QCC Quest Capital

    FOR:  QUEST CAPITAL CORP.

TSX SYMBOL:  QC
AMEX, AIM SYMBOL:  QCC

November 7, 2008

Quest Reports Favourable Third Quarter 2008 Results

Declares Third Consecutive C$0.045 Quarterly Dividend

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 7, 2008) - Quest Capital Corp. ("Quest" or the
"Company")(TSX:QC)(AMEX:QCC)(AIM:QCC), a Canadian Mortgage Investment Corporation ("MIC") benefiting from
special Canadian tax rules, today reported its unaudited financial results for the three and nine months ended
September 30, 2008. All references to dollar amounts are in Canadian dollars.

POSITIVE THIRD QUARTER 2008 RESULTS

- Net earnings grew 21% to $6.4 million ($0.043 diluted per share) from $5.3 million ($0.035 diluted per share)
a year earlier on growth in the Company's loan portfolio, reduction of non-interest expenses and utilization of
MIC tax rules. Quest became a MIC effective January 1, 2008. These factors more than offset total specific loan
loss provisions of $2.3 million.

- The loan portfolio grew 5% during the third quarter to $368.7 million from $350.4 million at June 30, 2008.
As part of the Company's increasing focus on credit quality, first mortgages comprised 96% of the portfolio
compared to 87% a year ago.

- Loans funded during the third quarter rose 1% to $73 million compared to the same period a year ago.

- A quarterly dividend of $0.045 per share was declared, payable December 31, 2008 to shareholders of record
December 15, 2008. This represents a 99% payout ratio of 3rd quarter 2008 income before taxes, and will serve
to reduce taxable income as a result of Quest's MIC status. Based on yesterday's closing QC share price on the
TSX, this represents an annualized yield of over 13%.

- Total assets at September 30, 2008 were $381.7 million up from $304.3 million a year ago. Book value per
share was $2.01 compared to $1.99 per share a year ago.

IMPROVED NINE MONTH 2008 RESULTS

- Net earnings were $21.0 million ($0.143 diluted per share) compared to $20.0 million ($0.135 diluted per
share) for the nine months ended September 30, 2007, despite specific loan loss provisions taken of $2.3
million in the third quarter of 2008.

- Loans funded over the first nine months of 2008 amounted to $222 million, a 42% or $65 million increase over
fundings a year ago.

- Total dividends paid to date in 2008 aggregated $16.9 million representing a payout ratio of approximately
76% of the company's nine month earnings before taxes.

- As planned, the Company used its revolving debt facility to profitably grow its loan portfolio. At September
30, 2008 Quest had utilized $78.5 million of its $88.0 million facility.

"Quest remained solidly profitable in the third quarter, 2008 and selectively expanded its loan portfolio
within the guidelines we've set for credit quality in this rapidly changing economic environment," said Stephen
Coffey, President and CEO. "Like all Canadian mortgage market participants, Quest has been challenged this
year, due to the impact on our customers of credit market tightening and a slowing Canadian real estate market.
This was clearly evident in the third quarter as we took specific provisions on three loan exposures. Excluding
these provisions, earnings before taxes would have been 16% or $1.2 million higher than a year ago - instead of
the $6.7 million of earnings before taxes recorded in the third quarter. Despite these challenges, Quest
continued to position itself to meet our three priorities: capital preservation, earn an attractive yield on
lending activities and achieve profitable growth."

To reflect these priorities, Jim Grosdanis, Chief Financial Officer said: "The Company has continued to
primarily fund first mortgages, has 63 loans outstanding - the largest of which represents just 8% of the loan
portfolio - and has steadily increased its Canadian geographic diversification. We've also created a general
allowance for loan losses, consistent with other financial institutions. Additionally, we continued to take
advantage of liquidity opportunities through syndication. In fact, $36 million of loans were syndicated in the
third quarter. As a result of our risk management practices, we believe we've improved our risk profile."

At September 30, 2008, Quest had enhanced the geographic distribution of its mortgage portfolio, with 42% of
principal outstanding in British Columbia, 45% in the Prairies and 13% in Ontario. This compares with the
December 31, 2007 distribution (58% British Columbia, 34% Prairies, 8% Ontario and other) and reflects Quest's
successful recent expansion to selected regions of the Ontario real estate market."

LOOKING FORWARD

"Until markets stabilize, we have decided to place even more emphasis on capital preservation," said Mr.
Coffey. "While we will remain mindful of the need for profitable growth, and attractive yield generation, as
fellow shareholders we believe this stance is prudent under current market conditions and will create an even
better foundation for attractive returns in future. Our commitment, as always, is to closely monitor our loan
portfolio and take quick remedial action if we perceive there is a problem and to follow our enhanced risk
management practices, including loan diversification, to avoid losses."

Mr. Coffey said the Company still has room for growth through additional leverage, and solid liquidity options
through syndications, "but we are reaching the upper end of our existing credit facilities and this will
moderate growth in our loan portfolio. We believe, however, that this moderation will be temporary. As
previously stated, we are working diligently on our application to become a deposit-taking institution. Our
general timetable has not changed in this regard, and if we are successful, we hope to begin accepting customer
term deposits to fuel our growth towards the end of 2009."

THIRD QUARTER CONFERENCE CALL

Quest Capital will host a conference call at 11 a.m. Eastern Standard Time today to discuss its third quarter
performance. To access the call live, please dial (416) 644-3415. The call will be recorded and a replay made
available for one week ending Friday, November 14, 2008 at midnight. The replay may be accessed approximately
one hour after the call by dialing (416) 640-1917 and entering passcode 21284493 followed by the number sign
(#).

ABOUT QUEST

Quest Capital Corp. is a leading Mortgage Investment Corporation serving Canadian real estate markets. Quest's
objective is to become Canada's largest Mortgage Investment Corporation in terms of equity, loans generated and
profitability. Quest's strategy is to deploy its financial capital at superior rates of return while minimizing
risk. The three principles of Quest's investment strategy are capital preservation, obtaining an attractive
yield on lending activities and generating profitable growth.

For more information about Quest, please visit our website (www.questcapcorp.com) or SEDAR (www.sedar.com).

This news release includes certain statements that constitute "forward-looking statements", and "forward-
looking information" within the meaning of applicable securities laws ("forward-looking statements" and
"forward-looking information" are collectively referred to as "forward-looking statements", unless otherwise
stated). Such forward-looking statements involve known and unknown risks and uncertainties that may cause our
actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Forward-looking statements may relate to
the Company's future outlook and anticipated events or results and may include statements regarding the
Company's future financial position, business strategy, budgets, litigation, projected costs, financial
results, taxes, plans and objectives. We have based these forward-looking statements largely on our current
expectations and projections about future events and financial trends affecting the financial condition of our
business. These forward-looking statements were derived utilizing numerous assumptions regarding expected
growth, results of operations, performance and business prospects and opportunities that could cause our actual
results to differ materially from those in the forward-looking statements. While the Company considers these
assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-
looking statements should not be read as a guarantee of future performance or results.

Forward-looking statements are based on information available at the time those statements are made and/or
management's good faith belief as of that time with respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to differ materially from those expressed in or
suggested by the forward-looking statements. To the extent any forward-looking statements constitute future-
oriented financial information or financial outlooks, as those terms are defined under applicable Canadian
securities laws, such statements are being provided to describe the current potential of the Company and
readers are cautioned that these statements may not be appropriate for any other purpose, including investment
decisions. Forward-looking statements speak only as of the date those statements are made. Except as required
by applicable law, we assume no obligation to update or to publicly announce the results of any change to any
forward-looking statement contained or incorporated by reference herein to reflect actual results, future
events or developments, changes in assumptions or changes in other factors affecting the forward-looking
statements. If we update any one or more forward-looking statements, no inference should be drawn that we will
make additional updates with respect to those or other forward-looking statements. You should not place undue
importance on forward-looking statements and should not rely upon these statements as of any other date. All
forward-looking statements contained in this press release are expressly qualified in their entirety by this
cautionary statement.


-30-

FOR FURTHER INFORMATION PLEASE CONTACT:

Quest Capital Corp. - Contact in Canada
Stephen Coffey
President & CEO
(416) 367-8383
(416) 367-4624 (FAX)

OR

Quest Capital Corp. - Contact in Canada
A. Murray Sinclair
Co-Chairman
(604) 687-8378 or Toll Free: 1-800-318-3094
Website: www.questcapcorp.com

OR

AIM NOMAD: Canaccord Adams Limited
Ryan Gaffney
011 44 20 7050 6500

OR

AIM NOMAD: Canaccord Adams Limited
Robert Finlay
011 44 20 7050 6500

                                                                
Quest Capital Corp



                                                                

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