PROJECT DEVELOPMENT SCHEDULE

Mine Development Schedule

Late in 2005 QGX initiated the first Conceptual Mine Development Study for the Baruun Naran project. Minarco Asia Pacific Pty Ltd was contracted to conduct the study, which was completed in June 2006.  The results of the study are promising, but because the study was based on a hypothetical resource/reserve estimated by McElroy Bryan Geological Services (no NI 43-101 resource was available at the time), the results cannot be publicly released.

QGX’s goal is to complete drill delineation of the eastern portion of the BN coalfield by the end of 2006.  This will enable QGX to again report an “indicated” and “measured” resource in the first quarter of 2007 within an updated NI 43-101 statement.  At that time QGX will be able to update the Conceptual Mine Development Study using a NI 43-101 compliant resource statement.