North Queensland Metals (ASX:NQM) Announce Funding For Pajingo Gold Mine And Issue of Up To 28.41M Shares

Brisbane, Feb 8, 2008 (ABN Newswire) - On Monday 4th February 2008, the shareholders of North Queensland Metals Limited (NQM) approved, amongst other things, the acquisition of 60% of the Pajingo Gold Mine (Pajingo) and the issue of up to 28.41 million shares at 37 cents per share.

The following commitments have been received to assist in funding of the acquisition of Pajingo, namely:

(a) 13.7 million shares to institutional and sophisticated investors at 37 cents per share (raising $5.07 million); and

(b) 11 million shares to those institutional and sophisticated investors at 22 cents per share (raising $2.42 million) utilising the Company's available 15% issue.

to raise $7.5 million.

The funds raised through these placements facilitates the completion of the acquisition of Pajingo and the provision of working capital.

Chief Executive Officer of NQM, John McKinstry said "The Company is delighted with the acquisition and already the operation is ahead of expectations in terms of production of gold and cashflow."

About NORTH QUEENSLAND METALS LIMITED

North Queensland Metals is an Australian based and listed mining company with a focus on activities in north Queensland. The company has a 60% interest, and is the Manager of the Pajingo Gold Mine near Charters Towers. In addition to its gold operation, North Queensland Metals has a 100% interest in the Baal Gammon copper-tine project near Herberton west of Cairns, and is pursuing a strategy of developing several mines in the Herberton area to feed ore to a central milling facility.

North Queensland Metals' tenements in far north Queensland cover the world class Pajingo epithermal gold system as well as the Herberton mineral field which includes hundreds of historic tin and base metal mines as well as being prospective for tungsten and molybdenum.