Q-Gold Resources Ltd.

Q-Gold Resources Ltd.

December 18, 2006 11:14 ET

Q-Gold Options Historic Mine Centre "Manhattan" Gold Mine

FORT FRANCES, ONTARIO--(CCNMatthews - Dec. 18, 2006) - Q-Gold Resources Ltd. (TSX VENTURE:QAU) (FWB:QX9) announced today that it had signed a Letter of Agreement with the owners of the Manhattan Gold Mine near Mine Centre in Northwestern Ontario, giving the Corporation an Option to purchase both mining and surface rights associated with the Freehold Patent containing the mine and the adjoining Patent on terms noted below.

The Manhattan Mine's history dates back to the 1898-1900 era. According to reports in the archives of the Ministry of Northern Development and Mines (Reports by John E. Hardman, dated Auguts 2, 1899, July 10, 1900 and October 24, 1900), four vein systems were encountered during past exploration efforts on the Manhattan Mine, with the "Main Vein" the only one to have encountered any development. Its length has been traced on surface for almost 400 metres. In 1898, a shaft was sunk on the Main Vein to the 325 foot level, with drifting and cross-cutting occurring on four levels at 98, 200, 265 and 325 feet, during which time the vein system (quartz and wall-rock stringers) increased in width from 12 feet to 25 feet as depth increased with quartz comprising approximately 10 feet of the zone. Galena, sphalerite, pyrite and visible gold were reported in several places in the shaft as well as gold-bearing pink quartz in the drifts and crosscuts at the 265 and 325 foot levels. Of the total of 25 foot width of zones of quartz and granite at the 325 foot level, 10.5 feet was gold-bearing quartz, running from 0.24 to 0.29 gold ounces/ton.

The Option consists of three 5-year option periods, during which Q-Gold may conduct exploration activities on the Patents. The first two periods are renewable by Q-Gold if all payments to owners are current. Beginning in Year 1 of Option period 2, Q-Gold may purchase the Patents for $75,000 in cash and $100,000 during Option period 3.

As compensation for granting the Option, the owners will receive $7,500 in cash and 150,000 common shares of Q-Gold, at a deemed price of $0.20 per share. They will also receive annual advance royalty payments, which are deductible from future NSR payments, of $2,500, $5,000 and $7,500 during the first, second and third 5-year Option periods, respectively. Upon exercise of the Option by Q-Gold, the owners will receive a 2% NSR on all mineral production from the Patents. The transaction is subject to the approval of the TSX Venture Exchange.

J. Bruce Carruthers II, President, said, "Q-Gold is delighted to have an Option to acquire the historic Manhattan gold mine, which has not seen any activity since 1900. It completes our position in controlling all principal historic gold mines in the northeast extension of the Foley Vein Complex in the former gold camp of Mine Centre, which we are now actively exploring. In addition to the Foley and newly-optioned Manhattan Mines, Q-Gold also owns the historic Ferguson, Decca and Golden Star mines, all of which contain existing shafts and drifts that, after dewatering, will facilitate future underground exploration activities."

As contained in the Corporation's NI 43-101 technical report (as revised December 6, 2005), only the Foley (5,267 ounces) and the Golden Star (10,025 ounces) achieved commercial gold production, principally in the late 1890s. All of the mines are subject to further surface, and after dewatering, underground exploration for gold in this extensive gold/quartz vein system, several of which will be included in Q-Gold's 2007 Exploration Program.

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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