Northquest Ltd. Announces C$5,000,000 Marketed Offering

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.


Northquest Ltd. (TSX VENTURE:NQ)(FRANKFURT:N3Q) ("Northquest" or the "Company")
is pleased to announce that it has entered into an agreement with Clarus
Securities Inc. and PowerOne Capital Markets Limited as co-lead agents, and
including Fraser Mackenzie Limited and Toll Cross Securities Inc. (collectively,
the "Agents"), whereby the Agents will raise up to C$5,000,000 (the "Offering")
through a combination of flow-through units (the "Flow-Through Units") offered
at a price of C$0.75 per Flow-Through Unit and units (the "Units") offered at a
price of C$0.65 per Unit. The Offering is subject to a minimum raise of
C$1,500,000 from the Units.


Each Flow-Through Unit will comprise of one flow-through share in the capital of
the Company and one half of one common share purchase warrant. Each full
flow-through warrant will entitle the holder to purchase one common share for an
exercise price of C$1.00 for 18 months following completion of the Offering.
Each Unit will comprise of one common share in the capital of the Company and
one half of one common share purchase warrant. Each full unit warrant will
entitle the holder to purchase one common share for an exercise price of C$0.80
for 18 months following completion of the Offering.


The proceeds raised from the sale of Flow-Through Units will be used by the
Company to finance qualified Canadian exploration expenditures as defined in the
Income Tax Act (Canada). The proceeds raised from the sale of the Units will be
used by the Company for exploration and for general corporate purposes. 


The Offering is scheduled to close on or about October 18, 2012, and is subject
to certain conditions including, but not limited to, the receipt of all
necessary approvals of the TSX Venture Exchange. The securities to be issued
under this Offering will be offered by way of private placement exemptions in
all the provinces of Canada. The Units to be issued under this Offering will
also be offered offshore, including in the United Kingdom pursuant to applicable
exemptions and in the United States on a private placement basis pursuant to
exemptions from the registration requirements of the United States Securities
Act of 1933, as amended.


The securities referred to in this news release have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons absent U.S. registration or an applicable exemption
from the U.S. registration requirements. This release does not constitute an
offer for sale of, nor a solicitation for offers to buy, any securities in the
United States. Any public offering of securities in the United States must be
made by means of a prospectus containing detailed information about the issuer
and its management, as well as financial statements.


Forward-Looking Statements - Certain information set forth in this news release
may contain forward-looking statements that involve substantial known and
unknown risks and uncertainties. These statements, including statements
regarding the timing and use of proceeds of the Offering, relate to future
events or future performance and reflect the Company's expectations regarding
the future growth, results of operations, business prospects and opportunities.
In some cases forward-looking information can be identified by terminology such
as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe",
"estimate", "projects", "potential", "scheduled", "forecast", "budget" or the
negative of those terms or other comparable terminology. These forward-looking
statements are subject to numerous risks and uncertainties, certain of which are
beyond the control of the Company, including, but not limited to, the impact of
general economic conditions, industry conditions, volatility of commodity
prices, risks associated with the uncertainty of exploration results and
estimates, metallurgical test results and that the resource potential will be
achieved on exploration projects, currency fluctuations, dependence upon
regulatory approvals, political and country risk, and the uncertainty of
obtaining additional financing and exploration risk. Readers are cautioned that
the assumptions used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements. The Company
expressly disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information, events or
otherwise, except in accordance with applicable securities laws.