AUSQUEST LIMITED — Capital/Financing Update 2012

Jan 18, 2012

January 19, 2012 ASX Release

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AUSQUEST GAINS 100% OF WEST AFRICAN GOLD PROJECT AHEAD OF NEW DRILLING CAMPAIGN

Drilling set to resume at Comoe Project, Burkina Faso in February 2012

AusQuest Limited (ASX: AQD) is pleased to advise that it has completed a Share Sale and Royalty Agreement with Endeavour Exploration Limited (“Endeavour”), its partner in the Comoe Joint Venture in Burkina Faso, West Africa, whereby it purchased Endeavour’s shares in E&A Resources Pty Ltd., the entity holding the Project, in exchange for a 1.5% Net Smelter Royalty, payable to Endeavour out of future production revenue.

This transaction moves AusQuest to 100 per cent ownership of the Project and provides the company with full control over the future direction of the Comoe Project as well as simplifying management of ongoing exploration programs in the area.

The Comoe Joint Venture area includes seven Exploration Permits (a total area of 920km²), in the south-west of Burkina Faso. Burkina Faso continues to emerge as a significant new West African gold province, currently attracting investment in exploration and mining by a number of Australian, Canadian and International companies.

Since late-2010, AusQuest has been actively exploring in Burkina Faso, and during that time has discovered high grade gold/silver mineralisation at the Phaco Hill prospect (as reported to the ASX) as well as outlining numerous gold-soil targets within the Banfora Greenstone Belt, which has had minimal modern exploration coverage.

The Company is currently organising drilling programs to start testing these gold-soil anomalies and plans to be back in the field in early February 2012.

The Board of AusQuest is pleased to have reached agreement with Endeavour and looks forward to re-starting its exploration efforts in the Banfora region of Burkina Faso in the near future.

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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

FORWARD LOOKING STATEMENT

This report contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

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