AUSQUEST LIMITED — Capital/Financing Update 2012

Jan 17, 2012

January 18, 2012 ASX Release

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HIGHLY ANOMALOUS DRILL RESULTS FROM DUNDAS

AusQuest Limited (ASX: AQD) is pleased to advise that results from the recently completed reconnaissance RC drilling program at the Dundas Project, 100km ESE of Norseman in Western Australia, has identified broad zones (~30 metres) of highly anomalous base metal mineralisation, with peak values up to 26g/t silver (Ag), 4200ppm zinc (Zn), 772ppm lead (Pb), 2570ppm copper (Cu) and 101ppb gold (Au) plus several narrow intersections of goldonly mineralisation with values up to 4.1g/t Au.

The drilling program comprised 20 holes for 1,916 metres, and was designed to provide an initial test of gold (+/- Cu, Zn and Ag) anomalies outlined by an earlier shallow RAB drilling program (35m average hole depth).

Widely spaced (>800m) drill sections were completed over four targets with single section tests over the two central anomalies ( see Figure 1 ). Two drill sections were completed over the southernmost target. Drilling depths varied from 80 to 100 metres.

Thick zones (up to 30 metres) of highly anomalous silver and base metal values were reported from the central targets, including higher grade intervals of:

• 5m @ 14g/t Ag, 2582ppm Zn, 594ppm Pb, 58ppb Au (RC07); and

• 11m @ 2.5g/t Ag, 434ppm Zn, 1657ppm Cu, 16ppb Au (RC011).

In addition, a narrow gold interval of 2 metres @ 1.3g/t Au (RC02) was returned from a bottom-of-hole sample (88 to 90m) on the southernmost anomaly.

The base metal results are considered to be highly encouraging given the thickness of the intersections, the metal associations reported in the samples, and the fact that only limited drill testing has been completed on the targets which extend for at least 1km in length based on the earlier RAB results.

The anomalous base metals occur within coarse-grained metamorphosed felsic gneisses and are associated with increased sulphide content. Ground electromagnetic surveys are currently being planned to optimise targets for further drilling. This work is expected to commence in February 2012.

The Dundas Project covers an area of ~1,100km² and lies approximately 200km south-west of the multi-million ounce Tropicana gold deposit. Historical exploration work in the area by BHP Billiton was targeting polymetallic mineral deposits similar to those found in the Broken Hill district.

AusQuest Limited 8 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892 www.ausquest.com.au

The Company looks forward to reporting further results from this area as they become available.

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.

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

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Figure 1: Plan showing location of RC dill-holes and significant results

AusQuest Limited 8 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892 www.ausquest.com.au