Golden Queen Mining Co. Ltd. announce that it has entered into an agreement to secure a $10,000,000 loan. The proceeds of the Loan will be applied to the ongoing development of the Soledad Mountain Project.

The Loan will allow the Company to commit to long lead-time items required for the crushing-screening plant and commence its Phase 2 construction program. This will permit the Project to stay on schedule with a target for the start of commissioning of the Merrill-Crowe plant during the second quarter of 2015. The Loan will be provided by members of the Clay family including $7.5 million to be provided by an investment vehicle managed by Thomas M. Clay, a Director and insider of the Company.

The Loan has a twelve-month term and bears an annual interest rate of 5%, payable on the maturity date. If the Loan is repaid on a date that is less than 183 days before the maturity date, the Company will pay the Lenders an amount of 105% of the principal amount plus interest on the principal amount at the rate of 5% per annum accrued to the date the Loan is repaid. The Phase 2 construction is scheduled to begin in January 2014, and will run concurrently with Phase 1 construction, which is expected to be completed in February.

The Phase 2 construction includes construction of the workshop-warehouse, a wash slab for washing earthmoving equipment and the assay laboratory. These facilities will be required to support pre-production mining. The Company is also planning to complete site preparation of the area where the crushing-screening plant and the Merrill-Crowe plant will be constructed with scheduled completion in the first quarter of 2014.