GoldQuest Mining Closes $15 Million Bought Deal Private Placement

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Aug. 21, 2012) - GoldQuest Mining Corp. (the "Company") (TSX VENTURE:GQC) (FRANKFURT:M1W) (BERLIN:M1W) today announced the closing of the bought deal private placement previously announced on July 31, 2012. Dundee Securities Ltd. (the "Lead Underwriter"), on behalf of a syndicate of Underwriters including Stifel Nicolaus Canada Inc., Clarus Securities Inc., GMP Securities L.P., and Raymond James Ltd. (the "Underwriters"), sold 12,000,000 common shares (the "Shares") at a price per Share of $1.25 for total gross proceeds of $15,000,000 (the "Offering"). As part of the Offering, the Underwriters exercised their option (the "Option") to purchase an additional 4,000,000 Shares of the Offering.

In connection with the Offering, the Underwriters received a cash commission equal to 6.0% of the gross proceeds raised under the Offering (inclusive of the Option) and that number of non-transferable broker warrants ("Broker Warrants") as is equal to 6.0% of the number of Offered Securities sold (inclusive of the Option). Each Broker Warrant will be exercisable into one Share of the Company, for a period of 24 months from the Closing Date at a price of $1.25 per Share.

The securities issued pursuant to the Offering are subject to a hold period expiring on December 22, 2012.

The net proceeds will be used to advance the exploration and development of the Company's gold assets in the Dominican Republic and for general corporate purposes.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.


About GoldQuest

GoldQuest is a Canadian based mineral exploration company with projects in the Dominican Republic traded on the TSX-V under the symbol GQC.V and in Frankfurt/Berlin with symbol M1W, with 139,975,267 shares outstanding (153,048,601 on a fully diluted basis).


Forward-looking statements:

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that GoldQuest expects to occur, are forward- looking statements.

Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although GoldQuest believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of GoldQuest's management on the date the statements are made. GoldQuest undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.



Contact

GoldQuest Mining Corp.
Julio Espaillat, President & Chief Executive Officer
+1-809-385-2222
jespaillat@goldquestcorp.com

GoldQuest Mining Corp.
Sebastian de Kloet, Investor Relations - Toronto
+1-416-214-9151
investorrelations@goldquestcorp.com
www.goldquestcorp.com