Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

June 05, 2006 17:38 ET

Silver Quest Options Santa Rosa Silver Property in Sonora Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 5, 2006) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce the signing of a binding Letter of Intent in respect of the option to purchase a 100% interest in the Santa Rosa Property located approximately 175 kilometers east of Hermosillo, in the state of Sonora, Mexico. Based on limited sampling to date, the property represents an early stage exploration project acquired for its potential to host bulk-tonnage silver-lead mineralization.

The Santa Rosa property was identified as an acquisition target by the Company's reconnaissance team focused on properties with significant silver potential in northern Mexico. Sulphide mineralization, comprising galena, tetrahedrite and minor pyrite, along with barite, occurs in a carbonate breccia unit within a mixed sedimentary sequence. Two separate sampling programs have focused along a low ridge with scattered rock faces that parallels a south-east trending drainage. The host breccia unit is partially and intermittently exposed over a strike length of more than 500 metres. There is no evidence of any past drilling or mechanized surface disturbance; only shallow hand-worked pits were observed on the structure. There is ready road access to a ranch outpost within 500 metres of the first mineralized outcrops.

Initial sampling indicated significant silver-lead mineralization, with anomalous copper, zinc and barium. A total of five samples taken from this program returned an arithmetic average of 97.0 grams/tonne (g/t) silver (range from 29.5 g/t to 190.0 g/t silver) and an average of 2.82% lead (range from 0.01% to 7.94% lead). Copper values range from 0.07% to 0.34%, zinc values range from 0.21% to 1.01% and barium value range from 0.01% to 26.40% barium.

A further reconnaissance and sampling program completed recently by the Qualified Person, Robert Weicker, returned silver and lead values comparable to the initial sampling. A total of eight samples were taken (comprising grab and rock chip samples), from outcrop exposures and subcrop locations along the base and side slope of the mineralized ridge. These eight samples returned an average of 117.9 g/t silver (range from 45.6 to 205.0 g/t silver), and 3.86% lead (range from 0.08% to 11.35% lead). Copper values averaged 0.15% copper (range from 0.04% to 0.40% copper), zinc values averaged 0.08% and barium averaged 0.07% barium.

Although this limited sampling has returned very encouraging indications of wide-spread silver and lead mineralization, sampling has not systematically tested the target areas and additional exploration is required to determine the extent of the mineralization.

Sample preparation was completed by ALS Chemex in Reno, Nevada and Hermosillo, Sonora, with analysis completed by ALS Chemex in Vancouver. Mr. Robert Weicker, P. Geo is the Qualified Person, as defined by National Instrument 43-101, for the Santa Rosa project and supervised the preparation of the technical information in this release and verified the scientific and technical information and opinions contained herein by reviewing the underlying data.

The Company can acquire a 100% interest in the Santa Rosa Property through staged cash payments to two Mexican vendors, totaling US $2,000,000 over a seventy-two month (6 year) period. The Company has a 60-day due diligence period to review the title status and to complete a formal option to purchase agreement (the "Agreement"). Initial payment in the first year is US $25,000 when the Agreement is signed and approved, and US $25,000 on the six-month anniversary. A finder's fee consisting of 240,000 shares is payable equally to Mr. Thomas Evans and Mr. James Meyers related to the acquisition of the Santa Rosa property, with 120,000 common shares to be issued upon regulatory acceptance of the transactions, and 120,000 common shares on the first anniversary of the Agreement.

The transactions contemplated in the above-mentioned Letter of Intent, the cash payments, and the issuance of shares related to the finder's fee, are subject to execution of the Agreement and other conditions precedent for the benefit of the Company, including acceptance by the TSX Venture Exchange. Investors are cautioned there can be no assurance that the transaction will be completed as proposed, or at all.

Upon completion of the Agreement and receipt of regulatory acceptance, the Company plans a systematic Phase 1 exploration program for the Santa Rosa property, including rock and soil geochemistry, detailed geological, structural and alteration mapping, surface geophysical surveys, and hand and mechanical trenching. The Company is in the process of incorporating a Mexican subsidiary to be based in Hermosillo.

Silver Quest is an established Canadian junior exploration company with a focus on silver and gold projects, with nine mineral properties in B.C., Ontario and the Yukon. The Santa Rosa property represents the Company's first acquisition in Mexico. For the Company's property locations and information, visit the Company's web site at www.silverquest.ca.

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 content of this news release.

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