AUSQUEST LIMITED — Capital/Financing Update 2009

Jun 16, 2009

June 17, 2009 ASX Release

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FURTHER ENCOURAGING RESULTS FROM ROCKLEA

• Final assay results extend thick channel iron mineralisation with better intersections including:

• 24 metres @ 53.6% Fe - (60.5% CalcinedFe)

• 16 metres @ 55.6% Fe - (62.8% CalcinedFe)

• 20 metres @ 53.7% Fe - (60.7% CalcinedFe)

• 12 metres @ 56.5% Fe - (63.9% CalcinedFe)

• 26 metres @ 55.9% Fe - (63.2% CalcinedFe)

• Results extend the channel iron mineralisation outside the current Inferred Resource (37.6Mt @ 53.2% Fe)

• Revised resource estimate to be completed early next Quarter and further drilling to be planned

Further to its ASX release of 9 June, AusQuest Limited (ASX: AQD) is pleased to report further encouraging results from in-fill drilling at its 75%-owned Rocklea Channel Iron Project in the Pilbara region of Western Australia.

A total of 41 RC drill-holes were completed in April to provide in-fill coverage at approximately 200 metre by 100 metre drill hole spacing over the current Inferred Resource outlined by earlier drilling ( 37.6Mt @ 53.2% Fe as announced on 13[th] August 2008).

Assay results have confirmed the presence of thick channel iron mineralisation as well as extending the channel outside the current Inferred Resource outline. The channel iron mineralisation remains open to the east.

Assay results received for the final 18 drill-holes are summarised in the table below using a 50% Fe cut-off grade and a minimum 4 metre thickness:

Hole No	Easting	Northing	Depth from	Depth to	Interval metres	Fe%	Al2O3 %	SiO2 %	LOI 1000	FeCalc %
RC067	549355	7477601	16m	20m	4	54.7	1.7	8.5	10.8	61.4
RC068	549419	7477514	10m	26m	16	53.4	1.8	9.4	11.6	60.4
RC069	549531	7477353	18m	42m	24	53.6	2.8	8.5	11.4	60.5
RC070	549638	7477182	14m	30m	16	55.6	2.4	5.6	11.5	62.8
			34m	46m	12	52.3	4.6	6.9	11.8	59.3
RC072	548999	7477599	2m	12m	10	52.6	3.2	5.5	12.9	60.3
			16m	32m	16	52.6	2.0	10.7	10.9	59.0
RC073	550037	7477332	6m	10m	4	52.0	2.0	6.5	13.1	59.8
			12m	22m	10	51.2	2.6	12.6	10.8	57.4
			34m	38m	4	51.6	4.7	7.9	12.2	58.7
RC074	549970	7477058	14m	34m	20	53.7	3.0	8.0	11.5	60.7
			36m	40m	4	51.9	5.2	6.4	12.6	59.4

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

RC075	550027	7476966	16m	22m	6	54.8	1.9	6.2	11.9	62.2
			36m	40m	4	51.3	5.3	7.4	12.3	58.5
RC076	550299	7476912	12m	24m	12	53.0	3.3	8.2	11.5	59.9
			38m	46m	8	52.9	4.6	6.4	12.1	60.1
RC077	550196	7476723	8m	18m	10	53.7	2.4	7.8	11.6	60.7
RC078	550145	7476798	10m	22m	12	52.2	3.4	8.6	11.5	59.0
RC082	549908	7476783	8m	12m	4	54.5	1.9	7.4	11.6	61.6
RC083	549848	7476859	12m	24m	12	56.5	1.3	5.9	11.5	63.9
RC084	549749	7477028	8m	34m	26	55.9	1.4	5.9	11.5	63.2
			40m	46m	6	52.8	4.5	7.0	11.9	59.9

Note: All holes are vertical. Samples were collected at 2 metre intervals. Samples were dried, pulverised and assayed by X-Ray Fluorescence Spectrometry

Loss on Ignition (LOI 1000) values reflect water of crystallisation of the Fe minerals within the samples

All assay results have now been received and a revised resource estimate is expected to be completed early in the September Quarter. Further drilling to extend the resource and/or provide greater control for the higher Fe grade sections will be planned when the results of the revised modelling are known.

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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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Rocklea Drill Summary Plan

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