QGX Ltd.

QGX Ltd.

February 28, 2005 09:00 ET

Independent Resource Estimate for Golden Hills, Mongolia Represents a Major Milestone for QGX


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QGX LTD.

TSX SYMBOL: QGX

FEBRUARY 28, 2005 - 09:00 ET

Independent Resource Estimate for Golden Hills,
Mongolia Represents a Major Milestone for QGX

WATERDOWN, ONTARIO--(CCNMatthews - Feb. 28, 2005) - QGX Ltd. (TSX:QGX) -

Measured + Indicated: In-situ Metal Value of US$734.4 million 1,708,000
Gold Equivalent Ounces

Inferred: In-situ Metal Value of US$694.4 million 1,615,000 Gold
Equivalent Ounces

QGX Ltd. (TSX:QGX) is pleased to announce the completion of an
independent NI 43-101 compliant mineral resource estimate for the
Central Valley Zone (CVZ) at the Golden Hills project in western
Mongolia. The estimate was prepared by Chlumsky Armbrust & Meyer L.L.C.,
("CAM"), of Denver, Colorado.

Significant conclusions of the CAM report include:

1) The CVZ Massive Sulphide contains an estimated resource totaling:

- Measured and Indicated: 10.16 million tonnes grading 1.72 % copper,
0.39 g/t gold and 5.4 g/t silver.

- Inferred: 9.50 million tonnes grading 1.29 % copper, 0.33 g/t gold and
4.5 g/t silver.

- 0.80% copper cutoff applied

2) The CVZ Oxide contains an estimated resource totaling:

- Measured and Indicated: 3.1 million tonnes grading 2.83 g/t gold and
18.9 g/t silver, .

- Inferred: 1.75 million tonnes grading 2.72 g/t gold and 19.5 g/t
silver.

- 1.0 g/t gold cutoff applied.

3) The CVZ High-Grade Quartz-Telluride contains an estimated resource
totaling:

- Inferred: 696,000 tonnes grading 19.63 g/t gold and 35.0 g/t silver.

- 3.0 g/t gold cutoff applied.

4) Total contained metal and in-situ metal value, as calculated by QGX,
at the above cutoffs::

- Measured and Indicated: 1,708,000 gold equivalent ounces (In-situ
metal value: US$734.4 million)

- Inferred: 1,615,000 gold equivalent ounces (In-situ metal value:
US$694.4 million)

Based on the positive results of this resource estimation, CAM
recommends that QGX carry out further drilling, metallurgical, mining
and geotechnical studies at Golden Hills in order to advance the project.

David Anderson, Chief Executive Officer of QGX Ltd., commented as
follows:

"The Central Valley Zone at Golden Hills represents a major discovery in
Mongolia and serves to confirm the untapped mineral potential of the
country. Based on third-party forecast 2005 average metal prices, the
in-situ metal value contained in the measured and indicated categories
is over US$730 million with another US$690 million contained in the
inferred category. This represents a major step forward for QGX. In less
than two and a half years, Golden Hills has advanced from a grassroots
exploration prospect into a significant mineral resource."

The CVZ contains three ore types; oxide, high-grade quartz-telluride
(HGQT) veins and massive sulphide. The oxide extends from the surface to
50-70 m depth and represents the weathered portion of the massive
sulphide body that occurs at depth. Gold in oxide is hosted in gossan,
gossanous schist and dykes. The massive sulphide occurs below the base
of oxidation in three discrete bodies: the Upper and Lower North Zone
massive sulphide lenses (which remain open at depth) and the 65 Lens
(South Zone). The HGQT vein zones occur mostly along the margins of the
two North Zone massive sulphide lenses (see QGX press release of October
14, 2004).



Table 1. Tabulation of Mineral Resources
------------------------------------------------------------------------
Resource Cutoff Tonnes Grade
Classification Grade
Au
Au Cu Au Ag Cu Eq.
(g/t) (%) (g/t) (g/t) (%) (g/t)
------------------------------------------------------------------------
Massive Sulphide
Measured 0.8 1,024,000 0.39 5.5 1.86 4.60
Indicated 0.8 9,140,000 0.39 5.3 1.70 4.24
Total 0.8 10,164,000 0.39 5.4 1.72 4.28
Inferred 0.8 9,499,000 0.33 4.5 1.29 3.26

Oxide (gossan)
Measured 1.0 474,000 3.10 19.0 - 3.38
Indicated 1.0 2,624,000 2.78 18.9 - 3.06
Total 1.0 3,098,000 2.83 18.9 - 3.11
Inferred 1.0 1,752,000 2.72 19.5 - 3.01

HGQT Veins
Inferred 3.0 696,000 19.63 35.0 - 20.15

------------------------------------------------------------------------
Contained Metal in Measured + Indicated Resources
Contained Metal in Inferred Resources
------------------------------------------------------------------------


------------------------------------------------------------------------
Resource Contained Metal
Classification
Gold Silver Copper Gold Eq.
(ounces) (ounces) (lbs) (ounces)
------------------------------------------------------------------------
Massive Sulphide
Measured 12,890 182,578 42,057,816 151,549
Indicated 114,225 1,567,061 343,286,203 1,247,132
Total 127,115 1,749,638 385,344,018 1,398,681
Inferred 100,624 1,388,601 270,195,335 994,617

Oxide (gossan)
Measured 47,273 289,550 - 51,562
Indicated 234,193 1,594,471 - 257,814
Total 281,466 1,884,021 - 309,376
Inferred 153,156 1,098,398 - 169,428

HGQT Veins
Inferred 439,304 783,192 - 450,906

------------------------------------------------------------------------
Contained Metal in
Measured +
Indicated Resources 408,581 3,633,659 385,344,018 1,708,057
Contained Metal in
Inferred Resources 693,084 3,270,191 270,195,335 1,614,951
------------------------------------------------------------------------



Table 2. Tabulation of Grade-Tonnage Massive Sulphide and Oxide.
------------------------------------------------------------------------
Resource Cutoff Grade
Classification Grade

Au Cu Tonnes Au Ag Cu
(g/t) (%) (g/t) (g/t) (%)
------------------------------------------------------------------------
Massive Sulphide
Measured + Indicated 1.00 8,500,000 0.41 5.7 1.89
Measured + Indicated 0.90 9,349,000 0.40 5.5 1.80
Measured + Indicated 0.80 10,164,000 0.39 5.4 1.72
Measured + Indicated 0.70 10,880,000 0.38 5.2 1.66
Measured + Indicated 0.60 11,386,000 0.38 5.1 1.61
Measured + Indicated 0.50 11,587,000 0.38 5.1 1.60

Inferred 1.00 6,290,000 0.31 5.1 1.50
Inferred 0.90 7,309,000 0.31 5.0 1.43
Inferred 0.80 9,499,000 0.33 4.5 1.29
Inferred 0.70 10,278,000 0.32 4.5 1.25
Inferred 0.60 10,922,000 0.32 4.4 1.21
Inferred 0.50 11,132,000 0.32 4.4 1.20

Oxide (gossan)
Measured + Indicated 2.00 1,675,000 3.94 23.8 -
Measured + Indicated 1.50 2,409,000 3.27 20.9 -
Measured + Indicated 1.00 3,098,000 2.83 18.9 -
Measured + Indicated 0.50 3,432,000 2.63 18.1 -

Inferred 2.00 875,000 3.99 27.2 -
Inferred 1.50 1,268,000 3.28 22.9 -
Inferred 1.00 1,752,000 2.72 19.5 -
Inferred 0.50 1,914,000 2.56 18.7 -
------------------------------------------------------------------------


------------------------------------------------------------------------
Resource Contained Metal
Classification
Gold Silver Copper
(ounces) (ounces) (lbs)
------------------------------------------------------------------------
Massive Sulphide
Measured + Indicated 111,043 1,562,464 353,505,185
Measured + Indicated 119,003 1,666,607 370,778,887
Measured + Indicated 127,115 1,749,638 385,344,018
Measured + Indicated 133,329 1,826,833 397,572,714
Measured + Indicated 137,815 1,877,879 404,979,288
Measured + Indicated 139,748 1,896,337 408,114,009

Inferred 62,394 1,036,456 208,242,989
Inferred 73,661 1,167,831 229,872,981
Inferred 100,624 1,388,601 270,195,335
Inferred 106,905 1,484,618 283,384,134
Inferred 111,265 1,557,012 291,737,584
Inferred 112,897 1,565,643 293,768,902

Oxide (gossan)
Measured + Indicated 212,444 1,281,175 -
Measured + Indicated 253,204 1,616,723 -
Measured + Indicated 281,466 1,884,021 -
Measured + Indicated 290,212 2,001,333 -

Inferred 112,134 765,188 -
Inferred 133,594 933,568 -
Inferred 153,156 1,098,398 -
Inferred 157,349 1,150,733 -
------------------------------------------------------------------------


The footnotes below apply to all tables in this press release.

1) The resources reported above for the CVZ were estimated by CAM in
February 2005 and are based on 109 diamond drill holes spaced at
approximately 50-100 m.

2) Gold equivalent grades were calculated by QGX and are based upon the
forecast 2005 average metal prices as published in the BMO Nesbitt Burns
Research Red Book, Second Quarter 2005. These prices are US$430/oz for
gold, US$6.37/oz for silver and US$1.39/lb for copper. Gold equivalent
values are calculated as follows; In-situ ounces of silver are
multiplied by US$6.37 and divided by US$430 and then added to the
in-situ ounces of gold. In-situ pounds of copper (massive sulphide only)
are multiplied by US$1.39 and divided by US$430 and then added to the
in-situ ounces of gold + silver equivalent. Total gold+silver+copper
equivalent ounces are multiplied by 31.104 (grams per ounce) and then
divided by the tonnage to obtain equivalent gold grade (g/t).

3) The contained gold, silver and copper represent estimated contained
metal in the ground and have not been adjusted for mine dilution or the
metallurgical recoveries of gold, silver and copper. The determination
of an adjustment factor for mining will depend upon mining method and
determination of metallurgical recoveries will depend upon the
completion of further metallurgical test work.

4) Resource classification conforms to CIM Standards on Mineral
Resources and Reserves referred to in National Instrument 43-101.

QGX can earn an 80% interest in the Central Valley Zone licenses by
expending US$450,000 on the property by July 1, 2005. QGX can increase
its interest to 100% by making a payment of US$1,000,000 after
completion of the earn-in.

Robert L. Sandefur P.E., Senior Geostatistician with Chlumsky Armbrust &
Meyer L.L.C., ("CAM"), of Denver, Colorado, a Qualified Person as
defined by National Instrument 43-101, carried out the resource estimate
summarized in this press release. Patrick Redmond, Chief Geologist of
QGX Ltd. is the Qualified Person, as defined by NI 43-10, who has
reviewed and approved the information contained in this release on
behalf of QGX. SGS Mongolia prepared the split core samples in
Ulaanbaatar, Mongolia. Activation Labs (Actlabs) in Tucson, Arizona,
performed all copper, gold, and silver assays. QGX maintains a QA-QC
program designed by AMEC in the preparation, shipping and checking of
all samples from the property.

QGX is a Canadian-based company that has been exploring for mineral
deposits in Mongolia since 1994. The Company holds a large area of
exploration licenses throughout Mongolia and is currently conducting
drill programs on two targets (Golden Hills and Shuteen). QGX also has a
carried interest through to production in two advanced exploration
prospects in the south Gobi desert of Mongolia (Kharmagtai -10% and
Ovoot Hyar - 20%) that are being explored by Ivanhoe Mines Ltd. Barrick
Gold Corp. holds a 9.5% equity interest in QGX as part of a strategic
relationship between the companies.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    QGX Ltd.
    David Anderson
    CEO
    (905) 689-9442
    or
    QGX Ltd.
    Paul Zweng
    COO
    (925)-855-0505
    www.qgxgold.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.