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QGX Ltd

Thursday, August 23rd, 2007

QGX Ltd. is pleased to announce that a drilling program and geotechnical studies have been initiated at the Central Valley Zone (“CVZ”) of Golden Hills, western Mongolia, as part of the requirements to convert the exploration license to a mining license. As part of the process to obtain a mining license for the CVZ, QGX has commenced a hydrological drilling program to determine the location, quantity, and quality of water present in the area. The drill core from the program will also be used for geotechnical and rock mechanical test work to guide the design of the oxide gold-silver open pit. The program entails the drilling of five holes for a total of 750 m. Other studies underway for the purpose of mining license conversion include an environmental baseline study, a mining and milling progress design study, a preliminary feasibility study, and completion of a geologica l resource report. QGX must file a geological reserve report for the Central Valley Zone to register the resource with the government. Upon receipt of government approval of the reserve, QGX will submit an official application for a mining license.
QGX announced on April 26th the filing on SEDAR of the NI 43-101 compliant preliminary economic assessment regarding the development of the Company’s 80%-owned copper-gold-silver resource at the CVZ. The Study defines a two-stage development plan with a mine life of 15 years. The operation commences with open-pit mining of the gold-silver oxide resource followed by underground mining of the copper-gold-silver sulphide and high-grade quartz-telluride vein resource. The project is financially robust with an after-tax NPV (at 10% discount rate) of US$83 million and an IRR of 27% (100% equity basis).
Paul Zweng, President and CEO of QGX Ltd., commented as follows:
“We have placed a high priority on completing this work at the Central Valley Zone so that we can submit an official application for a mining license to the government later this year. This is the first step in securing an investment agreement that builds the foundation for a successful commercial operation providing mutual benefits both to QGX and to the people of Mongolia.”

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