Conquest Mining Limited (ASX:CQT) Quarterly Report For The Period Ended 31 December 2009

Perth, Jan 22, 2010 AEST (ABN Newswire) - Conquest Mining Limited (ASX:CQT) (PINK:CQMLF) is please to provide Activities Report for the Quarter ended 31 December 2009.

Conquest Mining completed a Pre-feasibility Study (PFS) for its Silver Hill Project in North Queensland in April 2009. Following the robust results of the PFS, the board of Conquest commissioned a Definitive Feasibility Study (DFS) in April 2009. Arccon Mining Services (AMS) group were requested to evaluate the technical and economic feasibility of mining the currently defined Silver Hill resource and processing to produce a high-grade saleable precious metal concentrate.

In addition, the company continues to assess options for a potential secondary production process to extract values from residual lowgrade pyrite-rich concentrate using biooxidation.

The two possible stages of process development under evaluation are:

Stage 1 - Production of high-grade gold and silver concentrate, commencing in Q1 2011.

Stage 2 - Processing of lower grade concentrate utilising bacterial oxidation, commencing in Q4 2012.

The draft Stage 1 DFS document was completed by AMS in December 2009. As part of a due diligence process this document is currently being reviewed by the board and its advisors.

Although the economics of the Stage 1 project are positive in the draft DFS, there may be potential enhancements identified to improve the DFS outcomes, particularly in the Stage 2 process.

The company considers the potential for enhancement of economic value is sufficient to warrant a minor delay in completion of the final DFS document.

Capital Raising

On 2 December 2009 Conquest completed a 2 tranche capital raising arising from a placement to institutional & sophisticated investors of 80.6 million shares raising A$50 million.

The proceeds from the offering will be used by the Company to:

- Fund commencement of construction of the Company's Silver Hill Project;

- Strengthen the Company's balance sheet; and

- Support resource definition/expansion and exploration initiatives within the Company's regional tenements.

Project Reserves

Conquest Mining Limited recently announced the first Reserves estimate for the Silver Hill Deposit at the Mount Carlton Project in north Queensland. The Silver Hill Ore Reserves are stated at 7.4 million tonnes at 3.12g/t gold, 67g/t silver and 0.41% copper for 740,000 ounces of gold and 15.9 million ounces of silver with total gold equivalent ounces at 1.14 million ounces.

These Reserves are a sub-set of total Silver Hill Resources. As reported in the Resource Estimate dated 22 October 2009 (www.conquestmining.com.au/pdf/499_.pdf) total Mt Carlton Project Resources, including Silver Hill, comprise 1.46 million ounces of gold, 40 million ounces of silver and 75,000 tonnes of copper.

The December 2009 Silver Hill gold-silver-copper Deposit Ore Reserves Statement was prepared for Conquest Mining Limited by Australian Mine Design and Development Pty Ltd (AMDAD). It deals with the gold-silver-copper ore resources at the V2 and Area 39 zones that form the Silver Hill Deposit in north Queensland. All of the reserves are for extraction by open pit mining. This Reserves Statement has been prepared in accordance with the guidelines of the 2004 Australasian Code for the Reporting of Resources and Reserves (the JORC Code).

For the complete Conquest Mining Limited Quarterly Report for the period ending 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62132-ASX-CQT-477444.pdf

Contact

John Terpu Managing Director Conquest Mining Limited Tel: +61-8-9240-4111 Email: john@chellingtons.com.au