ASX ANNOUNCEMENT

ASX: QNL

10 February 2011

GRAVITY SURVEY IDENTIFIES SIGNIFICANT IRON ORE TARGETS AT

WESTERN AUSTRALIA PROJECT

KEY POINTS:

• Recently completed gravity survey highlights multiple drill targets, over 6km strike length, at Alken prospect, near Perenjori in Western Australia,

• Gravity anomalies considered highly prospective for iron ore hematite and magnetite mineralisation, and are coincident with high-grade rock chip sampling,

• Preliminary interpretation of gravity anomalies also indicates potential for palaeochannel iron ore mineralisation,

• Integration of gravity data with detailed aeromagnetic survey underway, and

• Planning underway for RC drill program to test targets, which is likely to occur in April 2010

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Figure 1 Alken and Feral prospect location

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WA based resources company Quest Minerals Limited (ASX: QNL) (“Quest”: or “the Company”),

has recently completed a detailed ground-based gravity survey at the Alken prospect near

Perenjori in Western Australia (refer Figure 1), with the preliminary processing and interpretation

of the survey highlighting multiple gravity anomalies over the entire 6km length of the survey area

(refer Figures 2 & 3). As announced on 29th December 2010, the Company has entered into an

agreement with the tenement owners to acquire an 80% interest in both the Alken and Feral

prospects (refer ASX announcement dated 29 December 2010 for more details of this

transaction).

Preliminary processing and interpretation of the survey has highlighted multiple gravity anomalies

over the entire 6km length of the survey area (Figures 2 and 3). These anomalies are coincident

with high-grade rock chip sampling of outcropping hematite over much of the survey area.

Figure 2 Alken prospect with gravity survey targets and rock chip samples of > 50%

Fe over air photo image

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Gravity Survey

The ground gravity survey was undertaken by Haines Surveys, with geophysical processing and

interpretation of the data currently being completed by Perth based consultants Resource

Potentials. Initial results received from the data processing and interpretation, are considered

highly encouraging and confirm the potential for significant hematite iron mineralisation at the

Alken prospect. Several priority targets including potential palaeochannel iron ore mineralisation

(channel iron deposit or CID), have been identified and will be tested with a drilling program to

commence as soon as the necessary approvals have been received from the Department of

Minerals and Petroleum (DMP).

Figure 3 Alken prospect gravity survey anomalies over image of residual gravity

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Previous work by the current holders of the Alken prospect included a program of rock chip

sampling over surface exposure that extends over 3km on a fully accessible low lying ridge. This

sampling has highlighted three distinct areas of high-grade iron mineralisation at or above 60%

Fe, comprised of massive hematite with low silica averaging 4.7% and low phosphorous

averaging 0.02% (Figures 2 and 3). The results of this rock chip sampling indicate a well

developed hematite concentration associated with hydrothermal alteration of Banded Iron

Formation (BIF). The contact between a granite intrusive and BIF in the northern part of Alken

(Figure 4) is considered to represent a high priority target area, as the granite intrusion provides a

source of both heat and fluid for hydrothermal alteration of the BIF.

This high priority target area also contains gravity anomalies which are not associated with BIF,

as interpreted from detailed aeromagnetics and are therefore considered to be highly prospective

for shallowly buried hematite mineralisation.

Figure 4 Alken prospect with gravity targets plotted over high resolution

aeromagnetic survey image of total magnetic intensity

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Regional Aeromagnetics and Feral prospect

Over 12km of BIF are contained within the Feral prospect (Figure 5) with previous drilling at the

prospect intersecting significant high-grade magnetite mineralisation within BIF. Drilling results

included downhole intersections of 61m at 40% Fe, with what are considered the most

prospective portions of the geological units yet to be tested. Key aspects of the Feral drilling as

reported by exploration in December 2007 include the following –

• Strike length of 5,000 metres,

• True widths ranging between 5m and 60m, with a 1,300m long zone averaging between 50 and 60 metres,

• Average iron content of 39.4% Fe; and

• No apparent Fe enrichment in the oxidized zone, which averages 50m in depth

Metallurgical testwork which included Davis Tube Recovery (DTR) analysis, has shown that the

mineralisation has the potential for upgrade to a premium grade concentrate with low impurities.

Quest believes that the opportunity exists to establish an initial Mineral Resource in accordance

with JORC guidelines and that significant potential exists to better define and extend previously

defined magnetite mineralisation at the Feral prospect.

Project Location and Infrastructure

Alken (E70/2858) and Feral prospects (E70/2858) both benefit from their proximity to excellent

road, rail and port infrastructure. The Bowgada rail heading, which is located 15km west of both

projects, is currently being upgraded by Mt Gibson Iron (ASX: MGX), as part of the development

of their Extension Hill project. Hematite ore will be trucked 85km from Extension Hill to Bowgada

and then transported by rail to the Geraldton Port at an annual rate of 3Mtpa, scheduled to

commence in the September 2011 quarter.

The Koolanooka mine is located 15km to the north of the Alken prospect. Midwest/Sinosteel

commenced mining in April 2010, with first shipments from Geraldton Port in July 2010. This

project is projected to export 1.5 million tonnes of hematitic ore in 2011.

Given the significant prospectivity of the Alken prospect for direct-ship hematite iron ore, the

excellent infrastructure and the significant regional developments by established iron ore

producers, Quest believes that the Alken and Feral prospects present a significant opportunity to

establish itself within this emerging iron ore region.

PADDY REIDY

CHIEF EXECUTIVE OFFICER

Information in this report that relates to exploration results reflects information compiled by Mr Paddy Reidy, Chief Executive

Officer and a full-time employee of the company and a member of the AusIMM. Mr Reidy has sufficient experience which is

relevant to the style of mineralisation and type of deposit under consideration and to the activity upon which he is reporting on as

a Competent Person as defined in the 2004 Edition of “The Australasian Code for Reporting of Exploration Results, Mineral

Resources and Ore Reserves.” Mr Reidy consents to the inclusion in this report of the matters based on the information compiled

by him, in the form and context in which it appears.

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Figure 5 Alken and Feral prospects with high resolution aeromagnetic image

highlighting the occurrence of BIF as strong magnetic anomalies in red

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