties in Mozambique, Kenya and Ghana, and for diamonds at its lands in Botswana and Namibia.