Silver Quest Resources Ltd.

Silver Quest Resources Ltd.

February 27, 2008 19:22 ET

Silver Quest Resources Ltd.: $2.25 Million Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) -


Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce that it has arranged a non-brokered private placement of up to 11,250,000 units (the "Units"), at a price of $0.20 per Unit, to raise total gross proceeds of up to $2,250,000 (the "Offering"). Each Unit will consist of one common share of the Company ("Share") and one-half of one transferable common share purchase warrant. Each full warrant ("Warrant") will be exercisable to acquire one additional share for a period of 18 months from closing at an exercise price of $0.30 per share. The Company will pay certain persons who locate subscribers for the Offering (the "Finders"), a cash finders' fee of 7% of the gross proceeds of the Offering attributable to that Finder, and compensation warrants (the "Compensation Warrants") entitling the Finders to purchase such number of common shares as is equal to 10% of the number of common shares attributable to the Finders. Each Compensation Warrant will entitle the Finders to purchase one common share of the Company at an exercise price $0.30 for a period of 12 months following the closing. The proceeds of the Offering are intended to fund exploration activities on the Company's projects and for working capital and general corporate purposes.

The Offering will not be qualified for sale to the public by way of prospectus, therefore all securities issued in connection with the Offering will be subject to a four-month hold period in Canada from the closing of the Offering. The Offering and the Finder Fees are subject to completion and execution of appropriate documentation and acceptance for filing by the TSX Venture Exchange of the Offering.

This press release does not constitute an offer to sell, or a solicitation of an offer to sell, any of the foregoing securities in the United States. None of the foregoing securities have been and, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Certain of the statements made and information contained herein constitutes "forward looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements regarding the timing of future activities by the Company, the Company's plans at its mineral properties which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate and similar expressions, or are those, which, by their nature, refer to future events. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration, the potential for delays in exploration activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the each of the Company's management's discussion and analysis. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.


Randy C. Turner, Director

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

Contact Information