Mr. Bill Fisher reports

GOLDQUEST EXPANDS EXPLORATION LAND HOLDINGS WITH CONCESSION GRANT WHICH INCLUDES LAS ANIMAS COPPER-GOLD DEPOSIT

Goldquest Mining Corp. has been granted a new five-year exploration licence on the 425-hectare Hoyitos exploration concession. Hoyitos contains the Las Animas volcanogenic massive sulphide deposit.

"We are pleased to have been granted a new concession licence which will add to the company's critical mass in the country," commented Bill Fisher, Goldquest's executive chairman. "The government of the Dominican Republic continues to issue exploration licences to Goldquest and this support is encouraging as we work with the Ministry of Mines on the mining licence application for our flagship Romero gold/copper project."

About Las Animas (Hoyitos conession)

All modern exploration on the concession has been carried out by Goldquest. Previous work includes surface sampling, mapping and geophysics, which led to the drilling which defined the mineral resources. Goldquest issued the Las Animas deposit's National Instrument 43-101 resources on Aug. 14, 2012 (see table). The VMS deposit contains resources for gold, copper, silver and zinc. There is potential to expand the mineral resources at depth and for additional zones on the property.

Las Animas is located in the Maimon formation of the central Dominican Republic (see map on the company's website), 60 kilometres along strike from the Cerro de Maimon mine which also hosts a copper-gold VMS deposit.

The Las Animas deposit was defined by 47 drill holes with results up to 142 metres grading 2.50 grams per tonne gold, 36.58 g/t silver, 2.59 per cent copper and 1.91 per cent zinc in hole LA-06 (see press release of June 6, 2007), and has a small oxide resource at surface. The intersection above in LA-06 is not true width of the mineralization. True width was estimated to be up to 23 metres in the resource estimation.

While the company is examining its options to restart exploration at Las Animas, it is important to note that the Tireo formation remains the focus of the company. As such, the company's priorities are to continue the Romero mining application and environmental studies, and continue work on the current 40-hole drill program in the Tireo formation surrounding the Romero deposit.

Assay results from the current exploration program will be released in the near future. By the end of 2016 the company had completed 13 of the planned 40 holes. The company is currently moving the drill to the next target area and drilling is expected to recommence next week.

                 MINERAL RESOURCE ESTIMATE FOR THE LAS ANIMAS PROJECT 
  
                              Tonnes        Au             Ag          Cu         Zn 
                                          (g/t)          (g/t)         (%)        (%)
Indicated 
Sulphide                     922,000      2.64          48.16        2.66       2.86   
Oxide                         89,000      4.28          61.95        0.15       0.04   
Total indicated resources  1,011,000      2.81          49.58         2.4       2.57   
                                                                                     
                                  Au              Ag             Cu               Zn  
                                 (oz)            (oz)           (lb)             (lb)
Contained metal  
Total                         91,000       1,605,000     54,289,000       58,180,000
                                                                                     
                              Tonnes        Au             Ag          Cu         Zn 
                                          (g/t)          (g/t)         (%)        (%)
Inferred
Sulphide                     431,000      1.66          35.99         2.6       4.76   
Oxide                          8,000      2.49          80.98        0.35       0.22   
Total inferred resources     439,000      1.68         36.907       2.558       4.67   
                                                                                     
                                  Au              Ag             Cu               Zn  
                                 (oz)            (oz)           (lb)             (lb)
Contained metal 
Total                         24,000         518,000     24,790,000       45,272,000

The resource estimate is based on:

• Drill core assays from Goldquest's 2011 drill hole database;
• Average specific gravity in sulphide resources is 4.76 grams/cubic centimetre based upon the average of 28 core measurements by the displacement method. Average specific gravity for oxide resources is assumed to be four g/cubic cm;
• A geological model with a cut-off grade of 0.5 g/t Au or 0.5 per cent Cu and a minimum thickness of two m;
• Block model with regular-shaped blocks measuring (X) 10 m by (Y) two m by (Z) 10 m and subblocks measuring (X) 2.5 m by (Y) two m by (Z) 2.5 m estimated with inverse-distance-cubed (ID3) method.

Micon considers a cut-off of one g/t gold or 1.5 per cent Cu to be reasonable with potential for economic extraction in a small underground operation.

The resource estimate has been classified as indicated and inferred based upon the following criteria:

• Resource blocks are estimated with at least two drill intersection within a 60 m radius, based on at least five assays were assigned to the indicated category.
• All remaining resource blocks within the geological model were assigned to the inferred category.

There has been insufficient exploration to define the inferred resources as an indicated or measured mineral resource. It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

The effective date of the resource estimate is July 31, 2011.

Qualified person

Jeremy K. Niemi, PGeo, vice-president of exploration of the company, is the qualified person who approved the scientific and technical information in this news release.

We seek Safe Harbor.