Q-Gold Resources Ltd.

Q-Gold Resources Ltd.

June 11, 2009 14:49 ET

Q-Gold Announces Crown King, Arizona Gold Assays

FORT FRANCES, ONTARIO--(Marketwire - June 11, 2009) - Q-Gold Resources Ltd. (TSX VENTURE:QAU) (FRANKFURT:QX9) (http://www.qgoldresources.com) is pleased to announce that it has executed a Mineral Processing Agreement with private parties entitling the Corporation to the exclusive right to process an estimated 100,000+ tons of stacked surface material which emanated from the historic Crown King Gold/ Silver Mine in the Bradshaw Mountains of Yavapai County, Arizona (the "Deposit").

According to historical reports, the Crown King Mine was one of the richest of over 2,000 gold and silver mines that existed in the Bradshaws from 1870 to 1912, when World War I terminated most mining activities. By 1920, over 400 million Dollars worth of gold and silver bullion reportedly had been shipped from Crown King (with gold value at $20.67/ ounce and silver at $1.08/ ounce). Although early production records are difficult to obtain (Arizona only became a U.S. state in 1912), U.S. Geological Survey Bulletin 782, Ore Deposits of the Jerome and Bradshaw Mountains Quadrangles, Arizona (1926), Waldemar Lingren, Author, on p. 168, contains the following quotation: "The Crown King group of eight claims, which has yielded a higher (bullion) production than any other deposit in the (Pine Grove) District. The figure given is $1,200,000". In 1904, a narrow gauge railroad was completed to permit shipment of Crown King ore and concentrates from the mountains to the valley below for processing. This data is not compliant with the requirements of NI 43-101 and is therefore unreliable. As a result, no verifiable ore reserve or mineral resource estimates can be provided for the properties at this time.

Q-Gold's agreement, in return for a cash payment to owners, allows the Corporation to process all mineral materials in the Deposit, which is located on the "Buckeye" Federal Patent that contains the original 1870 gold/ silver discovery shaft at Crown King. The agreement contains a primary processing term of 15 years and one 5-year extension by paying owners five annual advance royalty payments of $25,000 each, which are deductible against a future 1 ½% net smelter return production royalty, one-half of which is purchasable by Q-Gold for US$ 500,000.

Q-Gold has initiated a trenching and drilling program to test the Deposit. Results from composite vertical channel samples taken on 8 trenches recently dug with a backhoe in the Deposit averaged 7.00 Au grams/ tonne (g/t) and 31.23 Ag g/t, and are detailed as follows. In addition a grab sample from the surface of trench 8 was assayed. Results are as follows:

 Trench #

   Sample Depth (feet)

   Sample Weight (kg)

     Au (g/t)

     Ag (g/t)

 1    5    1.67      0.883      9.100
 2    4    1.76      1.945      20.800
 3    6    1.98      0.928      8.000
 4    7    1.98      0.816      11.300
 5    6    2.03      0.369      7.400
 6    5    1.39      45.300*      61.000
 7    8    1.81      2.390      30.200
 8    3    2.55      3.370      102.000**
 8    (grab sample)    0.86      30.700*      404.000**

Assays were performed and reported by ALS Chemex, ALS USA Inc. The analytical method performed on the Au samples was "FA & ICP AES Fin" and "Ore Gr Elements – Aqua Regia" for Ag samples, except for the samples noted as follows:

* "FA & Grav Fin"
** "35 Elem Aqua Regia ICP-AES"

Art Smith, Geo., consulting geologist and a "qualified person" under NI 43-101, supervised the trenching, sampling and assaying program detailed above and has reviewed and approved the technical content of this portion of this press release.

The Corporation is currently participating in a drilling and sampling program, which will determine average depth and grade of the Deposit, and provide composite samples for further metallurgical analysis and process evaluation.

Q-Gold also announced that, in addition to the ten (Federal) patented mining claims and three U.S. Bureau of Land Management ("BLM") mining claims it optioned last year (see press release dated March 26, 2008), the Corporation, it has acquired options on 3 additional patents at Crown King as well as 3 BLM mining claims in the Pine Grove and Tiger Mining Districts of Yavapai County. The Corporation now holds options on 13 patents and 6 BLM mining claims. Seven historical gold and silver mines are now included in the Company's optioned properties in Crown King's principal historical gold and silver producing units, the "Crown King", "Tiger", "Grey Eagle" and "War Eagle" quartz veins.

In view of the favourable outlook for precious metals prices, Q-Gold intends to focus its attention to existing mines with near-term development potential contained within its gold and silver properties at Mine Centre, Ontario and Crown King, Arizona, while holding its remaining Arizona copper properties for an improvement in the price of copper as the world's economies recover. The Corporation therefore announced that, in conjunction with a mid-year exploration review of its Arizona properties and in view of the dramatic reduction in the copper price over the past year, it has dropped its option on the "Courtland East" coppery porphyry prospect in Cochise County, Arizona (see press release dated October 23, 2008) and renegotiated its package of three Arizona copper prospects (see press releases dated May 27 and August 26, 2008) to obtain more favourable purchase option terms.

At Mine Centre, Ontario, after reviewing its exploratory holdings, the Corporation sold the Iron Ridge (Titano-magnetite) Prospect containing 5 Crown mining claims totalling 1,520 acres, to a private party for cash.

Q-Gold also announced the resignation of Mark Greasley as Director of the Corporation.

About Q-Gold Resources Ltd .
Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals and platinum group elements on its extensive Ontario holdings in the historic Gold Camp at Mine Centre of 32,585 acres, including 5 historic gold mines. It also has options on 4,796 exploratory acres in the Rainy River Greenstone Belt. In addition, the Corporation holds options on six historic gold and silver mines near Crown King, Arizona and four prospective copper porphyries and one copper / zinc prospect in Arizona.

For all future Q-Gold investor relations needs, investors are asked to visit the Q-Gold IR Hub at http://www.agoracom.com/IR/Q-Gold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to email all questions and correspondence to QAU@agoracom.com where they can also request addition to the investor email list to receive all future press releases and updates in real time.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially form the Company's expectations and projections.

SEC 12g 3-2(b) Exemption # 82-4931

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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