Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

July 05, 2011 08:00 ET

Silver Quest Provides Update on BC Exploration Programs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2011) - Silver Quest Resources (TSX VENTURE:SQI) ("Silver Quest" or "the Company") is pleased to provide an update on its exploration programs in the Nechako Plateau, BC. For further details on property locations, please visit the Company's website www.silverquest.ca.

3Ts Project

A 2,000 metre diamond drilling program has commenced on the 3Ts project, with the first two holes designed to test the Ted Vein structure at depth and along strike. The best hole from previous drilling (by Phelps Dodge) on the Ted Vein intersected 8.88 grams/tonne ("g/t") gold and 393.6 g/t silver across a true width of 15.4 metres. The Ringer Zone and Mint Vein areas will also be tested by the 2011 diamond drilling. Previous results from the Ringer Zone included eight samples collected from boulders which returned an average of 19 g/t gold and 140 g/t silver (see news release dated September 24, 2003). Previous diamond drill holes on the Mint Vein structure intersected up to 8.08 g/t gold and 80.4 g/t silver across 2.0 metres (see news release dated April 28, 2003). The Company has also commenced geological mapping and prospecting on the 3Ts property area. Approximately 60 samples of quartz-carbonate vein material have been collected from recently discovered boulders to date, and have been submitted for analysis.

Capoose Project

The 2011 exploration program at Capoose will consist of geochemical soil and till sampling, prospecting and mapping, airborne geophysical (radiometric, electromagnetic and magnetic) surveying and up to 8,000 metres of diamond drilling. The Company also plans to conduct approximately 10.5 line-kilometres of deep-penetrating induced polarization (IP) surveying within the Capoose deposit area. The 2011 exploration in the deposit area is designed to increase the existing NI 43-101 Indicated Resource of 383,823 ounces of gold and 26,593,915 ounces of silver, as well as the Inferred Resource of 443,206 ounces of gold and 29,517,933 ounces of silver at a gold equivalent cut-off grade of 0.40 g/t (see news release dated January 20, 2011). The 2011 exploration at Capoose will also follow up on several new gold geochemical anomalies identified during the 2010 field season. The 2011 exploration budget for the Capoose Project is approximately $2.8 million.

Davidson Project

The Company, along with its joint venture partner, New Gold Inc., has released assay results for the first 35 holes of the current 20,000 metre diamond drill program (see news releases dated April 19, 2011, May 10, 2011 and June 27, 2011). Four diamond drills are currently operating on the Davidson property. Further drill results will be released as they are received from New Gold Inc., the project operator.

David Pawliuk, P.Geo., Vice President Exploration for Silver Quest, is the Qualified Person, as defined by National Instrument 43-101, for the 3Ts Project, the Davidson Project and the Capoose Project, and supervised the preparation of the technical information in this release.

SILVER QUEST RESOURCES LTD.

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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