Great Quest Agrees to a Private Placement of $1,152,850

 
Great Quest Metals Ltd. ("Great Quest" or the "Company") (TSX-V: GQ, FRANKFURT: GQM) is pleased to announce that it has agreed, subject to the approval of the TSX Venture Exchange, to complete a brokered and a non-brokered private placement totalling 1,356,295 units at $0.85 per unit (the �Private Placement�) for gross proceeds of CAD $1,152,850. The brokered private placement was led by sole agent Pope & Company (the �Agent�). Each unit consists of one common share and one half of a transferable common share purchase warrant (a �Warrant�). Each whole Warrant entitles the holder to acquire one common share at a unit price of $1.25, for a period of two years from the date of issuance. The Private Placement is expected to close on September 14, 2012.
 
The net proceeds from the Private Placement will be used to further the Company�s developments, principally the Preliminary Economic Assessment report (�PEA�), and for general corporate purposes. All of the shares, warrants and any shares issued upon exercise of the warrants comprising the units will be subject to a hold period and may not be traded in British Columbia until four months and one day from the closing date of the Private Placement, except as permitted by the applicable Securities Acts and the Rules made there under and the TSX Venture Exchange.
 
�In spite of the difficult market conditions and the current political situation in Mali, we are pleased to be able to push forward with the Tilemsi Phosphate Project by raising capital to finance our PEA which is expected to be completed in the coming months,� commented Joel Jeangrand, President and Chief Executive Officer.
 
Certain directors and officers of the Company will acquire units under the Private Placement. Any such participation would be considered to be a �related party transaction� as defined under Multilateral Instrument 61-101 (�MI 61-101�). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any units issued to or the consideration paid by such persons will not exceed 25% of the Company�s market capitalization.
 
In accordance with the terms of the engagement, the Agent will receive a cash commission of $70,150 with respect to the brokered Private Placement.
 
�The Company continues to maintain an active team in Mali. We will resume our phosphate exploration activities on our Tilemsi Project as soon as the situation permits. Meanwhile, the PEA is progressing satisfactorily and ongoing engineering test work on our phosphate rock is being carried out in South Africa,� commented Joel Jeangrand.
 
 
ON BEHALF OF THE BOARD OF DIRECTORS OF GREAT QUEST METALS LTD.
�Joel Jeangrand�
Joel Jeangrand
President, CEO & Director