Q-Gold Resources Ltd.

Q-Gold Resources Ltd.

March 14, 2007 09:01 ET

Q-Gold Announces $1,250,000 Flow-Through Private Placement

FORT FRANCES, ONTARIO--(CCNMatthews - March 14, 2007) - Q-Gold Resources Ltd. (TSX VENTURE:QAU)(FRANKFURT:QX9) ("Q-Gold" or the "Corporation") is pleased to announce that it has reached an agreement to complete a non-brokered flow-through private placement of up to $1,250,000 (the "Offering").

The Offering will consist of the issuance of up to 5,000,000 units (the "Units") in the capital of Q-Gold at a price of $0.25 per Unit. Each Unit consists of one common share issued on a "flowthrough" basis (the "Flow-Through Share") and one-half of a common share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder to acquire one additional non-flowthrough common share at an exercise price of $0.35 for a period of 24 months from issuance.

Mineralfields Group ("MineralFields"), a Toronto-based mining fund, has agreed to subscribe for a minimum of $600,000 of the Offering. This transaction is the second financing that Q-Gold is completing with MineralFields, having already completed one "flow-through" private placement at a price of $0.18 per Unit for aggregate proceeds, including this financing, totaling $1,500,000 since December 2006.

Pursuant to the Offering, the Corporation has agreed to pay Limited Market Dealer Inc. ("LMDI"), a cash finder's fee equivalent to 5% of the gross proceeds of the Offering and finder's fee warrants ("Finder's Warrants") equal to 10% of the number of Units purchased under the Offering. Each Finder's Warrant entitles LMDI to acquire one Unit at an exercise price of $0.25 for a period of 24 months from issuance. The Units issuable upon exercise of the Finder's Warrants will have the same terms as the Units under the Offering. The Corporation has also agreed to pay to LMDI a cash due diligence fee of 3% of the gross proceeds of the Offering.

All securities issued in connection with the Offering will be subject to a four month restriction from resale as stipulated under applicable securities legislation and the TSX Venture Exchange (the "Exchange"). It is contemplated that the Flow-Through Shares will entitle the holders to a 100% CEE tax deduction as set forth under the Income Tax Act (Canada).

Closing of the Offering is subject to all regulatory approvals, including the Exchange.

Proceeds from the Offering will be used by Q-Gold for the dewatering and re-entry of the past producing (1898-1900) Foley Gold Mine to conduct underground exploration. The mine recorded gold production of over 5,000 ounces during this period. The Foley also contains 2.5 kilometres of drifts over seven levels to an 850' depth, developed during 1923-27. No production was effected during this latter period, which was ended by the Great Depression.

Q-Gold will also use a portion of the proceeds to drill a series of deep structural holes through the four principal large, gold-bearing quartz veins comprising the Foley Gold Mine Complex.

The Foley Mine is one of five historic gold mines owned or optioned by Q-Gold on its 32,780 acres of prospective gold claims, leases and patents in the historic Gold Camp of Mine Centre, Ontario. The Golden Star, the only other producing mine, recorded production of 10,000+ ounces of gold, also in 1898-1900.

The Company is also pleased to announce that it has received approval from the Exchange for a non-brokered private placement of 227,004 Units at $0.25 each for gross proceeds of $56,751. Each Unit consists of one common share and one-half common share purchase warrant. Each whole warrant expires 24 months from issuance and entitles the holder to purchase one common share at a price of $0.30 within twelve months of issuance and $0.35 thereafter.

All securities issued pursuant to this financing are subject to a four month hold period expiring on July 14, 2007. No fees or commissions in either cash or securities were paid in connection with this private placement.

About MineralFields:

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com

Richard C. Beard, P.Eng, Consulting Geologist, a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this press release.

This release may contain forward looking statements implying an assessment that the resources described can be produced profitably in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.

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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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