Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

September 16, 2009 15:40 ET

Silver Quest Closes Private Placements Totaling $1.05M

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce it has closed the brokered private placement with Canaccord Capital Corporation (the "Agent") of 6,875,000 units (the "Units") at a price of $0.08 per Unit and 4,000,000 flow-through units ("FT Units") at a price of $0.10 per FT Unit for total gross proceeds of $950,000.

Each Unit consists of one common share and one non-transferable common share purchase warrant ("Unit Warrant"). Each Unit Warrant entitles the holder to purchase one additional common share for two years at a price of $0.12 in the first year and at a price of $0.18 in the second year. Each FT Unit consists of one flow-through common share and one-half of one non-transferable common share purchase warrant ("FT Warrant"). Each whole FT Warrant entitles the holder to purchase one additional common share at a price of $0.15 for one year.

The Agent was paid a 7% commission of the gross proceeds raised and has been granted broker warrants equal to 7% of the Units and FT Units sold under the offering. The terms of the broker warrants are the same as the Unit Warrants above. The Agent was also paid a corporate finance fee.

In addition, the Company also announces that has completed a non-brokered private placement of $95,000 in FT Units under similar terms as above.

The funds raised from the issuance of the FT Units shall be used for expenditures which will constitute Canadian exploration expenditures on the Company's prospects located in BC and Ontario. Funds raised from the issuance of Units will be for general working capital. All securities issued in connection with the two placements are subject to a standard four month hold period, expiring January 16, 2009.

SILVER QUEST RESOURCES LTD.

Robert Weicker, 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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