SOURCE: Energy Quest, Inc.

Energy Quest, Inc.

June 16, 2010 08:27 ET

Energy Quest, Inc. Signs JV With Transmashholding

HENDERSON, NV--(Marketwire - June 16, 2010) -  Energy Quest, Inc. ("EQI") (OTCBB: EQST), an emerging leader in alternative energy and the development and production of hydrogen-enriched alternative fuels in an environmentally responsible manner, announced today the signing of a Joint Venture (JV) with Transmashholding of Moscow for project funding and the advancement of both company. 

The parties will contribute their legal and contractual capabilities, their knowledge, their links, their work and efforts to enhance their financial capacities in order to achieve the following mutually beneficial common goal. Transmashholding will commit funds to the joint venture in the amount of approximately One Hundred Ten Million USD ($110,000,000 USD) or Ninety One Million Euros (EUR 91,000,000) whereas Energy Quest shall use its connections to establish lines of credit against such collateral for financing projects to grow or add to the business of the Transmashholding and Energy Quest JV. The business name of the Joint Venture will be "TMHEQI."

The funds shall be deposited into a joint account in the name of the Joint Venture company, TMHEQI, whereby Energy Quest shall be solely responsible to make lines of credit against such collateral available in order to achieve the target (goals) in the spirit of this agreement. All revenues generated by the use of funds shall be divided equally by the parties. The JV Agreement shall remain in force until terminated by the parties in consensus or failure of either party to perform their commitment. 

Energy Quest shall be mainly concerned and responsible with finding and arranging of appropriate investment possibilities and Transmashholding shall be responsible to provide valuable and acceptable collateral to establish the necessary credit line along the banking requirements. Both parties shall be responsible for their own actions and neither party shall be liable for mistakes made by the other.

The parties to this Agreement and their respective Affiliates may have interests in businesses other than this Agreement. The parties shall not have the rights to the income or proceeds derived from such other business interests, nor shall it bear any liabilities of other said businesses.

About Transmashholding

Transmashholding is the largest company on the railway machine-building market. We manufacture diesel-locomotive shunters, main-line and electric industrial locomotives, passenger and freight cars, electric train cars, locomotive and marine diesels, car castings and other products. Transmashholding is a modern rapidly developing company.  The sales of products and services totaled US $2.4 billion. Web site

About Energy Quest

Energy Quest, Inc. a Nevada Corporation is an emerging leader in the development, construction and marketing of low-cost alternate fuels worldwide. Through superior technology, the Company is focused on becoming a GreenPowerhouse™. Record energy prices, combined with the global focus moving rapidly towards addressing pollution, has heightened the need for sustainable, zero emission energy. Energy Quest's technology is based on clean, renewable energy, positioning it to benefit from global trends. Web-site

Forward-Looking Statements

From time to time, the company may issue forward-looking statements, which involve risks and uncertainties. This statement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E or the Securities Act of 19034, as actual results could differ and any forward-looking statements should be considered accordingly. The Company's filings may be accessed at the SEC's Edgar system at . Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such a statement.

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