QGX has recently completed its third drilling program at Baruun Naran.

The prime objective of the program was to convert all the known coal within the current area of interest into the "indicated" and "measured" resource categories which will maximize the permissible tonnage that can be included in a pre-feasibility study.

The results will form the basis for a future NI 43-101 resource report which is expected to be delivered in this first quarter. QGX drilled 213 holes this year at Baruun Naran.

AATA ( Fort Collins ), in conjunction with EcoTrade ( Ulaanbaatar ), have collected all of the data required to complete an environmental baseline study for Baruun Naran. Representatives from EcoTrade met with AATA in mid January to compile the data and to write the report.

QGX is anticipating that the results from the "slim-core" coal quality program will be available by late this quarter. All the core samples related to this study have been shipped to Australia and are undergoing laboratory analysis.

Finally, Nexant (San Francisco) and QGX are finalizing the scoping study related to the production of petrochemical products, using standard coal-to-liquid technology deployed in commercially operating plants today. The report provides preliminary plant designs, costs estimates and financial analyses related to these petrochemical products.

At Golden Hills, AMEC Americas (Vancouver) has worked on a metallurgical laboratory program on the gold and silver contained in oxide (gossan) at the Central Valley Zone of Golden Hills. The objective of the study is to optimize an agitated vat leach process to provide the best recovery for the oxide material. The scope of work was designed to provide the required process data to support a pre-feasibility study.

Chlumsky, Ambrose, and Meyer of Denver, Colorado, have completed a preliminary financial model for the Central Valley Zone at Golden Hills. QGX will be reviewing the model with CAM and expect a final report is expected to be delivered shortly.

QGX chief executive officer and president Paul Zweng says: "There has been a tremendous amount of work completed this past year at the two projects. The engineering services companies have put forth first-rate studies and we are pleased with the results that have been available to date.

"Because of the high demand for engineering services, some of the work programs have fallen behind by as much as one month. We are looking forward to obtaining the final results from these programs and to sharing them with our investors in the weeks ahead."

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. Barrick Gold Corp. holds a 9.4% equity interest in QGX as part of a strategic relationship between the two companies.