Great Quest Files PEA and Confirms Robust Economic Results on Tilemsi Phosphate Project

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/13 -- Great Quest Metals Ltd. (the "Company") (TSX VENTURE: GQ) is pleased to report it has filed on SEDAR the previously announced Preliminary Economic Assessment ("PEA") for its Tilemsi phosphate project. The study has been prepared in accordance with the National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). For further details, readers are advised to refer to the full PEA report available on SEDAR (www.sedar.com) and the Company's press release dated December 18, 2012.

PEA Objectives

The PEA is a scoping-level study on the development of the Tilemsi phosphate resource into a West African integrated phosphate fertilizer project. It is based on an initial inferred mineral resource of 50 million tonnes, grading at 24.3% P2O5, as reported on October 23, 2012. The study considers the mining of the Tilemsi phosphate deposit located in northeastern Mali, the construction of phosphate beneficiation and granulation plants and their associated infrastructure. Test work was completed to prove saleable products such as high grade phosphate raw material for NPK blending facilities and medium grade for low-cost direct application fertilizer. In addition, the study looked at the construction of four NPK blending plants in West Africa (see map below).

PEA Highlights

--  With a US$649 million NPV at 10% discount rate and 33% project IRR, the
    PEA strongly supports the potential viability of the Tilemsi Phosphate
    Project.
--  The project is cash positive from the first year of operations, and
    accumulates more than US$2.6 billion over the life of project.
--  Initial production is assumed to begin in 2016, with staged production
    ramp-up from 200,000 tonnes ("t") to 1 million tonnes ("Mt"), based on
    conservative expectations for market uptake, over 20 years Life-of-Mine.
--  The development plans of the Company encompass the production of two
    granulated phosphate products: a "High Grade Hyperphosphate" (greater
    than 35% P2O5) for mixture into standard NPK blends, and a "Medium Grade
    Hyperphosphate" (greater than 27% P2O5) for simple direct application. A
    high quality NPK fertilizer produced by the Company's own NPK blending
    facilities is also considered in the study.
--  The multi-phase, long-term marketing and production strategy focuses on
    agricultural markets in West Africa (eg. Mali, Ghana and Nigeria),
    specifically targets landlocked regions in order to displace high-cost
    imported fertilizers, and services emerging commercial farming projects
    in the region.

To view the map accompanying this press release, click on the following link: http://media3.marketwire.com/docs/gq26m.pdf

Mine Design Considerations

Mining has been scheduled to commence at approximately 200,000 tonnes per annum ("tpa"), increasing by 100,000 tonnes annually, to reach 500,000 tpa by Year 4. Production will increase in Year 8 to a steady rate of 1 million tpa, which will continue until Year 20. Mining will commence in the Tin Hina area and will operate for 13 years. It will continue in the Tarkint Est pits until Year 20.

Logistics

--  The calculated haulage cost corresponds to an average price per tonne
    per kilometre of US$0.083 based on a gas price of US$1.10 per litre.
--  The large distances from the mine and beneficiation/granulation plants
    to the various West African markets and sea ports will require a
    thorough logistics plan.

Market Study

--  West Africa's P2O5 demand is projected to increase from 184,000 t in
    2010 to 287,000 t in 2020, and 430,000 t in 2030. However, based on
    Abuja Declaration targets, potential but realizable requirements of
    phosphate fertilizers will be approximately 537,000 t of P2O5 in 2020
    and over 1,000,000 t of P2O5 in 2030. Recognizing that increased
    fertilizer use is essential for preventing nutrient depletion and soil
    degradation, many West African governments already promote fertilizer
    use, through the allocation of subsidies.
--  Tilemsi phosphate is highly reactive, demonstrating excellent agronomic
    effectiveness in West African soils comparative to imported,
    commercially manufactured fertilizers.
--  Tilemsi phosphate offers a unique local source of phosphate, suitable as
    a direct application fertilizer (medium grade) or as a component of
    blended NPK fertilizers (high grade). Such local fertilizer production
    diminishes transportation costs especially for landlocked West African
    breadbaskets, reduces foreign exchange, and ensures timely and secure
    supplies of quality fertilizer products at stable domestic prices.

The Company cautions that the PEA is preliminary in nature, as it includes "Inferred Mineral Resources" which are considered too speculative geologically, to have the economic considerations applied to them that would enable them to be categorized as "Mineral Reserves". There is no certainty that the PEA will be realized, as Mineral Resources do not demonstrate economic viability.

Mali Situation

As the situation in Mali and in the city of Gao, in particular, continues to progress towards normalization, Great Quest will communicate in a future press release how it plans to resume activity at its Tilemsi Phosphate Project.

Qualified Person

The technical information in this press release has been reviewed and approved by Jed Diner, MSc. P.Geol., a Qualified Person as defined by NI 43-101. Mr. Diner completed his MSc. in Applied Earth Science at Stanford University in 1983 and works internationally on mineral exploration and resource development projects. He has consulted on other phosphate projects in Uzbekistan, Peru and Angola.

About Great Quest

Great Quest Metals Ltd. is a Canadian mineral exploration company with assets in Mali, West Africa. The Company is focused on developing the Tilemsi Phosphate Project, encompassing 1,206 km2 in northeastern Mali. The Company also holds several gold concessions in the productive Birimian gold belt, in southwestern Mali. Great Quest is listed on the TSX Venture Exchange under the symbol GQ, and the Frankfurt Stock Exchange under the symbol GQM.

ON BEHALF OF THE BOARD OF DIRECTORS OF GREAT QUEST METALS LTD.

Joel Jeangrand - President, CEO & Director

The statements that are not historical facts and are forward-looking statements involving known and unknown risks and uncertainties could cause actual results to vary materially from the targeted results. We seek safe harbor.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Great Quest Metals Ltd.

Candice Font

Investor Relations

+1 604-689-2882 or Toll Free: 1 877-325-3838