Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

June 17, 2009 09:00 ET

Silver Quest Resources Ltd.: Exploration Update and Sampling Results on the Keno Hill Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2009) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) owns a 100% interest in 19 quartz mining leases comprising approximately 700 acres within the Keno Hill Silver District in the Mayo Mining Division, Yukon (See for property maps) and is pleased to announce results from the fall 2008 sampling program on the properties. The mining leases are located near Keno City, 45 kms northeast of Mayo and approximately 360 kms north of Whitehorse, Yukon. Between 1921 and 1988, the Keno Hill Silver District produced more than 217 million ounces of silver with average grades of 1,388.6 grams per tonne (g/t) silver (40.5 ounces per ton silver (o/z)), 5.6% lead and 3.1% zinc (Yukon Government's Minfile database).

The main group, known as the Formo Group, is comprised of 13 leases and is cut by Highway 11 (accessing Keno City) located 2 kms along strike to the northeast of the former major producer, the Hector Calumet mine, which produced 2.7 million tons with a grade of 1,216.1 g/t (35.47 oz/t) silver. Since the 1930's various companies have conducted exploration on the Formo Group including surface trenching and sampling, underground development on two levels, limited diamond drilling, and an open cut with minor production. In 1931, 36 tonnes grading 7,886 g/t Ag (230.0 oz/t Ag) and 60% Pb were mined. In 1961, 13 tonnes grading 4,957.6 g/t Ag (144.6 oz/t Ag), 57% Pb and 10.3% Zn were mined and shipped from the Formo Group. Yukon Minfile reports state that mineralization on the group comprises narrow lenses of galena, sphalerite and minor tetrahedrite in a carbonate gangue within a typical narrow, north-trending, transverse vein cutting schist and greenstone beneath the Keno Hill (Central) Quartzite.

A Yukon Open File Report (106-D) from 1965 (D.D. Campbell report for Peso Silver Mines) indicates an estimated resource on the Formo Group, as defined by the underground workings, of 39,900 tonnes grading 548.6 g/t Ag (16.0 oz/t Ag), 6.9% Pb and 10.7% Zn (This is a historical resource estimate, and was not compiled within the definitions and standards outlined in National Instrument 43-101, and the Company cautions that these historic resource estimates cannot be relied upon). Campbell also indicated in this report; "With present (1965) knowledge of the ore controls it is possible to confirm a fair tonnage of ore with a moderate amount of raising and short drilling. Also, the potential of finding new ore bodies along strike is excellent wherever greenstone or quartzite bands may be encountered."

The Company completed a limited sampling program on the Formo Group to confirm the reported mineralization on the property. A total of 22 surface samples were taken, with the best values returned from dump samples (grab samples) at the lower (2700) adit area.

Significant Surface Sample Results from 2008 Sampling Program

Ag Ag Cu Pb Zn
Description Sample (#) (g/t) (oz/t) (%) (%) (%)
Main 2700 Adit - Galena, grab Keno 019 48.3 1.41 0.002 0.11 0.01
Main 2700 Adit - Galena, grab Keno 020 3025.0 88.22 0.096 15.85 39.80
Main 2700 Adit - Galena, grab Keno 021 2837.0 82.74 0.049 19.15 29.60
Main 2700 Adit - Galena, grab Keno 022 2985.0 87.05 0.011 19.50 0.17

In addition, two grab samples; Keno 028 and Keno 029 located approximately 400 m southwest of the open cut area returned significant gold and silver values. Keno 028 returned 4.245 g/t Au (0.124 oz/t Au) and 12.6 g/t Ag (0.37 oz/t Ag). Keno 029 returned 1.020 g/t Au (0.030 oz/t Au) and 38.6 g/t Ag (1.13 oz/t Ag).

The sampling program clearly confirmed the style and tenure of the mineralization on the Formo Group on the Company's Keno Hill property and warrants additional exploration. Geochemical analysis of the soils were conducted by Alex Stewart-Eco Tech Laboratory in Kamloops, British Columbia, an International Standard ISO 9001:2000-certified laboratory. The samples were analyzed using a 35-element ICPMS package.

The Company is presently considering various financing options to complete a summer-fall 2009 exploration program including joint venture arrangements with other companies active in the area. With the improved silver price, the historic Keno Silver District is experiencing a significant increase in exploration activity.

The Company also wishes to announce the granting of incentive stock options to certain directors, officers and employees to purchase up to 500,000 common shares under the Company's Incentive Stock Option Plan. The options will be granted for a period of five (5) years, commencing on June 16, 2009, exercisable at a price of $0.10 per share.


Randy Turner, Director

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