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GoldQuest Mining Signs Contract for 10,000 Meter Diamond Drilling Program at Tireo Property

GoldQuest Mining Corp. ("GoldQuest" or the "Company") has signed a contract with Energold Drilling for a 10,000 metre diamond drilling program at the Company's 100%-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 multi-million ounce Romero Project deposits. Anomalous gold values at surface of up to 167 g/t 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 (TSX VENTURE: PRG) 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 electro magnetic geophysical trends, culminating with the 2016 IP survey, the first ever carried out in this portion of the belt. The main deposit at the multi-million ounce Romero Project does not outcrop to surface and was discovered in 2012 by IP surveying. The IP survey can be viewed at:

http://goldquestcorp.com/images/pdf/July2016_gradient_IP_chargeability_over_first_drill_target_area(2).pdf

The company will commence drilling in the south at the Loma del Cachimbo target area and gradually move northwards 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 Pre-feasibility Study Update

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

A Preliminary Economic Assessment was released for the project in April 2015 [link to release] for a proposed underground mine demonstrating a pre-tax net present value ("NPV") of $355 million based on a 6% discount rate ($219 million NPV after-tax) and a pre-tax internal rate of return ("IRR") of 46% (34% IRR after tax) and a life-of-mine ("LOM") all-in sustaining costs ("AISC") of $572/oz gold equivalent ("AuEq") payable using $1225/oz gold and $2.90/lb copper.

The company is fully funded 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 Mr. Jeremy Niemi, P.Geo., Vice President, Exploration of GoldQuest Mining Inc. who is the Qualified Person for the technical information in this news release under NI 43-101

Source: http://www.goldquestcorp.com/

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