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GoldQuest Expands Exploration Footprint in Highly Prospective Tireo Formation

GoldQuest Mining Corp. ("GoldQuest" or the "Company") is pleased to announce that the Company has been re-granted the 1,311.5 hectare Aguita Fria exploration concession extending the Company's land position in the highly prospective Tireo Formation by approximately 8 kilometres to the south-east. This is in addition to the granting of the Valentin concession, for an additional 300 hectares, at the north western tip of the concession package which extends the package for a further 2 kilometres.

"Expanding our exploration footprint in the highly prospective Tireo Formation is good news for our Company as we systematically search for new discoveries in the belt," commented Bill Fisher, GoldQuest's Executive Chairman, "We are pleased that the government of the Dominican Republic continues to support us. This support is encouraging as we work with the Ministry of Mines on the Mining License Application for our Romero Gold/Copper Project."

The Aguita Fria concession covers the south-eastern extension of the Tireo Formation, (see map http://www.goldquestcorp.com/images/press_release/GoldQuest_granted_new_exploration_licenses_October_2016_Map.pdf) and was actively worked by GoldQuest up until 2010. Historical work identified several areas of favorable hydrothermal alteration.

Further mapping and sampling leading to ground geophysics will commence in due course, to tie into the exploration to the northwest of this concession, where the Company is currently carrying out a 40 hole, 10,000 metre scout drill program with results to be released in batches.

GoldQuest is actively exploring the favorable Tireo Formation which hosts the Romero deposit discovered in May 2012. Recently the Company released results from the Pre-feasibility study ("PFS") on the Romero Project (see the Company's September 27, 2016 news release) showing reserves of a 1.117-million-ounce gold equivalent mine, grading 4.9 g/t AuEq. over a 7.2 year mine life with a pre-tax Net Present Value (5% discount rate) of $317 million (after tax $203 million), pre-tax Internal Rate of Return of 36% (after tax 28%) and all in sustaining operating costs (AISC) on a co-product basis of $595/ ounce of gold.

Mineral Reserve Estimate for Romero Project

Mine Reserves Tonnes Au Ag Cu Au Eq (1)
(Cut off $70 NSR)(2) (g/t) (oz) (g/t) (oz) (%) (M lb) (g/t) (oz)
Total Probable 7,031,000 3.72 840,000 4.33 980,000 0.88 136 4.9 1,117,000
  1. Gold equivalent metal prices $1,300/oz Au, $20.00/oz Ag and $2.50/lb Cu
  2. Cut-off NSR metal prices: Cu $2.50/lb Au $1,250/oz Ag $17.00/oz; Recovery: Cu-96.8 Au-71.7 Ag-54.4, Payable: Cu-96.5 Au-90.0 Ag-95.0, TCRC: $257.83/dmt, Cu concentrate 20%

Qualified Person:

Jeremy K. Niemi, P.Geo., VP Exploration of the Company, is the Qualified Person who approved the scientific and technical information in this news release.

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

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