QGX Ltd.
TSX : QGX

QGX Ltd.

October 18, 2005 06:00 ET

QGX Receives Positive 43-101 Report for Baruun Naran Coal Project

WATERDOWN, ONTARIO--(CCNMatthews - Oct. 18, 2005) - QGX Ltd. (TSX:QGX) is pleased to announce that it has received a positive independent NI 43-101 report (the "Technical Report") for its Baruun Naran coal project in southern Mongolia. Chlumsky Armbrust & Meyer L.L.C. ("CAM"), of Denver, Colorado prepared the Technical Report which is dated October 10, 2005.

The following statements are excerpts from the "Summary" section of the Technical Report. A full copy of the Technical Report has been filed on SEDAR.

"CAM has reviewed the available data on the Baruun Naran deposit including Soviet-era reports, confirmation drilling and trenching by QGX, surface geophysical surveys by QGX, step-out drilling (both rotary and core), and geophysical logs of these holes and coal analytical data on samples from these holes. On the basis of these data, CAM believes that the Baruun Naran coal deposit covers an area of approximately 2 km wide and at least 10 km long and contains both metallurgical- and thermal-quality coal that appears to be amenable to open-pit mining. The deposit appears to be well located with respect to the Chinese coal market.

CAM has visited the site and reviewed the available data and believes that QGX has conducted exploration on the property in accordance with accepted engineering and geological practices and the data obtained by QGX are suitable for determining that further work on the property is warranted.

All of the data provided to CAM indicate that Baruun Naran is a property of merit and further exploration and development is warranted."

David Anderson, CEO of QGX, commented as follows:

"We are pleased to report that our exploration program at Baruun Naran has been found to meet required industry standards by an independent Qualified Person and that they consider our project to be a property of merit. Our objective now is to produce a resource estimate for a portion of the 20 sq. km block on a measured, indicated and inferred basis in the second quarter of 2006".

David Anderson, President and CEO of QGX Ltd., is the Qualified Person for QGX, as defined by NI 43-101, who has reviewed the contents of this press release.

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 9.4% equity interest in QGX as part of a strategic relationship between the companies.

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

Contact Information

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