DPM Dundee Precious Metals Inc

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Queensland Minerals Ltd. (TSX VENTURE:QML) (the "Company" or "Queensland") is
pleased to report that the Company has entered into a non-binding letter of
intent dated August 9, 2010 (the "Revised LOI") with Dundee Precious Metals Inc.
("DPM") which amends, restates and supersedes the previously announced letter of
intent (see news release issued on February 23, 2010). 


Summary of the Transaction

Pursuant to the Revised LOI, Queensland and DPM contemplate entering into an
option agreement (the "Option") under which Queensland will be entitled to
acquire indirectly 100% of DPM's interest in all of the issued and outstanding
securities of Dundee Moly Company d.o.o. ("Molyco"), a company incorporated in
Serbia (the "Transaction"). Molyco is the holder of several mineral licenses
including mineral licenses related to the Surdulica molybdenum project, the
Tulare copper and gold project and other early stage projects located in Serbia
(hereinafter referred to as the "Serbian Assets"), which Serbian Assets are
described in the Company's February 23, 2010 press release. Under the Revised
LOI, the parties agreed to enter into an option agreement in respect of the
Option by September 30, 2010. The Option will be valid for one year from the
date of execution of the option agreement (the "Option Period"). 


The completion of the acquisition through the exercise of the Option by
Queensland will be subject to: (1) Queensland having raised in one or more
financings (the "Combined Financings") aggregate gross proceeds of at least $10
million ("Minimum Financing Amount") prior to the expiry of the Option Period
(which includes any amounts raised in the Interim Financing described below);
and (2) Queensland having expended aggregate exploration expenditures of $3
million on the Serbian Assets during the Option Period. Other conditions such as
the completion of a reorganization of DPM's subsidiary and finalization of the
corporate and tax structuring of the Transaction, entering into definitive
agreements and obtaining all requisite regulatory, shareholders, stock exchange
or governmental authorizations and consents, including the approval of the TSX
Venture Exchange (the "TSXV") will be required before the Company can exercise
the Option. 


Upon exercise of the Option, Queensland will issue to DPM such number of units
("Vendor Units") in the capital of Queensland as will equal 47.5% of the issued
and outstanding shares of Queensland on a non-diluted basis as of the date of
the exercise of the Option (subject to adjustments under certain circumstances).
Each Vendor Unit will be comprised of one common share in the capital of
Queensland (a "Vendor Share") and that number of warrants (but not less than
half a warrant per Vendor Unit) (each whole warrant, a "Vendor Warrant") as is
equal to the number of warrants per unit sold in the Combined Financings. The
total number of Vendor Warrants to comprise the Vendor Units will reflect in
proportion the number of Queensland warrants forming part of units sold in the
various tranches of the Combined Financings on a pro rata basis of each of the
tranches of the Combined Financings. The exercise price of the Vendor Warrants
shall be the lesser of the exercise price of issue price of units sold in the
Initial Financing (described below) and $0.42 per warrant for a term being the
greater of 2 years and the term of the warrants forming part of the Initial
Financing. In addition, Queensland may have to make a cash payment to DPM with
respect to restricted cash, if any, excluded from the Transaction.


The Revised LOI also contemplates the entering into of certain ancillary
agreements, more particularly: an agreement whereby DPM will have a
participation right to maintain its pro-rata ownership in Queensland; a
standstill agreement relating to certain conduct of DPM, dependent upon its
ownership position in Queensland, relating to take-over bids; and the grant by
Queensland to DPM of qualification rights pursuant to which DPM will be entitled
to request the qualification for distribution by prospectus in all provinces of
Canada (other than Quebec) of DPM's shares of Queensland, at DPM's expense, and
as long as DPM holds more than 20% of the outstanding shares of Queensland.


David Fennell will remain chairman of the Company and James Crombie will remain
CEO. Alain Krushnisky will remain CFO and Anthony Walsh will remain chair of the
audit committee. The names and backgrounds of the persons that the Company
anticipates will constitute principals of the Company upon exercise of the
option are described in the February 23, 2010 press release.


Initial Financing 

In connection with the Transaction, the Company announces plans to complete a
non-brokered private placement financing of approximately $4 million of units of
its securities (the "Units") at $0.30 per Unit (the "Initial Financing"). Each
Unit will consist of one common share of Queensland (a "Common Share") and one
Common Share purchase warrant (a "Warrant"). Each Warrant will entitle the
holder to subscribe for one Common Share at $0.42 for a period of 24 months from
the closing date of the Initial Financing. The Initial Financing is anticipated
to close on or about the date of the execution of the option agreement.
Approximately 17% of the Initial Financing is being subscribed for by insiders
of the Company.


The Initial Financing is subject to certain conditions including, but not
limited to, the receipt of all necessary corporate and regulatory approvals,
including the approval of the TSXV. The Company intends to apply the net
proceeds raised from the Financing to conduct exploration on the Serbian Assets
and for general working capital.


The Initial Financing will be conducted in reliance upon certain prospectus and
private placement exemptions in Canadian jurisdictions and in certain
jurisdictions outside Canada, and all securities to be issued will be subject to
a four month hold period. 


The Company will have the right, commencing 180 days after the closing date of
the Initial Financing, to accelerate the expiry date of the outstanding Warrants
if the closing price of the common shares of the Company on any stock exchange
in Canada is higher than $1.00 for 20 consecutive trading days in which case the
Warrants will expire on the 30th day after the date on which notice of such
acceleration is provided by the Corporation to the holders of Warrants.


The Company will not be completing the $10 Million private placement financing
announced on February 23, 2010.


This press release does not constitute an offer to sell or the solicitation of
an offer to buy any of the Common Shares or Warrants (the "Securities") in the
United States. The Securities have not been and will not be registered under the
U.S. Securities Act or any state securities laws, and may not be offered or sold
in the United States without registration under the U.S. Securities Act and all
applicable state securities laws, or an applicable exemption from registration
requirements. No public offering of the Securities will be made in the United
States in connection with the Initial Financing.


Sponsorship may be required by the TSXV unless an exemption from sponsorship is
available. The Company intends to apply for an exemption from the sponsorship
requirement. There is no assurance that the Company will be able to obtain such
an exemption.


About Queensland Minerals Ltd.: The Company is an exploration company with
mineral properties in the State of Queensland, Australia. Since becoming
TSXV-listed issuer in 2007 upon completion of its initial public offering,
Queensland has carried out mineral exploration in Queensland, Australia through
its two wholly-owned subsidiaries. In late 2008, the Company halted all field
activities as a result of its limited financial resources, and the Company's
projects, of which there is currently only one, have been on care and
maintenance since. Subsequently, the Company closed its Australian exploration
office and has been engaged in seeking new opportunities and financing for its
next phase as a public company. Additional information about the Company is
available on SEDAR at www.sedar.ca.


About Dundee Precious Metals Inc.: DPM is a Canadian based, international mining
company engaged in the acquisition, exploration, development and mining of
precious metal properties. Its common shares and share purchase warrants
(Symbol: DPM; DPM.WT; DPM.WT.A) are traded on the Toronto Stock Exchange (TSX).
DPM owns the Chelopech Mine, a gold/copper concentrate producer and the
Krumovgrad gold project, a mining development project, both located in Bulgaria,
and 95% of the Kapan Mine, a gold/copper/zinc concentrate producer in southern
Armenia. In addition, DPM holds significant exploration and exploitation
concessions in some of the larger gold-copper-silver mining regions in Serbia.
Additional information about DPM is available on SEDAR at www.sedar.ca.


This press release contains forward-looking information. In particular, this
press release contains statements concerning the prospective Transaction of the
Company and the Serbian Assets. The information about the Serbian Assets has not
been independently verified by the Company. Although the Company believes in
light of the experience of its officers and directors, current conditions and
expected future developments and other factors that have been considered
appropriate that the expectations reflected in this forward-looking information
are reasonable, undue reliance should not be placed on them because the Company
can give no assurance that they will prove to be correct. Forward-looking
information is subject to known and unknown risks and uncertainties, and depends
on assumptions (including, but not limited to, assumptions about the exploration
potential of the Serbian Assets and the identified exploration targets) and
other factors, all of which may cause actual results or events to differ
materially from those anticipated in such forward-looking information. The terms
and conditions of the prospective transaction may change based on finalization
of the corporate and tax structuring of the transaction, the Company's due
diligence on the respective companies and properties, the entering into a
binding agreement for the Transaction, the success of the Initial Financing,
regulatory and third party comments, consents and approvals and the parties'
ability to satisfy the conditions of the Transaction in the required timeframes.
The forward-looking statements contained in this press release are made as of
the date hereof and the Company undertakes no obligations to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


"Completion of the transaction is subject to a number of conditions. Completion
of the Initial Financing is subject to TSXV acceptance. The exercise of the
option and completion of the acquisition of the Serbian assets is subject to a
number of conditions, including TSXV acceptance and disinterested Shareholder
approval. The transaction cannot close until the required Shareholder approval
is obtained. There can be no assurance that the transaction will be completed as
proposed or at all. 


Investors are cautioned that, except as disclosed in the Management Information
Circular to be prepared in connection with this transaction, any information
released or received with respect to the COB may not be accurate or complete and
should not be relied upon. Trading in the securities of Queensland Minerals Ltd.
should be considered highly speculative. 


The TSX Venture Exchange has in no way passed upon the merits of the proposed
transaction and has neither approved nor disapproved the contents of this press
release." 


Neither the TSXV nor its Regulation Services Provider (as that term is defined
in the policies of the TSXV) accepts responsibility for the adequacy or accuracy
of this release.

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