Silver Quest Closes Private Placement

NEWS RELEASE

December 21, 2010 TSX Venture: SQI-V

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

SILVER QUEST CLOSES PRIVATE PLACEMENT

Vancouver, BC – Silver Quest Resources Ltd. (SQI-TSX.V) (the "Company") is pleased to report that it has closed its non-brokered private placement (the “Offering”) consisting of 2,542,832 flow-through common shares for gross proceeds of $1,907,124 announced December 9, 2010.

The Company has paid cash finders’ fees totaling $137,670 and issued an aggregate of 137,670 compensation warrants entitling the holders thereof to purchase such number of common shares for a period of 12 months from closing at an exercise price of $0.75 per share.

The proceeds of the Offering will be used for general exploration expenditures, which will constitute qualified Canadian exploration expenditures, as defined in the Income Tax Act (Canada) and flow-through mining expenditures on the Company’s prospects.

All securities issued or issuable in connection with the Offering are subject to a four-month hold period expiring April 21, 2011.

SILVER QUEST RESOURCES LTD.

“Randy Turner”

Randy Turner, President

For further information please contact Investor Relations at 604-687-3959 or [email protected] Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

P.O. Box 11584, Suite 1410 - 650 West Georgia Street, Vancouver, British Columbia V6B 4N8 Telephone: 604-687-3959 Facsimile: 604-687-1448 E-Mail: [email protected]