QGX Ltd.

QGX Ltd.

March 29, 2005 09:30 ET

QGX Ltd.: Update on Baruun Naran Coal Deposit


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QGX LTD.

TSX SYMBOL: QGX

MARCH 29, 2005 - 09:30 ET

QGX Ltd.: Update on Baruun Naran Coal Deposit

WATERDOWN, ONTARIO--(CCNMatthews - March 29, 2005) - QGX Ltd. (TSX:QGX)
is pleased to announce that its independent coal consultant has
completed his review of historical data relating to the potential coal
deposit on the Baruun Naran license held by QGX. The consultant has
concluded the following:

- The historical data is reliable though not of the best quality;

- There are all indications that there is bituminous coal in the area
outlined, and

- The lateral and horizontal extent (1.5 kms x 9.5 kms) suggests a
sufficient resource may be present to justify spending funds on
delineating the coal deposit.

Report Summary

Twenty-three holes have been drilled in 1983 and 1990. Of these 23
holes, 8 holes either missed their target completely or intersected only
a single seam on the edge. Drilling intersected multiple thick seams
with one seam measuring approximately 30 m in thickness. The structure
of the coal deposit is complex as a result of younger folds and faults.

Quality analysis from the prior drilling indicates the coal is
mid-to-high volatile bituminous in nature. Selected coal horizons,
including the thickest seam (30 m), have metallurgical (coking) coal
properties. The coal is high in ash and may need to be washed.

Review of the data shows that the quality of coal is consistent with
other South Gobi coal deposits in the area such as Tavan Tolgoi and
Naryn Sukhait. The only inconsistent property was moisture content, most
likely because of improper handling of the coal. The past drilling is
insufficient to develop a resource base at this time.

In accordance with the consultant's recommendations QGX will initiate a
phased approach to delineate the coal deposit and to define its physical
properties. A field program will be initiated in early April to map the
surface expression of the coal deposit, to trench across the coal seams,
and to collect samples exposed within the trenches for analysis of the
coal characteristics. An initial drilling program to twin 5-6 old holes
will then commence, allowing correlation of the old drill data to the
new data. This information will then be included in a first-phase block
model to determine the location, orientation and sequence of a more
extensive drill program designed to define a NI 43-101 resource.

The report described herein does not, and was not intended to,
constitute a technical report for the purposes of National Instrument
43-101. The consultant did not visit the site as a part of his report.
David Anderson, CEO QGX Ltd. is the Qualified Person, as defined by NI
43-101, who reviewed and approved the information contained in this
release on behalf of QGX.

David Anderson, Chief Executive Officer of QGX Ltd., commented as
follows:

"We are encouraged by the report of our independent consultant and have
placed a high priority on our program to evaluate the Baruun Naran coal
deposit. A key element of the program will be to analyze the coal using
careful handling procedures and modern laboratories to obtain a more
definitive characterization of the coal's properties. We expect to know
a lot more about this prospect by the end of the next quarter".

Baruun Naran License

The Baruun Naran license is located in the South Gobi desert
approximately 22 km west of Tavan Tolgoi, the largest undeveloped coal
deposit in Asia. The license is on strike with Tavan Tolgoi and within
the same synclinal basin. QGX Ltd acquired the Baruun Naran licence in
2002.

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 and is currently conducting
drill programs on two targets (Golden Hills and Shuteen). QGX also has a
carried interest through to production in two advanced exploration
prospects in the south Gobi desert of Mongolia (Kharmagtai -10% and
Ovoot Hyar - 20%) that are being explored by Ivanhoe Mines Ltd. Barrick
Gold Corp. holds a 9.5% equity interest in QGX as part of a strategic
relationship between the companies.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    QGX Ltd.
    David Anderson
    CEO
    (905) 689-9442
    or
    QGX Ltd.
    Paul Zweng
    COO
    (925)-855-0505
    Website: www.qgxgold.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.