Great Quest Metals Ltd.: PEA for Tilemsi Phosphate Indicates US$ 649m NPV at 10% Discount Rate

Tilemsi Project Background

The PEA is a scoping-level study on the development of the Tilemsi phosphate resource and is based on an initial Inferred Mineral Resource of 50 million tonnes (“Mt”), grading at 24.3% P2O5, over a surface area of 25.62 km2, as reported on October 23, 2012. Given historical results, remote sensing work and the company’s total claim area (1,206 km2), there is evidence Tilemsi offers significant upside potential that can be determined by further exploration.

PEA Development Description

The development plans of the Company encompass the production of two granulated phosphate products: a high grade (35% P2O5) for mixture into standard NPK blends, and a medium grade (27% P2O5) for simple direct application. Initial production is assumed to begin in 2016, with staged production ramp-up from 200,000 tonnes to 1 million tonnes, based on conservative expectations for market uptake. The Company targets landlocked markets in West Africa for product delivery, displacing high cost imported fertilizers, and servicing emerging commercial farming projects in the region.

PEA Highlights

The proposed project, mine and processing facility, would produce an annual average of 700,000 tonnes of P2O5 concentrate over 20 years, at a Life of Mine (“LOM”) strip ratio of 6.8 to 1 (overburden to process feed). This would generate an NPV of US$ 649 million, at a discount rate of 10%, and a project IRR of 34%. The PEA assumes the plant will be built to a 500,000 tonnes per year capacity at start-up to take advantage of equipment sizing benefits, but will slowly build to full capacity, assuming modest market penetration initially. Pricing used in the study incorporates a 20% discount to equivalent products currently available in the region. Given these pragmatic assumptions the project generates a very respectable rate of return. It should be noted that continued geological work indicates that drilling techniques in the preparation of the resource estimate may have underestimated the resource grade. Any increase in the resource grade will further enhance the profitability of the project.

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Table 1: PEA Highlights

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Project Parameters Value

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Life of Mine (“LOM”) based on the current 20 years

Inferred Mineral Resource estimate

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Maximum Rock Mined (at full capacity) 1 million tonnes per

annum

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Pre-Operational Cost US$ 13 million

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Initial Capital Cost US$ 143 million

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OPEX Phosphate Rock (powder average ex plant) US$ 59 per tonne

35% P2O5

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OPEX Hyper Phosphate (granulated avg. ex plant) US$ 95 per tonne

35% P2O5

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Fertilizer Products Supplied at Full Capacity 1.18 million tonnes per

annum

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Sales Mix: NPK / Direct Application 78% / 22%

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Table 2: Summary of the Project Economics

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Project Economics Value

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Project Net Present Value (“NPV”) US$ 649 million

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Discount Rate 10%

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Project Internal Rate of Return (“IRR”) 34%

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Equity Holder IRR (40% equity / 60% debt) 42%

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Payback Period 4 years

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Table 3: PEA Assumptions

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Assumptions Value

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Product Discount Rate against Cost of Moroccan 20%

Phosphate in Bamako, Mali

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Average Transport Cost Ratio US$ 0.082 per tonne per

kilometre

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Delivered Price of Diesel for Energy Production US$ 1.10 per litre

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Equity to Government on Mining 20%

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Royalties on Mine Production 3%

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Contingency in Initial Capital Cost (12%) US$ 14 million

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Political Risk Insurance Premium (12%) (incl. US$ 11 million

in CAPEX)

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Interest Rate (LIBOR + Premium) 7.8% per annum

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Table 4: NPV Sensitivity to Discount Rate

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Discount Rate NPV

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6% US$ 1,123 million

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8% US$ 851 million

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12% US$ 497 million

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CEO Comments

Commenting on the Technical Report, Great Quest’s President and CEO, Joel Jeangrand, said, “We are encouraged by the positive results of the PEA. Given the results of the study, we are confident that this project can generate robust economic and social returns. We have put together a full business strategy quantifying costs and risks for transportation, market penetration and product attributes. Developing this high quality resource to the benefit of the region could revolutionize West African agriculture and help stimulate growth of globally competitive commercial agriculture in the region.”

The independent PEA was written and compiled by Gaya Resources Development Ltd (Israel), a full-spectrum engineering management company, specialising in fertilizer projects. The PEA includes sections provided by various international consulting firms such as Coffey Mining (South Africa) for the mining, GBM Engineering (UK) for the beneficiation process, CFI Holding (France) for the granulation/NPK study, Bollore Africa Logistics (France) for the transportation analysis, Balu & Associates (USA) for the West Africa fertilizer market research and Mintek (South Africa) for the metallurgical testing.

Capital and operating cost estimates were prepared in mixed currencies and converted to US dollars (USD). All revenues were estimated in various currencies and converted to USD.

Great Quest cautions that the PEA is preliminary in nature, as it includes Inferred Mineral Resources which are considered too speculative geologically, to have the economic considerations applied to them that would enable them to be categorized as “Mineral Reserves”. There is no certainty that the PEA will be realized as Mineral Resources do not demonstrate economic viability.

Great Quest will file a NI 43-101 compliant Technical Report, which will include the results of the PEA on SEDAR within 45 days, and investors are urged to review the Report in its entirety.

Upcoming Milestones

The next steps for the project will be to increase the resource confidence and estimates. The Company intends to complete the Pre-Feasibility Study, including an extensive market study by early 2013 and a Feasibility Study during the second half of 2013. Great Quest intends to take the following actions in order to advance the project and create value for its shareholders:

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— Resume the drilling program, with a view to expand the resource and

upgrade the existing Inferred Resources into the measured or indicated

category, as soon as it is safe for its personnel to return to site,

— Advance product development with pre-production and agronomical tests

with existing and new partnerships,

— Develop distribution channels, ahead of the future production ramp up,

— Develop partnerships to secure competitive sources of sulphur, nitrogen

and potash from the region, in order to produce in-house high quality

NPK fertilizers,

— Secure the required capital to finance the Company’s growth, from

traditional sources as well as from development agencies whose mandate

aligns with the goals of the Tilemsi project.

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Qualified Person

The technical information in this press release has been reviewed and approved by Jed Diner, M.Sc., P.Geol., a Qualified Person as defined by National Instrument 43-101. Mr. Diner completed his M.Sc. in Applied Earth Science at Stanford University in 1983 and works internationally on mineral exploration and resource development projects. He has consulted on other phosphate projects in Uzbekistan, Peru and Angola.

Mali Situation

While the current geo-political situation in Mali continues to be a concern, Great Quest remains committed to its high grade phosphate project. “All of our licenses are in good standing and we plan to go back to site as soon as the situation permits. In the meantime, we continue to closely monitor the developments, move the project forward and look forward to an early and peaceful resolution to the crisis,” says Joel Jeangrand, President and CEO of the Company.

About Great Quest

Great Quest Metals Ltd. is a Canadian mineral exploration company with assets in Mali, West Africa. The Company is focused on developing the Tilemsi Phosphate Project, encompassing 1,206 km2 in eastern Mali. The Company also holds several gold concessions in the productive Birimian gold belt, in western Mali. Great Quest is listed on the TSX Venture Exchange under the symbol GQ, and the Frankfurt Stock Exchange under the symbol GQM.

ON BEHALF OF THE BOARD OF DIRECTORS OF GREAT QUEST METALS LTD.

Joel Jeangrand, President, CEO & Director

The statements that are not historical facts and are forward-looking statements involving known and unknown risks and uncertainties could cause actual results to vary materially from the targeted results. We seek safe harbor.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact:

Great Quest Metals Ltd.

Candice Font

Investor Relations

604-689-2882 or Toll Free: 1-877-325-3838

604-684-5854 (FAX)

greatquest.com