Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

July 23, 2009 09:30 ET

Silver Quest Acquires the Boulevard Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce that it has entered into an agreement with Rimfire Minerals Corporation and Northgate Minerals Corporation (the "Vendors") to acquire a 100% interest in the Boulevard property (the "Property") located in the Whitehorse mining district, Yukon.

Pursuant to the Agreement, the Company can acquire a 100% interest in the Property by making staged cash payments totaling $200,000 ($40,000 upon regulatory acceptance), the issuance of an aggregate of 1,000,000 shares (200,000 upon regulatory acceptance) and work commitments of $3,000,000 ($200,000 in the first year) over a five year period. The Vendors retain a 2% net smelter royalty ("NSR") on the property, with the Company having the right to buyback 0.5% of the NSR for $750,000. In addition, should the Company complete a National Instrument 43-101 compliant resource estimate on the Property in excess of 1,000,000 ounces of gold in an indicated category, the Company will be required to make a one-time bonus payment of an additional 1,000,000 shares of its capital stock to the Vendors.

Under the terms of the Agreement, Silver Quest will also purchase from the Vendors proprietary data pertaining to soil, silt and rock sampling completed in areas around or near the Property. If the Company acquires open ground by staking within these defined areas, it will be required to issue additional common shares, up to a maximum of 500,000, and the additional property, if any, will be further subject to a 2% NSR in favor of the Vendors. The Company will be entitled to buyback 1% of the NSR for $1,000,000.

The Boulevard property comprises 238 contiguous claims and was the site of a significant new gold discovery by the Vendors in 2008. The property is located approximately 135 kilometres south of Dawson City, Yukon and approximately 35 kilometres due south of the newly discovered Golden Saddle zone of Underworld Resources Inc. The initial Boulevard area was selected from a much larger regional compilation and reconnaissance silt sampling program by the Vendors that led to the identification of anomalous gold and pathfinder elements in creeks. Detailed soil sampling in 2007 outlined the multielement geochemical anomaly that was the focus of a 2008 trenching program.

Gold mineralization was discovered in the first of three trenches designed to investigate portions of the 2.0-kilometre-by-0.4-kilometre arsenic-antimony-gold soil geochemical anomaly in an area of sparse outcrop. The discovery trench TRV08-01, returned 7.04 grams per tonne (g/t) gold over 6.0 metres. One hundred metres southeast, trench TRBV08-02 returned 6.43 g/t gold over 2.0 metres. A third trench located 200 metres northwest of trench TRBV08-01 appears to have been located off trend.

The Vendors subsequently completed an initial limited diamond drilling program, comprising seven short holes (524.9 metres). Gold mineralization was encountered in five of seven holes (totaling 524.9 metres), with hole BV08-03 returning the best intersection of 0.9 g/t gold over 18 metres, including 1.9 g/t gold over 3.5 metres, approximately 45 metres down dip from trench TRV08-01. Two holes tested beneath a second mineralized trench (TRV08-02), returned 0.8 g/t gold over 4.2 metres and 0.5 g/t gold over 5.5 metres at approximately 20 and 30 metres down dip respectively. Two additional holes targeted anomalous arsenic-gold-antimony geochemistry located 220 metres and 1,110 metres along trend from the discovery area. Drill hole BV08-07 returned 1.0 g/t gold over 3.3 metres in a subtle style of mineralization not observed in previous drill holes or trenches.

Gold mineralization is hosted in strongly sericite plus/minus clay-altered schists with disseminated pyrite, arsenopyrite and stibnite. Sulphide mineralization is finely disseminated in the wall rock of quartz vein arrays or occurs as massive sulphide veins within the arrays. Mineralization-hosting quartz vein arrays follow regional northwesterly structures along major contacts between lithological packages.

Silver Quest president, Robert Weicker indicates; "Through a change of focus and a merger of companies, both Vendors' interests in the Boulevard property, have become available to the Company, which represent an exciting opportunity to expand on the 2008 gold discovery in this emerging exploration area." To date, drilling and trenching have focused on a relatively small portion of a large multi-element geochemical anomaly, resulting in the discovery of buried gold mineralization, with numerous other targets to be trenched and drilled tested.

The above scientific and technical information has previously been reported by Rimfire Minerals Corp., and reviewed by their qualified person Mark Baknes, MSc, PGeo, VP, exploration, a qualified person for the purpose of National Instrument 43-101. Robert Weicker, P. Geo., is the qualified person as defined by National Instrument 43-101 for Silver Quest resources Ltd., and has verified and reviewed the inclusion of the scientific and technical information in this release. A summer 2009 exploration program will include geological mapping, geochemistry and trenching, directed at the definition of further drill targets.

The agreements are subject to regulatory acceptance and all securities issued pursuant to the agreements will be subject to a four month hold period trading restriction from the date of issuance.


Robert Weicker, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

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