Last updated on April 16, 2014 at 13:26 EDT

Quartz Mountain Enters Option and Joint Venture Agreement with Amarc to Advance Galaxie and ZNT Projects

November 7, 2012

VANCOUVER, Nov. 7, 2012 /PRNewswire/ – Quartz Mountain Resources Ltd. (“Quartz Mountain“) (TSXV: QZM; OTC: QZMRF) announces that it has entered into a binding
letter agreement (“Letter Agreement”) with Amarc Resources Ltd.
(“Amarc”) to advance the Galaxie and ZNT Projects located in northern
and central British Columbia (“BC”).

Under the Letter Agreement, Amarc can acquire an initial 40% ownership
interest in Quartz Mountain’s 100% owned Galaxie and ZNT Projects (the
“Projects”) upon making a cash payment of $1 million to Quartz Mountain
and funding $1 million in exploration expenditures incurred by Quartz
Mountain relating to the Galaxie Project on or before December 31,
2012.  The joint venture between the parties will be managed initially
by Quartz Mountain.  Amarc will also have the option to acquire an
additional 10% ownership interest in the Projects by funding a further
$1 million in exploration expenditures in relation to the Projects on
or before September 30, 2013.

The transactions contemplated by the Letter Agreement are subject to
regulatory approval and it is expected that the parties will enter into
a definitive agreement governing the transactions in greater detail.

Galaxie Project

The 1,300-square km Galaxie Project is located in northwestern British
Columbia near the town of Dease Lake.  Geologically, the project-area
lies within the Stikine Terrane, which hosts a number of important
copper-gold deposits such as Red Chris, Schaft Creek, Galore and the

Historical exploration, including geological, geochemical and
geophysical surveys, as well as trenching and drilling, identified
several copper occurrences on the Galaxie property, including the Gnat
porphyry copper deposit. A historical estimate for the deposit was
completed by Lytton Minerals Ltd. in 1972, comprising “Indicated
Reserves” of 30,387,850 tonnes grading 0.39% Cu, including 20% dilution
by wallrock grading 0.15% Cu.

The historical estimate, reported in a Canadian Stock Exchange Listing
Statement in 1972, was based on 83 AQ-size drill holes completed by
Lytton and others to that time. As no technical report or other
documentation of reserve estimation parameters is known to exist, the
reliability of the estimate cannot be assessed. There is no
classification of “Indicated Reserves” under current standards and a
qualified person has not done sufficient work to classify the estimate
as current mineral resources or reserves.  As such, Quartz Mountain is
not treating the historical estimate as current.

In 2012, Quartz Mountain’s technical team carried out a geological
assessment of the Gnat deposit, involving compiling and interpreting
historical data that confirmed that copper mineralization in the
deposit remains open to expansion, including to depth. This exercise
was followed by a field program of re-logging core and implementing an
Induced Polarization (“IP”) survey which have refined targets for

In addition to the Gnat deposit and other copper and/or molybdenum
occurrences discovered historically at Galaxie, at least five target
areas were identified by prospecting surveys carried out across the
property in 2011. Quartz Mountain followed up with geological mapping,
silt and soil sampling and IP ground surveys in 2012 at these highly
prospective targets.  Results are pending.

ZNT Project

ZNT is an early-stage project located in central British Columbia, some
15 km from the town of Smithers, BC. The 102-square km property was
staked by Quartz Mountain on the basis of significant zinc and gold
values in regional till samples, as well as copper and silver mineral
occurrences as reported by Geoscience BC and the provincial government
surveys, respectively.  Quartz Mountain’s technical team believes that
the project has promising exploration potential. Initial surveys,
including geological mapping, soil sampling and IP have been done and
additional ground work is planned.

Planned Program

Financing in late 2011 enabled Quartz Mountain to acquire and advance
ground surveys at the Buck, Karma and ZNT Projects in central BC and
the Galaxie Project in northwestern BC.  Through the Letter Agreement
with Amarc, Quartz Mountain plans to prioritize and then initiate
follow up on these programs, beginning with focused drilling at the
Gnat deposit, starting shortly.

Both Quartz Mountain and Amarc are Vancouver-based exploration companies
associated with Hunter Dickinson Inc. (HDI), a diversified, global
mining group with more than 25 years of mineral development success. 
Quartz Mountain and Amarc have certain directors in common and are,
accordingly, considered by the TSX Venture Exchange to be Non-Arm’s
Length Parties.

Mark Rebagliati, P. Eng., a Qualified Person as defined under National
Instrument 43-101, has reviewed the content of this release.

On behalf of the Board of Directors
Ron Thiessen
President and CEO

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 other related events or developments are
forward-looking statements. Although Quartz Mountain 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 market prices, potential environmental issues or
liabilities associated with exploration, development and mining
activities, exploration and exploitation successes, continuity of
mineralization, uncertainties related to the ability to obtain
necessary regulatory approvals, permits, licenses and title and delays
due to third party opposition, changes in and the effect of 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, investors should review Quartz Mountain’s annual Form 20-F
filing with the United States Securities and Exchange Commission at
www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.

SOURCE Quartz Mountain Resources Ltd.

Source: PR Newswire