QMX Gold Achieves Second Quarter 2012 Operating Costs of $1,421 on the Sale of 5,251 Ounces of Gold

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2012) - QMX GOLD CORPORATION (TSX:QMX)(OTCQX:QMXGF) ("QMX Gold" or the "Company") is pleased to announce its second quarter financial and operational results for the period ending June 30, 2012. All figures are reported in Canadian dollars, unless noted otherwise.

Second Quarter Financial Summary:

• The Lac Herbin mine in Val d'Or recovered 5,352 ounces of gold from 43,588 tonnes of ore
  
  
• The Aurbel Gold Mill produced 5,898 ounces and realized an average recovery rate of 90.7%
  
  
• QMX Gold reports revenue on mining operations of $8.11 million for the quarter on the sale of 5,251 ounces of gold at an average realized price of $1,625 per ounce.
  
  
• Cash cost of sales per ounce of gold production from Lac Herbin was $1,421 per ounce (see non-GAAP measures)
  
  
• The Company reported a loss of $5.3 million including a $1.8 million impairment charge on mineral properties.
  
  
• In May, QMX Gold entered into an agreement with Druk Capital Partners ("Druk") to sell the Company's interest in the Rouyn-Noranda Base Metal and Gold Camp properties for cash proceeds of $5,000,000 and shares equalling up to a 19% ownership in Druk. This transaction is pending the approval of the TSX Venture Exchange.
  
  
• Also in May, QMX Gold announced the approval of a $45 million credit facility with Credit Suisse Bank(see release of May 29, 2012). The credit facility is structured for 4 1/2 years with an interest rate of LIBOR + 5% and a hedging program still to be determined. This transaction is subject to the completion of definitive agreements and satisfaction of conditions precedent.
  

Second Quarter Financial Results

QMX Gold sold 5,043 ounces of gold to generate $8.11 million in revenue from mining operations during the second quarter of 2012 with an average gold sale price of $1,625 (USD $1,611) per ounce. Mine operating expenses were $7.5 million and amortization and depletion amounted to approximately $1.9 million generating a gross loss of $1.3 million. The cost of sales per ounce sold during the current quarter, excluding amortization and depletion, was $1,421 per ounce (see non-GAAP Measures). Cash costs have been positively impacted by operational efficiencies from the implementation of a number of improvement initiatives at the Lac Herbin Mine and the Aurbel Mill.

QMX Gold recorded a net loss for the quarter of $5.3 million or $0.18 per share, taking into consideration the recently completed 20:1 share consolidation. This loss includes an impairment charge of $1.8 million on properties held in Rouyn-Noranda, Quebec and general and administrative expenses of $3.2 million.

Commenting on the results, Francois Perron, President and CEO stated: "I am very pleased with continued operational improvements that are being experienced from the Lac Herbin Mine and Aurbel Processing Facility. The positive results that we are experiencing in respect of reduced cash costs this quarter can be directly attributed to the implementation of improvement initiatives, which has generated positive cash flow for the company. Second quarter performance continues to put us in a position to meet this year's goal of producing 18,000 to 20,000 ounces in 2012 at an average cash cost of $1,300 to 1,500."

Financial Results For Six Months Ending June 30, 2012

In the six months ending June 30, 2012, QMX Gold sold a total of 10,295 ounces of gold generating $16.25 million in revenue for the company. The average sale price was $1,657 per ounce. In this same period, mine operating expenses totaled $15.22 million and depreciation amounted to $3.54 million for a gross loss of $2.51 million. The net loss for the six months ending was $16.54 million including a total impairment charge of $10.236 million on the Rouyn-Noranda properties. The average cost of sales per ounce is $1,478 compared to $2,093 in the same period in 2011.

Exploration Update

Exploration efforts at Lac Herbin are focused on infill drilling at the FL, Apex and Bonanza Zones with the goal of expanding these zones of mineralization, all of which are located near the mine infrastructure. Recently, the Company reported on the Bonanza Zone, where recent drilling suggests that the zone is larger than initially believed. Further results will be released on the FL and Apex Zone in the near future.

The Exploration team at Snow Lake continue to analyze results from the results of the 2011 drill program in anticipation of the completion of the project financing announced in May with Credit Suisse. The Company recently reported on The Birch Zone and the results have the potential to enhance the Snow Lake Mine start-up plan and also have the potential to extend the mine life. Once analysis of the results has been concluded on the No. 3 Zone Deep and Birch Deep programs, they will be released.

Complete interim financial statements and related Management's Discussion and Analysis documents will be available under the Company's profile on www.sedar.com and at the Company's website www.qmxgold.ca.

Non-GAAP Measures

The Company has included certain non-GAAP performance measures, namely, cash costs per gold ounce sold throughout this document. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are non-GAAP measures. In addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company's performance and ability to generate cash, profits and meet financial commitments. These non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The following tables provide a reconciliation of cash costs per gold ounce sold for the three months ended September 30, 2011 and 2010.

Cash cost per ounces sold

Qualified Person

Technical programs and information included in this release have been supervised, compiled, reviewed and approved by David Rigg, P.Geo., the Chairman of the Company and a Qualified Person as defined under NI 43-101.

About QMX Gold

QMX Gold Corporation is a Canadian publicly traded mining company focusing on mine development and exploration in Quebec and Manitoba. The Company is listed on the Toronto Stock Exchange ("TSX") and effective July 5, 2012, will trade under the symbol "QMX", and trades in the United States on the Over the Counter QX International ("OTCQX") platform under the symbol "QMXGF". QMX Gold continues to be a dynamic and aggressive mining company operating in Canada's richest mining regions: Val-d'Or, Quebec, and Snow Lake, Manitoba. QMX Gold continues to operate in the mineral rich Val-d'Or area with production estimated at 18,000-20,000 ounces of gold per year. The Company has also begun to ramp-up pre-production activities at its property at the Snow Lake Mining Camp which has a Measured and Indicated Mineral Resources of over 720,000 oz gold and is expected to produce 80,000 ounces of gold per year.

Forward-looking information:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the impact of these financial results and operational developments on the timing and amount of future exploration and development of the property, the timing and amount of future production, and the future financial or operating performance of Alexis and its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.