Silver Quest Announces Updated Gold Resource Estimate at Davidson Property, BC

Silver Quest Resources Ltd. (TSX VENTURE:SQI) ("Silver Quest" or "the Company")
is pleased to announce that an updated National Instrument 43-101 compliant
resource estimate has been prepared on the Davidson Property, located 100 km
south of Vanderhoof in central British Columbia, Canada. The Davidson Property,
which is the subject of a joint venture with New Gold Inc. ("New Gold")
(TSX:NGD), covers the northern portion of New Gold's Blackwater Gold Project.
New Gold has a 75% interest in the Davidson Property and acts as operator of the
Davidson joint venture. 


New Gold today reported the results of an independent resource estimate for the
Blackwater Gold Project, including information on the resource estimate for the
Davidson Property. (see New Gold News Release dated September 19, 2011) At a
cut-off grade of 0.40 grams per tonne (g/t) gold, the Davidson Property is
estimated to contain 77,929,000 tonnes at an average grade of 0.89 g/t gold, for
2.2 million ounces of gold in the Indicated category. The Property also contains
29,226,000 tonnes at an average grade of 0.88 g/t gold, for 0.82 million ounces
of gold in the Inferred category. The table below summarizes the parties'
respective interests in the Davidson Property resource estimate: 




Davidson Property - September 2011 Resource Estimate                        
(Cut-off grade of 0.40 g/t gold)                                            
                                                                            
----------------------------------------------------------------------------
                            Indicated                     Inferred          
                  ----------------------------------------------------------
                            Grade                         Grade       
                         ------------                  ------------ 
                                      Contained                    Contained
                   Tonnes Gold Silver      Gold Tonnes Gold Silver      Gold
                    000's  g/t    g/t    ounces  000's  g/t    g/t    ounces
----------------------------------------------------------------------------
New Gold (75%)     58,447 0.89    4.1 1,665,000 21,919 0.88    4.2   617,000
----------------------------------------------------------------------------
Silver Quest (25%) 19,482 0.89    4.1   555,000  7,307 0.88    4.2   206,000
----------------------------------------------------------------------------
Total Davidson     77,929 0.89    4.1 2,220,000 29,226 0.88    4.2   822,000
----------------------------------------------------------------------------



"We are very encouraged to see that the Spring 2011 drilling program has led to
a very large increase in the contained gold ounces in the indicated category
attributable to Silver Quest's interest," commented Randy Turner, President of
Silver Quest. "The increase of over 550,000 contained ounces in the indicated
category to the Company's interest is a combination of identifying additional
ounces and moving approximately 135,000 ounces from the inferred category into
the indicated category, as compared to the results reported in the initial
resource estimate prepared in March 2011."


The updated resource estimate incorporates drilling completed through July 2011.
The deposit remains open in all directions and at depth. Six drill rigs are
currently working on the Davidson Property. These rigs are executing a 26,250
metre diamond drill program comprised of 75 drill holes that are designed to
expand the resources on the Davidson Property. This drilling is anticipated to
be completed by year-end.


Grade estimation for the September 2011 resource estimate for the Blackwater
Gold Project was carried out by the inverse distance cubed method using 5 metre
downhole drill composites. Gold grades were capped prior to compositing at 11
g/t within a low grade outer grade shell domain and at 17 g/t within an inner
higher grade domain based on a 0.5 g/t grade shell. All silver grades were
capped at 50 g/t. Classified blocks were constrained by an optimized pit shell
using a gold price of $1,200 per ounce. Block dimensions were 10 by 10 by 10
metres. Density values assigned to the principal lithologies are based on 7,705
bulk density measurements of drill core. 


The resource estimate and other scientific and technical information contained
in this news release were prepared by Mr. Ronald Simpson, P. Geo., President of
Geosim Services Inc., an independent "Qualified Person" under National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
The NI 43-101 technical report in respect of the mineral resource estimate
disclosed herein will be filed on SEDAR within 45 days of the date of this news
release. 


David Pawliuk, P. Geo., Vice President-Exploration for Silver Quest, and a
"Qualified Person" as defined by NI 43-101, has reviewed and approved the
contents of this news release. 


SILVER QUEST RESOURCES LTD.

Randy Turner, President