SOURCE: Energy Quest, Inc.

December 18, 2007 09:20 ET

Energy Quest Signs Letter of Intent With Willow Industries

Companies Intend to Construct a 6 Mega Watt Electrical Power Generation and Gasification Plant

HENDERSON, NV--(Marketwire - December 18, 2007) - 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, today announced the signing of a Letter of Intent (LOI) with Willow Industries. The letter sets forth the basic terms and conditions under which EQI expects to enter into a joint venture with Willow for the construction of a 6 mega watt electrical power generation and gasification plant in the Edmonton, Alberta area.

EQI will provide the technologies and equipment that are presently developed and to be implemented, with Willow providing the feedstock of wood waste and real property. EQI and Willow will achieve scientific breakthroughs that will enable viable wood waste gasification for production of alternative green power at potentially commercial profit levels. The companies plan to rapidly move forward subject to the mutual agreement of the terms and conditions set forth in the proposal in addition to the completion of a joint venture agreement.

The basic terms of the proposed transaction that EQI would offer is to establish a joint venture with Willow whereby they would contribute equally and ownership will be 50% Willow and 50% EQI. Willow will contribute real estate and feed stock; EQI will provide patents, intellectual properties, equipment, management and funds. The proposed equity of the plant when complete will be $12,500,000 CAD. Following commissioning & start up, scheduled to be completed within six months from the signing of this agreement, the joint venture anticipates immediate cash flows with gross revenues of $6,572,168 yielding net revenues of approximately $2,815,115.

"We are excited about working with Energy Quest and completing our joint venture of the proposed power/gasification plant. We welcome the opportunity to be a meaningful participant in this industry," stated Albert Klyne, President of Willow Industries, Inc.

"We are pleased to have secured this opportunity with Willow Industries. This project will mark Energy Quest's first installation of its power generation and gasification system for commercial use," stated Wilf Ouellette, President and CEO of Energy Quest, Inc. "This venture is expected to pave the way for the continued pursuit of additional mutually beneficial opportunities with Willow Industries with respect to EQI's gasification and power generation products."

About Willow

Willow Industries is in the biomass handling and transportation business and acts as a catalyst to ensure Alberta's growing Bio-Economy is fully supported and globally competitive. The company provides both the technology and infrastructure to properly convert biomass into feedstock. Recognizing Alberta's leading position in product diversification from Bio-Products, Willow Industries is researching materials handling and transforming technology. Willow Industries has contributed to the waste management industry for the past 19 years applying its technology and unique aboriginal approach to reduce, reuse and recycle. Willow is a member of the Construction Renovation and Demolition Industry (CR&D) whose mandate is to reduce the amount of material being land filled by the CR&D Industry.

About Energy Quest

Energy Quest is a diversified energy company with interests in both conventional and renewable energy sources. Its mission is to bring new technologies to bear to enhance existing energy production as well as developing new energy sources. The immediate objective of the company is to secure energy projects using the PyStR and M2 gasifier and the acquisition of existing, profitable Alternate Energy companies. This would provide significant positive cash flow to the company while being an ideal location for development, demonstration, and operation of many of the company's new technologies. This is the first of many new technologies Energy Quest plans to announce and deploy over the coming months that will demonstrate that it is possible for an energy company to be both environmentally friendly and highly profitable.

Energy Quest through its subsidiaries, Syngas International Corp. and Syngas Energy Corp., is an emerging leader in the development and marketing of low-cost alternate fuels worldwide. We believe our superior technology will catapult our company into a GreenPowerhouse™. With energy prices at high levels and the global focus moving rapidly towards addressing pollution, the need for sustainable, zero emission energy is vital. Our technology is based on clean renewable energy. We foresee our company poised to benefit from global trends.

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, as actual results could differ and any forward-looking statements should be considered accordingly.

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