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Quartz completes Buck Property acquisition as well as private placement and graduates to TSX Venture Exchange

December 30, 2011

VANCOUVER, Dec. 30, 2011 /PRNewswire/ – Quartz Mountain Resources Ltd. (“Quartz” or the “Corporation“) (TSXV: QZM) (OTCBB: QZMRF) announces that it has completed its
previously reported acquisition of an option (the “Option“) to acquire a 100% interest in the Buck gold-silver property (the “Buck Property“) located in central British Columbia from Hunter Dickinson Resources
Ltd. (“HDRL“). In connection with the completion of the acquisition, Quartz is
paying $100,000 in cash and has issued 1,200,000 common shares to HDRL,
with up to six million additional common shares to be issued to HDRL
upon achievement of certain milestones. In connection with the exercise
of the Option on the date hereof, Quartz is paying $20,000 in cash and
has issued 100,000 common shares to the owners of the Buck Property
(the “Option Grantors“). Under the terms of the Option, the Corporation will pay up to
$85,000 in cash and issue up to 550,000 common shares to the Option
Grantors within the next three years.

Concurrent with completion of the acquisition of the Option from HDRL,
Quartz has completed the previously announced non-brokered private
placement (the “Private Placement“) of 7,183,371 common shares, of which 6,043,171 are flow through
common shares issued at a price of $0.60 per share and 1,140,200 are
non-flow through common shares issued at a price of $0.50 per share,
for gross cash proceeds of $4,196,002. Proceeds from the Private
Placement will be used to finance the acquisition of the Buck Property,
to advance exploration of the Buck Property and for general corporate
and working capital purposes. All of the shares issued pursuant to the
Private Placement are subject to a four month hold period, which hold
period expires on April 30, 2012.

For additional information regarding the Buck Property, the acquisition
of the Buck Property and the Private Placement, please refer to the
Filing Statement and Technical Report filed by the Corporation on SEDAR
on December 20, 2011.

The TSX Venture Exchange (the “TSX-V“) has approved the Corporation’s graduation from NEX to the TSX-V and,
commencing on December 30, 2012, the common shares of Quartz will begin
trading on the TSX-V under the symbol QZM.

In connection with the completion of the transaction described above and
the graduation of Quartz to the TSX-V, Quartz announces that Robert
Dickinson, Ronald Thiessen, James Kerr and David Mordant have been
appointed to the Corporation’s board of directors. Mr. Thiessen has
also been appointed as President and Chief Executive Officer of the
Corporation, replacing Rene Carrier who is retiring as director,
President and Chief Executive Officer.

“Each of these directors has extensive experience and, together with
current director Gordon Fretwell who is remaining on the board, have a
combined depth of experience and knowledge that will be great assets as
the Corporation advances the Buck Property toward development” states
Mr. Thiessen. “Additionally I would like to thank Mr. Carrier, as well
as Brian Causey and Barry Coughlan, for their leadership during their
tenure as directors of the Corporation.”

About Quartz Mountain Resources Ltd.

Quartz is a mineral exploration and development company based in
Vancouver, Canada, which is currently listed on the TSX Venture
Exchange. The Corporation is associated with Hunter Dickinson Inc.
(HDI), a diversified, global mining group with more than 25 years of
mineral development success.

On behalf of the Board of Directors

Rene G. Carrier
President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed “forward
looking statements”. All statements in this release, other than
statements of historical facts, that address exploration drilling,
exploitation activities and events or developments that the Corporation
expects are forward looking statements. Although the Corporation
believes the expectations expressed in such forward looking statements
are based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the forward looking statements. Factors that
could cause actual results to differ materially from those in forward
looking statements include uncertainty related to the completion of the
required financing, the fulfillment of the conditions upon which the
transaction described herein is dependent, market prices, exploitation
and exploration successes, continuity of mineralization, potential
environmental issues and liabilities associated with exploration,
development and mining activities, uncertainties related to the ability
to obtain necessary permits, licenses and title and delays due to third
party opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, continued availability
of capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may
differ materially from those projected in the forward looking
statements. For more information on the Corporation, investors should
review the Corporation’s continuous disclosure filings that are
available at www.sedar.com.

SOURCE Quartz Mountain Resources Ltd.


Source: PR Newswire