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Last updated on April 21, 2014 at 7:45 EDT

Golden Queen completes $10 million private placement

July 26, 2013

VANCOUVER, July 26, 2013 /PRNewswire/ – Golden Queen Mining Co. Ltd. (TSX: GQM) is pleased to announce that further to its news release dated July 25,
2013, it has completed the private placement of convertible debentures
for aggregate proceeds of C$10,000,000. The convertible debentures are
unsecured, and bear interest at 2% per annum payable annually.  The
principal amounts of the convertible debentures are convertible into
shares of the Company at a price of C$1.03 per share for a period of
two years.  If the convertible debentures have not been converted by
the holder prior to the maturity date, then the Company or the holder
may convert them at the lower of C$1.03 or the market price as at the
maturity date.  The market price on the maturity date will be
determined based on the volume weighted average price of the shares as
traded on the Toronto Stock Exchange for the five trading days
preceding the maturity date.  C$7,500,000 of the convertible debentures
was acquired by an investment vehicle managed by Thomas M. Clay, a
Director and insider of the Company.

The proceeds of the offering are allocated exclusively to the
advancement of the Company’s Soledad Mountain Project, including
towards funding initial project construction requirements that are
currently ongoing.  No finder’s fees or commissions were paid in
connection with the private placement.

The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the “U.S. Securities Act”)
or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws, or unless an
exemption from such registration is available.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS
PRESS RELEASE.

SOURCE Golden Queen Mining Co. Ltd.


Source: PR Newswire