Q-Gold Resources Ltd.
TSX VENTURE : QAU
FRANKFURT : QX9

Q-Gold Resources Ltd.

August 18, 2006 19:40 ET

Q-Gold Resources Ltd. Initiates Pre-Feasibility Study at the Foley Gold Mine

FLAGSTAFF, ARIZONA--(CCNMatthews - Aug. 18, 2006) - Q-Gold Resources Ltd. (TSX VENTURE:QAU) (FWB:QX9) ("Q-Gold" or the "Company") announced that it has contracted with consulting firm Northwest Mineral Development Services of Kenora, Ontario ("NMDS") to conduct a pre-feasibility study on the possible reactivation of the Company's Foley Gold Mine near Mine Centre in Northwestern Ontario. The study will evaluate the viability of de-watering and re-opening the Foley Mine to permit both underground drilling and sampling of existing drift systems. As reported in the Company's NI 43-101 Technical Report, also produced by NMDS, the Foley produced over 5,000 ounces of gold, principally in the 1890s, prior to its mill being destroyed by fire at the end of that century. Additional development work in the form of shaft construction and extensive drifting and cross-cutting over seven levels to 850 feet was performed between 1923 and 1927.

In its "Open File Report 6146 (2005)", p. 33, (authors P. Hinz, C. Ravnass and A. Raoul), the Ontario Geologic Survey reports in its recent inventory of gold reserves in Ontario that the Foley Mine contains remaining "speculative" ore reserves of 400,000 tons and 40,000 tons of "proven/ probable" ore reserves - all grading 0.5 ounce of gold per ton. However, these figures are not compliant with reserve/ resource definitions required by NI 43-101 and will have to be confirmed by future drilling and sampling.

The historic Foley Gold Mine was acquired (100%) by Q-Gold in February of this year, having been under option to the Company since October of 2005.

Q-Gold also announced it has completed staking and filing of 5,760 acres of additional exploratory mining claims adjacent to its current Ontario holdings in the Cousineau, Bad Vermilion Lake and Mine Centre Village tracts. After allowing for relinquishment to the Crown of 1,160 acres to the northeast of Mine Centre, which the Company deemed to be non-prospective, these additional claims bring Q-Gold's present net land position at Mine Centre to 26,840 acres.

Diamond drilling is continuing on the Company's 5,840 acre "Cousineau Tract", on conductive electromagnetic (EM) anomalies determined by ground geophysical (Max-Min) surveys conducted earlier this spring. Q-Gold also announced that, although gold, silver and copper values were encountered in several zones, the first six holes drilled in Phase II of its exploration program into felsic and intermediate metavolcanic sequences in the vicinity of the Company's Golden Star Mine did not encounter mineralization of economic significance.

The Company has received preliminary data from its detailed airborne helicopter electromagnetic survey of its entire holdings at Mine Centre in May. Drilling targets indicated after extensive review of the final survey results will be included in the next phase of the Company's drilling program at Mine Centre, expected to commence in mid-September or early October.

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


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