Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

January 17, 2008 15:22 ET

Silver Quest Acquires Capoose Silver Property in Central British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce that it has entered into an Option and Joint Venture Agreement (the "Agreement"), subject to regulatory acceptance, with Bearclaw Capital Corp. (BRL.V) ("Bearclaw") to acquire up to a 100% interest in the Capoose Property (the "Property") located in the Nechako Plateau district of central British Columbia. The Capoose property is contiguous to the Company's Silver Trend Property approximately 185 kilometres west-southwest of Prince George, British Columbia. Location maps and additional property information are available on the Company's website at

Under the terms of the Agreement, the Company can acquire an initial 60% interest in the Property by making cash payments of $240,000, issuing 1,040,000 shares, and incurring $1,000,000 in exploration expenditures staged over a 30-month period. The Company can, at any time within the 24 months following the exercise of the first option, increase its interest to 100%, subject to a 2.25% net smelter royalty ("NSR"), by paying an additional $2,500,000 in cash, with an option to pay 50% of this amount in shares, calculated on the 30-day weighted average of the Company's shares immediately prior to such election. The Company has the option to buy back 1% of the NSR for $1,500,000.

Capoose Property

The Capoose property covers known mineralized zones and exploration targets indicative of a large, disseminated silver-gold system. The Property totals 812 hectares and hosts a disseminated silver-gold deposit (the "Capoose Deposit") discovered in 1973 through geochemical sampling by Granges Inc. The Property was subsequently held by Pan American Silver in the 1990's. Exploration by Granges Inc. and Cominco Ltd. (now Teck Cominco Ltd.) outlined three zones of low-grade, disseminated style silver-gold mineralization at shallow depths, amenable to open pit mining. The mineralization is hosted in garnetiferous rhyolite sills and hornfelsed argillite. From 1978 to 1984, 5,480 metres of percussion drilling and 13,980 metres of diamond drilling (89 holes) were completed over the entire property, with 70 holes on the main mineralized zones. Historical resources on Zones 1 and 2 reported most recently by Pan American Silver Corp. (1999 Annual Report dated April 17, 2000 on SEDAR), are stated to be 28.22 million tonnes averaging 36.0 grams per tonne silver and 0.34 grams per tonne gold (for contained metal of 32.66 million ounces of silver and 308,500 ounces of gold). This historical resource estimate completed by Pan American Silver Corp. was not compiled within the definitions and standards outlined in National Instrument 43-101, and the Company cautions that these historic resource estimates cannot be relied upon.

Silver Trend Property

The Company acquired by staking, the Silver Trend Property, comprised of eight claims covering 3,600 hectares. The Silver Trend claims are subject to the terms of the Agreement with Bearclaw.

The "Capoose Deposit" was discovered by Granges investigating a soil geochemical anomaly defined by values of 2.0 parts per million (ppm) silver or greater. The Silver Trend property covers a similar soil geochemical anomaly known as the "Silver Trend". This anomaly extends 4.5 kilometres in a north-east direction, with a large halo defined by a 2.0 ppm silver threshold, and six principal targets defined by +5.0 ppm silver in soil. This entire geochemical trend represents an excellent exploration target to uncover additional mineralization similar to the Capoose Deposit.

A single rock sample taken 1990 by Placer Dome Inc. on the Silver Trend Property returned 2.01 g/t gold and 243.7 g/t silver from altered rhyolite with pyrite. This sample area, located approximately 2.3 kilometres south-southeast of the Capoose Deposit, has not had any further follow-up work.

The Capoose and Silver Trend properties are located in the Nechako Plateau region, an area where the Company has significant working expertise operating exploration drill programs on the 3Ts and the Davidson property. The 3Ts project is located 30 kilometers southeast, and the Davidson project is located 27 kilometers east, of the Capoose Property. All four of these projects are accessible by secondary logging roads, with field accommodation and support supplied by logging camps and ranches in the area.

Robert Weicker, P.Geo, is the Qualified Person as defined by National Instrument 43-101 for these projects, and has verified and supervised preparation of the scientific and technical information in this release.

The Company is actively exploring properties in British Columbia, Nevada and Mexico and is currently reviewing financing opportunities for projects in these areas.

"Silver Quest is an established Canadian junior exploration company with a focus on silver and gold projects, with ten mineral properties in B.C., Ontario, Yukon, Nevada, USA and Sonora, Mexico. For Silver Quest property locations and information, visit the Company's web site at"


Randy C. Turner, Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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