QUEENSTAKE RESOURCES LTD.

SEC file number 0-24096 TSE SYMBOL: QTR NOVEMBER 26, 1998 Queenstake Drilling Begins on Uchcumachay Gold Property, Peru; Quebrada Grande Results, Chile VANCOUVER, BRITISH COLUMBIA-Uchcumachay, Peru Barrick Gold Corporation has begun drilling on the Company's 100 percent owned Uchcumachay property in west central Peru. A 3000-meter drill program is planned as an initial test of altered, mineralized and geochemically anomalous epithermal gold targets in rocks of the same age as Barrick's Pierina mine 130 kilometers to the north. Pierina is a plus 7 million ounce gold deposit where production will begin late this year. Annual production for the first three years is expected to be 750,000 ounces of gold, at U.S.$50 per ounce. The 6,100 hectare Uchcumachay property is located in Ancash Province about 200 kilometers north of Lima. Alteration in volcanic rocks was identified by processing Landsat Thematic Mapping satellite imagery and was the basis for acquiring 2,400 hectares of mineral in 1994. An additional 3,700 hectares of surrounding property was acquired in 1996. Surface reconnaissance mapping in 1995 and 1996 confirmed the existence of strongly altered Lower Tertiary volcanic rocks, indicative of a high sulfidation gold system. Detailed mapping and sampling in 1997 and 1998 defined drill targets based on structure, alteration and gold and related element geochemical anomalies. A joint venture with Barrick, signed in May 1998, includes a commitment to drill a minimum of 1,000 meters during the first year. Uchcumachay is underlain by volcanic rocks of the Calipuy formation, the same as that found at Barrick's Pierina orebody and equivalent to Newmont's Yanacocha operation in the Cajamarca Province in Northern Peru. Andesitic porphyries, breccias, flows, tuffs and intrusives have been mapped in a setting of calderas and resurgent domes. Structural breaks, trending northeast and northwest, are related to caldera edges, and are the primary focus of high sulfidation epithermal alteration and mineralization. Alteration ranges from weak propylitic on the fringes of the system, through argillic with limonite and partially oxidized pyrite, into a central corridor of moderate to strong vuggy silica in hydrothermal breccia. Multi-spectral analysis of samples from the target areas identified alunite, dickite and pyrophylite in the most intensely silicified breccia. Alteration zones, along with geochemically anomalous gold, define the drill targets.

Channel rock samples in the target zones outline gold anomalies correlative with most intensely altered rocks. Ninety-two samples from the primary targets average 0.25 grams per tonne ("gpt") gold and range from .05 to 1.6 gpt gold. Barrick plans an initial drill program of 3,000 meters in 10 reverse circulation holes. Based upon results, the initial drilling may be followed by 8 additional holes. Sites for all 18 holes have been pre-selected based on alteration, geochemistry and structure. Drill results will be released after logging and receipt of assays, possibly within 3 to 4 weeks. The targets at Uchcumachay are a series of gold deposits related to structure and volcanic statigraphy: multi-million ounce deposits mineable by open pit methods. The Barrick-Queenstake joint venture agreement, signed on May 28,1998, requires Barrick to spend a total of U.S.$2,500,000 by June 1, 2001, for Barrick to earn a 51 percent interest in the Uchcumachay property. A first year expenditure of U.S.$500,000 includes the requirement to drill at least 1,000 meters. Following completion of Barrick's earn-in, the terms are essentially the same as for the agreement between the Company and Barrick on Queenstake's North Ancash group of 24,000 hectares of mineral properties and the agreement on the South Ancash group of 19,500 hectares of mineral properties Barrick holds under option. In all cases, each party will have the option to fund its share of ongoing programs or dilute its interest to 30 percent, where if the program continues, the diluting party will be carried by the non-diluting party through to a positive decision to mine. If Barrick holds the majority interest at the time a decision to mine is made, with respect to a project, then Queenstake will have the option to require Barrick to finance its share of development costs at prime plus 3 percent. Quebrada Grande, Chile In late September, Queenstake drilled one hole on its 100 percent owned Quebrada Grande, Chile property. The hole intersected post mineral volcanic rocks and gravel to a depth of 342 meters where it bottomed in modestly altered sandy limestone to a depth of 354 meters. No sulfides or anomalous mineralization was noted in basement rocks, so the Induced Polarization ("IP") geophysical anomaly and the enzyme leach geochemical anomalies have not yet been explained. A thorough review of geological, geophysical, and geochemical data is underway to determine what follow-up steps should be taken at Quebrada Grande. It is probable that additional geophysics will be recommended to decipher the very complex faulted area at and near the drill target, and also to further define a stronger IP anomaly 3 kilometers to the west. The location and size of the Quebrada Grande project, on the porphyry copper trend and 20,600 hectares, make it a prime candidate for a more extensive reconnaissance drilling program than Queenstake is prepared to undertake at this time.

Discussions are underway with a number of interested major base metals companies interested in acquiring a joint venture interest.

In addition to the Uchcumachy and Quebrada Grande projects, Queenstake has a drill program underway at its 60 percent owned Guinoloza project in Mexico and Newcrest has a drill program underway on Queenstake's Pico Machay project in the Huancavelica area of Peru. Queenstake is listed on the Toronto Stock Exchange (QTR), with 38,410,879 shares outstanding. The Company's mission is to discover significant precious and/or base metal deposits through exploration in selected Latin American countries. During this difficult market period, conserving cash is critical, so the Company has and will continue to seek out substantial Joint Venture partners to conduct expensive drilling and follow-up programs on its projects. The Company has over C$8,700,000 in cash and can survive for more than 3 years at anticipated spending rates without seeking additional financing. We take this opportunity to inform shareholders and interested parties that we are the only reliable source of information for Queenstake Resources Ltd. James Mancuso President and Chief Executive Officer -30FOR FURTHER INFORMATION PLEASE CONTACT: Queenstake Resources Ltd. Doris Meyer Vice President Finance (604) 684-1218 (604) 684-9959 (FAX) Website: www.queenstake.com Email: doris.meyer@pro.net