QGX Ltd fka QGX

[Ed Monton]

QGX

OCTOBER 28, 2003 - 14:58 ET

QGX Ltd.: High-grade gold discovered in quartz-gold
veins at Uhaa Hudag

WATERDOWN, ONTARIO--QGX Ltd. (TSX.V: QGX) announces that drilling
of the Uhaa Hudag mesothermal quartz-gold vein system located in
the south-central Gobi desert in Mongolia has returned multiple
intersections of significant gold (see Table 1 below).
Thirty-three samples returned assays of 1 g/t Au or better. The
highest-grade intersection returned 26.3 g/t Au over 1.0 m. The
multiple and high-grade gold intersections on sections 8,400 and
8,600 as well as visible gold in two of the four holes confirm
that the gold-quartz veins exposed on surface extend downward to
greater than 200 meters depth.

The auriferous quartz vein swarm is contained within a 2.5 km
long shear zone. Current drilling has tested only 200 meters of
strike length. A fifth hole drilled to test a sub parallel zone
located several hundred meters to the south was collared on the
edge of the zone and cut quartz veins only in the upper portions
of the drill hole. This target is believed to be significant
given the substantial increase in strength of the associated IP
response.

"We are encouraged by the high-grade intercepts at Uhaa Hudag",
said David Anderson, CEO of QGX. "The abundance of
one-gram-or-better gold intercepts in each of the first four
holes suggests that there is gold throughout the hydrothermal
system", he added. QGX is initiating an IP geophysical survey in
early November to refine targets in the current area of drilling
as well as to explore a new and potentially larger zone located
several hundred meters to the south of the first four drill
holes. QGX plans to drill another series of drill holes at Uhaa
Hudag in late 2003 or early 2004.

As indicated in the September 22nd QA-QC procedures identified
problems in reproducing assay results in duplicate samples of
samples containing elevated levels of gold. To evaluate this
problem, the entire pulp from samples containing greater than 0.5
g/t gold were re-analyzed by metallic fire assay. The coarse
fraction of these pulps (greater than 150 mesh) typically
contained 10 to greater than 100 times higher concentration of
gold relative to the fine fraction (less than 150 mesh),
confirming that the lack of reproducibility between the
sample-duplicate sample pairs is due to the presence of
coarse-grained gold in these samples. This is not uncommon for
this type of mineralization.

Future samples will need to be comprised of the entire halved
core instead of the past practice of sampling splits from the
halved core. In this way all of the gold contained in the halved
core will be analyzed, thus providing a more meaningful measure
of the gold tenor for each sample. The reader is cautioned that
the assays presented in Table 1 are not certifiable as to the
absolute value of gold contained in the samples.

Patrick Redman, Chief Geologist of QGX Ltd., is the Qualified
Person as defined by NI 43-101, and has verified that the results
presented in this press release have been accurately summarized
from the official assay certificates provided to the Company.
SGS/Analabs in Manlai, Mongolia, prepared the samples. Activation
Labs (Actlabs) in Ancaster, Ontario and Tucson, Arizona,
performed the metallic and conventional fire gold assays shown in
Table 1. Analabs/SGS in Ulaanbaatar, Mongolia, performed check
fire assays on UH03-03 and UB03-04. The Company maintains a QA-QC
program designed by AMEC in the preparation, shipping and
checking of all samples from the property.



Table 1. Drill Intercepts of Gold-Bearing Quartz Veins, Uhaa
Hudag, Mongolia.

 
  
                            Interval    Actlabs-    Actlabs- SGS/Analabs- 
 Drill                        Length          MA        fire         fire 
 Hole        From        To      (m)    Au (g/t)    Au (g/t)     Au (g/t) 
 ------------------------------------------------------------------------ 
  
 UH03-01   112.70    114.20     1.50        1.87        1.70           ND 
  
 UH03-01   136.50    138.00     1.50        3.34       10.00           ND 
  
 UH03-01   182.25    183.55     1.30   1.07/1.69   1.20/1.37           ND 
 UH03-01   186.30    187.30     1.00        2.18        4.87           ND 
 UH03-01   187.30    188.30     1.00        1.29        1.70           ND 
 UH03-01   188.30    189.30     1.00        0.80        1.30           ND 
 UH03-01   191.85    193.00     1.15        1.58        1.30           ND 
  
 UH03-01   198.50    199.65     1.15       13.65        8.50           ND 
  
 UH03-01   219.40    220.40     1.00       26.30       17.40           ND 
 UH03-01   220.40    221.40     1.00   2.20/0.86   2.50/0.67           ND 
 UH03-01   225.90    227.00     1.10        1.43        1.96           ND 
  
 ------------------------------------------------------------------------ 
  
 UH03-02   171.50    172.50     1.00        2.93        2.10           ND 
  
 UH03-02   188.50    189.70     1.20        1.98        0.82           ND 
 UH03-02   191.80    192.80     1.00        2.88        2.05           ND 
  
 UH03-02   246.50    248.00     1.50        2.95        2.10           ND 
  
 ------------------------------------------------------------------------ 
  
 UH03-03   176.70    177.70     1.00   1.11/0.30   0.91/0.21    1.78/0.26 
 UH03-03   183.40    184.40     1.00        0.72        0.63         1.21 
 UH03-03   188.00    189.50     1.50        0.69        0.88         1.00 
 UH03-03   189.50    190.60     1.10        0.11        0.16         2.25 
  
 UH03-03   213.20    214.55     1.35        1.76        1.45         1.08 
 UH03-03   214.55    215.40     0.85        0.40        0.62         2.41 
 UH03-03   217.40    218.40     1.00        1.22        0.91         1.50 
  
 UH03-03   243.40    244.00     0.60        4.77        5.59         3.38 
  
 UH03-03   278.05    279.00     0.95        4.73        3.78         2.55 
 UH03-03   279.00    280.00     1.00   1.71/6.00   1.35/6.34    1.04/9.83 
  
 ------------------------------------------------------------------------ 
  
 UH03-04   104.60    106.00     1.40        0.92        1.06         0.74 
  
 UH03-04   116.55    117.55     1.00        1.53        1.41         1.41 
  
 UH03-04   150.00    151.25     1.25   1.46/1.42   1.23/1.03           ND 
  
 UH03-04   157.80    159.00     1.20   0.52/0.77   0.40/0.63    0.60/1.10 
 UH03-04   159.00    160.25     1.25   2.81/0.32   1.28/0.28    0.63/0.31 
  
 UH03-04   165.20    166.00     0.80       13.11        7.27        16.46 
 UH03-04   166.00    167.50     1.50        2.05        1.44        13.20 
  
 UH03-04   190.50    192.00     1.50        1.63        1.08           ND 
  
 ------------------------------------------------------------------------ 
  
 UH03-05                           No significant values 
  
 ------------------------------------------------------------------------ 
  
 Drill 
 Hole 
 Number   Section  Northing  Azimuth      Plunge 
  
 UH03-01    8,600    11,030      360         -60 
 UH03-02    8,600    10,950      360         -65 
 UH03-03    8,400    10,900        2         -60 
 UH03-04    8,400    11,040        3         -60 
 UH03-05     7635    10,157      340         -60 
  
 ------------------------------------------------------------------------ 
  
 

Notes:

Actlabs-MA equals 450 g metallic gold assay by Actlabs, Tucson,
AZ

Actlabs-fire equals 50 g fire assay with AA finish (less than
3000 ppb Au) or gravimetric finish (greater than 3000 ppb Au),
Tucson, AZ

SGS/Analabs equals 50 g fire assay with AA finish, Ulaanbaatar,
Mongolia

x.xx/y.yy equals sample-duplicate sample pair showing respective
Au g/t assay for each sample

ND equals No Data

About QGX

QGX is a Canadian based mineral exploration company that has been
exploring for mineral deposits in Mongolia since 1994. The
Company is conducting exploration programs on multiple targets in
Mongolia with a primary focus on its Golden Hills prospect where
drilling to date has encountered significant gold, silver and
copper mineralization near surface. The Company also has a
carried interest through to production in three advanced
exploration prospects (Kharmagtai -10%; Ovoot Hyar and Shuteen -
20% each) that are being explored by Ivanhoe Mines Ltd.

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
David Anderson
CEO
[phone]
or
Paul Zweng
COO
[phone]
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.