Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

September 01, 2009 19:52 ET

Silver Quest Resources Ltd.: Closing of Non-Brokered Private Placement With the MineralFields Group

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2009) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce the closing on August 31, 2009 of the non-brokered portion of a private placement financing previously announced (see press release August 10, 2009). The non-brokered portion consisted of 3,000,000 flow-through units (the "FT Units") at 10.0 cents each to the MineralFields Group (the "Non-Brokered Offering"). Each FT Unit is comprised of one flow-through common share, and one half of one non-flow-through common share purchase warrant, exercisable at a price of 15.0 cents per share until August 31, 2010. Gross proceeds from the Non-Brokered Offering were $300,000. The Company anticipates closing on or about September 16th on the other portion of the financing that was announced on August 10th.

As consideration for the services of Limited Market Dealer Inc. (the "Finder") acting as a finder for the Non-Brokered Offering, the Company has: (i) paid a fee in the amount of $18,000, equal to 6% of the gross proceeds from the sale of the Non-Brokered FT Units; and (ii) issued to the Finder an option exercisable for the purchase of 240,000 units (the "Finder's Units"), each Finder's Unit consisting of one common share (a "Finder's Share") and one-half of one non-transferable share purchase warrant, each whole warrant (a "Finder's Warrant") exercisable for the purchase of one common share of Silver Quest (a "Finder's Warrant Share") at a price of $0.15 until August 31, 2010. The Company has also agreed to pay the Finder a due diligence fee in the amount of $6,300, equal to 2% of the gross proceeds (inclusive of 5% GST) from the sale of the FT Units under the Non-Brokered Offering.

All the securities issued pursuant to the Non-Brokered Offering, including the securities issued to the Finder, are subject to a four-month hold period that will expire on December 31, 2009.

The proceeds of the Non-Brokered Offering will be used to finance the Company's exploration project on the Capoose-Silver Trend property in central British Columbia, and on the newly acquired properties (Boulevard, CC, TAK, VO and Sizzler claims) in the White Gold area of the Yukon.

"About MineralFields, Pathway and First Canadian Securities ®"

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at

First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

We seek Safe Harbor.


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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