GoldQuest Mining Corp.

GoldQuest Mining Corp.

May 26, 2005 08:30 ET

GoldQuest Announces Proposed Private Placement

TORONTO, ONTARIO--(CCNMatthews - May 26, 2005) - GoldQuest Mining Corp. ("GoldQuest" or the "Corporation") (TSX VENTURE:GQC) is pleased to announce that it is offering a private placement offering (the "Offering") of up to 8,000,000 units ("Unit(s)") at a price of C$0.25 per Unit, to raise up to $2,000,000 from Qualified Canadian investors and Qualified non-U.S. international investors. First Associates Investments Inc. ("First Associates" or the "Agent") has been engaged to act as agent for the Offering. Each Unit consists of one (1) common share of the Corporation and one-half (1/2) of a 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. Investors are advised to consult their own legal advisors in this regard.

First Associates will receive a fee of $15,000 and a commission of 7% of the proceeds of the Offering. In addition First Associates will be 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 San Juan, Cerro Dorado, Las Animas 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 52% 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: 32,177,000

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

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