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AUSQUEST LIMITED Capital/Financing Update 2008

Aug 20, 2008

64406_rns_2008-08-20_10cf8c9a-b5cc-44ba-bd12-8abc20700dec.pdf

Capital/Financing Update

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August 21, 2008 ASX Release

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TABLE HILL - DRILLING DETAILS

Further to AusQuest Limited’s (ASX: AQD) ASX release of 20[th] August 2008, a full summary of drill results to date is contained in the table below.

This information should be read in conjunction with the ASX release of 20[th] August 2008.

Drill-
hole
Easting Northing Inclination Depth
From
Depth
To
Result
THD01 340154 7367674 vertical 286.8m 290.7m 3.9m @ 47.5%Mn (clay
28m)
THD04 340653 7368377 vertical Clay alteration(6m)
THD05 340786 7369310 vertical Clay alteration(32m)
THD06 339858 7367657 vertical Clay alteration(30m)
THD07 339863 7367666 70
degrees
east
326.1m 327.4m 1.3m @ 47.7%Mn (clay
30m)
THD08 340828 7367809 vertical Barren(east edge)
THD09 340176 7367683 70
degrees
east
Barren (faulted)
THD010 339948 7367407 vertical 325.6m 330.1m 4.5m @ 13.3%Mn (clay
44m)
THD011 339805 7368492 vertical Barren
THD012 339954 7367417 70
degrees
west
Clay alteration (3m)
THD013 339958 7367401 70
degrees
east
Clay alteration (42m)

Drill-holes THD01, THD06 to THD010, and THD012 and 013 were exploration drill-holes positioned along two sections at the southern end of the MN1 manganese prospect.

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Graeme Drew Managing Director

COMPETENT PERSON’S STATEMENT

The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892 www.ausquest.com.au