NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG

FOR:  QUEENSTAKE RESOURCES LTD.

TSE SYMBOL:  QRL

AND HIGH RIVER GOLD MINES LTD.

TSE SYMBOL:  HRG

DECEMBER 5, 2000 - 11:33 EST

Queenstake Resources/High River Gold: High River and
Incanore Resolve Dispute

VANCOUVER, BRITISH COLUMBIA--As a result of the resolution of 
their dispute, High River Gold Mines Ltd. has withdrawn its 
objection to the sale of Incanore Gold Mines Ltd. to Queenstake 
Resources Ltd. 

As previously reported, Incanore is an exploration company active 
in Burkina Faso, West Africa.  Incanore's assets include an 18.5% 
joint venture interest in the Taparko gold property, its partners 
being High River, the operator and holder of a 61.5% interest and 
the Burkina Faso government, which holds a 20% interest.  Pursuant
to a letter agreement dated August 2, 2000, Queenstake has 
undertaken to acquire all of the shares of Incanore for 
consideration of 7,600,000 shares of Queenstake (the 
"Acquisition").  In an associated transaction the Canadian 
Imperial Bank of Commerce undertook a concurrent $1 million 
financing of Queenstake consisting of 5,405,405 Special Warrants 
of Queenstake at a price of $0.185 per Special Warrant (the 
"Financing"). 

To achieve the objectives of all parties, Incanore, with 
Queenstake's agreement, has granted High River an option to 
purchase its 18.5% interest in Taparko for Cdn $1.4 million.  The 
option will expire on the earlier of the third anniversary of the 
closing of the Acquisition or the date High River begins 
construction of a production facility at Taparko.  During the 
option period High River will meet 100% of the funding 
requirements of the Taparko joint venture.  Any funds expended 
during the option period by High River will be added to the 
initial joint venture earn-in expenditures, which High River is 
entitled to deduct from production cash flow from Taparko.  
Incanore's outstanding cash call, which may be confirmed by audit,
but expected to be approximately Cdn $30,000, will be payable on 
December 29, 2000.  If High River elects not to exercise the 
option, cash calls will resume according to the terms of the joint
venture agreement and failure to meet current cash calls within 30
days will result in dilution of Incanore's interest. 

Providing the Acquisition completes, Chris Davie and David Mosher 
have agreed to meet on a regular basis as part of the Taparko 
joint venture review process and High River has agreed to give 
Queenstake a 30 day exclusive negotiating right with respect to 
any future initiatives regarding the development of the Taparko 
joint venture.  This resolution provides High River with 
additional incentive to increase the value of the Taparko project,
relieves Queenstake of the cash burden of maintaining its position
during the three-year option period and provides a mechanism for 
Queenstake to assist High River in the future development of 
Taparko. 

As announced by Queenstake on November 23, 2000 Queenstake closed 
into escrow the Financing with the CIBC, a 42% shareholder of 
Incanore.  The release of the Financing proceeds from escrow is 
subject only to receipt of regulatory and corporate approvals, 
including approval of The Toronto Stock Exchange and Queenstake's 
shareholders for i) the Financing, and ii) the Acquisition which 
will be sought at a special meeting to be held on December 15, 
2000. 

Chris Davie said, "Queenstake is delighted to have in this 
agreement a firm foundation for the future economic development of
Taparko.  We look forward to working with High River to optimize 
the economics of the Taparko project". 

The securities discussed in this news release have not and will 
not be registered under the United States Securities Act of 1933, 
as amended (the "1933 Act") and may not be offered or sold in the 
United States unless registered under the 1933 Act and the 
securities laws of all applicable states of the United States or 
an exemption from such registration requirements is available. 

This news release contains forward-looking statements regarding 
approval of the Acquisition and Financing agreements at a special 
meeting of shareholders to be held on December 15, 2000.  Actual 
results may differ materially from those currently anticipated in 
such statements. 

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