Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

December 15, 2009 08:30 ET

Silver Quest Acquires the Prospector Mountain Property, Dawson Range, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce that it has entered into an option agreement with Tarsis Resources Ltd. ("Tarsis") for the Prospector Mountain property (the "Property"). This precious metals property consists of 239 mining claims located within the Dawson Range, 90 kilometres northwest of Carmacks, Yukon. Other properties in the area include Northern Freegold's Freegold Mountain project located 15 kilometres to the southeast, Sherwood Copper's Minto Mine, 30 kilometres to the northeast, and Western Copper's Carmacks project 55 kilometres to the southeast. See for property locations and further information.

Pursuant to the option agreement, the Company can acquire up to a 70% interest in the Property. To earn an initial 60% interest in the Property, the Company must make cash payments totaling $300,000, issue an aggregate of 1,000,000 common shares and incur $4,000,000 in exploration expenditures over a four year period (the first year's expenditure requirement of $350,000 is a firm commitment). The Company can elect to earn an additional 10% interest by completing a feasibility study within 36 months of earning its 60% undivided interest.

Upon earning its 60% interest (or 70% interest, as applicable) the Company and Tarsis will enter into a joint venture agreement to further explore and evaluate the Property. If either party's interest in the joint venture is subsequently reduced to less than 10%, its interest will be automatically converted to a 2% net smelter return ("NSR") interest and the other party will acquire a 100% working interest in the Property.

Within three days of delivery of a bankable feasibility study to the joint venture, the parties that sold the property to Tarsis (Almaden Minerals Ltd. and Republic Resources Ltd.) (the "Underlying Vendors") will be entitled to receive a payment consisting of 500,000 common shares. To meet this obligation, each of Tarsis and the Company will issue that number of its common shares that equals its proportionate joint venture interest at the time the bankable feasibility study is delivered. In addition, the Underlying Vendors have a 2% NSR interest in the property.

The Prospector Mountain property covers a high-level porphyry copper-gold system, the core of which is believed to be hosted within the eastern part of the claim block while peripheral epithermal gold-silver-lead vein targets occur within the western part of the property. For detailed geological information please refer to Tarsis press release (TCC-TSX.V) dated November 17, 2009.

Silver Quest is pleased to have acquired these strategically located and prospective claims in this emerging gold area. A summer 2010 exploration program will consist of two phases. Phase one will include further geological mapping, soil sampling and trenching, directed at the definition of drill targets. Phase two will include 5,000 – 10,000 metres of diamond drilling to test the defined targets.

Mr. William A. Wengzynowski, P.Eng is the qualified person as defined by National Instrument 43-101 for this project and has verified and supervised preparation of the scientific and technical information in this release.

The agreement is subject to regulatory acceptance and all securities issued pursuant to the agreement will be subject to a four month hold period trading restriction from the date of issuance.


Randy Turner, President

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

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