Mr. Lutz Klingmann reports

GOLDEN QUEEN COMPLETES $10 MILLION PRIVATE PLACEMENT

Further to its news release dated July 25, 2013, Golden Queen Mining Co. Ltd. has completed the private placement of convertible debentures for total proceeds of $10-million. The convertible debentures are unsecured and bear interest at 2 per cent per year, payable annually. The principal amounts of the convertible debentures are convertible into shares of the company at a price of $1.03 per share for a period of two years. If the convertible debentures have not been converted by the holder prior to the maturity date, then the company or the holder may convert them at the lower of $1.03 or the market price as at the maturity date. The market price on the maturity date will be determined based on the volume-weighted average price of the shares as traded on the Toronto Stock Exchange for the five trading days preceding the maturity date. Of the convertible debentures, $7.5-million was acquired by an investment vehicle managed by Thomas M. Clay, a director and insider of the company.

The proceeds of the offering are allocated exclusively to the advancement of the company's Soledad Mountain project, including toward financing initial project construction requirements that are currently continuing. No finders' fees or commissions were paid in connection with the private placement.