Northquest Limited announces drilling results from the Pistol Bay Gold Project

PB-13-06 intersects 138.39 metres grading 3.79 grams gold per tonne at the Vickers Target

TORONTO, October 1, 2013 - Northquest Ltd. (TSX.V-NQ) (FWB-N3Q) ("Northquest" or "the Company") is pleased to announce the second batch of 2013 drilling results from the Pistol Bay Gold Project, Nunavut, Canada. The project consists of 861 square kilometres of mineral rights covering a 90 kilometre strike length of a gold bearing trend known as the Pistol Bay Trend, which contains a west-trending series of gold occurrences and gold zones intersected in holes drilled by Northquest in 2011, 2012, and 2013. Over the past 30 months, since field operations commenced in April 2011, the Company has completed two airborne geophysical surveys and 9,113 metres of diamond drilling in 49 drill holes, of which 5,616 metres of drilling and 24 drill holes were completed at the Vickers Target. In June, 2013, the Company constructed and occupied an all weather, all season, camp facility suitable for year-round drilling operations. The results reported herein are from the Vickers Target. The Company has completed 2,016 metres of drilling so far this year in 10 drill holes and additional drilling is planned for this year. This press release describes the results of seven drill holes. The Company will publish all of the data about the drilling in the form of complete drill logs and assay files, drilling plan maps, and cross sections on the Company web site www.northquest.biz. In addition, a summary map of an induced polarization and resistivity survey that was completed in August, 2013, which illustrates the locations of all of the drill holes at the Vickers Target, will be uploaded to the web site.

Vickers Target
The Vickers Target is an elliptical gabbro-diorite intrusive complex with a long axis of 1 kilometre. The gabbro-diorite intrusion is within silicified felsic schist and mylonite of a linear zone referred to as the Pistol Bay Corridor. Gold in surface outcrops occurs in a silicic, chloritic, breccia body exposed in the margin and footwall of the intrusion. The contact between the mineralized intrusion and the mineralized footwall sequence has a strike azimuth of approximately 110 degrees and dips south at approximately 60 to 70 degrees. The Company has received and verified the complete assay results from PB-13-04 to PB-13-10 and the results of the drill holes are set out below in Table 1.

Section 8800 W
PB-13-10 is the easternmost drill hole completed by Northquest on the Vickers Zone. Silica facies of alteration is well developed and well mineralized in both the intrusive and footwall environment on this section, accordingly, the Vickers Zone is open and untested east of Section 8800 W. Moreover, the chargeability anomaly on this section is robust and continues to the east, where the Company intends to complete additional drilling to determine the nature and limits to the Vickers Zone.

Table 1. Summary of weighted average grade of gold concentrations intersected in drill holes PB-13-04 to PB-13-10, including intervals of variable average grade.

Hole	Section W	Length (m)	Azimuth	Collar Inclination	From (m)	To (m)	Intersection Length (m)	Au (g/t)
PB-13-04	8875	199.04	00	-50	9.70	16.70	7.00	1.32
PB-13-05	8950	136.25	00	-50	1.70	102.48	100.78	1.26
including					25.70	52.70	27.00	2.53
PB-13-06	8950	270.66	00	-50	98.91	237.30	138.39	3.79
including					98.91	126.91	28.00	0.67
and					126.91	143.91	17.00	7.99
and					143.91	181.91	38.00	0.30
and					181.91	237.30	55.39	6.48
PB-13-07	8925	114.91	00	-50	27.15	77.23	50.08	1.25
including					42.15	77.23	35.08	1.61
PB-13-08	8875	200.25	00	-50	1.37	47.37	46.00	0.36
and					145.74	181.74	36.00	2.63
PB-13-09	8850	156.67	00	-50	66.95	67.95	1.00	1.74
PB-13-10	8800	163.68	00	-50	29.00	73.00	44.00	3.40
					113.98	127.98	14.00	1.07

Note: Intersection lengths are core lengths and do not necessarily represent the true width of the mineralized zone. Weighted average grades are calculated from assays of drill core with nominal sample lengths of 1.0 metres. Grams gold per tonne, g/t Au, and ppm gold all mean the same thing. The detection limit of the assay method is 0.05 ppm gold. Some of the samples within the intersected lengths reported in Table 1 are below the detection limit and the assay value for those samples used in the weighted average grade calculation is zero. In PB-13-05, three samples out of 100 analysed in the major interval contain less than 0.05 ppm gold. In PB-13-06, 25 of the 138 samples in the major interval contain less than 0.05 ppm gold, and 21 of those samples are from the lower grade intervals from 98.91 to 126.91 and 143.91 to 181.91 metres. In PB-13-07, five of the 50 samples in the major interval contain less than 0.05 ppm gold. In PB-13-08, four of the 46 samples in the first interval listed contain less than 0.05 ppm gold, and two of the 36 samples analysed in the second interval listed contain less than 0.05 ppm gold. In PB-13-10, five of the 44 samples analysed in the first interval listed contain less than 0.05 ppm gold. Four core samples in the data described herein contain greater than 35.00 grams gold per tonne, a concentration arbitrarily selected for discussion purposes, equivalent to approximately one ounce gold per ton. The effect of those samples on the calculated average grade of the major intervals described in Table 1 is set out in Table 2.

Section 8850 W
PB-13-09 is an over cut of PB-12-04 (63.39 metres grading 2.06 grams gold per tonne). Gold concentrations of up to a few hundred parts per billion (ppb) gold were encountered in silica and chlorite alteration facies that correlate well with that encountered in PB-12-04, however, the low overall grade in PB-13-09 suggests that the drill hole intersected a shoot of weakly mineralized rock within the Vickers Zone. In addition, the final 40 metres of the drill hole intersected least altered footwall stratigraphy indicating that the drill hole was well into the footwall and partially past the north contact of the Vickers Zone.

Section 8875 W
PB-13-04 was drilled at the V2 target approximately 200 metres south of the V1 Zone on the south contact of the Vickers intrusion where there are gold-bearing outcrops of the intrusion.

Table 2. List of all samples with gold concentrations greater than 35.00 g/t Au and the contribution of those samples to the weighted average grade of the reported intersection.

Drill Hole	From (m)	To (m)	Intersection Length	Weighted Average Au g/t (1)	Sample	Assay Value Au g/t	Length (m)	Contributed Value (2)	Contributed Value at 35.00 g/t Au (3)
PB-13-06	128.91	129.91	138.39	3.79	223412	38.70	1.00	0.28	0.25
PB-13-06	204.86	205.86	138.39	3.79	223501	43.60	1.00	0.32	0.25
PB-13-06	213.86	214.86	138.39	3.79	223511	38.70	1.00	0.28	0.25
PB-13-10	54.00	55.00	44.00	3.40	224174	55.20	1.00	1.25	0.80

(1) Weighted Average grade is the weighted average grade of the primary drilling intersection of the mineralized zone reported in Table 1.
(2) Contributed Value means the value that the individual sample in the list contributes to the Weighted Average of the interval.
(3) Contributed value at 35.00 g/t Au, is the contributed value of the sample if the assay was arbitrarily cut to 35.00 g/t Au.

The composite intersection in Table 1 was from chloritic alteration facies similar to the V1 Zone. Silica facies of alteration was intersected from 56.70 to 102.70 metres and one grain of visible gold was documented at 90.44 metres, however, the average gold grade of the 46.00 metre interval was 0.17 grams gold per tonne. The interpretation of the drill hole is that it intersected a large volume of altered rock with low average grade. Additional drilling is being considered at the V2 Zone based on the promising geology of the drill hole and the presence of a chargeability anomaly 100 metres to the east of the drill hole.

PB-13-08 is a fill in over cut of PB-13-01 in the V1 Zone. Visible gold was documented at three locations from 4.02 to 179.73 metres (175.71 metres of core length). Visible gold was first documented within 5 metres of surface in the first composite interval listed in Table 1, and twice in the second interval listed in Table 1.

Section 8925 W
PB-13-07 is a fill in over cut of PB-13-03. The majority of the drill hole intersected the footwall environment of the Vickers Zone. Visible gold was documented at 78.65 metres.

Section 8950 W
PB-13-05 is a fill in over cut of PB-12-18 (163.20 metres grading 2.11 g/t Au). PB-13-05 was collared in the mineralized zone and intersected the footwall contact at 62.65 metres, accordingly approximately half of the mineralized intercept is in the footwall rocks. The interval from 25.70 to 52.70 (27.00 metres grading 2.53 grams gold per tonne) is from the upper part of the drill hole in the intrusive rocks. Visible gold was documented at 88.66 metres.

PB-13-06 is an undercut of PB-12-17 (123.54 metres grading 1.02 grams gold per tonne). Visible gold was documented fourteen times in the drill hole from 205.75 to 270.66 metres over 64.91 metres of core length.

Summary
Northquest has completed a total of 5,616 metres of drilling in 24 drill holes at the Vickers Target. The Vickers Zone has been intersected over a strike length of 200 metres. The width of the mineralized zone as defined both by alteration facies and gold mineralization varies in width from approximately 50 to 160 metres. Three drill holes (PB-12-11, PB-12-21, and PB-13-02) have intersected the zone at a vertical depth of approximately 300 metres, however, most of the drill holes tested relatively shallow depths above 300 metres. In the west, evidence from a single outcrop and the recently completed induced polarization (IP) and resistivity survey, is used to interpret that the west edge of the mineralized zone subcrops in the vicinity of Section 9100 W and has a south-easterly plunge. In the east, PB-13-10 intersected robust mineralization and alteration on Section 8800 W and an IP anomaly on Section 8800 W continues to the east of that section. Hence, the Vickers Zone has a minimum strike length of 200 metres, is open below 300 vertical metres, and is open along strike to the east.

Jon North, CEO, stated that "The drilling results obtained thus far in 2013 provide new information about the minimum strike length and down dip extent of the Vickers Zone, which has an indicated minimum strike length of 200 metres and an indicated minimum down dip extent of 300 vertical metres. In addition, the Zone is open along strike to the east. The work that has been completed thus far in 2013 has been done with great care and on budget and we are pleased with the very promising results obtained at the Vickers Target, as well as the results that we have obtained at the Sako and Bazooka Targets, and we look forward to completing additional exploration this year from our upgraded, all season, camp facility at Pistol Bay".

Information in this press release relating to exploration results is based on data collected under the supervision of Dwayne Car, P.Geo., who holds the position of Vice President, Exploration of the Company and is a Qualified Person within the meaning of National Instrument 43-101. Mr. Car has approved the disclosure contained in this press release and has verified the scientific and technical data contained herein.

Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource at the Pistol Bay Project to date, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Northquest is a mineral exploration company focused on the acquisition, exploration and development of properties for the mining of gold and other minerals. Northquest has 39,782,798 shares outstanding (59,902,836 shares on a fully diluted basis). For further information please visit www.northquest.biz.

Drill core samples of BTW size were collected and cut in half with a rock saw on site. In general, sample lengths vary from 1.0 to 1.5 metres. Rock samples were analyzed by ALS Chemex analytical laboratory in Vancouver, Canada, by ALS method Au-SCR21 in which 1 kg of sample pulp is passed through a 100 micron screen and all of the coarse material on the screen is assayed by Au-GRA-21 and two samples of homogenized pulp that passed through the screen are assayed by Au-AA25 and Au-AA25D which is fire assay with AA finish on a 30 gram sample charge. Finally the weighted average of all assays is calculated by the laboratory and reported as the gold concentration of the rock sample. For analytical quality control, blank samples and commercially prepared and certified gold control standards with a range of grades are inserted at a frequency of one standard for every 10 samples and one blank for every 20 samples. NSV means "no significant values", g/t means "grams gold per tonne", ppm means "parts per million" which is the same as grams per tonne. The reported intersections are for drill core length and do not necessarily represent true widths.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, metallurgical test results and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, political and country risk, and the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Northquest Ltd.