Q-Gold Resources Ltd.

Q-Gold Resources Ltd.

November 09, 2005 09:30 ET

Q-Gold Resources Ltd.: Announces Proposed Financing of up to $2.0 Million

FLAGSTAFF, ARIZONA--(CCNMatthews - Nov. 9, 2005) - Q-Gold Resources Ltd. (TSX VENTURE: QAU) ("Q-Gold" or the "Company") announced it has signed an Engagement Letter with Toronto-based IBK Capital Corp. ("IBK Capital"). Under the terms of the Engagement Letter, IBK Capital will endeavor to raise up to $2.0 million via a non-brokered private placement of Q-Gold securities (the "Financing"). Proceeds from the Financing will be used for future phases of the Company's exploration program on its gold mining claims and leases in the historic Mine Centre, Ontario gold camp located 150 miles southeast of Red Lake. Proceeds will also be used for general corporate and working capital purposes. Pricing for the Financing has yet to be determined.

The Company owns a 100% interest in over 31,000 acres of gold and base metals mining claims and leases at Mine Centre, of which 18,700 acres are contiguous gold claims and leases containing the historic Foley and Golden Star gold mines. These two mines produced over 16,000 ounces of gold, mainly in the 1890s. A fragmented land position had precluded modern, coherent exploration efforts until now.

Q-Gold is currently conducting Phase I of its Exploration Work Program on the principal gold-bearing quartz veins comprising the Foley Mine Complex. A program of structural drilling and extensive surface trenching and sampling of the veins is planned for completion later this month. Assay results from the program will be announced by the Company as soon as they are received and interpreted.

The Company currently has 13,656,489 shares issued and outstanding and 22,219,489 on a fully-diluted basis.

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.

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

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