AusQuest Limited (ASX: AQD) is pleased to advise that its Strategic Alliance partner, a wholly-owned subsidiary of South32 Limited (South32), has accepted the Moora Project, located ~250km north-east of Perth in WA, as a new Exploration Opportunity under the Strategic Alliance Agreement (SAA) between the two companies (Figure 1). Under the terms of the SAA, South32 has exclusive rights to the Company's projects and can earn a 70% interest in each project by spending a total of US$4.5 million on exploration, with the right to earn an additional 10% interest by completing Pre-Feasibility Studies.

The Moora Project, which consists of three granted Exploration Licences, covers an area of ~440km-2, and occurs within the same metamorphic suite of rocks as the Julimar Ni-Cu-PGE deposit discovered by Chalice Mining, which is located ~50km north of Perth. The titles were originally acquired because of the presence of similar magnetic signatures to that over the Gonneville intrusion, which is the main host to the mineralisation at Julimar

Detailed gravity surveys over the Latham and Wubin prospects have outlined discrete gravity anomalies broadly coincident with the magnetic targets, suggesting the potential for mafic/ultramafic intrusions with similarities to Gonneville. Auger sampling and electromagnetic surveys, although largely ineffective in these areas due to alluvial cover, indicate the presence of mafic and ultramafic rock types in the vicinity of the interpreted Latham intrusion. A limited Reverse Circulation (RC) drilling program (three holes for ~750m) to confirm the presence of fertile host rocks has been planned for Latham following the signing of a Land Access Agreement with the key landowner (Figure 2). This program is expected to start later this Quarter subject to all necessary approvals being received and a drilling contract finalised.

AusQuest's Managing Director, Graeme Drew, said the inclusion of the Moora Project under the Company's SAA with South32 was an exciting development, adding to the Company's portfolio of Ni-Cu-PGE projects in WA which are currently being explored under the SAA. 'The proximity of the Moora Project to the Julimar discovery and the scale of the target that has been outlined at Latham will make for interesting drilling in the weeks ahead,' he said. 'We are excited by the opportunity that the Moora Project presents, and very pleased once again to have the backing of South32 to help us explore this area,' he added

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.

ORWARD-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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8 Kearns Crescent

Ardross WA 6153

T: 08 9364 3866

Fax: 08 9364 4892

Email: InvestorRelations@ausquest.com.au

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