Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

October 12, 2006 19:15 ET

Silver Quest Acquires Howson Silver Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce the acquisition of a 100% interest in the Howson silver property, located northwest of Smithers in central British Columbia. An initial reconnaissance sampling program on the property returned widespread anomalous silver and copper values up to 802.0 grams per tonne silver (23.39 ounces per ton) and 7.24% copper from a mineralized grab sample (#51687).

The Howson Property is located midway between Terrace and Smithers in central British Columbia, along the west flank of the Howson Range and comprises 5,954 hectares. The western portion of the property is readily accessible by logging roads from Terrace. Several historic showings of silver, copper and gold occur on the property however sampling of a new road cut in 1995 returned significant silver and copper values that prompted the acquisition of the property and the recent prospecting and sampling program. This occurrence, known as the "Switchback Zone", has been defined discontinuously over a length of over 300 metres by grab and chip samples taken by the Company from a gossanous shear zone with the following results:

Sample # Type Silver g/t Copper %
51686 Chip 0.35 m 10.3 0.37
51685 Chip 0.50 m 44.5 0.14
51687 Grab 802.0 7.24
51688 Chip 1.25 m 4.3 0.11
51691 Grab 0.9 0.01
51692 Chip 0.40 m 20.1 0.17
51689 Chip 1.25 m 86.7 0.10

Sample 51689 was taken from the lower portion of the road cut, and all the remaining sampled were taken from discontinuous outcrops over a length of about 300 meters along the upper road cut. All samples are moderately to strongly oxidized, hosted in early Jurassic age volcanic rocks of the Hazelton Group. The volcanic sequence strikes northerly, dips moderately to the east and consists of maroon, reddish and purple and grey-green coarse pyroclastics and finer grained, well-bedded tuffs. Sulphide mineralization is dominated by pyrite, with minor chalcopyrite, galena and arsenopyrite noted, along with occasional copper oxides. Sampling in 1995 (BC Assessment report #24405) from the upper Switchback occurrence returned similar results (table below) but was not followed up with drilling. The 1995 results include:

Sample # Type Silver g/t Copper %
5648 Grab 8.0 0.19
5513 Grab 28.7 0.09
5512 Grab 257.1 4.49
5511 Chip 2.0 m 357.9 2.38
5510 Grab 1.8 0.09
5509 Grab 4.8 2.38
5508 Grab 12.1 0.02
5649 Grab 12.7 0.09
5507 Chip 2.5 m 0.1 0.01
5650 Grab 572.9 6.69

In addition to the Switchback occurrence the property covers several other known showings which have returned significant values of silver, copper and gold. Previous work included a program of geological and geophysical surveys, prospecting, trenching and 1820 metres of diamond drilling in 15 holes, mostly on the Main and Discovery zones. This work showed the Main zone mineralization is a epithermal vein system, which strikes easterly and dips 15-20 degrees to the south. The Discovery zone consists of several parallel veins and a 500 by 200 metre breccia zone believed to be of hydrothermal origin.

At the Main Zone, only two samples were taken. Sample 51671 comprised a chip sample of quartz-carbonate veining over 0.8 metres from a old trench, returning 5.94 grams per tonne gold, 50.7 grams per tonne silver, 1.23% copper, 0.45% lead, and 0.18% zinc. Sample 51672 comprised a grab sample of quartz-carbonate veining, returning 24.60 grams per tonne gold, 181.5 grams per tonne silver, 3.84% copper, 0.87% lead, and 0.15% zinc.

Although this initial sampling from the Switchback and Main zones has returned encouraging indications of widespread silver and copper mineralization, sampling has not systematically tested the target areas, and additional exploration is required to determine the full extent of the mineralization.

The occurrence of silver and copper values over significant widths related to sulphide mineralization in a structural zone lends itself well to electrical geophysical surveying to determine the extent, direction and priority of mineralized zones. The Company is investigating a helicopter Airborne MAG (magnetometer) and EM (electromagnetic) survey in the near term to delineate EM conductors, which may be associated with mineralization. With excellent access via logging roads, it is anticipated that the Switchback Zone can be quickly advanced to the drilling stage.

The technical information in this news release has been reviewed by Robert Weicker, P.Geo., who is a Qualified Person as defined in NI 43-101. All new assay results were performed at Eco Tech Laboratory in Kamloops, BC.

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

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