**U.      S. SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

| [                **X**                ] | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended December 31, 2006**

| [                ] | TRANSITION                REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT                OF                1934 |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from ___________ to _____________**

**Commission      File Number: 33-90355**

**QUEST      OIL CORPORATION**

| **Nevada**                                  |   | **000-26619**                                           |   | **90-0281227**                        |
|---------------------------------------------|--------|---------------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction |   | (Commission                File Number)                 |   | (IRS                Employer          |
| of                Incorporation)            |   |                                                    |   | Identification                Number) |
|                                        |   | **2038                Corte Del Nogal, Suite 110**      |   |                                  |
|                                        |   | **Carlsbad,                CA 92011**                   |   |                                  |
|                                        |   | (Address                of principal executive offices) |   |                                  |
|                                        |   |                                                    |   |                                  |
|                                        |   | **(760)                804-8844**                       |   |                                  |
|                                        |   | (Issuer’s                Telephone Number)        |   |                                  |

**X**

**X**

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

**No**

----

**PART      I**

**ITEM      1.**
**FINANCIAL      STATEMENTS**

**ITEM      2.**
**MANAGEMENT’S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**

**General**

**Corporate      History**

**Recent      Developments**

**Results      of Operations**

**Liquidity      and Capital Resources**

**Equipment**

| Computer                equipment      |   | 5                years |
|----------------------------------------|--------|------------------------|
| Furniture                and equipment |   | 7                years |
| Well                service equipment  |   | 7                years |
| Vehicles                               |   | 5                years |

**Foreign      Currency Transactions**

**Critical      Accounting Policies**

**Oil      and Gas Activities**

**Derivative      Financial Instruments**

**Additional      Accounting Disclosures**

**Stock      Based Compensation**

**Employees**

**ITEM      3.**
**CONTROLS      AND PROCEDURES**

----

**PART      II**

**ITEM      1.**
**LEGAL      PROCEEDINGS**

**ITEM      2.**
**UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**ITEM      3.**
**DEFAULT      UPON SENIOR SECURITIES**

**ITEM      4.**
**SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM      5.**
**OTHER      INFORMATION**

**ITEM      6.**
**EXHIBITS**

| Exhibit                No. |   |  Description                                                                                                                                                                                                                                                                                                                   |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 3.1.1                      |   | Articles                of Incorporation. (Attached as an exhibit to our General Form For                Registration of Securities on Form 10-SB filed with the SEC on July                7,                1999 and incorporated herein by reference).                                                                           |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 3.1.2                      |   | Certificate                of Amendment to the Articles of Incorporation (Attached as an exhibit                to                our Current Report on Form 8-K filed with the SEC on October 29,                2004 and                incorporated herein by reference).                                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 3.2                        |   | Bylaws.                (Attached as an exhibit to our General Form For Registration of Securities                on Form 10-SB filed with the SEC on July 7, 1999 and incorporated                herein                by reference.).                                                                                             |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 4.1                        |   | 2004                Stock Incentive Plan (Attached as an exhibit to our Registration                Statement                on Form S-8 filed on August 5, 2004 and incorporated herein by                reference).                                                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 10.1                       |   | September                12, 2006 Assignment of Oil and Gas Lease between Quest Oil Corporation                and                W.A. Walker. (Attached as an exhibit to our Current Report on Form                8-K                filed with the SEC on October 17, 2006 and incorporated herein by                reference). |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 10.2                       |   | September                12, 2006 Consulting Agreement between Quest Oil Corporation and W.A.                Walker. (Attached as an exhibit to our Current Report on Form 8-K                filed                with the SEC on October 17, 2006 and incorporated herein by                reference).                           |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 10.3                       |   | 2006                Directors Annual Compensation Program. (Attached as an exhibit to                our                Current Report on Form 8-K filed with the SEC on May 4, 2006 and                incorporated herein by reference).                                                                                          |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 14.1                       |   | Code                of Business Conduct and Ethics. (Attached as an exhibit to our Current                Report on Form 8-K filed with the SEC on May 4, 2006 and incorporated                herein by reference).                                                                                                                |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 31.1                       |   | Certification                of James B. Panther, II pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 31.2                       |   | Certification                of Phillip C. Scott pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 32.1                       |   | Certification                of James B. Panther, II pursuant to 18 U.S.C. Section 1350, as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002.                                                                                                                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                                |
| 32.2                       |   | Certification                of Phillip C. Scott pursuant to 18 U.S.C. Section 1350, as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002.                                                                                                                                            |

----

| **Signatures**                                                                                                                                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                  |
| In                accordance with Section 13 or 15(d) of the Securities Exchange Act                of                1934, the registrant caused this report to be signed on its behalf                by the                undersigned, thereunto duly authorized. |
|                                                                                                                                                                                                                                                                  |
| **QUEST                OIL CORPORATION**                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                  |
| /s/                Phillip C. Scott                                                                                                                                                                                                                                   |
| By:                Phillip C. Scott                                                                                                                                                                                                                                   |
| Its:                Chief Financial Officer                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                  |
| Pursuant                to the requirements of the Securities Exchange Act of 1934, as amended,                this report has been signed below by the following persons on behalf                of                the registrant and in the capacities indicated.  |
|                                                                                                                                                                                                                                                                  |
| **Signatures**                                                                                                                                                                                                                                                        |   | **Title** |   | **Date** |
|                                                                                                                                                                                                                                                                  |   |   |   |   |
| /s/                James B. Panther, II                                                                                                                                                                                                                               |   | President,                Chief Executive Officer, Director |   | February                20, 2006 |
| James                B. Panther, II                                                                                                                                                                                                                                   |   |   |   |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |
| /s/                Phillip C. Scott                                                                                                                                                                                                                                   |   | Chief                Financial Officer |   | February                20, 2006 |
| Phillip                C. Scott                                                                                                                                                                                                                                       |   |   |   |   |

----

**------INDEX------**

**Consolidated      Balance Sheets**

**Consolidated      Statements of Operations**

**Consolidated      Statements of Cash Flows**

 

**Notes      to Consolidated Financial Statements**

----

| **Quest                  Oil Corporation**                                                     |
|------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  BALANCE SHEETS**                                               |
| (Unaudited)                                                                                    |
|                                                                                           |   |   |
|                                                                                           | December                  31, | March                  31, |
|                                                                                           | 2006 | 2006 |
|                                                                                           |   |   |
| **ASSETS**                                                                                     |
| **Current                  Assets:**                                                           |   |   |
| Cash                  and cash equivalents                                                     |                                                     335,787 |                                                                   1,558,146 |
| Accounts                  receivable, net                                                      |                                                                       21,276 |                                                                        21,501 |
| Prepaid                  expenses                                                              |                                                                       82,810 |                                                                        53,293 |
| **Total                  Current Assets**                                                      |                                                                     439,873 |                                                                   1,632,940 |
|                                                                                           |  |   |
| Oil                  and Gas Properties, using the full                                        |   |   |
| cost                  method of accounting                                                     |   |   |
| Proved                  properties                                                             |                                                                 2,565,095 |                                                                   2,468,449 |
| Unproved                  properties                                                           |                                                                    899,782 |                                                                      898,315 |
| Less:                  Accumulated depletion                                                   |                                                               (1,807,822) |                                                (1,683,654) |
| **Total                  Oil and Gas Properties**                                              |                                                                 1,657,055 |                                                                  1,683,110 |
|                                                                                           |   |   |
| **Property                  and Equipment:**                                                   |   |   |
| Operating                  equipment                                                           |                                                                   215,640 |                                                                     204,498 |
| Less:                  Accumulated depreciation                                                |                                                                   (41,408) |                                                                     (16,293) |
| **Total                  Property and Equipment**                                              |                                                                   174,232 |                                                    188,205 |
|                                                                                           |   |   |
| Deferred                  financing costs                                                      |                                                                2,855,946 |                                                                  3,459,713 |
|                                                                                           |   |   |
| **Total                  Assets**                                                              |                                                                 5,127,106 |                                                                  6,963,968 |
|                                                                                           |   |   |
| **LIABILITIES                  AND SHAREHOLDERS' EQUITY**                                      |
| **Current                  Liabilities:**                                                      |   |   |
| Accounts                  payable                                                              |                                                                    282,917 |                                                                       85,298 |
| Accrued                  expenses                                                              |                                                                    689,729 |                                                                     478,379 |
| Derivative                  liabilities                                                        |                                                                      60,630 |                                                                  3,028,767 |
| Notes                  payable                                                                 |                                                                    318,589 |                                                                     182,305 |
| **Total                  Current Liabilities**                                                 |                                                                1,351,865 |                                                                  3,774,749 |
|                                                                                           |   |   |
| Asset                  retirement obligation                                                   |                                                                      21,000 |                                                                       21,000 |
| **Total                  Liabilities**                                                         |                                                1,372,865 |                                                                  3,795,749 |
|                                                                                           |   |   |
| Shareholders'                  Equity:                                                         |   |   |
| Preferred                  stock - $.001 par value,                                            |   |   |
| 50,000,000                  shares authorized, none issued                                     |   |   |
| and                  outstanding                                                               |   |   |
| Common                  stock - $.001 par value,                                               |   |   |
| 450,000,000                  shares authorized, 77,738,340                                     |   |   |
| and                  68,773,099 shares issued and                                              |   |   |
| outstanding,                  respectively                                                     |                                                      77,738 |                                                                       68,773 |
| Additional                  paid-in capital                                                    |                                                                24,429,561 |                                                                21,918,215 |
| Accumulated                  deficit                                                           |                                                              (20,704,502) |                                                               (18,756,116) |
| Accumulated                  other comprehensive income                                        |   |   |
| (loss)                                                                                         |                                                                     (48,601) |                                                                      (62,653) |
| **Total                  Shareholders' Equity**                                                |                                                                 3,754,196 |                                                                   3,168,219 |
|                                                                                           |   |   |
| **Total                  Liabilities and Shareholders' Equity**                                |                                                                  5,127,106 |                                                  6,963,968 |
|                                                                                           |   |   |
| See                  accompanying notes to consolidated financial                  statements. |

----

| **Quest                  Oil Corporation**                                                           |
|------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS AND COMPREHENSIVE                  INCOME** |
| (Unaudited)                                                                                          |
|                                                                                                 |   |   |   |   |
|                                                                                                 | For                  the Three Months ended | For                  the Nine Months ended |
|                                                                                                 | December                  31, | December                  31, |
|                                                                                                 | 2006 | 2005 | 2006 | 2005 |
|                                                                                                 |   | (restated) |   | (restated) |
|                                                                                                 |   |   |   |   |
| **Revenues                  - oil and gas**                                                          |                                                  269,768 |                                                      1,126,859 |                                                485,675 |                                                1,126,859 |
|                                                                                                 |   |   |   |   |
| **Operating                  Expenses:**                                                             |   |   |   |   |
| Lease                  Operating                                                                     |                                                    29,080 |                                                        735,131 |                                               319,217 |                                                   735,131 |
| General                  and administrative                                                          |                                                  527,707 |                                                        915,132 |                                            3,053,341 |                                                2,966,426 |
| Research                  and development                                                            |                                                             - |                                                                  - |                                                 18,609 |                                                              - |
| Depreciation,                  depletion                                                             |   |   |   |   |
| and                  amortization                                                                    |                                                   37,861 |                                                          11,029 |                                               150,407 |                                                     12,099 |
| **Total                  Operating Expenses**                                                        |                                                 594,648 |                                                     1,661,292 |                                            3,541,574 |                                                3,713,656 |
|                                                                                                 |   |   |   |   |
| **Gain(Loss)                  from Operations**                                                      |                                               (324,880) |                                                       (534,433) |                                           (3,055,899) |                                              (2,586,797) |
|                                                                                                 |   |   |   |   |
| **Other                  Income/(Expense)**                                                          |   |   |   |   |
| Interest                  income                                                                     |                                                       690 |                                                                45 |                                                   2,031 |                                                           45 |
| Interest                  expense                                                                    |                                               (542,256) |                                      (618,965) |                          (1,902,164) |                                              (4,564,768) |
| Net                  change in the fair                                                              |   |   |   |   |
| value                  of derivatives                                                                |                                                   40,506 |                                                     3,182,474 |                                             2,968,137 |                                              (3,557,768) |
| Other                  Income (expense)                                                              |                                                            - |   |                                                 39,554 |                                                              - |
| Gain                  (Loss) on forgiveness                                                          |   |   |   |   |
| of                  debt                                                                             |                                                            - |                                                   - |                                                          - |                                    17,158 |
| **Total                  Other Income**                                                              |   |   |   |   |
| **(Expense)**                                                                                        |                                                (501,060) |                                                     2,563,554 |                                            1,107,558 |                              (8,105,333) |
|                                                                                                 |   |   |   |   |
| **Net                  Profit (Loss)**                                                               |                               (825,940) |                                                     2,029,121 |                                           (1,948,341) |                                             (10,692,130) |
|                                                                                                 |   |   |   |   |
| Other                  comprehensive income                                                          |   |   |   |   |
| (loss)                  - foreign exchange                                                           |   |   |   |   |
| translation                                                                                          |                                                  (58,771) |                                                          14,676 |                                                 14,052 |                                                     47,738 |
|                                                                                                 |   |   |   |   |
| **Total                  comprehensive profit (loss)**                                               |                                                (884,710) |                                    2,043,797 |                                           (1,934,289) |                                             (10,644,392) |
|                                                                                                 |   |   |   |   |
| **Net                  Loss per Common Share:**                                                      |   |   |   |   |
| Basic                                                                                                |                                                       (0.01) |                                                              0.03 |                                                    (0.03) |                                                        (0.22) |
| Diluted                                                                                              |                                                       (0.01) |                                                              0.03 |                                                    (0.03) |                                                        (0.22) |
|                                                                                                 |   |   |   |   |
| Weighted                  average common                                                             |   |   |   |   |
| shares                  outstanding:                                                                 |   |   |   |   |
| Basic                                                                                                |                                             77,278,133 |                                                   63,780,152 |                                          74,146,524 |                              47,760,944 |
| Diluted                                                                                              |                                             77,278,133 |                                                   65,086,410 |                                          74,146,524 |                              47,760,944 |
|                                                                                                 |   |   |   |   |
| See                  accompanying notes to consolidated financial                  statements.       |

----

| **Quest                  Oil Corporation**                                                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                                                          |
| (Unaudited)                                                                                                                                                         |
|                                                                                                                                                                |   |   |
|                                                                                                                                                                | For                  the nine months ended |
|                                                                                                                                                                | December                  31, |
|                                                                                                                                                                | 2006 | 2005 |
|                                                                                                                                                                |   | (restated) |
| Cash                  Flows From Operating Activities                                                                                                               |   |   |
|                                                                                                                                                                |   |   |
| Net                  Loss                                                                                                                                           | $(1,948,341) | $(10,692,130) |
| Adjustments                  To Reconcile Net Loss to                                                                                                               |   |   |
| Net                  Cash                                                                                                                                           |   |   |
| Used                  By Operating Activities:                                                                                                                      |   |   |
| Debt                  forgiveness                                                                                                                                   | - | (17,158) |
| Gain/(Loss)                  on sale of Assets                                                                                                                      | 12,909 | - |
| Amortization                  of debt discount                                                                                                                      | 1,900,737 | 3,807,668 |
| Depletion,                  depreciation and                                                                                                                        |   |   |
| Amortization                                                                                                                                                        | 150,407 | 9,099 |
| Net                  change in the fair value of                                                                                                                    |   |   |
| derivatives                                                                                                                                                         | (2,968,137) | 3,557,769 |
| Allowance                  for Doubtful Accounts                                                                                                                    | - | 5,000 |
| Stock                  based compensation and stock                                                                                                                 |   |   |
| option                  expense                                                                                                                                     | 2,257,072 | 1,855,250 |
|                                                                                                                                                                |   |   |
| Change                  in assets and liabilities:                                                                                                                  |   |   |
| (Increase)/Decrease                  in Accounts                                                                                                                    |   |   |
| Receivable                                                                                                                                                          | 225 | (442,162) |
| (Increase)/Decrease                  in Prepaid                                                                                                                     |   |   |
| Expenses                                                                                                                                                            | (29,386) | (9,588) |
| Increase/(Decrease)                  in Accounts                                                                                                                    |   |   |
| Payable                                                                                                                                                             | 57,155 | 629,390 |
| Net                  Cash Used by Operating Activities                                                                                                              | (567,359) | (1,296,863) |
|                                                                                                                                                                |   |   |
| Cash                  Flows From Investing Activities:                                                                                                              |   |   |
| Purchase                  of Property and Equipment                                                                                                                 | (11,000) | (159,074) |
| Payment                  for purchase of Wallstin, net                                                                                                              |   |   |
| of                  cash acquired                                                                                                                                   | - | 4,581 |
| Purchase                  of oil and gas interest                                                                                                                   | (10,799) | (2,288,686) |
| Net                  Cash Used by Investing Activities                                                                                                              | (21,799) | (2,443,179) |
|                                                                                                                                                                |   |   |
| Cash                  Flows From Financing Activities:                                                                                                              |   |   |
| Proceeds                  from financing agreements,                                                                                                                |   |   |
| net                                                                                                                                                                 | - | 6,430,085 |
| Principal                  payments on notes payable                                                                                                                | (631,512) |   |
| Proceeds                  from sale of stock                                                                                                                        | - | 1,185,650 |
| Net                  Cash Provided By Financing                                                                                                                     |   |   |
| Activities                                                                                                                                                          | (631,512) | 7,615,735 |
|                                                                                                                                                                |   |   |
| Effect                  of exchange rates on cash                                                                                                                   | (1,688) | - |
|                                                                                                                                                                |   |   |
| Net                  Increase/(Decrease) in Cash                                                                                                                    | (1,222,359) | 3,875,693 |
|                                                                                                                                                                |   |   |
| Cash                  At The Beginning of Period                                                                                                                    | 1,558,146 | 3,197 |
| Cash                  At the End Of Period                                                                                                                          | 335,787 | 3,878,890 |
|                                                                                                                                                                |   |   |
| Supplemental                  Disclosure of Cash Flow                                                                                                               |   |   |
| Information:                                                                                                                                                        |   |   |
| Net                  Cash Paid During the Year for                                                                                                                  |   |   |
| Interest                                                                                                                                                            | - | - |
| Income                  Taxes                                                                                                                                       | - | - |
|                                                                                                                                                                |   |   |
| Non                  Cash Transactions Common                  Shares for assets acquired                                                                           |   |   |
| Shares                  Issued for Property Common                  Shares Issued for Conversion of Debt Common                  Shares Issued for Accounts Payable |   |   |
|                                                                                                                                                                |   |   |
| See                  accompanying notes to consolidated financial                  statements.                                                                      |

----

**QUEST      OIL CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

NOTE      2 -      RESTATEMENT

| **SUMMARY                  STATEMENT OF OPERATIONS** |
|------------------------------------------------------|
|                                                 |   |   |   |   |   |   |   |   |
|                                                 | For                  the Three Months ended | For                  the Nine Months ended |
|                                                 | December                  31, 2005 | December                  31, 2005 |
|                                                 |   |   |   |   |   |   |   |   |
|                                                 | Original | Adjustment |   | Restated | Original | Adjustment |   | Restated |
|                                                 |   |   |   |   |   |   |   |   |
| Total                  Operating                     |   |   |   |   |   |   |   |   |
| Expenses                                             |                           1,665,008 |                                (3,716) | (a) |                       1,661,292 |                          3,007,447 |                              706,209 | (a) |                             3,713,656 |
|                                                 |   |   |   |   |   |   |   |   |
| Other                                                |   |   |   |   |   |   |   |   |
| Income/(Expense)                                     |   |   |   |   |   |   |   |   |
| Interest                  expense                    |                            (857,735) |                              238,770 | (b) |                        (618,965) |                         (1,451,383) |                         (3,113,385) | (b) |                            (4,564,768) |
| Net                  change in fair                  |   |   |   |   |   |   |   |   |
| value                  of derivatives -              | - |         3,182,474 | (b) |                       3,182,474 |                                        - |                         (3,557,768) | (b) |                            (3,557,768) |
| Gain                  on forgiveness                 |   |   |   |   |   |   |   |   |
| of                  debt                             | - | - |   |                                      - |                       - |                               17,158 | (c) |                                  17,158 |
| Total                  Other Income                  |   |   |   |   |   |   |   |   |
| (Expense)                                            |                            (857,735) |                           3,421,244 |   |                       2,563,509 |                         (1,451,383) |                         (6,653,995) |   |                            (8,105,378) |
|                                                 |   |   |   |   |   |   |   |   |
| Net                  Profit (Loss)                   |                         (1,381,163) |                          3,424,960 |   |                       2,043,797 |                         (3,284,188) |        (7,360,204) |   |         (10,644,392) |
|                                                 |   |   |   |   |   |   |   |   |
| Net                  Loss per Common                 |   |   |   |   |   |   |   |   |
| Share:                                               |   |   |   |   |   |   |   |   |
| Basic                                                |                                  (0.02) |   |   |                                0.03 |                                  (0.07) |   |   |                                    (0.22) |
| Diluted                                              |                                  (0.02) |   |   |                                0.03 |                 (0.07) |   |   |                                    (0.22) |

| (a)   | To                record increases in stock-based compensation associated with the                Wallstin                purchase and share issuances previously recorded                incorrectly.                                                        |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | To                record the net change in fair value of derivatives associated with                the                May, 2005 financing and the change in the estimated fair value of                the                warrants and embedded derivatives. |
| (c)   | Adjustments                based on the purchase of Wallstin.                                                                                                                                                                                                 |

| · | 3,482,873                common shares with a value of $535,825 as payment for                services. |
|--------|---------------------------------------------------------------------------------------------------------|

| · | 2,276,351                common shares with a value of $455,270 for the conversion of outstanding                debt totaling $113,189 and additional expenses of                $342,081. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 500,000                common shares with a value of $82,500 for                property. |
|--------|-------------------------------------------------------------------------------------------|

| · | 75,000                common shares for stock issuance payable with a value of                $25,875. |
|--------|--------------------------------------------------------------------------------------------------------|

| · | 150,000                warrants to consultants for services valued at $28,775. The warrants                vested immediately and are exercisable for five years at $0.22 per                share. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 9,000,000                options to officers for services valued at $1,525,775. At December                31,                2006, 6,111,110 warrants had vested and Quest recorded expense of                $1,036,020 for the period. The remaining 2,888,890 options vest evenly                over the following 208                days. The options are exercisable for five years at $0.22 per                share. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 4,000,000                warrants to directors and officers for services valued at $767,334.                At                December 31, 2006, 1,433,333 warrants had vested and Quest recorded                expense of $274,961 for the period and 1,411,111 warrants valued                at                $270,698 were forfeited. The remaining 1,155,556 warrants vest evenly                over                the following 208 days. The warrants are exercisable for five years                at                $0.22 per share. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        | December                31, 2006 |   | March                31, 2006 |   |
|-------------------------------------------------------------|----------------------------------|--------|-------------------------------|--------|
| Gross                proceeds from notes                    | $                6,000,000       |   | $                6,000,000    |   |
| Less:                Discount                               | (6,000,000)                      |   | (6,000,000)                   |   |
| Less:                Principle payments                     | (1,200,000)                      |   | (600,000)                     |   |
| Wallstin                notes payable                       | 21,723                           |   | 21,723                        |   |
| Add:                Amortization of discounts               | 1,496,866                        |   | 760,582                       |   |
| Carrying                value of notes on December 31, 2006 | $                318,589         |   | $                182,305      |   |