VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce that it has closed its brokered private placement (the "Offering") for gross proceeds of $8 million. The Offering consists of 5,708,332 flow-through common shares (the "FT Shares") at a price of $0.75 per share and 5,721,155 units (the "Units") at a price of $0.65 per Unit. Each Unit is comprised of one common share ("Share") of the company and one-half of one non-transferable share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share at a price of $0.75 per share for a period of two years from closing.

BayFront Capital Partners Ltd. acted as Agent for the Offering and received a cash commission of 7% of the aggregate gross proceeds of FT Shares and Units sold by the Agent under the Offering, together with a corporate finance fee of $56,500 and 605,669 broker units ("Broker Units") representing 6% of the total number of FT Shares and Units sold by the Agent under the Offering. Each Broker Unit, exercisable for period of two years at a price of $0.75 per Broker Unit, is comprised of one common share and one-half of one non-transferable share purchase warrant ("Broker Warrant"). Each Broker Warrant entitles the holder to purchase one additional common share at a price of $0.75 per share for a period of two years from closing.

All securities issued or issuable in connection with the Offering are subject to a four month hold period expiring December 27, 2010.

The proceeds from the issuance of the FT Shares will be used to incur qualified exploration expenditures as defined in the Income Tax Act (Canada). The net proceeds from the issuance of the Units will be used for working capital and general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

SILVER QUEST RESOURCES LTD.

Randy Turner, President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.