QGX More than Doubles the Measured and Indicated Tonnage of Coking and Thermal Coal at Baruun Naran, Mongolia



    
                    New Measured and Indicated:  252.9 Mt
           Previous (June 2006) Measured and Indicated:  107.5 Mt
    

    TSX - QGX

    WATERDOWN, ON, June 13 /CNW Telbec/ - QGX Ltd. (TSX: QGX) is pleased to
announce that the company has received its second NI 43-101 compliant resource
estimate for its 100%-owned Baruun Naran coal project located in southern
Mongolia. The estimate, independently prepared by McElroy Bryan Geological
Services Pty. Ltd. of Sydney, Australia ("MBGS"), delineated 252.9 Mt of
measured and indicated coal resources, more than doubling the previous amount
last reported June 7th, 2006 (see Table 1 below).

    Paul Zweng, President and CEO of QGX Ltd., commented as follows:

    "We could not be more pleased by the new resource estimate for Baruun
Naran. The new estimate contains nearly 100 Mt of additional coal compared to
the June 2006 estimate (47.5 Mt of measured, 60.0 Mt of indicated, and 48.0 Mt
of inferred resources). The tonnage of measured and indicated resources has
more than doubled to 252.9 Mt from 107.5 Mt.
    Much of this additional tonnage has been derived from coal which had been
intersected in previous drilling but had insufficient intersections or
associated coal-quality data to be included in the previous resource
estimation. The size of the resource is expected to expand somewhat beyond the
above reported figures as there are additional inferred resources that will be
reported at a later date.
    We believe that Baruun Naran represents a new and significant greenfield
coking-thermal coal project. Our belief is bolstered by the sheer size of this
new resource as well as its exceptional coal quality. We are doing all we can
to advance the project to production as rapidly as possible. To this end,
several studies are ongoing, and we will be striving to complete the
pre-feasibility study before year end. QGX looks forward to supplying both
premium coking and thermal coal to the market for 20 to 30 (or more) years in
the near future."

    Introduction

    The Baruun Naran property is located in southern Mongolia in the Aimag
(province) of Umnogovi (approximately)500 km south of Ulaanbaatar, the capital
of Mongolia. The Baruun Naran coal deposit is hosted in a thick sequence of
Upper Permian sedimentary rocks known as the Tavan Tolgoi Formation. This same
formation also hosts the large Tavan Tolgoi coal deposit, located
(approximately)20 km to the NE of Baruun Naran. The Tavan Tolgoi Formation
within the Baruun Naran valley has a stratigraphic thickness of at least
800 m, and drilling to date has defined multiple thick (2 to 18 m true
thickness) seams of coking and thermal coal.
    QGX obtained the Baruun Naran license in late 2002 and began work in
April of 2005. QGX engaged MBGS in December 2005 to produce the first
NI 43-101 resource study for Baruun Naran. This first resource estimate
outlined 47.5 Mt of measured, 60.0 Mt of indicated (total measured and
indicated resources of 107.5 Mt) and an additional 48 Mt of inferred resources
(see press release of June 7th, 2006). Other coal occurrences were identified
at that time, but they lacked sufficient confidence in their continuity or
coal chemistry to classify them as resources.
    Since that resource estimate was carried out, QGX has collared an
additional 139 drill holes to improve the definition of the coal resource in
general and, in particular, to elevate the classification status of the coal
resources and occurrences. The total number of drill holes completed as of
December 2006 is 348. This announcement presents the independent third-party
results of the second resource estimate prepared by MBGS (see Table 1 below).

    
          Table 1.  Summary of Coal Resources, Baruun Naran, Mongolia
          -----------------------------------------------------------
              Seam          Measured       Indicated     Total (M +I)
                            Resources      Resources      Resources
                              (Mt)           (Mt)           (Mt)
          -----------------------------------------------------------
              V500              -            6.8            6.8
          -----------------------------------------------------------
              U500            7.2            8.1           15.3
          -----------------------------------------------------------
              T510            2.4            4.4            6.8
          -----------------------------------------------------------
              T500           13.4           13.1           26.5
          -----------------------------------------------------------
              R500            0.9            4.3            5.2
          -----------------------------------------------------------
              R400            2.3            3.9            6.1
          -----------------------------------------------------------
              R300            1.6            2.3            3.9
          -----------------------------------------------------------
              Q550            1.4            1.7            3.1
          -----------------------------------------------------------
              Q500            3.7            3.2            6.9
          -----------------------------------------------------------
              N500           11.1           21.4           32.5
          -----------------------------------------------------------
              N400            4.1           12.7           16.9
          -----------------------------------------------------------
              K500            0.8           11.2           12.0
          -----------------------------------------------------------
              K400            0.6            0.6            1.2
          -----------------------------------------------------------
              J500            2.8            6.0            8.8
          -----------------------------------------------------------
              J400            0.4            1.0            1.5
          -----------------------------------------------------------
              I500            3.4            6.3            9.6
          -----------------------------------------------------------
              H500           17.7           18.3           36.0
          -----------------------------------------------------------
              G500            6.5            6.1           12.7
          -----------------------------------------------------------
              G400            4.2            5.6            9.7
          -----------------------------------------------------------
              F650            1.2            1.8            2.9
          -----------------------------------------------------------
              F600            2.3            2.9            5.2
          -----------------------------------------------------------
              F550            1.5            1.7            3.2
          -----------------------------------------------------------
              F500            3.8            4.7            8.5
          -----------------------------------------------------------
              F450              -            2.7            2.7
          -----------------------------------------------------------
              F400              -            9.1            9.1
          -----------------------------------------------------------
          -----------------------------------------------------------
             Total           93.3          159.6          252.9
          -----------------------------------------------------------
          Resources are estimated to a maximum depth of 300 m below
          the surface

    Methods and Resource Limits

    MBGS prepared the Baruun Naran resource estimate in conformance with
Canadian Institute of Mining (CIM) standards and the requirements put forth in
Canada's National Instrument 43-101. QGX will file the NI 43-101 resource
report prepared by MBGS within the obligatory 45 days of this announcement.
    Starting in the first quarter of 2007, MBGS updated the resource model by
incorporating data from approximately 350 drill holes and much of the new
coal-quality data prepared by Mr. Bob Leach of A&B Mylec (Brisbane,
Australia). This new resource model forms the basis for the second resource
estimate presented in this release.
    MBGS has confirmed the presence of 25 major coal seams that have been
identified to date by QGX at Baruun Naran (Seams F400 to V500; see Table 1).
All of these seams have sufficient intersections over large portions of the
deposit to be considered either measured or indicated. Additional coal
contained in the inferred resource category will be reported at a later date.

    Coal Quality

    As reported previously (see press releases of February 21st and May 8th,
2007), Baruun Naran contains both coking and thermal coal. Three washed coal
products are capable of being produced at Baruun Naran:

    (1) 8.5% ash, 0.6% sulphur, 32% volatile matter, CSN 7 premium coking
        coal
    (2) 14% ash, 0.7% sulphur, 28% volatile matter, and highly calorific
        (6,400 kcal/kg) premium thermal coal
    (3) 25% ash, 0.7% sulphur, 21% volatile matter, moderately calorific
        (5,500 kcal/kg) thermal coal
    

    The qualities and quantities of the final saleable products will depend
upon mining technique and coal-preparation methods. (All ash, sulphur, and
volatile matter figures cited above are reported on an "air dry" basis whereas
calorific values are reported on a "gross as received" basis.)

    Current Work Programs

    Barlow Jonker Pty Ltd. (Sydney, Beijing) is conducting a marketing study
to determine the demand (tonnage) and prices for coals specific to Baruun
Naran within the Chinese and seaborne markets. Barlow Jonker will also conduct
a cost-competitive analysis for various Chinese producers supplying coal
similar to Baruun Naran into these markets. These studies are expected to be
completed by the end of June.
    Sandwell Engineering (Vancouver) is undertaking a conceptual
transportation study for building, operating, and maintaining railway and road
between Baruun Naran and Ganqimaodao (border crossing point at the
Mongolian-Chinese international border). This work is expected to be finished
in early July.
    Minarco-Mineconsult (Sydney, Beijing) is scheduled by July to complete a
preliminary economic assessment based on the new NI 43-101 resource outlined
above to evaluate the economic potential for Baruun Naran.
    Once the preliminary economic assessment is finalized, QGX will commence
a pre-feasibility study starting in July and finishing in December. In
addition, a water exploration program on several known aquifers in the area is
scheduled to commence during the third quarter of this year.

    Qualified Person

    Messrs. Andrew Paul and Kerry Whitby of McElroy Bryan Geological Services
(Sydney, Australia) and Qualified Persons as defined by NI 43-101 have
reviewed and approved the information contained in this release. Mr. John
Thompson, Vice President Operations of QGX Ltd. and a Qualified Person as
defined by NI 43-101, has reviewed and approved the information contained in
this release.

    About QGX

    QGX is a Canadian-based company that has been exploring for mineral
deposits in Mongolia since 1994. QGX's two most advanced properties are the
Baruun Naran and the Golden Hills projects. QGX announced in June 2007 an
independent NI 43-101 resource for coking and thermal coal at Baruun Naran
comprised of 93.3 Mt of measured and 159.6 Mt of indicated (252.9 Mt contained
in measured and indicated) resources. QGX filed in April 2007 an independent
NI 43-101 report outlining a positive preliminary economic assessment for its
copper-gold-silver project at Golden Hills. Barrick Gold Corp. holds an
approximate 9% equity interest in QGX as part of a strategic relationship
between the two companies.

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

    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
statement.
    %SEDAR: 00013803E




For further information:

For further information: David Anderson, Executive Chairman, (905)
689-9442; Paul Zweng, President/CEO, (925) 855-0505; or visit our website at 
www.qgxgold.com; Renmark Financial Communications Inc.: John Boidman,
jboidman@renmarkfinancial.com; Maurice Dagenais,
mdagenais@renmarkfinancial.com; Media: Adam Ross, aross@renmarkfinancial.com;
(514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com

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