SOURCE: Quest Minerals & Mining Corp.

August 03, 2006 08:00 ET

Quest Minerals & Mining Takes Further Steps in Recommencing Mining Operations, Reaches Settlement With Former Owner of Gwenco

PATERSON, NJ -- (MARKET WIRE) -- August 3, 2006 -- Quest Minerals & Mining Corp. (OTCBB: QMMG), a Kentucky-based operator of energy and mineral related properties, today announced that it taken a significant step towards recommencing mining operations by reaching a settlement with the former owner of its wholly owned subsidiary, Gwenco, Inc., Albert Anderson. As part of the settlement, Gwenco received mining permit renewal and transfer documentation, which Gwenco is required to obtain in order to recommence mining operations at its Pond Creek mine at Slater's Branch, Kentucky. Further, Mr. Anderson agreed to provide all reasonable cooperation in recommencing mining operations at the Slater's Branch mine.

In addition, the parties agreed to mutually dismiss their respective counter-claims against each other in a civil action pending in Boyd County Court, Kentucky. In that action, Mr. Anderson was seeking to rescind Quest's acquisition of Gwenco, or alternatively, seeks unspecified compensatory and punitive damages.

Eugene Chiaramonte, Jr., President of Quest, stated, "Settling this matter with Mr. Anderson is a critical and significant step in recommencing mining operations at our Pond Creek mine at Slater's Branch. As a result of this settlement, we have obtained certain necessary and critical mining permit and renewal documentation which we need to recommence mining operations at Slater's Branch. By obtaining this documentation, Gwenco can now proceed to complete the permit application process necessary to recommence mining operations at the Pond Creek mine.

"In addition, this settlement is another step in our ongoing initiative to resolve our debt and improve our financial liquidity," continued Mr. Chiaramonte. "This settlement resolves any remaining uncertainties with respect to our obligations to Mr. Anderson under the original purchase agreement for Gwenco, it removes any possibility of an adverse ruling or judgment at trial, and it alleviates our need to allocate resources to litigating the dispute with Mr. Anderson. We are pleased to have resolved these uncertainties associated with our acquisition of Gwenco so we can fully focus our energies and resources on growing the business. We are pleased to have brought this matter to a favorable resolution for the parties involved and look forward to an ongoing productive and cooperative working relationship with all parties going forward."

In addition to the above, the parties agreed to terminate all remaining rights, duties, and obligations under the original stock purchase agreement entered into in connection with the acquisition of Gwenco by Quest. In consideration for Mr. Anderson's cooperation and covenants, and in consideration for the releases, dismissals, and terminations, Quest made a one-time cash payment of $75,000 to Mr. Anderson, issued 3,500,000 shares of Quest common stock, subject to a lock-up/leak out agreement, to Mr. Anderson upon conversion of his Series B Preferred Stock, the terms of which were amended under the settlement agreement, and granted Mr. Anderson a sliding scale royalty on coal sales. Further, as part of the settlement agreement, Mr. Anderson provided notarized resignations from Quest and Gwenco, and the parties provided mutual non-disparagement covenants.

About Quest Minerals & Mining

Quest Minerals & Mining Corp., or Quest, acquires and operates energy and mineral related properties in the southeastern part of the United States. Quest focuses its efforts on properties that produce quality compliance blend coal. For more information on Quest Minerals & Mining Corp., please visit our website at www.questminerals.com.

Forward-Looking Statements

This document contains discussion of items that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Quest believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, lack of revenue producing operations, lack of working capital, debt obligations, judgments and lien claims against Quest and certain of its assets, difficulties in refinancing short term debt, difficulties identifying and acquiring complementary businesses, fluctuations in coal, oil & gas, and other energy prices, general economic conditions in markets in which Quest does business, extensive environmental and workplace regulation by federal and state agencies, other general risks related to its common stock, and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission.

Contact Information

  • For Investors:
    Quest Minerals & Mining Corp.
    Eugene Chiaramonte, Jr.
    973-684-0075

    For Members of Media:
    Loran Hickton
    Salmon Creek Public Relations Inc.
    Portland OR, Vancouver WA, Boise ID, Paterson NJ
    lhickton@salmoncreekpr.com
    (360) 571-5560