Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

November 26, 2010 08:00 ET

Silver Quest Increases Claim Holdings at Slate Falls, Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2010) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce that it has entered into an option agreement to acquire an additional five (5) mining claims covering approximately 800 hectares contiguous to its existing claims at its Slate Falls gold exploration project in northwestern Ontario. The project is located 120 km north of Sioux Lookout and 30 km southwest of the Golden Patricia Mine. In October, the Company announced multiple high grade gold showings up to 177.24 grams per tonne (g/t) gold and 1,120 g/t silver from a sampling program carried out on its three (3) existing claims at Slate Falls (News Release October 18, 2010). The acquisition of these additional claims will bring the Company's total holdings in the area to approximately 1,570 hectares. For location maps and property details see the Company's website

Under the option agreement, the Company can acquire a 100% working interest in the property by making aggregate cash payments of $100,000 and issuing 200,000 shares over a three year period and incurring not less than $400,000 of exploration expenditures over a four year period.

The claims are subject to a 2% of net smelter returns royalty ("NSR") with the Company having the right to buy-down one-half of the NSR for $1,000,000 at any time after commercial production is achieved on the property. Commencing on the fourth anniversary of the option agreement, the Company will pay $20,000 per annum as an advance royalty, which amount shall be deductible against production royalties otherwise payable. Advance royalties and the $1,000,000 payable to buy-down the production royalty will be adjusted in proportion to changes in the Consumer Price Index ("CPI") as published by the Bank of Canada, using the September 2013 CPI as the base period.

The option agreement is subject to regulatory acceptance. All securities issued pursuant to the option agreement will be subject to a four month hold period trading restriction.

Silver Quest is pleased to have acquired this prospective property, which will now be included in the previously announced winter 2011 drill program to test underlying bedrock for gold mineralization and the continuity of structural trends between the known mineralized zones on the Slate Falls property.


Randy Turner, President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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