Golden Queen Mining Co. Ltd.

INTRODUCTION

Golden Queen Mining, an exploration-stage company, is exploring for gold and silver on its Soledad Mountain Property located approximately eight kilometers south of Mojave in Kern County in southern California.

PROJECT IN HAND

Soledad Mountain Project, Kern County, Southern California

The Company is proposing to develop a gold-silver, open pit, heap leach operation on its Soledad Mountain property, located just south of the town of Mojave in Kern County in southern California.

The Project is within the Mojave Mining District along with the former Cactus Gold Mine,
Standard Hill Mine and Tropico Mine. These former operating mines are located within a radius of 5 miles of the Soledad Mountain site. Access is available year round.

Every element of the Soledad Mountain Project (the "Project") has been rethought and reengineered since 2003 in an effort to find sound technical and cost-effective solutions that would see the Project proceed with a robust internal rate of return or IRR. This phase of the technical work was completed toward the end of 2007.

The Company engaged SRK Consulting (U.S.), Inc. in 2005 to prepare a National Instrument 43-101 compliant Technical Report to validate and confirm mineral resource estimates. The Technical Report was released on March 6, 2006. The mineral resources confirmed in the Technical Report are estimated to contain 2,162,000 oz of gold and 37,628,000 oz of silver in the Measured and Indicated categories and a further 511,000 oz gold and 11,154,000 oz silver in the Inferred category, both calculated with a gold-equivalent cut-off grade of 0.274 g/t (0.008 oz/ton).

The Company engaged Norwest Corporation of Vancouver in January 2007 to prepare a National Instrument 43-101 compliant Technical Report to assess mineral reserves for the Project as part of an independent feasibility study. The results of the study were made public in a press release dated December 14, 2007. The Technical Report was filed with the applicable Canadian securities commissions in January 2008.

The open pit design done by Norwest Corporation is considered to be both detailed and complete. The mineral reserve estimates are set out in the table below:

			Diluted Grades				Contained Metal
			Gold		Silver		Gold	Silver
Reserve Category	t	ton	g/t	oz/ton	g/t	oz/ton	oz	oz
Proven	27,705,500	30,476,000	0.819	0.0239	13.82	0.403	728,600	12,282,800
Probable	18,861,800	20,748,000	0.535	0.0156	11.69	0.341	323,800	7,075,800
Total & Average	46,567,300	51,224,000	0.703	0.0205	12.96	0.378	1,052,400	19,358,600

Allowance has been made for ore loss and dilution in determining the detailed mining schedule. Dilution has been assigned a zero grade for calculation of reserves. The planned average ore mining rate is 4.1 million tonnes per year (4.5 million tons per year) once in full production with an average stripping ratio of 2.12:1 and this includes the waste rock mined during the pre-production period.

Only approximately 50% of the mineral resource estimates have been included in the planned open pit, heap leach operation and the potential for an extended operation remains good.

The Company and its consulting engineers are revising the feasibility study and cost estimates to bring the information current.

The Company will need significant additional financing to develop a mine on the property once a production decision is made. Capital costs for mining projects have increased in recent years and the Company is currently re-estimating both capital and operating costs.

The Company completed an Application for a revised Surface Mining and Reclamation Plan in April 2007. The Kern County Planning Department determined that changes proposed for the Project since the Conditional Use Permits were issued in 1997 constituted new information that required evaluation of potential impacts in a Supplemental Environmental Impact Report ("SEIR"). The draft Supplemental Environmental Impact Report was completed and distributed in January 2010. The Kern County Planning Commission unanimously approved the Project.

The Lahontan Regional Water Quality Control Board (the "Board") unanimously approved Waste Discharge Requirements and a Monitoring and Reporting Program (the "WDRs") for the Project on July 14, 2010. The Board recommended adopting an order approving the WDRs, and the order was subsequently signed by the Executive Officer of the Board and is now in effect. The order approving the WDRs is a critical authorization for the construction and operation of, and establishes the discharge and monitoring standards for, the heap leach pads, waste rock stockpiles and other activities that have the potential to affect surface and groundwater.

The company concluded a non-brokered private placement with Gammon Gold Inc. on May 28, 2010 and this closed on June 1, 2010. Gammon Gold Inc. acquired 5,000,000 units of the Company at a price of $1.60 per unit for total proceeds of $8,000,000. Each unit consists of one common share, one quarter of one Class A Warrant, and one quarter of one Class B Warrant. Each Class A Warrant entitles Gammon Gold to purchase a common share of Golden Queen at a price of $1.75 for a period of 18 months from the closing date. Each Class B Warrant entitles Gammon Gold to purchase one common share of Golden Queen at a price of $2.00 for a period of 18 months from the closing date.
Subject to certain conditions, Gammon Gold was granted the right to participate in future financings to maintain its equity position in the Company.

Proceeds from the private placement will be used for expenses associated with the ongoing development of the Project and for general working capital.

The production and sale of aggregate and construction materials is expected to commence fairly early in the mine life and continue for up to 30 years or until the stockpile of quality waste rock has been exhausted.

MANAGEMENT

Officers and Directors

Edward G. Thompson, Chairman of the Board
H. Lutz Klingmann, President and Director
Chester Shynkaryk, Secretary and Director
Gordon Gutrath, Director
Thomas Clay, Director

NEWS UPDATE

On October 21, 2010, Golden Queen Mining Co. Ltd. announced that it has initiated a drill program on its Soledad Mountain property. A total of 15 holes are proposed within the northwest open pit area with a total length of 1,500 metres.

On July 16, 2010, Golden Queen Mining Co. Ltd. announced that on July 14, 2010, the Lahontan Regional Water Quality Control Board (the "Board") unanimously approved Waste Discharge Requirements and a Monitoring and Reporting Program (the "WDRs") for the Soledad Mountain Project. The Board recommended adopting an order approving the WDR's. The order approving the WDRs is a critical authorization for the construction and operation of, and establishes the discharge and monitoring standards for, the heap leach pads, rock stockpiles and other activities that have the potential to affect surface and ground water.