AUSQUEST LIMITED — Capital/Financing Update 2009

Apr 5, 2009

April 06, 2009 ASX Release

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2009 EXPLORATION PROGRAM UNDERWAY TARGETING MANGANESE, IRON, NICKEL AND GOLD

• Landmark, well-funded 2009 exploration program underway across AusQuest’s project portfolio in WA and NT.

• Regional GEOTEM Survey underway at Table Hill (Mn, Ni) with manganese drilling scheduled to start in May

• Mapping and sampling to commence at Wolfe Project (Mn) in late April

• In-fill drilling expected to commence at Rocklea Iron Project in late April

• Ground EM surveys identify new nickel sulphide targets at Bellary for drilling

• VTEM Survey completed at Plenty River (Ni) – results early April

• Gold target zones identified at Dundas Project (Tropicana belt, WA) from detailed aeromagnetics – sampling scheduled for Q2 2009

Diversified exploration company AusQuest Limited (ASX: AQD) is pleased to announce the commencement of its 2009 exploration programme with field activities already underway and drilling scheduled to commence shortly across its portfolio of manganese, iron, nickel and gold projects in Western Australia and the Northern Territory.

The 2009 exploration field season is expected to be one of the most active in AusQuest’s history following the Strategic Alliance and $27 million placement finalised last year with leading North American mining company Cliffs Natural Resources.

The well-funded 2009 exploration field season will begin with drilling scheduled at the Rocklea Iron Project in late April and at the Table Hill Manganese Project in May.

Manganese

At Table Hill , which is located 200km east of Newman in WA, a regional airborne GEOTEM survey commenced in late March to identify both manganese and nickel targets close to the basal contact of the Mundadjini Formation – where it is anticipated that shallow manganese mineralisation is more likely to be found.

The survey is expected to take a month to complete with data being made available on a progressive basis. Drilling at Table Hill is scheduled to commence in May and will test a number of regional targets outlined by previous surveys. Access preparations for this drilling are currently underway.

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

The manganese potential of the Table Hill area was highlighted by exploration drilling in November 2007 which intersected 3.9m @ 47.5% Mn in drill hole THD01.

Reconnaissance mapping and sampling of manganese target zones is also scheduled to start at the end of April at the Wolfe Manganese Project , which is located 50km south-east of Halls Creek in the Kimberley region of WA. RC drilling down dip of surface manganese showings is scheduled for mid-2009.

Iron Ore

In-fill Reverse Circulation (RC) drilling is scheduled to commence in late April at the Rocklea Channel Iron prospect, which is located 40km west of Tom Price in the Pilbara region of WA, to determine continuity of the higher iron grades ahead of revised resource calculations.

An Inferred Resource of 37.6Mt grading 53.2% Fe (59.9% calcined Fe grade), plus an Exploration Target of up to ~23Mt at similar Fe grades was estimated for the Rocklea prospect in 2008 ( see ASX release – September 2008 Quarterly Report ). Access preparations for this drilling are currently underway.

Nickel

Ground electromagnetic surveys have been completed at the Bellary Nickel Project , which is located west of Paraburdoo in WA, to follow-up VTEM airborne EM anomalies associated with an interpreted cross cutting mafic intrusion. Two strongly conductive discrete targets indicative of massive sulphide mineralisation were defined, and access preparations for drilling have commenced. Drilling is scheduled for the second quarter of 2009.

A VTEM survey has been completed at the Plenty River project, which is located 230km east of Alice Springs in the Northern Territory, to test for massive nickel sulphide mineralisation. The area surveyed is located close to Mithril Resources’ recently discovered nickel sulphide gossans and contains magnetic targets believed to reflect mafic intrusive rocks. Preliminary results are expected in early April 2009.

Gold

Detailed aeromagnetic data acquired over the Dundas Gold Project, which is located ~100km east-south east of Norseman in WA, have defined a structural contact zone between Archaean and Proterozoic terrains, where gold mineralisation is believed to occur elsewhere in the Tropicana Belt. Surface sampling to locate targets for drilling is scheduled for the second quarter of 2009.

The Board of AusQuest is excited about the 2009 exploration program and looks forward to reporting results from this programme as they become available.

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Graeme Drew Managing Director

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

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.

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Project Location Plan showing planned work schedules

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