Mr. Julio Espaillat reports

GOLDQUEST: UPDATE ON THE PEA FOR THE ROMERO GOLD DISCOVERY, DOMINICAN REPUBLIC

Goldquest Mining Corp. has provided an update on the progress of the preliminary economic assessment (PEA) for its Romero gold/copper project in the Dominican Republic, which was commenced in fourth quarter 2013 (see release of Nov. 28, 2013). Romero was discovered by Goldquest in 2012, and the satellite Romero South was discovered in 2006. The company announced the maiden NI 43-101 resource estimate on Romero (including an update of the Romero South resource estimate) on Oct. 29, 2013 -- a rapid 17 months after discovery. Approximately 75 per cent of the contained metal at Romero South is in the indicated category, a level of confidence considered suitable to support the future evaluation of any economic viability of the deposit without significant extra drilling required.

"The PEA is progressing well on all fronts, and we are on schedule for publication in early second quarter, 2014," commented Julio Espaillat, Goldquest's chief executive officer. "Coupled with an airborne ZTEM survey under way covering the surrounding Tireo belt, the company is expecting to generate significant news flow in the months ahead."

The PEA is being co-ordinated by Micon International Ltd., a Toronto-based mining consulting company, which has extensive experience in mining and development studies, and has approved this release. Micon have assembled a multidisciplinary international team of experts to conduct the study including ALS Minerals Laboratories of Kamloops, B.C. (metallurgy), Barr Engineering of Minneapolis, United States (tailings management), Elsamex engineers from Spain (local infrastructure) and AMEC International (environmental monitoring and planning).

Mining

Micon's in-house mining team are preparing the mine plan and scheduling. The technique proposed at Romero is transverse longhole stoping with backfill, a bulk mining technique with direct mining costs typically of under $50 per tonne. Much of the tailings from processing will be returned underground to be used as backfill. Work to be completed for incorporation into the PEA includes selection and sizing of equipment, final layout of the stopes and access, and development of final cost estimates.

Processing

Three recent composites representing different parts of the orebodies are being processed by ALS Minerals Laboratories of Kamloops, B.C., to augment data received from studies on three composites sent in mid-2013.

The primary grind is currently pegged at 193 microns, a very coarse grind, requiring low power inputs. The preliminary process development results has indicted that for the main composite representing the indicated resources at Romero, can be processed producing two concentrates. Over 90 per cent of the copper reports to the copper concentrate along with over 55 per cent of the gold, and no identified deleterious elements. A further 30 per cent of the gold reports to the gold pyrite rougher concentrate. The preliminary results indicate that the remaining tailings contain less than 0.5 per cent of sulphur, considered low. Results from the testing of the other two composites, and finalization of the proposed flowsheet will be reported in the PEA. Upon receipt of the finalized metallurgical data, Micon will select and size equipment, and create a site layout for the processing facilities and on-site utilities.

Infrastructure and environmental

A study of transportation options will be part of the PEA, focusing on upgrading of access roads, consideration of concentrate shipments and electric supply options. Continuing environmental baseline studies commenced in December, 2012, so far providing over a full year's data.

At Dec. 31, 2013, the company had approximately $11-million in treasury and is financed to complete the 2014 work programs and beyond.

The data in this press release have been reviewed and approved by Jeremy Niemi, PGeo, the director, technical services of Goldquest and a qualified person for the technical information in this press release under NI 43-101 standards.

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