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Special Report
Quincy Gold : Special Situation

from Goldletter I N T E R N A T I O N A L
the international independent information and advice bulletin for gold and related investments

August 13th, 2005

Company Profile

Quincy Energy Corp. (formerly Quincy Gold) has aggressively acquired drill proven uranium resources in uranium mining camps in Canada and the United States. Examples of these acquisitions are: Horse Creek Property, Wyoming, containing over 9 million pounds U3O8 (Quincy can earn a 100% interest); Elliot Lake, Ontario, containing 20.79 million pounds U3O8 (Quincy can earn a 90% interest); Hansen, Tallahassee Creek, Colorado, containing over 28.9 million pounds U3O8 (Quincy can earn a 44% interest) Aurora, Oregon, containing 16 million pounds U3O8 (Quincy can earn a 75% interest), Crownpoint, New Mexico, containing 25 million pounds U3O8 (Quincy can earn a 90% interest). and Hosta Butte, New Mexico, containing 13 million pounds of U3O8 (Quincy can earn a 90% interest).

In March 2005, Quincy announced the formal execution of a Memorandum of Understanding between Quincy and Energy Metals (EMC - TSX.V) to facilitate a spirit of co-operation on the acquisition and development of uranium deposits. Although the two companies will remain independent with their own staffs and objectives, they have agreed to allow each other access to their technical experts on staff.

On gold Quincy’s philosophy centres on the development of previously unrecognised high-grade underground mines in well-established mining camps or beneath known low-grade open pittable projects. Quincy has acquired 4 prime gold projects in Nevada. In the last year, the Company has added two new gold properties in Wyoming, including the Rattlesnake Hills Project, where a historic hole by Newmont Mining intersected 620 feet of 0.037 ounces gold per ton. Exploration will focus on Nevada and adjacent areas within the Great Basin.

Uranium Properties

~ Horse Creek Property, Natrona County, Wyoming

Quincy acquired by means of staking and notice of intend to locate 55 claims amounting to more than 1,100 acres in the Horse Creek Area of Natrona County, Wyoming.

In excess of 170 holes have been drilled on the Property by previous owners, including Phillips Petroleum and Union Carbide. According to a Union Carbide internal memorandum, the Horse Creek property contains a historic resource of slightly over 9 million pounds of uranium at a grade of 0.056% U3O8 (not NI 43-101 compliant).

~ Elliott Lake, Buckles Township, Ontario

In February 2005, Quincy earned up to a 75% interest in 10 mineral claims with known uranium mineralization located in Buckles Township, Ontario from Enerco Corp. The mineralization on the Property is hosted in conglomerates typical of the Elliott Lake District which has produced a total of 140 million tons at an average grade of 1.8 pounds of U3O8 per ton for a total of more than 250 million pounds of U3O8. The Property covers areas previously held by the Panel Mine, Conecho and Roche Long Lac (North Rock Explorations).

These three companies drilled 31 holes on the Property, of which 18 were used in determining a historic U3O8 resource. The resource calculation was prepared in accordance with generally accepted practices used at the time the mines were in production with no allowance made for pillars, mining dilution or mill tailing loss.

In a report furnished to Quincy by Canada Enerco historic resources were reported at 1.27 million tons grading 1.316 pounds of U3O8 per ton in the mine indicated resource category; 5.3 tons grading 1.274 pounds of U3O8 per ton in the drill indicated category; and 10.9 million tons grading 1.135 pounds of U3O8 per ton in the possible category. Based on these figures the total resource is 17.46 tons averaging 1.206 pounds per ton and containing approximately 20.79 million pounds of U3O8 (not NI 43-101 defined).

As consideration for the option, Quincy has agreed to pay Canada Enerco Cdn$ 50,000 and 200,000 shares. In order to earn a 50% interest, the Company must incur exploration expenditures of Cdn$ 850,000 on the Property by September 1, 2008 and pay Canada Enerco an additional Cdn$ 200,000 and 400,000 shares.

Quincy has firmly committed to initial exploration and development expenditures of Cdn$ 100,000, additional cash payments totalling Cdn$ 100,000 and an additional 200,000 common shares. Quincy intends to begin a comprehensive review of the existing database with plans to formulate a drill program to further define the existing resource. This program will be designed to bring the historic figures into compliance with current disclosure requirements.

~ Hosta Butte and McKinley Properties in New Mexico; and Hansen (Tallahassee Creek) Property in Colorado

In April 2005, Quincy entered into a definitive agreement with NZ Uranium LLC pursuant to which the Company can earn up to a 65% interest in three separate uranium properties, namely the Hosta Butte and McKinley properties in New Mexico and the Hansen (Tallahassee Creek) property in Colorado. Combined, the Hosta Butte and Hansen properties have historical resources that could bring approximately 21.7 million pounds of U3O8 to the credit of Quincy if all the options are fully exercised (not NI 43-101 compliant).

Extensive exploration work has been conducted on the properties by previous operators who have established historical uranium resources. At Hosta Butte it is reported that Uranium Resources Inc. (1992) and the Stoller Corp. (1996) each identified a resource amenable to in situ leaching (ISC) of 14 million and 13 million pounds of U3O8 respectively (not NI 43-101 compliant). In addition, Kilborn Engineering (1980) estimated 27.7 million pounds of U3O8 were present at the Hansen Property with a grade of 0.102% U3O8 (not NBI 43-101 compliant). Finally, the McKinley Property covers 5,700 hectares (14,080 acres) of lands, which are highly prospective for uranium development.

As consideration for the New Mexico and Colorado options, Quincy will issue to NZ Uranium 3.0 million shares of common stock. In order to exercise the options, Quincy will be required to spend a total of US$ 4.15 million on exploration and development of the properties over a 4-year period, of which US$ 400,000 would be a firm commitment and issue to NBZ Uranium of an additional 1.05 million common shares per property.

Quincy is to be planning an aggressive work program for the properties that will include the completion of NI 43-101 compliant geology reports covering the Hansen and Hosta Butte properties, followed by pre-feasibility and feasibility reports.

~ Crownpoint Property, McKinley County, New Mexico

In May 2005, Quincy entered into a definitive option agreement with NZ Uranium LLC pursuant to which the Company can earn up to an 80% interest in the Crownpoint Property, located in McKinley County, New Mexico. The Crownpoint Property contains an historical resource of approximately 25 million pounds of U3O8 (not NI 43-101 compliant).

New Mexico has a long history of uranium production with an estimated 347 million pounds having been produced from the State between 1953 and 1990. The Crownpoint uranium trend is located on the southern slopes of the San Juan basin in the northwestern part of the State and was discovered during the late 1970s by Mobil and Conoco. Previously, Mobil tested the amenability of uranium mineralization in the Westwater Canyon Member to in situ leaching (ISL) with favourable results. During the 1990s Uranium Resources Inc. commissioned and received a Final Environmental Impact Statement (FEIS) of which Crownpoint formed a part of the subject property.

As consideration for the option, Quincy will issue to NZ Uranium 3.0 million common shares and US$ 350,000 in cash. In order to earn a 65% interest in the property, Quincy will be required to spend a total of US$ 4.0 million on exploration and development of the properties over a 4-year period, of which US$ 500,000 would be a firm commitment, and issue to NZ Uranium an additional 3.15 million common shares.

Quincy is to be planning an aggressive work program for the Crownpoint Property that will include the completion of NI 43-101 compliant geology report covering the Property, followed by pre-feasibility and feasibility reports.

~ Aurora Property, Mathew County, Oregon

In May 2005, Quincy entered into a definitive option agreement with Energy Metals Corp. (EMC – TSX.V) pursuant to which the Company can earn up to a 75% interest in the Aurora Property, consisting of 18 unpatented lode claims covering approximately 146 hectares located in Mathew County, Oregon and 12 miles northwest of McDermott, Nevada.

Placer Amex Corp. started its evaluation of the Aurora uranium deposit in September 1978. Following extensive drilling and geological investigations, metallurgical investigations to define a mill circuit for uranium recovery, and mine and mill site planning, a Preliminary Feasibility Study was completed by Placer Amex in April 1980.

The report included a “Mining Reserve” estimate prepared by Placer Dome. This estimate as stated above is based on the results from over 550 m drill holes, including 20 core holes. Using Placer’s planned recovery of 80%, the mine was expected to produce in the order of 12.9 million pounds of U3O8 over a 16-year mine life.

As consideration for the option Quincy will issue to EMC 1.0 million common shares and pay US$ 25,000 in cash. In order to earn a 51% interest in the Property, Quincy will be required to spend a total of US$ 2.0 million on exploration and development on the properties over a 4-year period, of which US$ 200,000 would be a firm commitment and issue to EMC an additional 1.0 million common shares. Quincy is currently completing a 43-101 report on the property.

Gold Properties

Now entering an aggressive phase of acquisition and exploration, Quincy has to date secured 7 gold projects, each of which include known gold occurrences with geological settings, where high-grade systems are known to exist.

Low sulphidation epithermal gold prospects have become increasingly attractive exploration targets in the southwestern United States due to their high grade and low costs of production. Only 1-5% of the amount of rocks needs to be mined, transported and processed in order to recover the same amount of precious metals as from an openpit operation.

Between the 1860s and the 1960s, these types if bonanza-type epithermal high-grade gold veins were the primary discoveries made in the US, but gave way to open-pit in later years. Now attention has again been directed towards these smaller but highly profitable mines.

One of the richest mines in history, the Comstock Lode produced US$ 400 million in gold and silver before the mines were closed in 1898. More recent bonanza-type discoveries of low-sulphidation epithermal gold deposits include the Sleeper, Midas, and Delamar mines of northwestern Nevada and southwest Idaho.

Quartz Mountain Project, Lake County, Oregon

In October 2003, Quincy entered into an Option Agreement with Seabridge Gold Corp. (SEA – TSX.V) to acquire an exclusive option to earn a 50% interest in 67 unpatented mining claims located in Lake County, Oregon. Pursuant to the agreement, Quincy has to incur cumulative exploration expenditures of Cdn$ 1.5 million on or before October 15, 2008, including Cdn$ 100,000 by October 15, 2004 and Cdn$ 250,000 by October 15, 2005.

The Project consists of three distinct mineralised areas (Angel’s Camp, Crone Hill and Quartz Butte).

In January 2005, a total of HQ diameter diamond drill holes with an aggregate length of 14,069 feet were drilled with Quincy having incurred exploration and development expenditures of approximately US$ 975,000 on the Property.

At Angel’s Camp the drill holes intersected gold mineralization up to an average of 0.293 opt gold and 0.336 opt silver over 14,0 feet width.

At Crone Hill the drill holes intersected gold mineralization up to an average of 0.16 opt gold over 20.5 feet.

At Quartz Butte the drill holes intersected gold mineralization up to an average of 0.55 opt gold over 5 feet (0.04 opt gold over 80 feet).

Rattlesnake Hills Property, Natrona County, Wyoming

The Rattlesnake Hills Property is located in the geographic centre of the State of Wyoming and consists of a perpetual lease of 30 unpatented mining claims and a group of contiguous unpatented mining claims which collectively total 1,040 acres.

Quincy entered into an Option Agreement with Bald Mountain Mining in October 2004, by which the Company can earn a 100% interest in the Property subject to NSR varying between 3 and 4% and an allotment of common shares based on exploration expenditures of Cdn$ 5 million over a 5-year period.

From 1985 to 1987, a total of 32 reverse circulation holes aggregating 9,825 feet were drilled by American Copper and Nickel Company (ACNC). Significant gold mineralization was intersected in two geological systems. One hole intersected 255 feet of 0.024 opt gold at Antelope Basin. From 1993 to 1995, a comprehensive exploration program by Newmont Exploration resulted in the drilling of 15 holes, totalling 10,705 feet in the North Stock Area, which encountered significant mineralization. One hole intersected 0.037 opt gold.

A report prepared by Canyon Resources Corp. states that a resource of 250,000 ounces of gold was identified by the limited drilling carried out by ACNC and Newmont Exploration. In addition, a number of rock chip samples collected by Newmont on surface in the vicinity of the North Stock assayed 5 ounces to over 140 ounces per ton silver.

With additional drilling at Antelope Basin, the North Stock and an additional drill program at the South Stock, Quincy expects that the potential exists for the discovery of at least a minimum of 1.0 million ounces of gold and a large, high-grade silver resource.

Corporate / Finance

In April 2005, Quincy closed a Cdn$ 5.0 million private placement of 5.68 million units (of which Cdn$ 4.0 million placed with Sprott Asset Management) at a price of Cdn$ 0.85 per unit. Each unit consists of one common share and one-half of one share purchase warrant. Each whole share purchase warrant is exercisable into one common share at a price of Cdn$ 1.10 per share until April 1, 2007.

Quincy has a current working capital of Cdn$ 6.6 million.

Investment Recommendation

Quincy has aggressively acquired drill proven uranium resources in uranium mining camps in Canada and the United States, containing an aggregate resource base of approximately 100 million pounds U3O8 (not NI 43-101 compliant). A Memorandum of Understanding with Energy Metals on the acquisition and development of uranium deposits has enhanced the Company’s prospects to emerge to a significant uranium producer. In addition, Quincy focuses on the development of previous unrecognised high-grade underground mines in well-established mining camps or beneath known low-grade open pittable projects. These include four prime gold projects in Nevada, along with the Rattlesnake Hills and Lewiston gold projects in Wyoming.

Based on 41.2 million shares currently outstanding, Quincy has a market capitalization of just Cdn$ 27.2 million, which includes Cdn$ 6.6 million working capital.

We give a buy recommendation for Quincy with a first price objective of Cdn$ 0.90. Goldletter International

August 13th, 2005

Goldletter International is published monthly by Marino G. Pieterse, Gold Research Centre, Castricum, the Netherlands . Information and investment comments are independently and thoroughly researched and believed correct. No guaranty of absolute accuracy can be given however. . Investment decisions are fully made for own risk. . Editorial address: P.O. Box 200, 1900 AE Castricum, the Netherlands tel.:+31-251-320735 fax: +31-251-321110 . www.goldresearchcentre.com .e-mail: info@goldresearchcentre.com