Mr. Bill Fisher reports

GOLDQUEST GRANTED NEW EXPLORATION LICENSE; GEOPHYSICAL ANOMALIES STRENGTHENED AND EXPANDED

Goldquest Mining Corp. has received, from the government of the Dominican Republic, a new exploration licence for the La Tachuela concession, to the south and adjacent to the company's mining application over its multimillion-ounce Romero gold/copper deposit. In addition, the 2016 induced polarization (IP) program continues to deliver excellent results. The trend of strong chargeability anomalies has been expanded to at least seven kilometres, from the northern end of the La Tachuela concession to the current southern limit of the survey. Upon completion of this phase of geophysics, the company will review the complete data set and rank targets for drilling.

The La Tachuela concession

The 330.25-hectare La Tachuela concession covers approximately three kilometres strike length of the Tireo volcanic formation, where Goldquest geologists have identified a corridor of argillic alteration indicating mineralizing hydrothermal activity, with silicified dacite as seen at Romero. Grab samples from mapped alteration areas within La Tachuela have returned highly anomalous results of up to 7.1 grams per tonne gold at Minero's Ridge and 9.7 grams per tonne gold at Fortuna. Of 144 rock samples taken within the concession to date, 36 returned over one gram per tonne gold; 18 samples have over three grams per tonne gold and six samples have over five grams per tonne gold. A strong magnetic low identified in the company's 2013 airborne survey underlies the area, and current IP program shows coincident strongly chargeable anomalies, with resistivity highs. The pattern of overlapping anomalies from the two geophysical methods is identical to other discovery areas in the Tireo trend. Direct evidence of permissive conditions in the form of mapped hydrothermal alteration and anomalous gold in rock samples results in a growing set of compelling drill targets.

Update on IP survey

The company's extensive ground geophysical survey employing gradient IP is continuing southward, with approximately a quarter of the survey's area completed. Crews are at work in the Toribio concessions (granted July, 2015). A remarkably consistent chargeability anomaly extends over 16 kilometres south from Romero, with a further 6.5 kilometres to be surveyed toward the company's shared concession boundary with Precipitate at its Ginger Ridge discovery.

Goldquest's chairman Bill Fisher commented: "The new Minero's Ridge and Fortuna targets display a number of similarities to our 2012 Romero gold/copper discovery. Goldquest has always stressed the importance of the Tireo trend as a potential 'mining camp' capable of hosting multiple deposits. We're gratified to see the number of compelling and undrilled new targets expand as we enlarge our geophysical and mapping program."

Survey results show the clear spatial correlation between alteration at surface and areas of underlying high chargeability. The continuous high chargeability zone is coincident with a high resistivity signature, which may correlate with the high silicification areas of Romero. The anomalous gold and copper in surface grab samples at Mineros Ridge and Fortuna strengthen the mineral potential of the target. Some of the strongest chargeability response and broadest areas of alteration are in the most recently surveyed area and are completely open to the south.

The company will issue further news on exploration results as it becomes available.

The information in this press release has been reviewed and approved by Jeremy Niemi, PGeo, vice-president, exploration of Goldquest, and a qualified person for the technical information in this press release under NI 43-101 standards.

Rock samples were bagged, sealed and delivered directly to Acme labs preparation facility in Maimon, Dominican Republic, where they were dried, crushed and pulped. Sample pulps were then delivered to Acme labs facilities in Vancouver, B.C. (an ISO 9001 accredited facility) for analyses. Samples were crushed to with up to 80 per cent passing 2 millimetres and split using a riffle splitter. An approximately 250-gram subsample split was pulverized to minus 200 mesh (74 micro). A 30-gram sample was subjected to fire assay and rock results with gold greater than 10 parts per million were subjected to fire gravitational finish. In addition, multielement ICP-MS was performed on all samples.

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