Quest Capital Corp.

Quest Capital Corp.

January 04, 2005 18:47 ET

Quest Capital Corp.: Early Warning Report


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUEST CAPITAL CORP.

TSX SYMBOL: QC

JANUARY 4, 2005 - 18:47 ET

Quest Capital Corp.: Early Warning Report

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 4, 2005) - Quest
Capital Corp. ("Quest") (TSX:QC), indirectly through its wholly-owned
subsidiary Quest Securities Corporation, acquired 1,000,000 warrants
(the "Warrants") of Groundstar Resources Limited ("Groundstar") as a
finder's fee commission in a private placement financing. Each Warrant
entitles the holder to purchase one additional common share at a
purchase price of $0.20 per share up to and including December 23, 2005
(the "Warrant Shares"). Quest currently owns, directs and has control
over 773,500 common shares (the "Common Shares") in the capital of
Groundstar which represents ownership and control of approximately 4.89%
of the issued and outstanding common shares of Groundstar. The Common
Shares, together with the Warrant Shares issuable upon exercise of the
Warrants, represent ownership and control of approximately 10.55% of the
currently issued and outstanding common shares of Groundstar on a
partially diluted basis, assuming the exercise of the 1,000,000 Warrants
only.

Quest may acquire or dispose of its beneficial ownership, control or
direction over securities through market transactions, private
placements, treasury issuances or otherwise as circumstances or market
conditions warrant or arise. Quest has no intention at this time of
increasing its beneficial ownership of any of the securities of
Groundstar.

Quest Capital Corp. is a merchant banking organization that focuses on
providing financial services, specifically bridge loans, to small and
mid-cap companies in North America. Quest's primary expertise is
providing asset backed commercial bridge loans of between $500,000 and
$20,000,000 to publicly listed companies, generally operating in
industries such as mining, oil and gas, manufacturing, real estate, and
technology.

For more information about Quest, please visit our website
(www.questcapcorp.com) or contact investor relations at 1-800-318-3094.

Forward Looking Statements

The foregoing information may contain forward-looking statements related
to the future performance of Quest Capital Corp. Forward-looking
statements, specifically those concerning future performance are subject
to certain risks and uncertainties, and actual results may differ
materially. These risks and uncertainties are detailed from time to time
in the Corporation's filing with the appropriate securities commissions.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Quest Capital Corp.
    Brian E. Bayley
    Director
    (604) 689-1428 or Toll Free: 1-800-318-3094
    (604) 681-4692 (FAX)
    Website: www.questcapcorp.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.