AUSQUEST LIMITED — Capital/Financing Update 2010

Nov 2, 2010

November 2, 2010 ASX Release

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AUSQUEST COMMENCES MAJOR NEW WEST AFRICAN GOLD DRILLING PROGRAM

13,000m OF DIAMOND AND RC DRILLING UNDERWAY TO TEST MULTIPLE GOLD AND BASE METAL TARGETS

AusQuest Limited (ASX: AQD) is pleased to advise that drilling has recommenced at its Comoe Joint Venture in Burkina Faso, West Africa, with a program comprising 10,000 metres of RC (Reverse Circulation) drilling and 3,000 metres of diamond drilling underway across multiple gold and base metal targets.

The drilling is targeted within the Komoe tenement, south-east of Banfora, where initial reconnaissance drilling and subsequent geophysical surveys have located high priority gold and base metal targets.

RC drilling has commenced at the priority Phaco Hill prospect with diamond drilling scheduled to begin in late November.

The program is expected to take approximately 4 to 5 months to complete and will also further test the Siniko West, Siniko Central and Baboro prospects as well as discrete EM targets located by the recently completed VTEM survey.

At the Phaco Hill prospect, drilling will initially focus on strong EM targets located in close proximity to the Phaco Hill drilling which reported a one metre intersection of high grade silver (750g/t Ag), gold (3.93g/t Au), zinc (6.36% Zn) and lead (9.0% Pb) as well as thicker intersections of gold and silver mineralisation ( 26m @ 1.26g/t Au and 4.5g/t Ag ; 4m @ 1.87g/t Au and 7.4g/t Ag) associated with aluminous alteration within felsic volcanic rocks.

A further five discrete EM targets located by the recent VTEM survey in the Phaco Hill area will also be tested by the current drilling program. Several of these targets are closely associated with gold-in-soil anomalies identified by previous sampling programs.

RC drilling at the Siniko West, Siniko Central and Baboro prospects will further test extensive gold-in-soil anomalies where the initial drilling confirmed the presence of numerous +1g/t Au assays in bedrock (see June Quarterly Report to ASX).

Drill sections will be spaced 200m to 800m apart to systematically test a combined strike length of 8km at the above three prospects. Detailed aeromagnetic data acquired in June 2010 have been used to prioritise the location of the drill traverses.

Gold assays are expected to be available approximately four weeks after samples have been submitted.

The Board of AusQuest is pleased that drilling has recommenced in Burkina Faso and looks forward to reporting the results from this drilling as they become available.

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

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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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Komoe Project showing surface geochemistry and target areas for initial drill testing

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