Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

October 26, 2009 18:23 ET

Silver Quest Earns 60% in Capoose Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI) is pleased to announce that it has exercised its option to acquire a 60% interest in the Capoose Property located on the Nechako Plateau of Central British Columbia from Bearclaw Capital Corp. (BRL.V).

To earn its 60% interest the Company has paid a total of $240,000, issued 1,040,000 shares and incurred $1 million in exploration expenditures. The remaining 40% can be acquired over the next 24 months by a further cash payment of $2,500,000 with the option to pay 50% in shares. The Company has recently completed a 13 hole diamond drill program with results from one hole (see Press Release October 20, 2009) reported. The results from the remaining 12 holes are pending.

The Capoose property covers three zones of disseminated silver and gold mineralization. Historical resources on Zones 1 and 2 (previously reported by Pan American Silver Corp. dated April 17, 2000 on SEDAR) are stated to be 32.66 million ounces of silver and 308,500 ounces of gold (consisting of 28.22 million tonnes averaging 36.0 grams per tonne (g/t) silver and 0.34 g/t gold).

This historical resource estimate completed by Pan American Silver Corp. was not compiled within the definitions and standards outlined in National Instrument 43-101. As the Company has not completed an updated resource estimation, it cautions that the historical resource estimate cannot be relied upon.

The Company is also pleased to announce that is has renegotiated the Jag Property Option Agreement (see Press Release August 1, 2008) to acquire 100% of Jag on more favourable terms. The Company is to make staged cash payments of $225,000 ($50,000 paid to date) and issuance of 200,000 shares (50,000 shares issued to date). The Jag property is contiguous to the north and northeast of the Capoose - Silver Trend Property.

Additionally, the Company has increased its land holdings by staking an additional 14 claims, totaling 6,198 ha to the south of the Capoose property, bringing Silver Quest's total contiguous land holdings in the project area to 14,509 ha.

For more information on the property location and background please see the Company's website at

Randy Turner, P. Geo., has reviewed this press release.


Randy Turner, 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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