Mr. Julio Espaillat reports

GOLDQUEST TO COMMENCE AT 10,000 METRE DRILL PROGRAM IN AUGUST

Goldquest Mining Corp. has signed a contract with Energold Drilling for a 10,000-metre diamond drilling program at the company's 100-per-cent-owned Tireo property in the Dominican Republic.

All the holes will be targeting newly recognized zones of potential mineralization following the recently completed substantial ground induced polarization (IP) survey.

"We are excited by the potential of these exploration targets," stated Bill Fisher, executive chairman of Goldquest. "Many of these IP targets are similar to the anomalies that became the multimillion-ounce Romero project deposits. Anomalous gold values at surface of up to 167 grams per tonne gold will also be tested."

The drill program will commence in early August and will focus on testing the identified IP targets along the Tireo belt, hosting gold/copper mineralization related to the collision of the Atlantic and Caribbean geological plates.

A 15-kilometre-long section of the Tireo belt has never been drilled and sits between the company's Romero gold/copper deposits and Precipitate Gold Corp.'s Ginger Ridge discovery. Goldquest's systematic and rigorous target generation process built on cost-effective geological and alteration mapping geochemical sampling following up key airborne magnetic and electromagnetic geophysical trends, culminating with the 2016 IP survey, the first ever carried out in this portion of the belt. The main deposit at the multimillion-ounce Romero project does not outcrop to surface and was discovered in 2012 by IP surveying. The IP survey can be viewed at the company's website.

The company will commence drilling in the south at the Loma del Cachimbo target area and gradually move northward testing additional new targets with a program consisting of approximately 40 holes.

The program will be carried out by two drill rigs and results will be released in batches in a timely manner.

Romero prefeasibility study update

In other news, the Romero prefeasibility study is going well, including the calculation of a maiden reserve statement, and is on target for publication in September, 2016.

A preliminary economic assessment was released for the project in April, 2015, for a proposed underground mine demonstrating a pretax net present value of $355-million based on a 6-per-cent discount rate ($219-million net present value after tax) and a pretax internal rate of return of 46 per cent (34-per-cent internal rate of return after tax) and a life-of-mine all-in sustaining cost of $572/ounce gold-equivalent, payable using $1,225/ounce gold and $2.90/pound copper.

The company is fully financed to carry out the aforementioned drilling campaign and the PFS.

Qualified person

The technical information in this news release has been reviewed and approved by Jeremy Niemi, PGeo, vice-president, exploration, of Goldquest Mining, who is the qualified person for the technical information in this news release under National Instrument 43-101.

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