Great Quest Metals Ltd.
TSX VENTURE : GQ
FRANKFURT : GQM

Great Quest Metals Ltd.

July 11, 2007 19:28 ET

Great Quest Announces Additional Financing for Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 11, 2007) - Willis W. Osborne, President of Great Quest Metals Ltd. (TSX VENTURE:GQ)(FRANKFURT:GQM), is pleased to announce a best efforts, non-brokered private placement, of 300,000 units at $4.30 per unit to raise $900,000 in flow-through funds and $390,000 in non-flow-through funds. Each unit consists of four flow-through shares, priced at $0.75 per share, and two non-flow-through shares priced at $0.65, as well as three transferable warrants. In total, this equates to 1,800,000 shares and 900,000 warrants. Each warrant will entitle the holder to purchase an additional common share of the Company at a price of $0.80 for a period of one year from closing.

Where applicable, a finder's fee of six percent cash will be paid and finder's warrants, equal to six percent of the number of shares in question, will be issued. These warrants will be exercisable pro rata at the prices of the shares in the units for a period of one year from closing. All shares issued under this private placement are subject to a four-month hold period from closing. The financing is subject to regulatory approval.

The warrants attached to these placements are all subject to an early expiration provision such that at any time after the date of closing, should the common shares of the Company trade on the TSX Venture Exchange at or above a weighted average trading price of $1.00 per share for 10 consecutive days, the Company may give notice to the holders of the warrants via a news release that the warrants will expire 30 days from the date of providing such notice.

The Company is mobilizing for this season's drilling on its Taseko project. The objective of the next phase of drilling is to further delineate the mineralization identified in the Empress area, outline molybdenum mineralization to the north, east and west of the Granite Creek discovery hole and test copper-molybdenum soil anomalies west of the Buzzer zone. Further exploration on the Company's projects in Mali is to resume after the rainy season. Working capital raised will be used for exploration and general corporate purposes in British Columbia and Mali.

ON BEHALF OF THE BOARD OF DIRECTORS OF GREAT QUEST METALS LTD.

Willis W. Osborne, President

12g3-2(b) Exemption #82-3116

Standard & Poor's Listed

The statements that are not historical facts and are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from the targeted results.

The TSX Venture Exchange has neither approved nor disapproved the information enclosed in this release.

Contact Information

  • Great Quest Metals Ltd.
    George Butterworth
    Investor Relations
    (604) 689-2882 or Toll Free: 1-877-325-3838
    (604) 684-5854 (FAX)
    Email: info@greatquest.com
    Website: www.greatquest.com
    or
    Ascenta Capital Partners Inc.
    Jamie Mathers
    Investor Relations
    (604) 684-4743 ext 236 or Toll Free: 1-866-684-4743