Expansion Strategy
Quest seeks to acquire new mines and contracting to produce and market
additional coal in its geographic focus area. Quest intends to acquire
and operate high quality coal properties with established field
personnel, primarily in the eastern Kentucky coalfields, with
additional properties in southwestern West Virginia and western
Virginia. This region has an excellent infrastructure of workers,
truckers, rail sidings on the CSX and N&W rail lines and low cost
access to the Big Sandy barge docks near Ashland, KY, for effective
coal distribution. Quest intends to use its local knowledge to pursue
high returns on investment from re-opening profitable properties in
this region. It intends to grow by additional accretive acquisitions,
contract mining, and internal development of owned properties.

Quest is also seeking to diversify its operations into other sectors
of the energy industry, including the oil and gas sector. Quest
management believes that a successful diversification into the oil and
gas field would provide Quest with an opportunity to improve its
results of operations while hedging on coal production and prices.