Silver Quest Announces $1.3 Million Private Placement



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    TSX Venture: SQI.V
    

    VANCOUVER, Aug. 10 /CNW/ - Silver Quest Resources Ltd. (the "Company") is
pleased to announce it has negotiated a commercially reasonable efforts
private placement with Canaccord Capital Corporation (the "Agent") of
5,000,000 units (the "Units") at a price of $0.08 per Unit and 6,000,000
flow-through units ("FT Units") at a price of $0.10 per FT Unit for total
gross proceeds of up to $1,000,000.
    Each Unit will consist of one common share and one non-transferable
common share purchase warrant ("Unit Warrant"). Each Unit Warrant will entitle
the holder to purchase one additional common share for two years from the date
of closing at a price of $0.12 in the first year and, thereafter, at a price
of $0.18 in the second year. Each FT Unit will consist of one flow-through
common share and one-half of one non-transferable common share purchase
warrant ("FT Warrant"). Each whole FT Warrant will entitle the holder to
purchase one additional common share at a price of $0.15 for one year from the
date of closing.
    The Company has also granted the Agent an over allotment option to
solicit any combination of Units and Flow-Through Shares to raise additional
gross proceeds of up to $150,000, exercisable forty-eight hours prior to
closing.
    In addition, the Company also announces that it will complete a
non-brokered private placement of up to $300,000 in FT Units under similar
terms as above.
    The funds raised from the issuance of the FT Units shall be used for
general exploration expenditures which will constitute Canadian exploration
expenditures, flow-through mining expenditures (as defined in the Income Tax
Act) and flow-through mining expenditures on the Company's prospects located
in BC, the Yukon Territory and Ontario. Funds raised from the issuance of
Units will be for general working capital.
    Closing of the private placements is anticipated to occur on or before
September 2, 2009 and is subject to the receipt of applicable regulatory
approvals including approval of the TSX Venture Exchange. The securities
issued will be subject to a standard four month hold period.

    
                         SILVER QUEST RE

SOURCES LTD. "Robert Weicker" Robert Weicker, President The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

For further information:

For further information: Investor Relations at (604) 687-3959 or
info@silverquest.ca

Organization Profile

SILVER QUEST RESOURCES LTD.

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