QGX has received a positive screening study regarding the potential development of a Coal-To-Liquids (CTL) methanol plant associated with its Baruun Naran coal resource in southern Mongolia.

The CTL plant is being evaluated as part of a review to maximize the value of the thermal coal that will be mined with the coking coal at Baruun Naran.

Highlights from the study include:

Coal at Baruun Naran is amenable to gasification and the production of methanol and methanol-derived products such as di-methyl ether (DME) and olefins, the feedstock for polyethylene and other petrochemicals.

Run-of-mine (ROM) coal from Baruun Naran, if blended to provide an even-ash feed is suitable for the operation, thereby mitigating the need for a wash plant.

The study envisions a CTL plant with a capacity of 1.78 million tonnes per year of methanol, ranking as one of Asia's largest coal-to-methanol plants. Development would consist of a phased approach with an initial start-up plant at one-third the size.

The 1.78 million tonnes per year CTL plant requires feedstock of 3.3 million tonnes per year ROM coal over a 30-year CTL plant life from the adjacent coal resource at Baruun Naran, owned 100% by QGX. The current NI 43-101 resource more than adequately provides sufficient coal to meet the plant's annual coal requirements for a period in excess of 30 years.

QGX president and CEO Paul Zweng says: "We are excited that the study demonstrates that a large CTL plant is feasible in conjunction with our coalfield at Baruun Naran. Although much work remains to be done, this opens the possibility of the CTL plant being an important component of our coal operation."

QGX is currently developing its 100%-owned Baruun Naran coal property located in southern Mongolia in the Aimag (province) of Umnogovi, approximately 500km south of Ulaanbaatar, the capital of Mongolia. Baruun Naran contains more than 20 seams of both metallurgical and thermal-grade coal.

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. An independent NI 43-101 resource estimate for metallurgical and thermal coal at Baruun Naran comprises of 47.5 million tonnes of measured, 60.0 million tonnes of indicated (107.5 million tonnes contained in measured and indicated) and an additional 48 million tonnes of inferred resources. An independent NI 43-101 report has been released outlining a polymetallic resource at the Central Valley Zone of Golden Hills. Barrick Gold Corp. holds an approximate 9% equity interest in QGX as part of a strategic relationship between the two companies. www.qgxgold.com