QUEST MINERALS LIMITED TO ACQUIRE AUSTRIAN COBALT AND GOLD PROJECTS Release Date: 13 November 2017 HIGHLIGHTS Quest Minerals Limited (Company) has entered into a binding heads of agreement to acquire Austrian Projects Corporation Pty Ltd (APC). APC has a 100% interest in a suite of cobalt and gold exploration tenements in Austria (Austrian Cobalt and Gold Projects), a mining-friendly EU jurisdiction. The Austrian Cobalt and Gold Projects comprise eight projects which are prospective for cobalt, nickel, copper and gold and contain historical mines and workings. The Company aims to undertake a two year exploration program, focussing on the highly prospective cobalt/nickel/copper mineralisation of the Leogang and Seekar projects and the high grade gold potential of the Schellgaden gold mine The Company will be renamed “High Grade Metals Limited” upon completion of the transaction. Acquisition consideration will consist of 186 million ordinary shares in the Company, 65 million options, and 240 million performance shares. The Company will appoint two new experienced directors: Torey Marshall as Managing Director / CEO and Hayden Locke as non-executive director. The Company will issue a Prospectus to raise $4,500,000 at $0.03 per Share. The transaction is subject to conditions, including Company shareholder approval and the Company’s re-compliance with Chapters 1 and 2 of the ASX Listing Rules. Quest Minerals Limited (ASX: QNL) (Company) is pleased to announce that it has signed a binding heads of agreement (Heads of Agreement) with Austrian Projects Corporation Pty Ltd (APC) whereby the Company will acquire 100% of the issued shares in APC from the APC shareholders (Vendors) for the purposes of acquiring a 100% interest in a suite of cobalt and gold exploration tenements in Austria (Austrian Cobalt and Gold Projects or Projects) (the Transaction). The Austrian Cobalt and Gold Projects are a portfolio of highly prospective Exploration Permits in Austria which include former high-grade cobalt, copper and nickel, and gold and silver mines and workings. The Company considers that the Austrian Cobalt and Gold Projects to be a suite of attractive exploration and development assets which will complement the Company’s existing business. For personal use only As part of the Transaction, the Company intends to raise $4.5 million at an issue price of $0.03 per ordinary fully paid share (Share) pursuant to an offer under a prospectus. Funds raised will be spent on an exploration program regarding the Projects. The Company intends to change its name to High Grade Metals Limited as part of the Transaction. The Transaction is subject to satisfaction of various conditions precedent, including: shareholder approval; and the Company satisfying the requirements of Chapters 1 and 2 of the ASX Listing Rules for reinstatement to official quotation of its securities. Austrian Cobalt and Gold Projects The Projects include the following: Austrian Cobalt Projects Comprise four exploration concessions (Gratlspitz, Schwarzleo, Seekar and Zinkwand) made up of 78 Exploration Permits, valid until 31 December 2021 and covering 44 km2.. Leogang/Nockelberg (in Schwarzleo), Seekar, Brixlegg (in Gratlspitz) and Zinkwand comprise the principal base metals projects. Samples of 1.95%-15.76% Co, 1.29%-12.7% Cu, 1.55%-8.12% Ni reported in historical exploration results at Leogang/Nockelberg. High grade massive sulphide ores of up to 22% Cu and 850g/t Ag reported in historical exploration results at Seekar. To be held by APC in a newly-incorporated 100% Austrian subsidiary. Austrian Gold Projects Comprise five exploration concessions (Schellgaden North, Schellgaden South, Kreuzeck West, Kreuzeck East and Goldeck-Siflitz) made up of 300 Exploration Permits, valid until 31 December 2019 and covering a total area of approximately 170 km2. Samples from the former underground mine at the Katschberg locality (within the Schellgaden North and South tenure) yielded gold grades of up to 93g/t. Over 30 historical mines and workings at Schellgaden (North + South) over a 30km strike length. Historic resources are reported in the literature in all five areas, and will be systematically appraised with modern program. To be held by APC in a newly-incorporated 100% Austrian subsidiary. Set out below under “Tenure under Austrian Mining Law” is a description of what an Exploration Permit (each 0.567km2 in area) entails. Background – Geology and Historical Mining Activity For personal use only Map 1: Location of the Tauern Window in Austria. Austrian Wine Marketing Board, accessed 1-11-17 (http://www.austrianwine.com/our-wine/climate-soil/mehr-als-urgestein-und-loess/) The prospective areas all occur on the fringes of the Tauern Window (as shown in Map 1), a specific geological feature covering a significant portion of central and western Austria. Within the edges of this feature, a number of old mines have been discovered and operated for the better part of 500 years such as the Schellgaden gold mine, and Leogang nickel cobalt mine, or the modern example of the Mittersill tungsten mine (currently one of the largest tungsten mines in the world). Around the rim of this feature, a range of different metallogenic and structural events crystallised a series of ore deposits which, in places, are very high grade. This general statement is true of most minerals present in the areas to be acquired, based on historic information available to the Company. Each of the acquired project areas has been exploited by artisanal mining methods, in some cases dating back more than 500 years. Despite centuries of mining, the majority of the projects have not had any modern exploration undertaken on them. As a result, the records on the area are not complete and significant new exploration activity is needed to properly investigate the overall size and scale of any mineralised body that was historically mined. Having been previously operational, these areas generally have good access to roads, supporting infrastructure and people required to assess the prospectivity through a systematic exploration program. A variety of deposit styles are present through the areas, from stratabound horizons in low grade metamorphic units to high grade schists and phyllitic units cross cut by polyphase hydrothermal veining. This has introduced, in most areas, multiple mineralisation types and potential targets. Proposed Exploration Program – Priority Areas The exploration program will be centred on cobalt-nickel-copper in and around the historic Leogang mine (inclusive of Nockelberg and surrounds), and the historic high grade Schellgaden gold mine. The Company believes these projects represent the highest priority targets in its exploration portfolio. The areas of focus are those where historic mines (and infrastructure) exist, where there is a level of certainty about the presence of a mineralised layer that could prove to be more extensive (exploration required), and where the information available supports that contention. With exploration success, the Company believes these projects could be fast-tracked towards production. Planned works include exploration drilling (appraisal drilling where results justify), geophysical acquisition (airborne potential field in addition to test programs of induced polarisation, electro magnetics and resistivity), environmental baselining field mapping, geochemical sampling and mapping of the existing underground workings. Where exploration results are positive, the Company will accelerate the studies assessing the economic viability of the Projects including underground mine engineering assessments, metallurgical studies leading to scoping/prefeasibility studies where results are positive. The remaining lower priority exploration projects will be explored as time and budget allows over the next 5 years, subject to renewal of the relevant Exploration Permits. Location of Concessions For personal use only Map 2: Location of Austrian Cobalt and Gold Projects. Map prepared by Brian Naylor, Digimaps, for QNL. Austrian Cobalt Projects Map 3: Austrian Cobalt Projects. Map prepared by Brian Naylor, Digimaps, for QNL. The Austrian Cobalt Projects comprise four exploration concessions made up of a total of 78 ‘Exploration Permits. These are all valid until 31 December 2021. Together they cover a total area of approximately 44 km2: The concessions are: Gratlspitz Schwarzleo Seekar Zinkwand Nickel and cobalt were mined in the region from the mid-16th century where the municipality of Leogang For personal use only was famed for the richness of its cobalt and nickel mineralisation. Mining peaked in the late 1700s but the market fell away after the Napoleonic Wars according to the local museum at the Leogang township. Very little information is available on the production history of the area through time, as for the most part, no records existed. The tables below summarise the key exploration results that are present in the individual Austrian Cobalt Project areas. No substantive modern exploration has been identified as having taken place over the Austrian Cobalt Project exploration areas, and the bulk of the reported samples based on historical references would be classed as rock chip samples. The historical results should not be taken to be representative of the grades of mineralisation that may be encountered in a modern exploration program No drilling results are known in the Leogang-Nockelberg area. Table 1 – Historically reported results within the cobalt-rich Leogang/Nockelberg area: Sample Grades Comments Source Nockelberg Co 1.95%-4.65% High grade rock chips Haditsch & Ni 1.55%-3.14% reported Mostler 1970 Cu 2.19%-12.7% Schwarzleo/Leogang Co 11.67%-15.76% High grade rock chips Haditsch & Ni 6.52%-8.12% reported Mostler 1970 Cu 3.82%-4.91% Table 2 – Historically reported results from the Seekar area: Sample Grades Comments Source Average ore grade Cu 2.35–4.45% average grade from production Feitzinger et al. th Ag 250 g/t in early 20 century 1998 (80–200 t/year) High-grade massive Cu 22% massive sulphide ore Feitzinger et al. sulphide ore Ag 850 g/t 1998 High-grade massive 28.5 % Cu Sample by P.