Silver Quest to Increase Interest in Capoose Property to 100%

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/12/10 -- Silver Quest Resources (TSX VENTURE: SQI) ('Silver Quest' or 'the Company') wishes to announce that it will increase its interest in the Capoose property (the 'Property') to 100% as Bearclaw Capital Corp. ('Bearclaw')(TSX.V: BCL) has elected to not participate in the 2010 exploration program on the Property.

The Joint Venture management committee approved a $2.2 million budget for the 2010 exploration program on the Property which will include 10,000 metres of diamond drilling for resource definition, exploration drilling and the testing of several geophysical and geochemical targets. As a result of Bearclaw's election not to participate, Silver Quest will fund the entire cost of the 2010 exploration program.

Silver Quest currently holds a 60% interest in the Property (October 2009). Once subsequent expenditures have totaled a $1.67 million, Bearclaw's interest in the Joint Venture will be diluted to 20% which, under the terms of the Joint Venture Agreement, will automatically convert to a 2.25% Net Smelter Royalty ('NSR'). Silver Quest will then hold a 100% interest in the property with the right to purchase 1% of the NSR from Bearclaw for $1.5 million.

A NI 43-101 compliant Technical Report on the Capoose Project, supporting the Company's recently announced inferred resource estimate (March 4, 2010), is available on SEDAR and the Company's website, www.silverquest.ca.

SILVER QUEST RESOURCES LTD.

Randy Turner, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contacts:

Silver Quest Resources Ltd.

Investor Relations

604-687-3959

604-687-1448 (FAX)
info@silverquest.ca
www.silverquest.ca