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Overview

Golden Queen Mining Co. Ltd.

Golden Queen Mining Co. Ltd. is listed on the Toronto Stock Exchange (TSX-GQM).

The Soledad Mountain Project

The Company presented the results of the updated feasibility study and economic analysis for its Soledad Mountain Project in a news release on April 6, 2011. The updated feasibility study and economic analysis was prepared by Norwest Corporation with input from independent consulting engineers and management.

High Points

· A projected, all-inclusive, average cash cost per ounce of gold produced net of silver credits of $133/oz. Silver credits are based on $39.63/oz of silver.

· Major approvals and permits have been secured.

· Estimated development costs, net of lease financing of the mining equipment but including working capital, are $88.9million.

· The Project is serviced by existing infrastructure, accessible by state highway, and proximate to a local experienced workforce and housing.

· A relatively low waste to ore mining ratio of 1.85:1.

Cash Flow Analyses

The cash flow analyses in the updated feasibility study were done on a constant dollar, pre-tax, all-equity basis. The study provides the following economic estimates for the Project:

The Project has an indicated internal rate of return ("IRR") on capital employed of 83.7%. The net present value ("NPV") is $722million with a discount rate of 8.0% and the undiscounted, cumulative net cash flow is approximately $1.16billion. The indicated contribution of gold and silver to gross revenues is 77% and 23% respectively at current gold and silver prices with an all-inclusive, average cash cost per ounce of gold produced, net of silver credits, of $133/oz. Gold and silver prices used to model the cash flows were $1,457.00 and $39.63 respectively, the London a.m. fix for precious metals on April 6, 2011.

If gold and silver prices are reduced by 10% from current levels, the indicated IRR is 74.1%, the NPV is $579million with a discount rate of 8% and the undiscounted, cumulative net cash flow is $996million. The all-inclusive, average cash cost per ounce of gold produced, net of silver credits, increases from $133/oz to $157/oz at these lower gold and silver prices.

When trailing 36-month average gold and silver prices of $1061.25/oz and $17.78/oz respectively to the end of March 2011 are used to model the cash flows, the indicated IRR is 51.6% before taxes, the NPV is $343million with a discount rate of 8% and the undiscounted, cumulative net cash flow is $617million. The all-inclusive, average cash cost per ounce of gold produced, net of silver credits, increases further to $313/oz. The trailing 36-month average precious metals prices are accepted by the U.S. Securities And Exchange Commission when reporting mineral reserves.

Overview

The Company plans to develop a gold-silver, open pit, heap leach operation on its Soledad Mountain property, located just outside the town of Mojave in Kern County in southern California. The Project will use conventional open pit mining methods and the cyanide heap leach and Merrill-Crowe processes to recover gold and silver from crushed, agglomerated ore. The planned, average ore and waste mining rates are 4.9million tons and 9.1million tons per year with a waste to ore mining ratio of 1.85:1 for a combined mining rate of ore and waste of 14million tons per year. Gold and silver production is projected to average 75,000oz and 950,000oz respectively per year although this is expected to fluctuate considerably from year to year depending upon the ore head grades. Gold and silver production is projected to be 936,332oz of gold and 10,426,654oz of silver over a period of approximately 13 years.

The Company is proceeding with or has completed detailed engineering designs for each of the key facilities to be constructed.

Capital Requirements

The Company will need significant additional financing to develop a mine on the property once a production decision is made. The Company believes that financing for the Project can be secured if gold and silver remain at or near to the levels used for the updated cash flow analyses. Refer to Cash Flow Analyses above. Gold and silver prices averaged $1,224.53/oz and $20.19/oz in 2010 and the London pm fix closing prices on May 13, 2011 were $1505.75/oz and $36.20/oz respectively.

Permitting Update

A detailed review of approvals and permits required for the Project is provided in the Company’s latest Form 10-K filing with the SEC. The following is therefore only a brief update.

Land Use - Conditional Use Permits

The Kern County Planning Commission unanimously approved the Project at its regularly scheduled meeting in Bakersfield on April 8, 2010. All appeals that were subsequently filed against the Commission’s decision have been withdrawn and the decision made by the Planning Commission is now final. The Planning Commission approved minor wording changes to the Conditions of Approval on October 28, 2010.

The State of California introduced backfilling requirements for certain types of open pit metal mines in December 2002. Norwest Corporation prepared a life-of-mine waste rock management plan and this plan incorporates sequential backfilling of mined-out phases of the open pit with limited double-handling of waste rock at the end of the mine life. This plan was incorporated in the Planning Commission approvals. The Company completed a key submission and presented this to the Kern County Planning and Community Development Department on December ---, 2011, demonstrating ultimate disposition of leached and rinsed residues from the heap leach operation consistent with performance standards in applicable regulations.

The Bureau of Land Management confirmed that its Record of Decision approving the Plan of Operations under NEPA in November 1997 remains valid.

Water Quality – Waste Discharge Requirements

The Lahontan Regional Water Quality Control Board (the "Board") unanimously approved Waste Discharge Requirements and a Monitoring and Reporting Program for the Project at a public hearing held in South Lake Tahoe on July 14, 2010. The Board order was subsequently signed by the Executive Officer of the Board and is now in effect.

Air Quality – Authority to Construct and Permit to Operate

The Air Quality and Health Risk Assessment for the Project was completed and submitted to the Planning Department and the Eastern Kern Air Pollution Control District ("EKAPCD") on July 21, 2009. This report was approved by Kern County Planning Commission on April 8, 2010, as part of the certification of the Supplemental Environmental Impact Report.

The draft Authority to Construct permits were received in September 2011. The Company’s consulting engineers have completed their review of the draft permits and these will be returned to EKAPCD after review by the Company’s legal counsel. It is now expected that the Authority to Construct permits will be issued in early 2012.

The Authority to Construct permits will be converted to a Permit to Operate after construction has been completed and subject to inspection by EKAPCD.

Mineral Resource and Mineral Reserve Estimates

The Company announced that it had initiated an infill drill program in a news release on October 21, 2010. The drill was mobilized in April 2011 and drilling was completed in May 2011. A total of 20 drill holes (6,288 feet/1,917 m) was completed in the program.

The drill program was designed to test targets within the areas of the planned North-West and East open pits. Nine holes were drilled in the area of the North-West open pit with a total length of 2,020 feet/616 m. The North-West open pit is the planned location of the first phase of mining. A total of 11 holes were drilled in the area of the East open pit with a total length of 4,268 feet/1,301 m. Key program objectives were to support potential reclassification of inferred material to higher confidence mineral resource categories, and eventually to mineral reserves, to continue to test continuity of mineralization, and provide data for road alignment and road construction purposes.

AMEC E&C Services based in Sparks, Nevada, is integrating the results from the infill drill program into an updated Mineral Resource estimate. The estimate is likely to be different from previous estimates, because the update will use a lower gold-equivalent cut-off grade and current gold and silver prices, operating cost estimates, and process recoveries for gold and silver. The previous estimate was based on gold and silver prices and technical parameters from the late 1990s. AMEC has completed the modeling and an updated Mineral Resource estimate is expected in late December 2011. An NI 43-101 compliant Technical Report is being prepared to support the Mineral Resource estimate.

Norwest Corporation will use the information provided by AMEC to update the Mineral Reserve estimate for the Project and this will be supported with a NI 43-101 compliant Technical Report.

Exercise of Warrants

The Company is pleased to report that warrants have been exercised to acquire 1,250,000 common shares of the Company at an exercise price of C$1.75 and 1,250,000 common shares of the Company at an exercise price of C$2.00 for total proceeds to the Company of C$4,687,500. The proceeds from the exercise of the warrants will be applied towards ongoing operations and general working capital.

A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

Other

The production and sale of aggregate and construction materials is expected to commence fairly early in the mine life. The Company also plans to process and sell leached and rinsed residues from the heap leach operation for a range of uses to local and regional markets. It is intended that these products will be sold over an extended mine life of 30 years as more fully described under the heading – AGGREGATE.

A technical update with information on recoveries for gold and silver obtained in the column leach tests is available under the heading - TECHNICAL.

Environmental issues are described and the status of approvals and permits is summarized under the heading – ENVIRONMENTAL.

Mr. H. Lutz Klingmann, P.Eng., the president of the Company, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical information of this website.

Further information on Golden Queen Mining Co. Ltd. is available on the SEDAR web site at www.sedar.com.

last updated: December 29, 2011