Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

December 10, 2009 14:16 ET

Silver Quest Announces Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2009) -

NOT FOR DISTRIBUTION TO THE US OR TO US WIRE SERVICES.

Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce that it has arranged a non-brokered private placement of up to 4,000,000 units (the "Units"), at a price of $0.35 per Unit, to raise total gross proceeds of up to $1,400,000 (the "Offering"). Each Unit will consist of one flow-through common share and one-half of one non-transferable common share purchase warrant. Each full warrant ("Warrant") will be exercisable to acquire one additional common share for a period of 12 months from closing at an exercise price of $0.60 per share.

The Company will pay certain persons who locate subscribers for the Offering (the "Finders"), a cash finders' fee of 6% of the gross proceeds of the Offering attributable to that Finder and compensation warrants (the "Compensation Warrants") entitling the Finders to purchase such number of common shares as is equal to 6% of the number of Units attributable to the Finders for a period of 12 months from closing at an exercise price of $0.60 per share.

The funds raised from the issuance of the Units shall be used for general exploration expenditures, which will constitute Canadian exploration expenditures, flow-through mining expenditures (as defined in the Income Tax Act) and flow-through mining expenditures on the Company's prospects.

The Offering will not be qualified for sale to the public by way of prospectus, therefore all securities issued in connection with the Offering will be subject to a four-month hold period from the closing of the Offering. The Offering and the Finder Fees are subject to completion and execution of appropriate documentation and acceptance for filing by the TSX Venture Exchange of the Offering.

SILVER QUEST RESOURCES LTD.

"Randy Turner"

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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