Mozambique Overview - Fingoe Gold Project

Property Descriptions

In Mozambique the Company has approximately 1689 sq km of gold and other metals licences under agreements with three other companies. Field work is underway on multiple targets at its Fingoe Gold Project in Tete province, Mozambique. The Company’s interests in the Fingoe Gold Project, which encompass 9 prospecting licenses comprising approximately 1359 sq. km. in aggregate, arise from an Earn-In Agreement with Manica Minerals Ltd. dated August 9, 2006, as supplemented August 8, 2007, under which the Company can earn up to an 85% interest, and an Agreement dated April 10, 2007, with African Eagle Resources plc (AIM: AFE) under which the Company now holds a 98% interest in certain prospecting licenses.

The objective of the 2009 field program is to identify structures within the region with potential to host commercial hard rock gold deposits and to select discreet targets for the Company’s upcoming reconnaissance core drilling program planned for the region.

Field work is largely focused on areas of the Fingoe Belt located to the north of Lake Cahorra Basa. Results from studies conducted over the last three years have indicated that gold in those areas is hosted within a bimodal, mixed volcanic, metasedimentary and granitic package of rocks of Mesoproterozoic age. The Fingoe area has an extensive history of artisinal production dating back at least 400 years and is considered to be significantly underexplored. Recent mapping and sampling by the Company has revealed that there is good potential for undiscovered hard rock gold mineralization in the region, and a number of highly anomalous rock sample results have already been reported (see previous Press Release dated February 20, 2009).

Geochemical data from all the soil grid target areas has now been received and reviewed, with some very encouraging results over a number of the areas identified. Pitting, trenching, detailed mapping and rock sampling over the following targets, with a view to identifying drill-ready targets before yearend, is planned for this initial part of the field season:

• The Aliyele project area has been found to host a large east-west trending structure separating late stage granites from intensely deformed argillaceous and volcanoclastic metasediments. A number of rock and soil sample anomalies have been reported along this structure. Co-incident copper and gold values were identified and the planned work in this area will focus upon reconnaissance mapping and rock sampling of outcrop.

• The Ashwa project area will be further soil sampled and trenched as the previously identified gold-in-soil sample anomalies were located on a single, discreet follow-up grid facilitating further evaluation.

• Grid soil sampling in the Tambika project area has revealed two areas of anomalous gold in soil and these will be followed up with detailed mapping and trenching.

• The Tsimbi project area is located to the east of the Ashwa area. A number of gold anomalies have been identified from the previous stream sampling surveys and will be followed up this season through the sampling of three detailed soil sample grids. At the end of 2008 a new access track was constructed in this area which will speed up field work considerably.

The Company’s exploration activities on the Fingoe Gold Project are under the guidance of Senior Consulting Geologist Pete Siegfried (M.Sc., MAusIMM), a Qualified Person. Field studies have been carried out on behalf of the Company by Remote Exploration Services of Cape Town, South Africa.

AFRICAN QUEEN SIGNS EARN-IN AND JOINT VENTURE AGREEMENT WITH OPTI METAL TRADING COVERING KEY ZONE AT FINGOE REGIONAL GOLD PROJECT IN MOZAMBIQUE

 The Company has entered into an Earn-in and Joint Venture Agreement with Swiss-based Opti Metal Trading Limited (“Optimetal”), covering exploration, development and exploitation of Prospecting License No. 884L held by Optimetal’s Mozambique subsidiary (the “License”). The License covers an area of approximately 230 sq.km. in the center of the Fingoe Belt, now called the “King Solomon Project,” adjacent to permits which are the subject of existing earn-in and joint venture Agreements between the Company and Manica Minerals Ltd. and African Eagle Resources plc (AIM: AFE), respectively, covering an aggregate of 1359 sq.km.

Under the terms of the Agreement, the Company may earn up to an 85% interest in the License and related Project by funding prescribed stages from exploration through feasibility. Optimetal has the right to participate at its election pro-rata after the Company has reached 51% ownership interest. The Company is designated as manager and operator of the Project. Phase 1 of the Project, now getting underway, is a ground exploration program comprised of soil and rock sampling, mapping, trenching and sample analysis, together with additional studies including ground geophysics as the parties shall agree. The objective of Phase 1 is to assess the overall geologic structure of the License area and the liklihood of commercially viable hard-rock gold deposits within the License area, as well as to identify discreet drill targets for a Phase 2 reconnaissance core drilling program. The costs for Phase 1, estimated at up to U.S. $300,000, are being shared equally by the parties. By paying its 50% share of said Phase 1 costs, the Company will earn a 25% interest in the Project.

Over the past three years, the Company and its predecessor, Pan African Mining Corp., have been exploring a number of gold targets in Tete Province, Mozambique, under the joint ventures previously noted. Exploration has been focused on the bimodal suite of volcanic and volcanoclastic lithologies, metasediments and late stage granites of the Mesoproterozoic age Fingoe Group. During this time, the Company’s understanding of the regional geological controls and setting has advanced significantly, with the result that the License constituting the King Solomon Project, while outside the immediate area of investigation, was identified as being highly prospective for potential gold mineralisation. Accordingly, the Company has now entered into the Agreement with a view toward including the License within the overall Fingoe Regional Project area under study and evaluation.

A number of historical gold and copper showings are recorded within the License for the King Solomon Project, some of which have been mined in the past. Many of these showings are observed in the field to be associated with magnetite and malachite. These magnetite showings formed the focus of previous investigations during Portuguese colonial times. Although very little documented data is available, it appears that iron ore as well as gold and copper were targeted by these explorers. Mention of the Messeca iron ore deposit is made by various authors and is located within the License Area.

A review of the geology which underlies the License Area shows a predominance of carbonate lithologies. These rocks are regarded to be important in the genesis of potential gold deposits within this geological setting due to their reactive nature. Plotting of the documented historical showings reveals a clear association at the contact of these carbonate units with both intrusive granitic and intrusive gabbroic rocks. A number of skarn reaction zones are noted in the area and therefore the association of gold with these alteration rock types is strongly suggested. In one area extensive zones of grossular garnet as well as tremolite and magnetite are present over 2 km of strike and it is anticipated that other similar alteration zones exist in the area.

Work comprising the Phase 1 Exploration Program is being conducted by Remote Exploration Services (“RES”) of Cape Town, S.A. on behalf of the joint venture partners. RES has been conducting field programs for the Company on the Fingoe Regional Gold Project from the initiation of the program in 2006. The Project is being managed on behalf of the Company by Senior Consulting Geologist Mr. Pete Siegfried (M.Sc., MAusIMM), a qualified person.

According to Irwin Olian, CEO of the Company, “We are excited to be adding the highly prospective Optimetal ground to the growing opportunity now developing at our Fingoe Gold Project. Our exploration team is now at work on the new License area and we are looking forward to favorable findings in the near future.”

Manica Minerals – Fingoe Gold Project

The Company entered into a Joint Venture Agreement dated August 9, 2006, with Manica for exploration, development and exploitation of a prospective gold project in Mozambique presently under license to Manica in the North-West of Mozambique. Under terms of that agreement, the Company has the right to earn up to an 85% interest in the project in stages, by funding through to pre-feasibility. The Company has already met its US$150,000 expenditure commitment to secure its continued participation in the joint venture for the initial two years. The Company now has earned a 51% interest in the project.

The Fingoe project is a grass roots exploration project with good potential for the discovery of mesothermal vein gold, distal skarn Au and IOCG deposits. It comprises four Prospecting Licenses granted by the Ministry of Mineral Resources and Energy to Manica covering approximately 450 sq. km.

.

Location map of the Fingoe License areas

The project area is accessed from the major town of Tete by tar road (approximately 160 km) followed by gravel road (approximately 170 km) and jeep track (approximately 50 km). Tete has a good domestic airport with regular flights from Maputo, the capital of Mozambique.

The project area is characterized by moderate relief with a medium density drainage network that flows into Lake Caborra Bassa, approximately 30 km to the south. The project area is vegetated by Miombo woodland. The climate of the project area is characterized by two distinct seasons, namely a wet season from November to March and a dry season from April to October. The project is workable through most of the year with heavy rains impeding access routes during the wetter months.

African Eagle Gold Properties

The Company entered into an agreement dated April 10, 2007 with U.K.-based African Eagle Resources plc (“African Eagle”) (AIM: AFE) for exploration, development and exploitation of five prospecting Licenses controlled by African Eagle’s wholly-owned subsidiary, Twigg Exploration and Mining Limitada, in the greater Fingoe region situated in Tete Province in the northwest of Mozambique. The licenses comprise approximately 909 square km in aggregate and are located in close proximity to the Company’s other Fingoe area holdings under its joint venture with Manica. The project is a grassroots gold exploration prospect.

The project area is accessed from the major town of Tete by tar road (approximately 160 km) followed by gravel road (approximately 100 km) and jeep track (approximately 30 km). Tete has a good domestic airport with regular flights from Maputo, the capital of Mozambique. The project area is characterized by moderate relief with a medium density drainage network that flows into Lake Caborra Bassa and the Zambezi River, approximately 50 km to the south. The project area is vegetated by Miombo woodland. The climate is characterized by two distinct seasons, namely a wet season from November to March and a dry season from April to October. The project is workable through most of the year with heavy rains impeding access routes during the wetter months. Under terms of the agreement, the Company has now earned the right to acquire African Eagle’s Fingoe licenses by funding and carrying out a regional exploration program on the licenses during the preceding dry season. It is anticipated that the licenses will be assigned to PAM Mocambique Limitada, the Company’s operating subsidiary in Mozambique, in the near future. In the event that the Company undertakes a mining operation on the licenses, African Eagle will receive a standard and customary 2% NSR with respect to all future mineral production from the license area., subject to the Company having the right at any time and at its sole discretion to repurchase a 1% NSR from African Eagle for US$2,000,000 cash.