King-Turner and Statham lost 6-1 6-7 (4) 9-11 to tournament top seeds Andrew Coelho and Adam Feeney (Australia).
The New Zealanders earlier defeated Steven Goh and Sadik Kadir of Australia 6-7 (4) 6-0 10-8 in the semifinals.
The tournament has been part of their preparation for the Davis Cup tie against China next week in Taranaki.
In singles, Statham reached the quarter-finals, but lost to second seed Nick Lindhal of Australia 4-6 4-6.
On the women's side of the draw at Rockhampton, the round of 16 saw two Aucklanders playing each other: Sacha Jones downed Kairangi Vano 3-6 6-3 6-3, and will play Australian qualifier Sally Peers in the quarter-finals.