AUSQUEST LIMITED — Capital/Financing Update 2009

Sep 2, 2009

September 03, 2009 ASX Release

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DRILLING COMMENCES AT THE PLENTY RIVER NICKEL-COPPER PROJECT, NT

AusQuest Limited (ASX: AQD) is pleased to advise that it has commenced a program of exploration drilling at its 100%-owned Plenty River Nickel-Copper Project , which is located approximately 230km east of Alice Springs in the Northern Territory.

A total of six holes for ~2,000 metres are planned at the Caroline and White Gums prospects, with drilling expected to take four to six weeks to complete.

Recent exploration by ASX-listed exploration company Mithril Resources Ltd approximately 60km to the north west of the White Gums prospect located nickel gossans assaying up to 3.8% Ni and 9.6% Cu (as reported to the ASX on 15[th] September 2008), highlighting the potential for nickel-copper discoveries to be made in this region.

AusQuest has identified a strong conductor at the White Gums prospect with a coincident magnetic response from both airborne and ground electromagnetic (EM) surveys. Modelling of the EM data indicates the presence of a sizeable conductor (~600m x 300m) occurring at depths of 150 to 250 metres below surface and plunging to the south east.

Conductivities inferred from the modelling are believed to be indicative of sulphide mineralisation. A program of three holes (~1,000 metres) is planned to test this target.

The Caroline prospect, which is located a further 80km to the east, reflects a partly coincident gravity/magnetic anomaly that could indicate the presence of an Iron-Oxide Copper-Gold (IOCG) system. Modelling of geophysical data indicates that the target is large in size (~3km²) and occurs at a depth of ~150 metres beneath Cretaceous sediment cover. A program of three holes (~1,000 metres) is planned to test this target.

The Board of AusQuest looks forward to reporting the results from this drilling as they become available.

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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

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Plenty River: White Gums Prospect showing EM image and Magnetic contours

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Plenty River – Caroline Prospect showing gravity/magnetic targe

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