Q-Gold Resources Ltd.

Q-Gold Resources Ltd.

September 27, 2005 09:29 ET

Q-Gold Resources Ltd. 'Formerly Solana Petroleum Corp.' Completes Reverse Take-Over And Resumes Trading On TSX Venture Exchange

FLAGSTAFF, ARIZONA--(CCNMatthews - Sept. 27, 2005) - Q-Gold Resources Ltd. ("Q-Gold" or the "Corporation"), is pleased to announce that it has completed its reverse take-over transaction ("RTO") and will resume trading on the TSX Venture Exchange (the "Exchange") as a "Tier 2 Issuer" under the symbol QAU effective September 28, 2005. The Alberta Securities Commission lifted the Corporation's cease trade order on August 18, 2005.

As a result of the RTO, Q-Gold issued 5,000,000 common shares of the Corporation (the "Common Shares") to Hexagon Gold (Ontario) Ltd. and acquired a total of more than 31,000 acres of Archean Greenstone Belt gold and base metals mining claims in Northwestern Ontario, located 120 miles southeast of Red Lake. The claims are in the historic Mine Centre Gold Camp along Bad Vermilion and Shoal Lakes. The mining claims include 18,740 acres of contiguous gold claims, which contain the old Foley and Golden Star Mines. These two mines produced a total of over 16,000 ounces of gold in the 1890s and 1930s, as reported in a technical report dated July 15,2003 (amended December 8, 2004), prepared in accordance with National Instrument 43-101 by Richard C. Beard, P.Eng., of Northwest Mineral Development Services. This report can be viewed at www.sedar.com.

The Corporation has initiated its exploration work program on the Mine Centre properties which entails diamond drilling a series of gold prospects in the Foley Mine Complex (the "Complex") and the trenching and sampling of six of the principal, large, gold-bearing surface veins in the Complex. This work program, with a budgeted cost of $205,000, is expected to be completed by November 30, 2005.

Over 100 veins at Mine Centre have recorded gold values. A number of other gold and base metal prospects exist on Q-Gold's Mine Centre properties. A series of airborne geophysical anomalies associated with an extensive shear zone complex cutting through the properties have been identified for additional geophysical surveys and possible future drilling.

In conjunction with the RTO, Q-Gold has also issued 255,000 Common Shares pursuant to a shares for debt transaction, 97,500 Common Shares as bonus shares for the provision of loans to the Corporation and 1,650,000 Common Shares and 825,000 Common Share purchase warrants (the "Note Warrants") as a result of the exercise of convertible notes (the "Notes"). The Note Warrants entitle the holder to acquire a Common Share at an exercise price of $0.30 for a period of 24 months from issuance. Of the securities issued pursuant to the exercise of the Notes, 268,420 common shares and 134,210 Note Warrants were issued to J. Bruce Carruthers II, 169,760 Common Shares and 84,880 Note Warrants were issued to William Mudon and 50,000 Common Shares and 25,000 Note Warrants were issued to each of Eugene Chen and Wayne Young, all directors of the Corporation. The 100,000 Common Shares issued to Eugene Chen and Wayne Young were done on a "flow-through" basis.

In addition, on August 18, 2005, Q-Gold completed its Short Form Offering financing (the "Financing") through Northern Securities Inc. (the "Agent"). The Corporation issued 4,500,000 units at $0.20 per unit and 190,000 "flow-through" common shares (the "Flow-Through Shares") at $0.20 per Flow-through Share for gross proceeds of $938,000. Each unit consists of one Common Share and one warrant (the "Warrant"). Each Warrant entitles the holder to acquire a Common Share at an exercise price of $0.25 on or before August 18, 2007.

As compensation for the Financing, the Agent received a cash commission equal to 10% of the gross proceeds and a financial advisory fee paid in cash equal to 5% of the gross proceeds. Furthermore, it received $20,000 in cash and 50,000 units as a work fee and two Agent's options The first Agent's option entitles the Agent to acquire up to 38,000 Common Shares and/or Flow-Through Shares (at its discretion) at a price of $0.20 per Common Share and $0.22 per Flow-Through Share, on or before August 18, 2007. The second Agent's option entitles the Agent to acquire up to 900,000 Agent's units at a price of $0.20 per unit, on or before August 18, 2007. The Agent's units have the same terms as the units issued under the Financing.

The Corporation also announces the granting of 1,225,000 stock options exercisable at $0.20 to its directors and officers. These options were granted as follows: J. Bruce Carruthers II 425,000, Eric A. Gavin 275,000, John (Jack) Bolen 225,000, William F. Mudon 150,000, Eugene Chen 75,000 and Wayne Young 75,000. In addition, the Corporation has granted 50,000 stock options exercisable at $0.25 to a financial consultant to the Corporation and 75,000 stock options exercisable at $0.20 to a field operations consultant.

Richard C. Beard, 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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