QGX Ltd.
TSX : QGX

QGX Ltd.

January 12, 2006 12:06 ET

QGX Significantly Extends Metallurgical Grade Seams 'H' And 'T' at Baruun Naran

WATERDOWN, ONTARIO--(CCNMatthews - Jan. 12, 2006) -



Multiple intercepts of Seam "H" range from 5.5 to 27.0 m (estimated true thickness)
Seam "H" North Limb expands from 50 to 1,950 m in length
Seam "H" South Limb expands from 1,800 to 2,550 m in length

Multiple intercepts of Seam "T" range from 11.2 to 23.7 m (estimated true thickness)
Seam "T" North Limb expands from 100 to 1,200 m in length
Seam "T" South Limb expands from 960 to 2,700 m in length

Two New Coal Seams Delineated-Seams "J" and "K"


QGX Ltd. (TSX:QGX.T) is pleased to announce that the 2005 drilling program at Baruun Naran has significantly expanded the lengths of Seams "H" and "T", the two principal metallurgical-grade coal seams at Baruun Naran in southern Mongolia. The strike lengths for the north and south limbs of Seams "H" and "T" are now drill-confirmed over distances in excess of 2 km (south limb) and 1 km (north). Both limbs remain open along strike to the west where geophysical studies have highlighted resistors that correlate with coal to the east (see press releases of September 21st and October 3rd).

In addition to cutting Seams "H" and "T", the 49 drill holes reported in this press release drilled multiple intercepts of eight additional seams, including two new Seams ("J" and "K") that had not been previously identified. QGX is initiating an independent resource estimate to determine the dimensions and tonnages for Seams "H" and "T" as well as for the other seams by the second quarter (see press release of December 19th).

A drill-hole location map and geologic cross sections are available on our website at www.qgxgold.com in the "Key Properties-Baruun Naran" section. Please see Tables 1, 2, and 3 below for a summary of the drill-hole results for BN05046-094.

David Anderson, CEO of QGX, commented as follows:

"The 2005 drilling program at Baruun Naran was an unqualified success. We extended our two principal metallurgical-grade coal seams for significant distances along strike where they remain open to the west. Some of the seams are approaching 3 km in strike length-all are near-surface and amenable to open-pit mining methods. We are particularly pleased at how continuous the coal seams are. This bodes well for a mining operation and we are eager to begin the mining engineering and economic studies this quarter."

Discussion of Results

The last set of drill-hole results for Baruun Naran, announced on September 28th, included drill-holes BN05033-045. On November 4th, QGX announced a financing and entered into a quiet period. The $40 million financing was completed on December 9th. Drilling for the 2005 field season was completed a few days later. The purpose of this press release is to present and to discuss the next 49 drill holes (BN05046-094). Norwest Corp. and QGX are finalizing the results for the remaining 43 drill holes (BN05095-137) and QGX will report these holes as soon as the results are available.

The primary objective of the 49 drill holes reported here was to extend along strike Seams "H" and "T", the two principal metallurgical-grade coal seams at Baruun Naran. The majority of holes were collared on drill sections spaced either 300 or 600 m apart. Table 1 compares the dimensions of the two principal metallurgical-grade coal seams based on the first 45 QGX drill holes (BN05001-045) vs. all 94 QGX drill holes (BN05001-094). The recent drilling made a significant impact on the lengths of the two limbs:

- Seam "H" North Limb increased by 1,900 m in length and remains open to the west;

- Seam "H" South Limb increased by 750 m in length and remains open to the west;

- Seam "T" North Limb increased by 1,100 m in length and remains open to the west, and

- Seam "T" South Limb increased by 1,740 m in length and remains open to the west



Table 1. Summary of Seam Dimensions based on Drill-Holes BN05001-045
vs. BN05001-094
------------------------------------------------------------------------
Estimated
Minimum True
Length Length Easternmost Westernmost Thickness
Seam Limb (m) Open or Closed? Intercept Intercept (m)
------------------------------------------------------------------------
Seam Dimensions based on Drill-Holes BN05001-045
(First 45 QGX Drill Holes)
------------------------------------------------------------------------
Seam H North 50 Open E & W 37,200E 37,150E
18.3
South 1,800 Open E & W 37,200E 35,400E
------------------------------------------------------------------------

------------------------------------------------------------------------
Seam T North 100 Open E & W 34,000E 33,900E
17.2
South 960 Open E & W 33,960E 33,000E
------------------------------------------------------------------------

------------------------------------------------------------------------
Seam Dimensions based on Drill-Holes BN05001-094
(All 94 QGX Drill Holes)
------------------------------------------------------------------------
Seam H North 1,950 W--Open, E--Closed 37,350E 35,400E
15.8
South 2,550 W--Open, E--Closed 37,350E 34,800E
------------------------------------------------------------------------

------------------------------------------------------------------------
Seam T North 1,200 W--Open, E--Closed 34,200E 33,000E
16.1
South 2,700 W--Open, E--Closed 34,200E 31,500E
------------------------------------------------------------------------


The average thickness for each seam decreased slightly, as expected, as the more recent drilling cut Seams "H" and "T" away from their fold hinges where the coal is typically thickest.

QGX now recognizes a total of 12 seams at Baruun Naran with the addition of Seams "J" and "K". The average estimated true thickness for Seams "J" and "K" are 4.1 and 2.6 m, respectively. The lengths of the north and south limbs of Seams "J" and "K", as well their respective coal-quality data, are currently being analyzed and will be reported later this quarter along with the other known ten coal seams.



Table 2. Drill Results for BN05046 through BN05094, Baruun Naran,
Mongolia
------------------------------------------------------------------------
Estimated
Measured True
Thickness Thickness(1,2)
----------------------------
Interval Net Net
Drill-Hole Drill -------------- Seam Seam Coal Seam Coal
Number Type From To (m) (m) (m) (m)
------------------------------------------------------------------------
BN05046 C 76.16 78.94 G300 2.78 2.28 2.61 2.14
and " 149.56 154.46 F400 4.90 2.90 4.61 2.73
and " 158.06 160.92 F300 2.86 1.76 2.69 1.65
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05047 PCD 107.48 114.60 I500 7.12 6.78 5.83 5.55
and PCD/C 165.80 193.58 H500 27.78 26.18 22.76 21.45
and C 201.52 205.98 G550 4.46 4.46 3.65 3.65
and " 208.28 210.90 G500 2.62 2.50 2.15 2.05
and " 241.08 244.02 G400 2.94 2.28 2.41 1.87
and " 270.92 287.16 F600 16.24 14.08 13.30 11.53
and " 298.40 315.04 F500 16.64 14.20 13.65 11.65
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05048 PCD 43.00 46.58 K500 3.58 2.98 2.53 2.11
and " 98.70 107.22 J500 8.52 7.42 6.02 5.25
and " 144.38 150.16 I500 5.78 5.44 4.09 3.85
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05049 C 159.42 163.94 K500 4.52 4.52 3.46 3.46
and " 237.30 247.44 J500 10.14 9.12 7.77 6.99
and " 332.22 341.90 I500 9.68 9.58 7.42 7.34
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05050 PCD 134.50 137.95 J500 3.45 3.14 2.64 2.41
and " 154.75 158.65 I500 3.90 3.90 2.99 2.99
and C 212.91 225.77 H500 12.86 12.52 9.85 9.59
and " 228.17 231.59 H450 3.42 3.42 2.62 2.62
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05051 PCD 101.15 104.85 F400 3.70 2.52 3.48 2.37
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05052 PCD 79.84 103.60 H500 23.76 18.10 18.20 13.87
and " 130.76 136.00 G500 5.24 4.50 4.01 3.45
and C 188.20 191.30 F500 3.10 3.10 2.37 2.37
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05053 PCD 101.65 110.41 H500 8.76 8.70 7.94 7.88
and " 117.67 120.99 H450 3.32 2.34 3.01 2.12
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05054 PCD 89.40 103.40 H500 14.00 13.45 9.90 9.51
and " 109.80 118.80 H450 9.00 7.90 6.36 5.59
and C 157.40 164.90 G500 7.50 5.70 5.30 4.03
and " 211.80 215.20 F500 3.40 2.50 2.40 1.77
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05055 PCD 44.90 47.06 J500 2.16 1.80 2.03 1.69
and C 153.70 163.82 H500 10.12 10.02 9.51 9.42
and PCD 252.56 257.50 G300 4.94 4.94 4.64 4.64
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05056 PCD 92.10 100.68 F500 8.58 7.93 7.43 6.87
and " 210.40 212.76 unassigned 2.36 1.74 2.04 1.51
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05058 PCD 37.41 43.43 H500 6.02 6.02 5.45 5.45
and " 83.33 99.33 G400 16.00 12.67 14.50 11.48
and " 222.25 224.79 unassigned 2.54 2.54 2.30 2.30
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05059 PCD 37.70 42.76 U500 5.06 4.22 4.38 3.65
and " 86.04 107.28 T500 21.24 18.14 17.40 14.86
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05060 PCD 50.21 55.57 J500 5.36 4.65 3.79 3.29
and " 105.05 110.27 I500 5.22 5.04 3.69 3.56
and PCD/C 173.33 195.95 H500 22.62 21.85 15.99 15.45
and PCD 224.27 229.10 G500 4.83 3.58 3.41 2.53
and " 272.57 276.80 F500 4.23 3.76 2.99 2.66
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05061 PCD 84.60 103.64 H500 19.04 19.04 10.93 10.93
and C 174.28 181.74 G500 7.46 6.37 4.28 3.66
and " 199.55 204.74 F600 5.19 2.76 2.98 1.58
and " 219.40 233.05 F500 13.65 10.54 7.84 6.05
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05062 PCD 52.68 56.16 V500 3.48 3.48 3.15 3.15
and " 154.68 161.06 U500 6.38 4.96 5.23 4.06
and C 204.00 224.45 T500 20.45 18.22 17.71 15.78
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05063 PCD 43.75 47.51 K500 3.76 3.58 2.66 2.53
and " 93.95 100.79 J500 6.84 5.86 5.24 4.49
and " 143.85 151.11 I500 7.26 7.26 5.56 5.56
and " 219.01 239.19 H500 20.18 19.96 16.55 16.37
and " 263.83 269.37 G500 5.54 4.82 5.02 4.37
and " 299.73 302.60 F600 2.87 2.87 2.60 2.60
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05064 PCD 60.26 69.68 N500 9.42 3.50 8.54 3.17
and " 84.28 86.50 N400 2.22 1.54 2.01 1.40
and " 125.22 130.88 unassigned 5.66 3.14 5.13 2.85
and " 164.84 169.44 unassigned 4.60 3.50 4.17 3.17
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05065 PCD 58.20 70.16 U500 11.96 8.98 11.37 8.54
and " 102.12 119.26 T500 17.14 15.72 16.56 15.18
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05066 PCD 173.83 183.03 U500 9.20 7.94 8.34 7.2
and " 205.59 214.91 T500 9.32 8.14 8.45 7.38
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05067 PCD 39.57 41.93 V500 2.36 2.36 2.14 2.14
and C 139.07 151.81 U500 12.74 8.91 10.68 7.47
and " 179.75 198.33 T500 18.58 16.00 15.22 13.11
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05068 C 85.70 89.18 J500 3.48 1.66 2.00 0.95
and " 193.62 202.40 I500 8.78 6.98 5.04 4.01
and " 267.08 271.72 I450 4.64 4.60 2.66 2.64
and " 305.32 323.15 H500 17.83 17.11 11.46 11.00
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05069 PCD 71.20 74.08 U500 2.88 2.40 2.61 2.18
and " 78.82 81.40 T510 2.58 1.54 2.34 1.40
and " 84.70 99.50 T500 14.80 11.30 13.41 10.24
and " 107.02 112.06 R500 5.04 3.96 4.36 3.43
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05070 PCD 205.98 223.58 unassigned 17.60 12.76 17.00 12.33
and " 229.50 245.50 unassigned 16.00 15.68 15.46 15.15
and " 266.04 271.20 unassigned 5.16 4.96 4.98 4.79
and " 279.48 285.88 unassigned 6.40 5.32 6.18 5.14
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05071 PCD 89.35 94.77 U500 5.42 3.80 4.69 3.29
and " 105.43 128.71 T500 23.28 20.12 20.16 17.42
and " 138.73 143.47 R500 4.74 4.22 4.10 3.65
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05072 PCD 121.55 128.37 U500 6.82 5.10 4.99 3.73
and " 165.83 186.93 T500 21.10 18.26 16.16 13.99
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05073 C 88.00 90.46 unassigned 2.46 1.16 2.38 1.12
and " 158.45 161.25 unassigned 2.80 2.80 2.70 2.70
and " 166.05 176.40 unassigned 10.35 5.85 10.00 5.65
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05074 C 237.66 245.02 U500 7.36 5.86 6.03 4.80
and " 262.94 267.92 T500 4.98 4.58 4.08 3.75
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05077 PCD 117.80 122.20 V500 4.40 2.94 3.60 2.41
and " 175.64 184.60 U500 8.96 5.92 7.34 4.85
and C 191.28 195.02 T510 3.74 2.72 3.06 2.23
and " 198.00 217.98 T500 19.98 18.12 16.37 14.84
and " 232.14 235.30 R400 3.16 1.90 2.59 1.56
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05078 C 61.02 73.97 H500 12.95 12.85 10.61 10.53
and " 128.71 133.65 G400 4.94 3.44 4.05 2.82
and " 167.09 173.01 F600 5.92 3.50 4.85 2.87
and " 189.55 193.95 F500 4.40 4.38 3.60 3.59
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05079 C 31.67 55.39 T500 23.72 22.87 23.72 22.87
and " 205.11 211.00 unassigned 5.89 3.40 2.94 1.70
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05080 PCD 246.76 248.92 unassigned 2.16 2.08 2.09 2.01
and " 256.80 259.02 unassigned 2.22 2.22 2.14 2.14
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05081 C 180.39 183.05 U550 2.66 2.64 2.30 2.29
and " 193.47 197.97 U500 4.50 3.34 3.18 2.36
and " 235.23 257.15 T500 21.92 18.54 15.50 13.11
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05082 C 42.97 45.73 J500 2.76 2.28 2.50 2.07
and " 182.09 195.05 H500 12.96 8.94 11.75 8.10
and " 237.00 248.70 G500 11.70 8.95 10.60 8.11
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05083 C 254.67 261.31 U500 6.64 5.18 5.44 4.24
and " 299.67 322.71 T500 23.04 19.50 18.87 15.97
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05084 PCD 78.61 85.41 U550 6.80 5.62 5.57 4.60
and PCD/C 109.67 121.39 T510 11.72 7.16 9.60 5.87
and PCD 127.47 142.29 T500 14.82 12.68 12.14 10.39
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05085 PCD 55.55 59.43 T510 3.88 2.60 3.18 2.13
and " 60.51 81.63 T500 21.12 18.76 17.30 15.37
and " 93.55 101.59 R500 8.04 6.08 6.59 4.98
and C 230.49 238.77 N500 8.28 6.24 6.78 5.11
and " 244.63 248.83 N400 4.20 3.50 3.44 2.87
and " 307.30 311.10 unassigned 3.80 3.80 3.11 3.11
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05086 PCD 46.01 73.99 H500 27.98 26.41 27.03 25.51
and " 117.65 121.21 G550 3.56 1.58 3.44 1.53
and " 123.69 130.17 G500 6.48 4.36 6.26 4.21
and " 136.73 139.11 G450 2.38 2.06 2.30 1.99
and " 187.33 189.41 F550 2.08 2.08 2.01 2.01
and " 194.85 197.15 F500 2.30 2.20 2.22 2.13
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05087 C 60.49 68.37 U500 7.88 6.26 5.57 4.43
and " 109.31 134.85 T500 25.54 21.92 18.06 15.50
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05088 PCD 37.49 54.35 T500 16.86 15.56 14.60 13.48
and " 70.61 80.03 R500 9.42 8.26 8.16 7.15
and " 85.79 89.45 unassigned 3.66 3.06 3.17 2.65
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05089 PCD 65.33 70.95 I500 5.62 5.48 5.28 5.15
and " 125.51 143.91 H500 18.40 18.00 17.29 16.91
and " 169.55 175.13 G500 5.58 4.18 5.24 3.93
and " 219.15 224.33 F550 5.18 3.32 4.87 3.12
and " 226.27 229.75 F500 3.48 2.70 3.27 2.54
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05090 PCD 60.36 65.22 V500 4.86 3.14 3.72 2.41
and " 116.84 121.00 unassigned 4.16 2.32 3.19 1.78
and C 183.28 191.88 U500 8.60 5.18 6.59 3.97
and " 193.84 208.40 T500 14.56 12.00 11.15 9.19
and " 210.04 213.26 T450 3.22 3.08 2.47 2.36
and " 223.62 231.20 R500 7.58 6.38 5.81 4.89
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05091 C 42.09 58.59 H500 16.50 16.06 16.44 16.00
and " 81.90 89.70 G500 7.80 4.37 7.77 4.35
and " 123.87 129.65 F550 5.78 3.08 5.76 3.07
and " 133.31 135.59 F500 2.28 2.28 2.27 2.27
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05092 PCD 45.32 60.82 I500 15.50 14.18 14.97 13.70
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05093 PCD 58.84 65.68 I500 6.84 6.84 5.24 5.24
and " 130.74 151.82 H500 21.08 19.88 16.15 15.23
and " 175.26 179.96 G500 4.70 3.60 3.60 2.76
and " 180.58 185.12 G450 4.54 1.98 3.48 1.52
and " 230.30 233.82 F600 3.52 2.72 2.70 2.08
and " 249.94 253.56 F500 3.62 3.24 2.77 2.48
------------------------------------------------------------------------

------------------------------------------------------------------------
BN05094 PCD 78.59 85.47 G500 6.88 4.76 6.24 4.31
and " 144.21 148.09 F500 3.88 3.72 3.52 3.37
and " 156.35 158.67 F450 2.32 1.60 2.10 1.45
------------------------------------------------------------------------
Footnote 1: Calculated from measured (apparent) seam thickness and
measured (apparent) net-coal thickness using estimated seam attitude
(dip) and angle of bore hole. Seam attitude values are estimates based
on current understanding of sub-surface geology and structure.
Footnote 2: Coal seams listed in Table 1 are based on a 2-m cutoff,
estimated true thickness.
Drill-Type Abbreviations: C= Core; PCD = Poly-crystalline diamond;
RC = Reverse circulation


Table 3. Location and Orientation of BN05046 through BN05094
------------------------------------------------------------------------
Local
Local Grid UTM Coordinates Grid UTM
Drill- ----------------------------- Elev- ----------------
Hole East- North- East- North- ation Azimuth Azimuth Plunge
Number ing ing ing ing (masl)(degrees)(degrees)(degrees)
------------------------------------------------------------------------
BN05046 35401 30020 518336 4827380 1574 180 155 -50
BN05047 36000 30290 518765 4827879 1582 180 155 -75
BN05048 36601 30666 519151 4828473 1591 0 335 -60
BN05049 36600 30581 519186 4828396 1590 0 335 -65
BN05050 36000 30704 518591 4828254 1589 0 335 -55
BN05051 35401 29959 518362 4827326 1573 180 155 -55
BN05052 36600 30760 519113 4828554 1594 0 335 -55
BN05053 35400 30180 518268 4827525 1577 180 155 -55
BN05054 36000 30800 518550 4828341 1592 0 335 -55
BN05055 35400 30240 518243 4827580 1578 180 155 -55
BN05056 36000 30099 518846 4827706 1579 180 155 -55
BN05057 35402 29992 518349 4827356 1574 180 155 -55
BN05058 34801 29999 517801 4827108 1572 180 155 -55
BN05059 33610 30540 516493 4827095 1574 0 335 -55
BN05060 36601 30690 519141 4828495 1592 0 335 -55
BN05061 35400 30871 517976 4828151 1595 0 335 -55
BN05062 33615 30440 516540 4827007 1572 0 335 -55
BN05063 36602 30522 519213 4828343 1589 0 335 -90
BN05064 33610 30079 516688 4826678 1566 180 155 -55
BN05065 33610 30349 516574 4826922 1570 180 155 -60
BN05066 33000 30681 515881 4826965 1575 0 335 -55
BN05067 33610 30430 516540 4826996 1572 180 155 -75
BN05068 35405 30761 518027 4828054 1591 0 335 -55
BN05069 32400 30121 515574 4826204 1559 180 155 -55
BN05070 37200 29810 520056 4827951 1578 180 155 -55
BN05071 32700 30199 515813 4826401 1564 180 155 -55
BN05072 33300 30600 516187 4827018 1576 0 335 -55
BN05073 37199 29680 520110 4827833 1577 180 155 -55
BN05074 32700 30320 515762 4826511 1566 180 155 -60
BN05075 33000 30567 515929 4826861 1572 0 335 -60
BN05076 35400 30962 517938 4828234 1598 0 335 -55
BN05077 32399 30217 515533 4826291 1560 180 155 -60
BN05078 35700 30180 518540 4827652 1577 180 155 -55
BN05079 34200 30435 517075 4827245 1576 0 335 -90
BN05080 37199 29909 520013 4828040 1580 180 155 -55
BN05081 33000 30310 516038 4826629 1565 180 155 -70
BN05082 34804 30160 517736 4827255 1575 180 155 -55
BN05083 33305 30496 516236 4826926 1572 0 335 -55
BN05084 31508 29840 514884 4825572 1547 180 155 -55
BN05085 31505 29925 514845 4825648 1548 180 155 -55
BN05086 37350 30546 519881 4828681 1588 0 335 -75
BN05087 33299 30641 516169 4827055 1577 0 335 -55
BN05088 31801 29964 515097 4825808 1552 180 155 -55
BN05089 37050 30590 519590 4828594 1590 180 155 -60
BN05090 31801 30077 515049 4825911 1554 180 155 -60
BN05091 37350 30524 519890 4828661 1587 180 155 -65
BN05092 37052 30520 519622 4828532 1589 0 335 -60
BN05093 37050 30621 519577 4828622 1591 0 335 -60
BN05094 37350 30584 519864 4828715 1588 0 335 -65
------------------------------------------------------------------------


Mr. David Anderson, President/CEO of QGX Ltd., is the Qualified Person as defined by NI 43-101, and has reviewed and verified the results presented in this press release. Norwest Corporation (Salt Lake City) has reviewed and approved the two "measured thickness" columns contained in Table 2. QGX has calculated the two "estimated true thickness" columns contained in Table 2. QGX has engaged Norwest to provide consulting services regarding the exploration and evaluation of the Baruun Naran coal deposit. Norwest has extensive coal experience in Mongolia including completing a feasibility study of the Tavan Tolgoi coal deposit for the Mongolian Ministry of Infrastructure and Development, providing advisory services to the operating coal mines at Shivee Ovoo and Bagaa Nuur, and overseeing coal exploration programs in Mongolia for other multi-national mining and exploration companies.

QGX has retained the Mineral Services Division of SGS North America, Inc. (Denver, Colorado) to perform laboratory analyses of coal samples from the Baruun Naran exploration program.

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. QGX holds a large area of exploration licenses throughout Mongolia. QGX'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). QGX has also filed an independent 43-101 report in respect of its Baruun Naran coal project where results to date indicate that the property may hold a significant coal deposit containing metallurgical and thermal grade coal. Barrick Gold Corp. holds a 9.4% equity interest in QGX as part of a strategic relationship between the companies.

This press release includes certain "forward-looking statements". All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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