AUSQUEST LIMITED — Capital/Financing Update 2013

Nov 11, 2013

November 12, 2013 ASX Release

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FRASER RANGE: NEW NICKEL-COPPER TARGET IDENTIFIED

A new fourth high priority drilling target revealed by further ground EM survey at Dundas Project

• New target, Lambda, is a strong conductor ~800m long and between 50 and 150m wide.

• Approvals being sought to drill test this new EM target as part of the upcoming drill programme.

• Drilling of the existing three EM targets is on track to commence in late November/early December.

AusQuest Limited (ASX: AQD) is pleased to advise that it has identified a fourth high priority bedrock drilling target from further ground-based electromagnetic (EM) surveys at its 100%-owned Dundas Nickel Copper-Project , located 80km south of the Nova and Bollinger nickel-copper discoveries in the Fraser Range of Western Australia.

Fixed loop electromagnetic (FLEM) surveys completed recently at Dundas by GEM Geophysics have identified a strong conductor (referred to as Lambda), located close to the previously identified Alpha, Beta and Omega conductors within an interpreted mafic-ultramafic sequence ( Figure 3 ).

Modelling of the FLEM results indicates the Lambda conductor is at least 800m long, between 50m and 150m wide and varies in depth from its shallowest level of ~200m at its southern end to over 400m to the north, reflecting a shallow northerly plunge for the target ( Figures 1 & 2 ).

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Figure 1: FLEM Image showing Lambda and Zeta Figure 2: FLEM Profiles showing modelling results

The conductor is located in a structurally complex area on the north-eastern margin of a unique large domal feature and/or intrusion, where folding and/or faulting may have caused thickening of the prospective stratigraphy and preservation of possible sulphide mineralisation ( Figure 4 ).

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

The presence of extensive transported cover in this area means that there is no surface expression of the conductor.

The FLEM surveys were designed to test additional airborne VTEM anomalies that are believed to reflect possible bedrock conductors beneath conductive cover in areas where a combination of aeromagnetic and geochemical data suggest the presence of prospective stratigraphy for nickel and copper mineralisation at Dundas. A second, weaker bedrock conductor (Zeta) was also located by these surveys reflecting another possible target ~500m east of the Lambda prospect.

Access approvals are currently being sought in order to include the Lambda target in the upcoming diamond drilling program planned to commence at Dundas around the end of November. The initial drilling program has been designed to test three EM targets – Alpha, Beta and Omega – outlined by earlier FLEM surveys.

AusQuest’s Managing Director, Mr Graeme Drew, said the Company was very encouraged by the discovery of an additional strong EM conductor at Dundas just weeks before the upcoming drilling program.

“This is one of the strongest conductors defined to date and represents a very prospective target for inclusion in the upcoming drilling program,” Mr Drew said. “We are looking forward to the commencement of drilling operations at the Alpha, Beta, Omega and now the Lambda targets around the end of the month.”

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

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Figure 3: Dundas Ni-Cu Project showing location of new EM targets

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Figure 4: TMI Magnetic Image showing Lambda & Zeta EM targets

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