Further to its announcement of 3 October, AusQuest Limited (ASX: AQD) advises that it has completed diamond drilling to test the previously identified down-hole electromagnetic (DHEM) anomaly at the Hamilton North prospect, part of the Hamilton Copper-Gold Project in North-West Queensland. Previous drilling at this prospect returned highly anomalous copper values within a mineralised banded iron formation (BIF) sequence in several drill-holes, highlighting the potential for copper mineralisation (see ASX release 27 July 2022).

Drill-hole HMDD019, which was completed to a depth of 510m, intersected a thick sequence (~80m) of banded iron formation (BIF) with strong iron alteration that coincides with the location of the modelled DHEM target. High magnetic susceptibility (>1.0 SI units) and specific gravity (>3.4) measurements within the BIF sequence explain the magnetic and gravity responses that are central to this prospect. Thin sulphide bands (pyrrhotite/pyrite) within the BIF, along with the high magnetite content, were found to be the likely cause of the off-hole EM response that was targeted by this drill program. Anomalous copper values (up to 1,500ppm Cu) along with elevated cobalt (up to 480ppm Co), tin (up to 5.8ppm Sn) and selenium (up to 12ppm Se) support the presence of a mineralising system in the area, but no economic mineralisation was intersected

Compilation of data from all four drill-holes at Hamilton North is in progress to identify possible vectors to better grade copper mineralisation. Structural measurements on the core indicate that the BIF has a consistent dip to the eastsouth-east, suggesting a relatively simple structural setting, although geophysical data may indicate otherwise. The discrete nature of the magnetic and gravity responses over the Hamilton North prospect was thought to reflect a potential structural thickening of the BIF sequence, which may still be the case. AusQuest's Managing Director, Graeme Drew, said the potential for higher copper grades at Hamilton remained a real possibility, even though hole HMDD019 had not intersected economic mineralisation. 'We are learning a lot from our drilling at Hamilton and we hope to be able to use this newfound knowledge to further explore for copper and other base metals under the extensive cover that blankets the region,' he said The Hamilton Project is subject to the Strategic Alliance Agreement (SAA) with a whollyowned subsidiary of South32 Limited. Further work at this project is currently being considered under the SAA

COMPETENT PERSON'S STATEMENT

The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

FORWARD LOOKING STATEMENT

This report contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management's beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Contact:

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Ardross WA 6153

T: 08 9364 3866

Fax: 08 9364 4892

Email: InvestorRelations@ausquest.com.au

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