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Quest Minerals & Mining's Subsidiary, Gwenco, Inc., Files for Chapter 11 Reorganization to Further Financial Restructuring Initiative

Posted on: Friday, 2 March 2007, 12:00 CST

Quest Minerals & Mining Corp. (OTCBB: QMMG; Frankfurt: QMN.F), a Kentucky based operator of energy and mineral related properties, today announced that, as an additional step to further its financial restructuring initiative, Gwenco, Inc., its wholly-owned subsidiary, has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Neither Quest nor any of its other subsidiaries were included in the filing.

Quest is continuing its efforts to rehabilitate the company's Pond Creek Mine at Slater's Branch, Kentucky and to recommence mining operations there. The reorganization is planned so that there will be no disruption of these efforts. The company intends to seek immediate court approval for debtor-in-possession financing from holders of its existing debt obligations in order to fund operating expenses.

Eugene Chiaramonte, Jr., President of Quest, stated, "Today we have taken an important step toward creating a stronger Quest. We have been conducting a financial restructuring over the last year in order to us to resume operations at the Pond Creek mine as Slater's Branch as well as pursue other energy related opportunities. We have already successfully renegotiated a significant portion of our outstanding debt.

"However, it has become apparent to us that this filing was necessary to protect our assets from claims, debts, judgments, foreclosures, and forfeitures of those creditors and stakeholders with whom we were unable to successfully negotiate restructured agreements. A formal reorganization should allow us to complete the financial restructuring process while we continue our efforts to rehabilitate the Pond Creek mine and recommence mining operations. We believe that by taking this action, we can restructure our financial obligations, obtain new financial resources, and emerge from this proceeding as a stronger company."

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.questmining.net.

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.

Source: Business Wire

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