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To: LoneClone who wrote (5610)	8/22/2007 10:43:24 AM
From: LoneClone	Respond to of 194001

QGX Undertakes Steps to Convert the Central Valley Zone (Golden Hills) Exploration License to a Mining License Wed Aug 22, 9:32 AM ca.news.finance.yahoo.com TSX - QGX WATERDOWN, ON, Aug. 22 /CNW Telbec/ - QGX Ltd. (TSX: QGX.TO) 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 geological 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." Qualified Person Mr. Tom Drown, Project Geologist 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. In July 2007 QGX announced that an independent 43-101 preliminary economic analysis for Baruun Naran showed a net present value (discounted at 10%) of US$481 million on an after-tax basis. QGX announced in August 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) and 11.1 Mt of inferred 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. Contacts David Anderson Executive Chairman (905) 689-9442 or 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