Approval of Manhattan Mine Option

Q-Gold Announces Approval of its Option on the Manhattan Gold Mine

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

January 26, 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 (the “Exchange”) for the Corporation’s arm’s length acquisition of an Option to purchase both mining and surface rights associated with Freehold Mining Patents # K-231 (containing the “Manhattan” Gold Mine) and # K-224 in the Kenora Mining Division near Mine Centre, Ontario (the “Patents”).  This transaction was announced in a press release dated December 18, 2006.

 

In consideration, Q-Gold will pay to the Optionors $7,500 in cash and 150,000 common shares of the Corporation at a deemed price of $0.20 per share.

The Option consists of three 5-year periods, during which Q-Gold may conduct exploration operations on the Patents.  The first two periods are renewable by the Corporation if all payments to Optionors are current.  Beginning in Year 1 of Option period 2, Q-Gold may purchase the Patents for $75,000 in cash or $100,000 during Option period 3.

The Corporation is also obligated to pay the Optionors annual advance royalty payments of $2,500, $5,000 and $7,500 on each anniversary during the first, second and third Option periods, which are deductible from future NSR payments.  Upon exercise of the Option, Q-Gold will grant the Optionors a 2% NSR payable on all mineral production from the Patents.

The Manhattan Gold Mine, which was last subject to exploration and development in 1898-1900 (see press release dated 12/18/2006), is scheduled for a ground geophysical survey and follow-up diamond drilling during Q-Gold’s fully funded 2007 gold exploration program at Mine Centre, which is currently in progress.

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.