Quartz Mountain Resources Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended January 31, 2013. For the quarter, the company's loss before income tax was CAD 130,116 compared with CAD 1,121,132 a year ago. Total loss and comprehensive loss for the period was CAD 130,116 or CAD 0.01 per basic and diluted share compared with CAD 1,121,132 or CAD 0.07 per basic and diluted share a year ago. Loss from operations was CAD 1,714,000 compared with CAD 1,123,000 a year ago. For the six months, the company's loss before income tax was CAD 2,727,731 compared with CAD 1,221,403 a year ago. Total loss and comprehensive loss for the period was CAD 2,727,731 or CAD 0.11 per basic and diluted share compared with CAD 1,221,403 or CAD 0.08 per basic and diluted share a year ago. Net cash used in operating activities was CAD 4,071,041 compared with CAD 384,951 a year ago. Acquisition of a mineral property was CAD 50,000.

Quartz Mountain Resources Ltd. announced that Michael Lee has been appointed as Chief Financial Officer and Lena Brommeland as Executive Vice President of the company, effectively immediately. Mr. Lee replaces Simon Beller who has resigned from his role with the company. Since 2010, Mr. Lee has led the Risk and Compliance department at Hunter Dickinson Inc. and gained extensive experience on Quartz Mountain and the HDI group of companies. He has over fourteen years of experience in the areas of governance, risk management and financial reporting, working primarily with Canadian and US public corporations. Prior to joining HDI, Mr. Lee worked for Ernst & Young LLP. Lena Brommeland has more than 20 years of experience in mineral project evaluation and on-site management of large-scale mineral projects, including the Pebble and Niblack projects both located in Alaska and the Prosperity project in BC. Ms. Brommeland is Executive Vice President of Project Services with HDI where she manages on-site drill programs, co-ordinates environmental planning and permitting, and develops community relations activities for exploration and feasibility-level projects associated the HDI group of companies.

Quartz Mountain Resources Ltd. provided an update on results from exploration work conducted at the Galaxie property, located on Highway 37, 42 kilometres north of the Red Chris copper-gold mine construction site and 25 kilometres south of the Village of Dease Lake, British Columbia ("BC"). The Galaxie property hosts the Gnat porphyry copper deposit, where a two-hole drill program was undertaken in December 2012 to test newly identified potential to the known historical estimate, which comprises an "Indicated Reserve" of 30 million tonnes grading 0.39% Cu. The 2012 drill program confirmed the presence of mineralization at depth, returning intervals of, for example, 55.7 metres at 0.44% copper and 91.0 metres at 0.37% copper. Elsewhere on the Galaxie property, comprehensive surface exploration programs have identified new porphyry copper and skarn silver targets for drill testing in 2013. Hole GT12001 encountered mineralization below the historical resource, including 55.7 metres grading 0.44% copper intercepted from 360.0 metres below surface. Located in the northern sector of the Gnat deposit, hole GT12001 indicates potential to extend the known porphyry copper system to the west and northwest, and to depth. Geological information from GT12002 drilled to test the southern sector of the deposit to depth indicates that mineralization is limited vertically by a previously undefined fault, which has brought older mineralized rocks over younger unmineralized rocks The technical team is currently integrating geological information and assay data received from the initial two drill holes with other exploration data to inform management's plans for further exploration of the Gnat deposit area. In addition to the Gnat deposit, the 1,200 square kilometre Galaxie property has excellent exploration potential. In late 2012, surface exploration programs were completed over five target areas selected throughout the region. Integrated field surveys included the collection of 6,155 soil geochemical samples, 487 rock geochemical samples, 182 silt geochemical samples and completion of some 290 line kilometres of IP geophysical survey. Several compelling new porphyry copper targets and a skarn silver target were identified and are currently being prioritized for ground follow-up and drill testing in 2013. Drill permits have been received from the BC government for all targets. Quartz Mountain is operating the Galaxie Project in joint venture with Amarc Resources Ltd. By agreement announced November 7, 2012, Quartz Mountain holds a 60% interest in the Galaxie and ZNT Projects and Amarc holds a 40% interest. Amarc can acquire a further 10% interest by funding $1 million in project expenditures. The Galaxie Project is located some 25 kilometres south of Dease Lake, BC within a region where mining and mineral exploration is the principal industry. The district is well served by an existing transportation system, a developing power infrastructure and a skilled workforce. Highway 37 passes through the center of the Galaxie property and provides for year-around direct access to the Gnat deposit which is located in an area of gently rolling topography. Construction of the $400-million Northwest Transmission Line has commenced, which will include a 287-kV transmission line to a new substation near Bob Quinn Lake, approximately 180 kilometres by road south of Dease Lake. The Northwest Transmission Line is scheduled to connect to the Red Chris copper-gold mine construction project in early 2014.