Quest Acquires Uranium Property in the LG4 Area, James Bay Region, Quebec

Quest Acquires Uranium Property in the LG4 Area, James Bay Region, Quebec

Friday, August 22nd 2008

Quest Uranium Corporation announce that it has entered into an exploration property agreement with a Montreal-based prospecting group for the right to acquire a 100% interest in claims located in the LG4 area of the James Bay region, Quebec. The agreement with the prospectors covers a single block of 14 contiguous mining claims comprising more than 709 hectres in the Sakami Lake area of northwestern Quebec. The property area is readily accessible using Hydro Quebec’s James Bay Hydroelectric installation all-weather road infrastructure.

The claims are considered to be highly prospective for unconformity-related uranium deposits and cover approximately 2.5 km strike length of favourable Sakami unconformity. When combined with Quest’s James Bay Option properties with Midland Exploration Inc. (CDNX:MD.V – News) (see Press Release: January 17, 2008), Quest controls more than 9 km of favourable geology in the area.

Under the terms of the agreement, Quest has an option to acquire a 100% undivided interest in the 14 claims, subject to the following conditions:

– Cash payments by Quest of $80,000, $40,000 on signing and $40,000 in one year. – Issuance by Quest of 200,000 shares, 100,000 on signing and 100,000 in one year.

– Granting by Quest of a 2.0% Net Smelter Royalty (NSR) to the property owners, of which 1.5% can be bought back by Quest for $1,500,000.

The transaction is subject to regulatory approval, including that of the TSX Venture Exchange.

Property Area Geology and Mineralization

The claim block straddles two historical uranium occurrences, the Kuljit and Sannon showings, discovered by S.E.S. Mining in the mid-1970′s.

The area is underlain by Archean-aged basement rocks, unconformably overlain by Proterozoic age Sakami Formation sedimentary rocks. Known uranium resources in the region (i.e. – Lac Guyot (Dieter Lake) Deposit; 43-101 Resource Estimate, Strathmore Minerals Corp. Report on 2005 Exploration, NOV. 2005 – 24 million pounds U3O8) occur at, above or below the unconformity and show strong geological similarities with the Athabasca Basin in northern Saskatchewan.

The Sannon showing, in the northeastern part of the claim block, straddles an area in which previous operators (S.E.S. Mining Group) discovered more than 47 radioactive boulders over a strike length of greater than 2 km. Analytical results reported by S.E.S Mining ranging from 1 to 2% U3O8 (with associated anomalous nickel values) were obtained in its prospecting work. S.E.S. concluded that the uranium-nickel association observed at Sannon is considered significant and may correspond to post-mineralization processes commonly observed in the Athabasca basin. In addition, bedrock mineralization situated to the east of the boulder train, known as the Sannon uranium vein, returned grab assay values up to 6.28% U3O8. Chip sampling across the vein returned 7.4% U3O8 over 0.36 m and 4.0% U3O8 over 0.175 m. The boulder train and Sannon vein are located on the northern side of the LG4 basin near the base of the Sakami Formation.

The Kuljit occurrence, at the southern part of the claims, is characterized by an extensive northwest-trending uranium mineralized shear structure that is observed to undercut the younger Sakami sedimentary rocks further to the south.

Quest prospectors will be mobilizing to the property area before the end of August to complete ground evaluation of the target areas and to locate areas of new mineralization.

Share this post