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Silver Quest Reports 89.7% Gold Recovery from Capoose, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2011) - Silver Quest Resources Ltd. (TSX VENTURE:SQI - News; the "Company") is pleased to report results from initial metallurgical studies on a composite sample of mineralized material from the Capoose Deposit, within the Capoose Project located 185 km southwest of Prince George, British Columbia.The composite sample was prepared using material from holes D-10-115, D-10-116, D-10-125 and D-10-127 completed during the 2010 drilling program (see news releases of July 29, August 6 and September 8, 2010).Testwork included grinding tests and a mineralogical study using Automated Rapid Mineral Scan by QEMSCAN. A bottle-roll cyanide leach test was performed to determine the recoveries of gold and silver using cyanidation and eight flotation tests were completed to determine the recoveries of gold, silver and base metals using flotation.The cyanide leach test recovered 89.7% of the gold and 64.6% of the silver. The best flotation test recovered 55.4% of the gold and 60.4% of the silver, into a open circuit bulk cleaner copper/lead concentrate that assayed 79.7 grams per tonne (g/t) gold, 6,460 g/t silver, 3.85% copper, 41.6% lead and 11.2% zinc. A zinc-rich concentrate, derived from the same sample material, assayed 7.30 g/t gold, 338 g/t silver and 41.8% zinc.The Company is encouraged by these first test results and further testwork is planned to evaluate methods that will optimize recovery of the gold and silver. A combined flowsheet including both flotation and cyanidation is being considered, as this would also enable recovery of the base metals.The metallurgical test work was conducted by SGS Canada Inc., Vancouver, British Columbia. Mr. Jake Lang, B.E.Sc., Lead Metallurgist with SGS, reviewed the technical information in this release.David Pawliuk, P.Geo., Vice President Exploration for Silver Quest is the Qualified Person, as defined by National Instrument 43-101, for the Capoose Project and supervised the preparation of the technical information in this release.SILVER QUEST RESOURCES LTD.Randy Turner, PresidentNeither 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.