GoldQuest Mining Corp.

GoldQuest Mining Corp.

January 11, 2005 07:00 ET

Goldquest Expands New Dominican Discovery. Channel Samples Return 20m @ 6.17 g/t Au


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GOLDQUEST MINING CORP.

TSX VENTURE SYMBOL: GQC

JANUARY 11, 2005 - 07:00 ET

Goldquest Expands New Dominican Discovery. Channel
Samples Return 20m @ 6.17 g/t Au

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2005) - GoldQuest Mining
Corp.(TSX VENTURE:GQC) -

- Channel sampling returns 20 meters @ 6.17 g/t Au

- Mineralization interpreted to be porphyry gold style

- Geophysical program planned in preparation for drill testing

GoldQuest Mining Corp. ("GoldQuest" or the "Company") is pleased to
announce the expansion of its discovery of significant new gold
mineralization on its Cerro Dorado project in the Dominican Republic.

GoldQuest geologists recently completed a north-south trending line of
channel samples. The samples were taken across an altered quartz diorite
intrusion with a quartz veinlet stockwork exposed in a stream. The
mineralization is interpreted to be porphyry gold style similar to the
Cerro Casale (25.4 Moz Au), Lobo (4.0 Moz Au), Marte (1.8 Moz Au) and
Refugio (3.4 Moz Au) deposits, all in Chile.

The channel samples were taken from the southern fringes of the large
gold in soil anomaly with an area of approximately 1,500 m by 1,100 m
announced in the November 16th 2004 press release. Samples from either
end of the channel sample sequence returned 4.7 and 4.1 g/t Au
indicating mineralization is probably open to both the north and south.

A total of 58 samples of 1 to 3 meters length each were taken with a
total sample length of 160.95 meters. The samples were taken over an
interval of 290.45 meters but some areas had no rock exposure. A high
proportion of the samples returned anomalous grades with a maximum grade
of 16.95 g/t Au over 1.5 m. The weighted average grades of the
mineralized intervals are given in the following table:



---------------------------------------------------------------------
Mineralized Interval Average gold grade
(Meters) Grammes per tonne
---------------------------------------------------------------------
20 6.17
---------------------------------------------------------------------
12 7.13
---------------------------------------------------------------------
9 0.48
---------------------------------------------------------------------
6 1.15
---------------------------------------------------------------------
41 1.40
---------------------------------------------------------------------
9 1.23
---------------------------------------------------------------------
8 0.82
---------------------------------------------------------------------
11 1.28
---------------------------------------------------------------------


A table of results and map can be found on the Company website at
www.goldquestcorp.com.

Detailed geological mapping and further sampling is currently underway.
New sample results will be reported as soon as they come available. In
addition a ground magnetic survey is planned to assist in defining drill
targets.

Stewart D. Redwood, President & CEO, said, "We are tremendously
encouraged by these latest results which demonstrate good continuous
high gold grades in outcrop. We are extremely excited about the future
drill testing of these new anomalies."

Cerro Dorado is a grass roots discovery made during the Gold
Fields-funded regional exploration program. The channel samples were
taken from a 100% owned GoldQuest concession directly south of a project
under option from Energold Mining Ltd.

The Cerro Dorado project is located 6.5 km from the Oro Verde project
where the Company has recently estimated an indicated resource of 2.72
Mt grading 1.95 g/t Au for 170,857 oz of contained gold. The Oro Verde
and Cerro Dorado projects lie within the Gold Fields area of interest
with Gold Fields retaining a back-in right to earn 60% of GoldQuest's
interest.

Preparation and geochemical analyses of all samples were carried out by
ALS Chemex, Vancouver. Rock standards and blanks are routinely inserted
into all sample batches.

The qualified person for the technical information in this press release
for the purposes of National Instrument 43-101 is Stewart D. Redwood,
FIMMM.

About GoldQuest

GoldQuest is focused on gold exploration in the Dominican Republic. Gold
Fields Ltd. and Placer Dome Inc. are significant shareholders of the
Company, which has an excellent land position around Placer Dome's
Pueblo Viejo gold deposit.

Shares Outstanding: 32,177,000

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    GoldQuest Mining Corp.
    Stewart D. Redwood, PhD, FIMMM
    President & CEO
    in Toronto (1) 416 367 9281
    in Panama at 507 264 9120 (from Canada and USA dial 011)
    info@goldquestcorp.com; www.goldquestcorp.com
    or
    GoldQuest Mining Corp.
    Chafika Favero
    Investor Relations
    in Toronto (1) 416 367 9281
    in Panama at 507 264 9120 (from Canada and USA dial 011)
    info@goldquestcorp.com; www.goldquestcorp.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release