AusQuest Limited (ASX: AQD) is pleased to advise that it has successfully acquired tenements over a partially exposed copper (+/- gold) porphyry system in southern Peru.

The project is located within 10km of the coast, close to the Panamerican Highway and approximately 60km south of the town of Chala. The Cangallo Prospect, which has not previously been explored, was originally identified by the Company's proprietary regional aeromagnetic/radiometric survey and was acquired recently when the area became available for pegging. Geological mapping and rock-chip sampling of limited sub-crop has confirmed the presence of highly anomalous copper (up to 0.64% Cu), molybdenum (up to 42ppm Mo) and scattered gold values (up to 2.5g/t Au) within multiple-veined and altered (sericite) volcanics and porphyritic rocks, indicating the presence of a partially exposed porphyry system.

Satellite imagery suggests that the porphyry system occurs within a large-scale caldera structure (5km x 2km) at the intersection of regional NE and NW trending faults. Extensive thin cover (colluvium and/or Milo Formation sediments) within the inferred caldera is believed to mask the full-scale potential of the porphyry system, with minor sub-crops within covered areas also containing sericite altered volcanics and highly anomalous copper and molybdenum values (plus other pathfinder elements). AusQuest's Managing Director, Graeme Drew, said the discovery of a partially exposed porphyry copper system in an area with excellent infrastructure attributes, close to the Panamerican Highway, was a real surprise for the Company as it was thought that all exposed porphyries, especially in Peru, would have been found by now. 'The size of the potential caldera structure supports the idea that we are only seeing a small portion of the porphyry system at surface, and there could well be greater rewards under the thin cover that surrounds the copper-anomalous sub-crops,' he said. 'We are looking forward to getting on the ground to explore this exciting project as soon as we can.'

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:

Tel: 08 9364 3866

Fax: 08 9364 4892

Email: InvestorRelations@ausquest.com.au

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