QUEST OIL CORP

4 May 2006capital raising announcement▼ BadMajor

A complete change of management and support arrangements signed on one day: new employment agreements for James Panther and Mark Baum, four consulting agreements, an operating agreement, a settlement and release, and an office sublease from Business Consulting Group Unlimited. The people involved were paid largely in paper - million-share warrant blocks vesting 250,000 at a time every 90 days, plus Series D warrants struck at 22 cents - and one contract carried a 2.5% carried working interest in production. Control and economics changed hands without any cash being raised.

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4 May 2006capital raising announcement● NeutralMajor

This amended filing (changing one consulting term from 12 to 6 months) sets out a complete management reset effective April 24, 2006: James Panther II as President and CEO and Mark Baum as General Counsel on 24-month contracts, Joseph Wallen on a 12-month contract, director pay in stock, and support services and an office sublease from Panther and Baum's firm BCGU at $14,000 and $5,000 a month. 13,500,000 Series D warrants (5-year, struck at 110% of the April 24 close) were authorised, which could dilute existing holders. It also reports the 10-22 Canadian well flowing again at about 0.65 MMCF/day (company believes over 50% of its reserve is recovered), that the Longleaf deal had not closed and was extended with $50,000 of the deposit to be returned, and a May 1, 2006 payment to senior secured investors.

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8 Sept 2005capital raising announcement● NeutralMajor

Quest gave public notice of a proposed private offering of up to $8,000,000 of 8% Series B Convertible Debentures maturing in 24 months, with three series of warrants attached and repayments that can be made in stock at a 10% discount to the recent price. For shareholders, the structure allows new shares to be issued through conversion, warrant exercise and stock-paid repayments; the filing describes only a proposal, not completed funding. It also reports a move of the head office to Houston, Texas.

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