QGX Ltd.

QGX Ltd.

June 28, 2005 13:46 ET

QGX LTD.: $6,080,000 Financing Closes

WATERDOWN, ONTARIO--(CCNMatthews - June 28, 2005) -

Not for distribution to U.S. news wire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S securities law.

QGX Ltd. (TSX:QGX) confirms that the financing announced on May 30, 2005 has closed. The financing consisted of a private placement of 3.8 million common shares at $1.60 per share for proceeds of $6,080,000. All securities issued in connection with this offering will be subject to a four-month hold period under applicable securities legislation.

Proceeds of the financing will be used to fund ongoing work programs in Mongolia. Drilling and trenching are ongoing at Baruun Naran (coal project) and at Undur Tsagaan (tungsten-molybdenum project). Engineering work, including metallurgical testing, is also underway at the Central Valley Zone, Golden Hills (gold-silver-copper resource).

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. The Company holds a large area of exploration licenses throughout Mongolia. The Company's most advanced property is the Golden Hills prospect in western Mongolia. QGX has filed an independent NI 43-101 report outlining a resource containing approximately 3.3 million gold-equivalent ounces at the Central Valley Zone of Golden Hills (measured, indicated and inferred). Barrick Gold Corp. holds a 9.5% equity interest in QGX as part of a strategic relationship between the companies.

This news release shall not constitute an offer to sell or the solicitation to buy the securities in any jurisdiction. The Common Shares offered will not and have not been registered under the United Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemptions from the registration requirements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • QGX Ltd.
    David Anderson
    (905) 689-9442
    QGX Ltd.
    Paul Zweng
    (925) 855-0505
    Website: www.qgxgold.com