Quest Capital Corp.

Quest Capital Corp.
PPI Acquisition Corp.

March 17, 2005 17:59 ET

Quest Capital Corp. and PPI Acquisition Corp.: Early Warning Report; PPI Acquisition Corp. Tranfers Shares of Proprietary Industries Inc.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUEST CAPITAL CORP.

TSX SYMBOL: QC

AND PPI ACQUISITION CORP.

MARCH 17, 2005 - 17:59 ET

Quest Capital Corp. and PPI Acquisition Corp.: Early
Warning Report; PPI Acquisition Corp. Tranfers Shares
of Proprietary Industries Inc.

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(CCNMatthews - March
17, 2005) - Quest Capital Corp. (TSX:QC) and PPI Acquisition Corp.

PPI Acquisition Corp. ("PAC") today announced that, in connection with
the reorganization of PAC, PAC has transferred the 26,572,844 common
shares in the capital of Proprietary Industries Inc. ("PPI") held by it
to its shareholders in repayment of outstanding promissory notes of PAC
in the aggregate amount of approximately $17 million in favour of its
shareholders. The PPI shares were acquired by PAC pursuant to its
take-over bid for all of the issued and outstanding PPI shares, which
was completed on December 6, 2004.

In connection with the foregoing, Quest Capital Corp. ("Quest") (TSX:QC)
announced it has acquired ownership of 7,055,092 PPI shares from PAC
(being approximately 11.79% of the issued and outstanding PPI shares) in
repayment of an outstanding promissory note of PAC for an amount of
$4,515,257.65 in favor of Quest, in connection with the reorganization
of PAC. Quest holds approximately 26.5% of the shares of PAC.

Quest may acquire or dispose of its beneficial ownership, control or
direction over securities of PPI 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 PPI.

Quest Capital Corp. is a merchant banking organization that focuses on
providing financial services, specifically loans, to small and mid-cap
companies. Quest's primary expertise is providing asset backed
commercial 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.

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.

-30-

Contact Information

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