Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

January 17, 2007 15:32 ET

Silver Quest Resources Ltd.: New Silver Discovery-Corcoran Canyon, NV

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce final results from its recently completed diamond drilling program at the Corcoran Canyon Silver project located in central Nevada, 80 km north of Tonopah in Nye County. The total program consisted of three holes comprising 1388 metres and included the discovery of a new silver zone in Hole CCD06-02 which included:

From To Interval m Ag g/t Ag oz/t
148.4 150.6 2.2 m 795.0 23.19

Hole CCD06-02 was drilled at minus 48 degrees in a northwesterly direction in an area with no previous drilling. The mineralization is hosted in a fault breccia zone in a quartz-eye, rhyolite lapilli tuff unit, with associated fault gouge, pyrite and sericite alteration.

Hole CCD06-02 also intersected another zone of significant silver mineralization hosted in a quartz-feldspar flow-dome unit with silica veining and pyrite stringers noted, including:

From To Interval m Ag g/t Ag oz/t
305.7 308.9 3.2 m 211.0 6.15

The third and final hole of the program, Hole CCD06-03, was drilled at minus 50 degrees in a southeasterly direction. This hole encountered several zones of anomalous silver mineralization including 3.2 metres of 25.9 g/t Ag at a depth of 174.0 metres, and 3.0 metres of 69.2 g/t Ag at a depth of 391.1 metres.

Previously released significant drill results from Hole CCD06-01, the first hole of this program (Press Release November 24, 2006) include:

From To Interval m Ag g/t Ag oz/t
359.4 362.9 3.5 m 411.0 11.99
Within a wider mineralized zone of:
357.5 365.2 7.6 m 196.7 5.74

The Company is very pleased with these multiple high-grade silver intersections from this limited diamond drill program. The Company is initiating a program of permitting in preparation for a larger drill program directed at the new shallow structural target discovered in Hole CCD06-02 and the known silver resource area. The Corcoran Canyon property includes a historical geologic resource estimate of 1.61 million metric tonnes grading 175 g/tonne of silver and 0.86 g/tonne of gold as reported by Bullion River Gold Corp. This historical resource estimate was completed by Echo Bay Exploration Inc. in March 1988, using extensive technical data and economic parameters, but was not calculated within the definitions and standards outlined in National Instrument 43-101 (Press Release dated June 26, 2006). The Company has an option/joint venture agreement with Bullion River Gold Corp. to acquire up to a 75-per-cent interest in the Corcoran Canyon Silver project.

Robert Weicker, PGeo, is the qualified person, as defined by National Instrument 43-101, for the Corcoran Canyon 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.

Silver Quest is an established Canadian junior exploration company with a focus on silver and gold projects, with ten mineral properties in B.C., Ontario, Yukon, Nevada USA and Sonora, Mexico. For Silver Quest property locations and information, visit the Company's web site at


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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