GoldQuest Reports Positive Preliminary Economic Assessment for the Romero Gold-Copper Project, Dominican Republic

GoldQuest Mining Corp. (TSX VENTURE: GQC)(FRANKFURT: M1W)(BERLIN: M1W)
("GoldQuest" or the "Company") is pleased to report positive results from the
un-optimized Preliminary Economic Assessment ("PEA") for a proposed underground
mine at its 100% owned Romero and Romero South Gold-Copper Deposits in the
Dominican Republic. The PEA study was led by Micon International Limited
("Micon"). All costs are in US dollars. 


PEA Highlights:



--  A 15 year underground mine producing an average of 90,000 ounces of
    payable gold and 15.6 million lbs. of payable copper for each year of
    full production in two concentrates from 3,800 tonnes per day (129,000
    ounces of gold equivalent ("AuEq"))
--  All-in sustaining costs ("AISC"), net of copper and minor silver by-
    products, of $353/oz for 90,000 ounces of gold per year consisting of
    on-site operating cash costs (net of by-product credits of $557/oz) of
    $153, concentrate transportation and Treatment Charges /Refining Charges
    ("TC/RCs") costs of $147/oz, royalties of $21/oz and sustaining capital
    of $32/oz 
--  Metal recoveries are estimated to be 83% for gold and 91% for copper
    resulting, after allowing for transportation and TC/RCs, in net payable
    gold of 79.2% and net payable copper of 86.5%
--  Total Life of Mine ("LOM") revenue of $2.35 billion, an undiscounted
    pre-tax cash flow of $0.86 billion ($0.60 billion post tax), producing
    1.26 million ounces of payable gold (1.81 million payable ounces of
    AuEq.) from processing 18.5 million tonnes grading 2.69 g/t and 0.61%
    copper with a Net Smelter Return of $117 per tonne and cash operating
    costs of $58.69 per tonne
--  Total LOM capital cost of $374 million, which includes an initial
    capital cost of $333.5 million and a sustaining capital cost of $40.4
    million
--  Pre-tax Internal Rate of Return ("IRR") of 19.7% (15.1% after tax)
--  Pre-tax Net Present Value ("NPV") of $318 million based on an 8%
    discount rate ($176 million after tax) 
--  Pre-tax NPV of $471 million based on a 5% discount rate ($274 million
    after tax)
--  PEA completed only 2 years after discovery
--  Of the mineral resources used in the PEA mine plan, 80% are from the
    indicated category
--  The PEA contemplates an environmentally sensitive approach, including a
    small surface footprint and no use of cyanide on site, seeking to
    minimize the impact on the environment and the local communities



"We are proud to deliver a positive PEA for the Romero Project, our cornerstone
asset in the Dominican Republic," commented Chief Executive Officer, Julio
Espaillat. "Building on our low net All-In Sustaining Costs, we are actively
addressing the capital intensity issues of the Romero project through ongoing
optimization studies. We also hope to add value through discovery of new
resources, which is the focus of our 10,000 metre 2014 exploration drilling
program." 


The PEA is preliminary in nature, 20% of the mine plan consists of inferred
mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized
as mineral reserves, and there is no certainty that the results of the PEA will
be realized. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.


PEA Parameters and Inputs:

The following table is a summary of the PEA parameters or inputs:



                                                                            
----------------------------------------------------------------------------
PEA Parameters           Measure Criteria          Input                    
----------------------------------------------------------------------------
Metal Grades             Unit                      Average Grade            
----------------------------------------------------------------------------
  Gold                   g/t                       2.69                     
  Copper                 %                         0.61                     
----------------------------------------------------------------------------
Metal Prices                                                                
----------------------------------------------------------------------------
  Gold                   US$/oz.                   $1300                    
  Copper                 US$/lb.                   $3.25                    
                                                                            
  Silver                 US$/oz                    $22                      
----------------------------------------------------------------------------
Exchange Rates                                                              
----------------------------------------------------------------------------
  CAD/USD                Today's rate              0.90                     
----------------------------------------------------------------------------
Taxation                 Taxable Income            Income Tax Rates         
----------------------------------------------------------------------------
  Dominican   Republic   Federal                   25%                      
                         Environmental             5%                       
----------------------------------------------------------------------------
Third Party Royalties    Net Smelter Royalty       1.25%                    
----------------------------------------------------------------------------
                                                                            



The following table is a summary of the PEA results:



                                                                            
----------------------------------------------------------------------------
Life of Mine Average              US$ millions  US$/t milled  US$/oz. gold  
                                  LOM                                       
----------------------------------------------------------------------------
Gross Revenue                                                               
                                                                            
Gold                                                          1,300         
Copper                                                        549           
Silver                                                        8             
TOTAL                             2,348         127           1,857         
----------------------------------------------------------------------------
Operating Costs                                                             
----------------------------------------------------------------------------
  Mining Costs                    584           31.61         462           
  Processing Costs                281           15.24         223           
  General & Administrative Costs  33            1.76          26            
  On Site Costs sub-total                                                   
  LESS By-Product Credits                                     710           
  Total                                                       -557          
                                  897           48.62                       
                                                              153           
  Add:                                                                      
                                                              147           
  Smelting and Refining Charges   186           10.07                       
----------------------------------------------------------------------------
Cash Operating Costs              1,083         58.69         301           
Net Operating Margin              1,264         68.50         1,558         
----------------------------------------------------------------------------
                                                                            
Royalties                         27            1.46          21            
Sustaining Capital                40            2.19          32            
All in Sustaining Cost            1,151         62.34         353           
----------------------------------------------------------------------------
Capital Expenditure (initial)     333           18.07         264           
----------------------------------------------------------------------------
Pre-tax Cash Flow                 864           46.78         683           
Taxation                          269           14.55         212           
----------------------------------------------------------------------------
Net Cash Flow After Tax           595           32.23         471           
----------------------------------------------------------------------------
                                                                            



The following figure presents the PEA sensitivities, showing leverage to metals
prices being the most important variable:


Link to figure:
http://www.goldquestcorp.com/images/press_release/GQC_PEA-sensitivitiesgraph.png


Mineral Resources: 

The basis for the PEA is the mineral resource estimate prepared by Micon as set
out in the Company's National Instrument 43-101 ("NI 43-101") report dated
December 13, 2013 and effective October 29, 2013 entitled "A Mineral Resource
Estimate for the Romero Project, Tireo Property, Province of San Juan, Dominican
Republic", which was filed on SEDAR on December 13, 2013. Please refer to the
technical report for further information regarding the mineral resource
estimate. For the purposes of reporting the mineral resources, Micon selected a
net smelter returns ("NSR") cut-off of US$60 (operating cost/commodity price
weighted recovery) as an estimate of what might be a reasonable marginal cost of
extraction at Romero and US$50 as the marginal cost of extraction at Romero
South. Metal prices used were Au = US$1,400/oz., Ag = US$22.50/oz., Cu =
US$3.18/lb. and Zn = US$0.95/lb.


A summary of this resource is:



                                                                            
----------------------------------------------------------------------------
                            Au    Cu    Zn   Ag    AuEq            AuEq     
Category  Zone   Tonnes     (g/t) (%)   (%)  (g/t) (g/t) Au Ounces Ounces   
----------------------------------------------------------------------------
Indicated Romero 17,310,000 2.55  0.68  0.30 4.0   3.81  1,419,000 2,123,000
----------------------------------------------------------------------------
          Romero                                                            
          South  2,110,000  3.33  0.23  0.17 1.5   3.80  226,000   258,000  
----------------------------------------------------------------------------
Total Indicated                                                             
Mineral                                                                     
Resources        19,420,000 2.63  0.63  0.29 3.7   3.81  1,645,000 2,381,000
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Inferred  Romero 8,520,000  1.59  0.39  0.46 4.0   2.47  437,000   678,000  
----------------------------------------------------------------------------
          Romero                                                            
          South  1,500,000  1.92  0.19  0.18 2.3   2.33  92,000    112,000  
----------------------------------------------------------------------------
Total Inferred                                                              
Mineral                                                                     
Resources        10,020,000 1.64  0.36  0.42 3.8   2.45  529,000   790,000  
----------------------------------------------------------------------------
                                                                            



Note: Mineral resources that are not mineral reserves do not have demonstrated
economic viability.


Mine Plan: 

The mine plan for the Romero deposit uses mechanized longhole stoping with both
ramp and shaft access. At full production, crushed ore is hoisted to the surface
at an average rate of 3,800 tpd. The mining method requires sinking and
equipping the shaft, installing the primary crusher station at the bottom of the
mine and making provision for backfill from bottom up during the pre-production
development period, which generally increases up-front capital (lowering IRR)
but results in lower sustaining capital and lower operating costs per tonne,
compared to other operations. The mine plan includes provisions for mining
losses and dilution. Some further drilling is recommended to upgrade inferred
resources to the higher measured and indicated categories, as well as
geotechnical and metallurgical drilling as part of any pre-feasibility study.


It is proposed that the Romero South deposit would go into production in year
14. The mine plan takes advantage of the deposit outcrop and requires very
little waste development. Modified room and pillar mining with backfill is the
proposed mining method. The planned production rate is 2,700 tpd and the mining
is expected to continue through the third quarter of year 15. 


Processing and Metallurgy: 

The processing flow sheet selected for the PEA consists of crushing, grinding
and flotation to produce two concentrates; a copper/gold sulphide concentrate
and a gold oxide concentrate, neither of which contains any significant
deleterious elements. 92% of the total copper and 51% of the total gold reports
to the copper concentrate and 32% of the total gold reports to the gold
concentrate. Bio-oxidation will be used for the gold concentrate only and dry
stacking will be used for tailings disposal. This flow sheet is based on
extensive metallurgical testing carried out by ALS laboratories in Kamloops BC
and Perth Australia under the supervision of Micon. Total recoveries into the
final concentrates, based on existing metallurgical test work, are expected to
be approximately 83% for gold and 91% for copper resulting in net payable gold
of 79.2% and net payable copper of 86.5%. Both concentrates will be trucked from
the mine site for further processing. 


Operating Costs:
The operating costs used in the PEA were estimated from first principles using
local unit rates for labour, consumables and power where possible, and Micon's
estimates for the off site costs. The Life of Mine All-In Sustaining Costs
(AISC) are estimated to be $353/oz of Au per year, for 90,000 ounce of Au per
year, consisting of on-site operating cash costs of $153/oz, net of copper and
minor silver by-products, concentrate transportation and TC/RC costs of $147/oz,
royalties of $21/oz and sustaining capital of $32/oz. 


Capital Costs: 

The pre-production capital cost is estimated to be $333.5 million, plus $40.4
million for LOM sustaining capital, for a total estimated LOM capital cost of
$374 million, for a pre-production capital intensity of $18.07 per LOM tonne
processed. Initial capital expenditures are based on 3,800 tonnes per day
(1,380,000 tonnes per year) throughput. The up-front capital costs include the
underground mine, processing facilities, infrastructure and hydro-electric
installations prior to production and include contingencies of $52.4 million,
EPCM costs of $19.8 million and $55.4 million for infrastructure costs including
the hydro-electric installations. Project electrical requirements are estimated
at 14MW. 


Sustaining capital consists of capitalized waste development after the initial
production start-up, major equipment replacement and tailings expansions. Mining
development costs during production are included in the mining operating costs.


The estimated preproduction capital costs are summarized in the table below.



                                                                            
----------------------------------------------------------------------------
Capital Costs                   Start Up    Start Up    Start Up    Start Up
US$ Thousand                     Minus 2     Minus 1      Year 1       Total
----------------------------------------------------------------------------
Preproduction                $        97 $     9,469           - $     9,566
Mining Capital               $    29,892 $     9,316 $     9,078 $    48,286
Processing Capital                     - $    73,723 $    36,311 $   110,034
Infrastructure Capital*                - $    48,888 $     6,540 $    55,428
Indirect Capital                       - $    44,474 $     7,386 $    51,860
----------------------------------------------------------------------------
Owner's Costs                            $     3,958 $     1,558 $     5,516
----------------------------------------------------------------------------
Closure Bonding                          $       200 $       200 $       400
----------------------------------------------------------------------------
Contingency                  $     5,978 $    36,072 $    10,359 $    52,409
----------------------------------------------------------------------------
Total                        $    35,967 $   226,099 $    71,433 $   333,499
----------------------------------------------------------------------------
                                                                            



*Includes access road, dry stack tailings storage facility, grid power
connection and hydro-electric installations.


A technical report supporting the PEA will be filed on SEDAR within 45 days.

Qualified Person: 

The technical information contained in this news release is based upon
information prepared by Messrs. Hennessey, Jacobs, Gowans and Ms Dreesbach of
Micon International Ltd., who are each a Qualified Person and independent of
GoldQuest as defined by NI 43-101.


Jeremy K. Niemi, P.Geo., VP Exploration, GoldQuest Mining Inc., is the Qualified
Person who supervised the preparation of the technical data in this news
release.


About GoldQuest Mining Corp. 

GoldQuest is a Canadian based mineral exploration company with projects in the
Dominican Republic traded on the TSX-V under the symbol GQC.V and in
Frankfurt/Berlin with symbol M1W, with 145,755,044 shares outstanding as at May
14, 2014 (160,096,563 on a fully diluted basis, as at May 14, 2014). is actively
exploring the Tireo Project, a 50 kilometre long land package which encompasses
the Romero and Romero South deposits. The company seeks to grow mineral
resources through an aggressive exploration campaign.


Forward-looking statements:

Statements contained in this news release that are not historical facts are
forward-looking information that involves known and unknown risks and
uncertainties. Forward-looking statements in this news release include, but are
not limited to, statements with respect to the PEA results, the proposed
underground mine, the discovery of new mineral resources, mineral resource
estimates, the merits of the Company's mineral properties, future studies, and
the Company's plans and exploration programs for its mineral properties,
including the timing of such plans and programs. In certain cases,
forward-looking statements can be identified by the use of words such as
"plans", "has proven", "expects" or "does not expect", "is expected",
"potential", "goal", "proposed", "appears", "budget", "scheduled", "estimates",
"forecasts", "at least", "intends", "hope", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "should",
"might" or "will be taken", "occur" or "be achieved".


Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such risks
and other factors include, among others, risks related to uncertainties inherent
in the preparation of the PEA and in the estimation of mineral resources;
commodity prices; changes in general economic conditions; market sentiment;
currency exchange rates; the Company's ability to continue as a going concern;
the Company's ability to raise funds through equity financings; risks inherent
in mineral exploration; risks related to operations in foreign countries; future
prices of metals; failure of equipment or processes to operate as anticipated;
accidents, labor disputes and other risks of the mining industry; delays in
obtaining governmental approvals; government regulation of mining operations;
environmental risks; title disputes or claims; limitations on insurance coverage
and the timing and possible outcome of litigation. Although the Company has
attempted to identify important factors that could affect the Company and may
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, do not place undue reliance on
forward-looking statements. All statements are made as of the date of this news
release and the Company is under no obligation to update or alter any
forward-looking statements except as required under applicable securities laws.


Forward-looking statements are based on assumptions that the Company believes to
be reasonable, including expectations regarding the PEA parameters and inputs,
mineral exploration and development costs; expected trends in mineral prices and
currency exchange rates; the accuracy of the Company's current mineral resource
estimates; that the Company's activities will be in accordance with the
Company's public statements and stated goals; that there will be no material
adverse change affecting the Company or its properties; that all required
approvals will be obtained and that there will be no significant disruptions
affecting the Company or its properties.


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



Image Available:
http://www.marketwire.com/library/MwGo/2014/5/26/11G016183/Images/GQC_PEA-sensitivitiesgraph-990828143577.jpg



FOR FURTHER INFORMATION PLEASE CONTACT: 

GoldQuest Mining Corp.
Julio Espaillat
President & Chief Executive Officer
[phone]
[e-mail]

GoldQuest Mining Corp.
Bill Fisher
Executive Chairman
Office of the Chairman - Toronto
[phone]
[e-mail]
www.goldquestcorp.com