African Queen Mines Ltd.
Suite 1450, Box 11553
650 West Georgia Street
Vancouver, BC
V6B 4N8

FOR IMMEDIATE RELEASE

January 2, 2013                                                                                           

TSX.V: AQ

Frankfurt: QMO                                                                                                                                                                                                        

INITIAL CORE DRILL RESULTS AT AFRICAN QUEEN MINES' ODUNDU PROJECT IN KENYA REVEAL EXTENSIVE ZONE OF NEAR-SURFACE GOLD-BEARING MINERALIZATION

Vancouver, British Columbia - AFRICAN QUEEN MINES LTD. (the "Company") is pleased to announce that the initial trenching and diamond drill assay results received to date indicate a zone of extensive, low-grade near-surface gold mineralization, at the Company's Odundu Project in Southwest Kenya's Rongo Gold Fields. Drilling has shown this low grade gold mineralisation to be continuous over significant thicknesses with the best intersections obtained so far being 1.03g/t Au over 26.35 metres and 1.08g/t Au over 11.0 metres recorded in holes OD3 and OD4 respectively.

The Odundu Project covers an area of approximately 97 sq. km 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 km. by road from the capital city of Nairobi and 60 km. N of the border with Tanzania, forming part of the gold rich Lake Victoria Greenstone Belt extending from Tanzania and hosting known world-class gold deposits including African Barrick Gold's Bulyanhulu and North Mara Mines, and AngloGold Ashanti's Geita Mine.

As part of the Company's 2012 exploration program, surface trenching and drilling was undertaken to examine the gold mineralization present within a major shear zone discovered through field reconnaissance work. The shear has been better delineated through an airborne magnetic survey, and later ground geophysical study including both ground magnetics as well as a limited Induced Polarization (IP) program (PR dated February 16, 2012).  Two other parallel shear zones have also been identified trending from the north-west to south-east on the property and these will be the subject of future exploration work.

The surface trenching and drilling program was concentrated northwest and south-east of the Odundu artisanal pit covering a lateral distance of 900 meters and was aimed at examining near-surface mineralization. The preliminary results of the trenching and drilling has confirmed consistent low grade gold mineralization over a lateral distance of 600m to a vertical depth of approximately 100 m. These preliminary results have shown low grade gold to be present within a structurally complex, laterally extensive shear zone. Exploration focus towards determining the extensions of this mineralization towards the northwest and southeast are now being developed.

A total of 10 holes were drilled as part of the 2012 core drilling program which aggregated approximately 1996 metres. The drilling was carried out on behalf of the Company by Kenyan-based drilling contractor Akili Minerals Services Limited. Core samples were assayed by Genalysis Laboratory Services, an internationally accredited laboratory located in Perth, Australia. The drilling has revealed a succession of metavolcanic lithologies which show extreme silicification, potassic alteration, sulphidisation and chloritisation. Additionally, the rocks are observed to be mylonitised in places, and are multiple-faulted and sheared. Initial drilling results have shown a strong association of gold mineralisation with Zn, Pb and sulphide mineralisation.

The results of selected trench and diamond drill gold assays are indicated below:

SELECTED DRILL INTERSECTIONS 2012 ODUNDU PROGRAM

Uncorrected drill length intersections do not necessarily reflect true widths of the mineralized zones

SELECTED DRILL HOLE POSITIONAL INFORMATION 2012 ODUNDU PROGRAM

TRENCHING GOLD ASSAY RESULTS 2012 ODUNDU PROGRAM

Recent modeling of this data has shown a 'high grade' steeply south-east plunging 'shoot' in the centre of the drilled area, which to date has not been investigated. Additional drilling will be undertaken in order to better define this zone and examine its potential at greater depth.

Exploration in the form of detailed mapping and sampling is continuing, and recently received grab sample results justify extending exploration towards the north-west. A grab sample of 77.62 g/t Au was recently collected 700 m northwest of the present drilling area and along the extrapolated shear zone.

It is clear in review of these results that the (IP) survey conducted in 2011 was instrumental in outlining areas which were sulphidised, and that these zones revealed the best targets for gold mineralisation. This IP survey will be extended towards the north-west early in the New Year to obtain a better focus for further drill planning. It is clear that the presence of sulphides is the best indicator of gold in this shear zone and therefore IP is regarded to be an important tool in targeting drilling in the next phase.

Additionally, two major shear zones 2.8 km and 6.4 km south-west of Odundu and within the Company's License are suspected of hosting gold mineralization. These structures were identified through remote sensing and aeromagnetic data interpretation. From a geological and structural point of view these two shear zones, including the Odundu shear zone, are coincident with the limbs and fold axis of a regional north-west trending anticline. Several artisanal workings are confined within these shear zones that are being investigated as part of the extended reconnaissance mapping and sampling program.

The Company's rights to the Project arise from an Earn-In and Joint Venture Agreement with Kenyan-based Abba Mining Company ("Abba"), under which the Company may earn up to an 85% interest in the Project by funding prescribed optional stages from exploration through feasibility. The Company is designated as manager and operator of the Project on behalf of the joint venture partners. The Project is being managed on behalf of the Company on-site by Senior Exploration Geologist Mike Othitis, P.Geol. AIPG, MA, Bsc. General Project oversight is being provided by Senior Consulting Geologist Pete Siegfried (M.Sc, MAusIMM) Both are Qualified Persons who have reviewed and approved the contents of this Press Release.

According to Irwin Olian, CEO of the Company, "We are delighted that the initial results from our reconnaissance core drilling program at Odundu have revealed a near-surface body of gold-bearing mineralization reflecting the positive geochemical and geophysics data generated by our initial exploration activities.   This area was largely unexplored and had never been drilled before.  The knowledge gained from this initial program will be invaluable in helping to guide our future exploration efforts aimed at developing a meaningful bulk low-grade gold resource on a regional level at Odundu."

About African-Queen

The Company is an exploratory resource company with diversified mineral properties in East and West Africa. It is exploring its properties in Ghana and Kenya for gold and other metals. In Ghana it has 28.9 sq. km. under license for gold. In Kenya it has approximately 850 sq. km. under license for gold and metals, and a further 737 sq. km. of gold and other minerals licenses under agreements with two other companies. Its operations in Ghana are carried out through its subsidiary AQ Ghana Gold Limited. Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, Canada on April 30, 2008 and received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.

"Irwin Olian"                         
Irwin Olian
Chairman & CEO

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein.  The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties.  Actual events or results may differ from the Company's expectations.