$250,000 Private Placement

Q-Gold Announces Approval of Non-Brokered Private Placement

SEC 12g 3-2(b) Exemption # 82-4931

January 25, 2007

Q-Gold Resources Ltd. (TSXV: QAU; Frankfurt: QX9) (“Q-Gold” or the “Corporation”) announced today that it has received approval from the TSX Venture Exchange for a Non-Brokered Private Placement of 1,250,000 Units at $0.20 each for gross proceeds of $250,000.  Each Unit consists of one common share and one common share purchase warrant (“Warrant”).  Each Warrant entitles the holder to purchase one common share at a price of $0.30 within twelve months of issuance and $0.35 during the ensuing twelve months.

All securities issued pursuant to this financing are subject to a four month hold period expiring on May 26, 2007.

No Finder’s Fees or commissions in either cash or securities were paid in connection with this private placement.

Proceeds from this financing will be used for general and administrative expenses, acquisitions and for other corporate purposes.

About the Corporation:
Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals on its extensive holdings at Mine Centre, Ontario.

For more information, please contact: J. Bruce Carruthers II, President at 888-779-0166.

This release may contain forward looking statements implying an assessment that the resources described can be produced profitably in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.