GoldQuest Mining Corp.
TSX VENTURE : GQC

GoldQuest Mining Corp.

August 08, 2005 15:14 ET

GoldQuest Announces Completion and Over Subscription of Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - Aug. 8, 2005) - GoldQuest Mining Corp. ("GoldQuest" or the "Company") (TSX VENTURE:GQC) announces that it has completed the brokered private placement (the "Offering") of 10,500,000 units ("Unit(s)") at a price of C$0.20 per Unit and raised a total of $2,100,000 from Qualified Canadian investors and Qualified non-U.S. international investors. The Offering was over-subscribed by $100,000. First Associates Investments Inc. ("First Associates" or the "Agent") acted as agent for the Offering. Each Unit consists of one (1) common share of the Corporation and one (1) common share purchase Warrant. Each whole warrant will entitle the holder to purchase an additional common share of the Corporation at a price of C$0.30 per share for a period of 24 months from the closing date ("Closing Date") of the proposed private placement. The Shares and the Warrants (along with the Common Shares issuable upon the due exercise of the Warrants) will be subject to a four-month hold period commencing on the Closing Date under applicable securities legislation. Gold Fields participated in the financing to increase their stake to 9.8%.

First Associates received a fee of $15,000 and a commission of 7% of the proceeds of the Offering. In addition First Associates was granted non-transferable options entitling them to purchase 10% of the number of Units sold at the offering price for a period of 12 months from the Closing Date.

The proceeds from the proposed private placement will be used by the Corporation to expand the exploration and drilling program on the new gold discoveries at Tres Palmas in San Juan, the porphyry gold discovery at Cerro Dorado, and further exploration on ground holdings around the world class Pueblo Viejo Gold Mine currently under feasibility by Placer Dome in the Dominican Republic and other properties as well as for working capital.

About Goldquest

GoldQuest through its subsidiaries owns and explores mineral properties in the Dominican Republic. GoldQuest is 34.6% owned by Minmet plc, a mining and exploration company listed on the Irish Stock Exchange. Gold Fields and Placer Dome Inc. are also significant shareholders of the Company.

Shares Outstanding: 42,677,000

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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