Quest Comments on Sub Prime Woes

    FOR:  QUEST CAPITAL CORP.

TSX SYMBOL:  QC
AMEX, AIM SYMBOL:  QCC

August 17, 2007

Quest Comments on Sub Prime Woes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2007) - Quest Capital Corp. ("Quest" or the
"Company") (TSX:QC)(AMEX:QCC)(AIM:QCC) is pleased to provide the following general corporate
update.

Quest is an asset backed lender that provides mortgages to Canadian borrowers in the industrial,
commercial and investment ("ICI") real estate sectors as well as bridge loans to companies in the
resource sector. The Company finances its loans with equity, occasionally syndicating a portion of
the loan on a pari passu basis. Quest's loan to value on a portfolio basis is less than 75%. As at
June 30, 2007, Quest had net assets of $288 million, with no debt.

The Company has deliberately structured its business model to avoid:

- the low margin/high volume single family residential market;

- relying on securitization as a source of capital;

- excessive leverage. Quest has a modest credit facility of $25 million which is currently not
being utilized; and

- exposure to the United States real estate market.

The sub prime crisis that has enveloped the United States was widely predicted by many prudent
lenders including Quest. Quest has stated, repeatedly, that it has been fearful of lending in the
United States both "because of its lending practices and its lending laws."

Quest believes that most Canadian lenders have been more conservative than their US counter parts
- at least with respect to their domestic lending activities. As a result, Quest believes that any
credit issues affecting Canadian lending markets should be significantly less severe in both
magnitude and duration.

Quest has proceeded cautiously over the past several quarters believing that lending practices in
the United States could lead to a credit crisis. At present, Quest has two loans that are not
performing, the lowest number in several quarters. Both of these loans are being actively managed
and we expect repayment in full.

Due to the pressures being exerted on the capital markets, loan demands are increasing. Quest will
continue to apply the same rigorous loan underwriting process and will be selective as to whom it
lends money. Quest notes that risk premiums are currently increasing and this change should accrue
to the benefit of those companies that are well capitalized. As with many financial crises, the
survivors will emerge materially strengthened.

About Quest

Quest Capital Corp. is an asset backed lender that focuses on providing financial services,
specifically mortgages and bridge loans. Quest's primary expertise is providing asset backed loans
to companies in real estate, manufacturing and resource sectors. Quest complements its lending
business by providing corporate finance services through its wholly owned subsidiary, Quest
Securities Corporation.

Forward Looking Statements

Statements contained in this news release that are not historical facts are forward-looking
statements that involve various risks and uncertainty affecting the business of Quest. Actual
results realized may vary materially from the information provided in this release. As a result,
there is no representation by Quest that actual results realized in the future will be the same in
whole or in part as those presented herein.



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FOR FURTHER INFORMATION PLEASE CONTACT:

Quest Capital Corp. - Contact in Canada:
A. Murray Sinclair
Managing Director
(604) 68-QUEST, [phone] or Toll Free: 1-800-318-3094
Website: www.questcapcorp.com

OR

Quest Capital Corp. - Contact in London:
AIM NOMAD: Canaccord Adams Limited
Erin Needra
[phone]

OR

Quest Capital Corp. - Contact in London:
AIM NOMAD: Canaccord Adams Limited
Robert Findlay
[phone]

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Quest Capital Corp.