Document:

UNITED
STATES BANKRUPTCY COURT 

    EASTERN
DISTRICT OF KENTUCKY 

    ASHLAND
DIVISION

    

    
      	
              IN
      RE:

            	 
      
	
              GWENCO,
      INC,

            	
              CASE
      NO. 07-10081

            
	
              Debtor-in-Possession

            	 
      

    

     

    DEBTOR’S
THIRD AMENDED PLAN OF REORGANIZATION

    November
2, 2008

     

    To
satisfy the claims of the secured lien holders, priority creditors, and
unsecured creditors, Gwenco, Inc., the Debtor-in-Possession, proposes the
following plan of reorganization (the “Plan”) pursuant to chapter 11 of title 11
of the United States Code (the “Bankruptcy Code”).  Quest Minerals
& Mining, Ltd., the parent corporation of Gwenco, Inc., and Quest Mineral
& Mining Corp., the parent corporation of Quest Minerals & Mining, Ltd.,
are Affiliates of Gwenco, Inc. and are participating in the Plan as set forth
herein.  Section 1123(a) of the Bankruptcy Code lists the mandatory
provisions of a chapter 11 plan, and section 1123(b) lists the discretionary
provisions.  Section 1123(a)(1) provides that a chapter 11 plan must
designate classes of claims and interests for treatment under the
reorganization.  Generally, a plan will classify claim holders as
secured creditors, unsecured creditors entitled to priority, general unsecured
creditors, and equity security holders.

     

    Under
section 1126(c) of the Bankruptcy Code, an entire class of claims is deemed to
accept a plan if the plan is accepted by creditors that hold at least two-thirds
in amount and more than one-half in number of the allowed claims in the
class.  Under section 1129(a)(10), if there are impaired classes of
claims, the court cannot confirm a plan unless it has been accepted by at least
one class of non-insiders who hold impaired claims (claims that are not going to
be paid completely or in which some legal, equitable, or contractual right is
altered).  Moreover, under section 1126(f), holders of unimpaired
claims are deemed to have accepted the plan.

     

    Under
section 1127(a) of the Bankruptcy Code, the plan proponent may modify the plan
at any time before confirmation, but the plan as modified must meet all the
requirements of chapter 11.  When there is a proposed modification
after balloting has been conducted, and the court finds after a hearing that the
proposed modification does not adversely affect the treatment of any creditor
who has not accepted the modification in writing, the modification is deemed
to  have been accepted by all creditors who previously accepted the
plan (Federal Rules of Bankruptcy Procedure (“FRBP”) Rule 3019).  If
it is determined that the proposed modification does have an adverse effect on
the claims of non-consenting creditors, then another balloting must take
place.

     

    Gwenco
Third Amended Plan of Reorganization – Page 1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Any party
in interest may file an objection to confirmation of a plan.  The
Bankruptcy Code requires the court, after notice, to hold a hearing on
confirmation of a plan.  If no objection to confirmation has been
timely filed, the Bankruptcy Code allows the court to determine whether the plan
has been proposed in good faith and according to law (FRBP
3020(b)(2)).  Before confirmation can be granted, the court must be
satisfied that there has been compliance with all the other requirements of
confirmation set forth in section 1129 of the Bankruptcy Code, even in the
absence of any objections. In order to confirm the plan, the court must find,
among other things, that: (1) the plan is feasible; (2) it is proposed in good
faith; and (3) the plan and the proponent of the plan are in compliance with the
Bankruptcy Code.  In order to satisfy the feasibility requirement, the
court must find that confirmation of the plan is not likely to be followed by
liquidation (unless the plan is a liquidating plan) or the need for further
financial reorganization.

     

    Section
1141(d)(1) generally provides that confirmation of a plan discharges a debtor
from any debt that arose before the date of confirmation.  After the
plan is confirmed, the debtor is required to make plan payments and is bound by
the provisions of the plan of reorganization.  The confirmed plan
creates new contractual rights, replacing or superseding pre-bankruptcy
contracts.

     

    At any
time after confirmation and before “substantial consummation” of a plan, the
proponent of a plan may modify the plan if the modified plan would meet certain
Bankruptcy Code requirements (11 U.S.C. § 1127(b)).  This should be
distinguished from pre-confirmation modification of the plan.  A
modified post-confirmation plan does not automatically become the
plan.  A modified post-confirmation plan in a chapter 11 case becomes
the plan only “if circumstances warrant such modification” and the court, after
notice and hearing, confirms the plan as modified.

     

    In
deciding whether to vote to accept the Plan, holders of Claims entitled to vote
thereon must rely on their own evaluation of the Debtor and their analysis of
the terms of the Plan, including, but not limited to, any risk factors
associated with the Debtor.

     

    Gwenco
Third Amended Plan of Reorganization – Page 2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Parties-in-interest
are reminded that the Debtor has filed a Disclosure Statement with the Court
that should be carefully read prior to consideration of this
Plan.  The contents of the Disclosure Statement and Plan may not be
deemed as providing any legal, financial, securities, tax or business
advice.  Holders are urged to consult with their own advisors with
respect to any such legal, financial, securities, tax or business advice in
reviewing this Plan and the Disclosure Statement, and each of the proposed
transactions contemplated thereby.

     

    The
statements contained in this Plan and in the Disclosure Statement are made as of
the date of each document unless otherwise specified.  Holders of
Claims or Interests reviewing the Disclosure Statement and the Plan should not
infer at the time of such review that there have been no changes in the facts
set forth.

     

    Securities
issued by the Debtor or Quest pursuant to this Plan have not been registered
under the Securities Act or any state securities or “blue sky”
law.  The issuance, transfer, or exchange of any security and
indebtedness under the plan is exempt from registration under Section 1145(a) of
the Bankruptcy Code, as described in the sections entitled “Provisions For
Creditors and Equity Holders” and “Means For Implementation of the
Plan.”

     

    Certain
statements in the Plan and Disclosure Statement may constitute “forward-looking”
statements within the meaning of Section 27A of the Securities Act, Section 21E
of the Securities Act, or in releases made by the SEC.  Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors that could cause the actual results, performance, or
achievements of the Debtor, or industry results, to differ materially from any
future results, performance, or achievements expressed or implied by such
forward-looking statements.  Statements that are not historical fact
are forward-looking statements.  Forward-looking statements can be
identified by, among other things, the use of forward-looking language, such as
the words “estimate,” “project,” “intend,” “expect,” “believe,” “may,” “will,”
“would,” “could,” “should,” “seeks,” “plans,” “scheduled to,” “anticipates,” or
“intends,” or the negative of these terms or other variations of these terms or
comparable language, or by discussions of strategy or intentions, when used in
connection with the Debtor, including its management.

     

    The
Debtor cautions investors that any forward-looking statements made by the Debtor
are not guarantees or indicative of future performance.  Important
assumptions and other important factors that could cause actual results to
differ materially from those in the forward- looking statements with respect to
the Debtor include, but are not limited to, the risks and uncertainties
affecting its business described in the Disclosure Statement.

    

    Gwenco
Third Amended Plan of Reorganization – Page 3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
Debtor undertakes no obligation to update or revise any forward-looking
statement to include new information, events, or circumstances after the date on
which such statement is made unless otherwise required by law.  New
factors emerge from time to time, and it is impossible for the Debtor to predict
all of such factors or the impact of each such factor on its business or the
extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking
statements.

    

    The
Debtor strongly recommends that potential recipients of securities consult their
own counsel concerning the securities laws consequences.

    

    The terms
of the Plan govern in the event of any inconsistency with the summaries in the
Disclosure Statement.  Any information, representations, or
inducements made to obtain your acceptance of the Plan which are different from
or inconsistent with the information contained in the Disclosure Statement
should not be relied upon by any Holder of a Claim.

     

    I. DEFINITIONS

     

    “1990
Stock Purchase Agreement” means that certain Stock Purchase Agreement dated on
or about June 22, 1990 by and among the Debtor, as successor-in-interest to
Cardinal Land Corporation, Sharon Preece, and Gwendolyn Slater.

     

    “Administrative
Claims Bar Date” means thirty (30) days after the Effective Date.

     

    “Affiliate”
shall have the meaning ascribed to it in Rule 405 promulgated under the
Securities Act and Bankruptcy Code Section 101(2).

     

    “Allowed
Claim” means a Claim, or any portion of a Claim, (i) as to which no objection to
allowance or request for estimation has been interposed on or before the Claim
Objections Bar Date, (ii) that is not the subject of an adversary proceeding;
(iii) that is listed on the Debtor’s Schedules as other than disputed,
contingent or unliquidated, (iv) as to which any formal or informal objection to
its allowance has been settled, waived through payment, waived through
acceptance of treatment under this Plan, waived through failure to object to
Confirmation, or withdrawn, (v) as to which any objection to its allowance has
been denied by a Final Order, (vi) that has been allowed by a Final Order, or
(vii) that is allowed under the Plan by having been provided to be paid in a
specified amount in satisfaction of the Claim under the Plan.

     

    Gwenco
Third Amended Plan of Reorganization – Page 4

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Allowed
Unsecured Claim Royalty” means the amount of Two Dollars and Fifty Cents ($2.50)
for each ton of two thousand (2,000) pounds of clean sellable coal that the
Debtor mines, removes, and markets from the Mine Premises.

     

     “Articles
of Incorporation” means the articles of incorporation or certificate of
incorporation of Gwenco, Inc., as amended and in effect as of the date
hereof.

     

    “Ballot”
means each of the ballot forms distributed with the Disclosure Statement to
Holders of Impaired Claims entitled to vote under the Plan in connection with
the solicitation of acceptances of the Plan.

     

    “Bankruptcy
Code” means the Bankruptcy Reform Act of 1978, as amended and codified in title
11 of the United States Code, as now in effect or hereafter
amended.

     

    “Bankruptcy
Court” or “Court” means the Bankruptcy Court for the Eastern District of
Kentucky, or such other court having jurisdiction over the Chapter 11
Case.

     

    “Bankruptcy
Rules” or “Rules” means, collectively, the Federal Rules of Bankruptcy Procedure
and the Official Bankruptcy Forms, and the Local Rules of the Bankruptcy Court,
as applicable to the Chapter 11 Case or proceedings therein, as the case may
be.

     

    “Bar
Date” means July 2, 2007, as established by the Bankruptcy Court.

     

    “Business
Day” means any day, other than a Saturday or Sunday, on which banking
institutions are open for business in Lexington, Kentucky.

     

    “By-laws”
means the by-laws of Gwenco, Inc., in effect as of the date hereof.

     

    “Cash”
means legal tender of the United States of America or equivalents
thereof.

     

    “Causes
of Action” means the claims, rights of action, suits, or proceedings, whether in
law or in equity, whether known or unknown, that the Debtor or its Estate may
hold against any Person, other than a Released Party, including, without
limitation, actions arising under chapter 5 of the Bankruptcy Code, including
but not limited to Bankruptcy Code sections 510, 542, 543, 544, 545, 546, 547,
548, 549, 550, 551, and 553.

     

    “Chapter
11 Case” means the case under Chapter 11 of the Bankruptcy Code commenced by the
Debtor, styled In re Gwenco, Inc., Case No. 07-10081, currently pending in the
Bankruptcy Court.

    

    Gwenco
Third Amended Plan of Reorganization – Page 5

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Claim”
means a claim against the Debtor, whether or not asserted, as defined in Section
101(5) of the Bankruptcy Code.

     

    “Claims
Objection Bar Date” means the later of (i) thirty (30) days after the Effective
Date or (ii) such other period of limitation as may be specifically fixed by an
order of the Bankruptcy Court, the Plan, the Confirmation Order, or the
Bankruptcy Rules.

     

    “Claimant”
means the Holder of a Claim.

     

    “Class”
means a category of Holders of Claims or Interests.

     

    “Collateral”
means any property or interest in property of the Debtor’s Estate subject to a
Lien to secure the payment or performance of a Claim, which Lien is not subject
to avoidance under the Bankruptcy Code or otherwise invalid under the Bankruptcy
Code or applicable state law.

     

    “Confirmation”
means entry by the Clerk of the Bankruptcy Court of the Confirmation
Order.

     

    “Confirmation
Date” means the date on which the Clerk of the Bankruptcy Court enters the
Confirmation Order.

     

    “Confirmation
Hearing” means the hearing held by the Bankruptcy Court pursuant to Bankruptcy
Code Section 1128, and as may be continued from time to time, to consider
confirmation of the Plan.

     

    “Confirmation
Order” means the order of the Bankruptcy Court confirming the Plan pursuant to
Section 1129 of the Bankruptcy Code.

     

    “Contract”
means any executory contract or unexpired lease of non-residential real property
governed by Section 365 of the Bankruptcy Code.

     

    “Creditor”
means any Person who holds a Claim against the Debtor.

     

    “Cure
Claim” means a Claim for a distribution of Cash, or such other property as may
be agreed upon by the parties or ordered by the Bankruptcy Court, with respect
to the assumption of any contract pursuant to Section 365(b) of the Bankruptcy
Code, in an amount equal to all unpaid monetary obligations due under such
contract as of the date of such assumption, without interest, or such other
amount as may be agreed upon by the parties or ordered by the Bankruptcy Court,
to the extent such obligations are enforceable under the Bankruptcy Code and
applicable non-bankruptcy law.

    

    Gwenco
Third Amended Plan of Reorganization – Page 6

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Debtor”
means Gwenco in its capacity as debtor in possession pursuant to Sections 1107
and 1108 of the Bankruptcy Code.

     

    “DIP
Facility” means the borrowing approved by the Bankruptcy Court in the Final
Order authorizing post-petition Financing and granting liens and super-priority
administrative expense status entered August 15, 2007.

     

    “DIP
Facility Claim” means the fully secured, post-petition super priority
administrative expense Allowed Claim of Interstellar arising under the DIP
Facility and DIP Order, in the amount of up to $2,000,000, plus attorneys’ fees
and expenses.

     

    “DIP
Order” means the Final Order authorizing post-petition Financing and granting
liens and administrative expense status entered August 15, 2007.

     

     “Disclosure
Statement” means the third amended disclosure statement with respect to the
Debtor’s Plan, as approved by the Bankruptcy Court.

     

    “Disclosure
Statement Hearing” means the hearing held by the Bankruptcy Court to determine
the adequacy of the information contained in the Disclosure Statement pursuant
to Section 1125 of the Bankruptcy Code.

     

    “Disputed”
when used with respect to a Claim or Interest, means: 

       
a) if no proof of Claim has been Filed by the applicable bar date or has
otherwise been deemed timely Filed pursuant to an order of the Bankruptcy Court
or under applicable law: (i) a Claim that is listed on a Debtor’s Schedules as
other than disputed, contingent, or unliquidated, but as to which the applicable
Debtor, the Reorganized Debtor, or any other party in interest, has Filed an
objection by the Claims Objection Bar Date and such objection has not been
withdrawn or denied by a Final Order, but only to the extent such Claim is
disputed; (ii) a Claim that is listed on a Debtor’s Schedules or in the Plan as
disputed, contingent, or unliquidated, but only to the extent such Claim is
disputed; and (iii) a Claim in an amount more than the amount provided to be
paid in satisfaction of such Claim under the Plan, or

     

    Gwenco
Third Amended Plan of Reorganization – Page 7

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

       
b) if a proof of Claim or request for payment of an Administrative Claim has
been Filed by the Bar Date or the Administrative Claim Bar Date, as the case may
be, or has otherwise been deemed timely Filed pursuant to an order of the
Bankruptcy Court or under applicable law: (i) a Claim for which no corresponding
Claim is listed on a Debtor’s Schedules; (ii) a Claim for which a corresponding
Claim is listed on the Debtor’s Schedules as other than disputed, contingent, or
unliquidated, but the nature or amount of the Claim as asserted in the proof of
Claim varies from the nature and amount of such Claim as it is listed on the
Schedules; (iii) a Claim for which a corresponding Claim is listed on a Debtor’s
Schedules or in the Plan as disputed, contingent or unliquidated; (iv) a Claim
for which an objection has been Filed by the applicable Debtor, Reorganized
Debtor, or any other party in interest, by the Claims Objection Bar Date, and
such objection has not been withdrawn or denied by a Final Order; and (v) a
Claim filed in an amount more than the amount provided to be paid in
satisfaction of the Claim under the Plan.

    

    “Disputed
Claims Reserve” means Cash to be held in reserve on account of Disputed General
Unsecured Claims, until such time as said Claims have been withdrawn, denied by
a Final Order, or otherwise disallowed pursuant to the Plan, for distribution to
Holders of such Claims, if and when such Claims become Allowed.

     

    “Distribution”
means the property required by the Plan to be distributed to the Holders of
Allowed Claims and Interests.

     

    “Distribution
Date” means the date or dates, subsequent to the Initial Distribution Date, upon
which the Reorganized Debtor determines that Distributions are to be made under
the Plan.

     

    “Effective
Date” means the date on which the Confirmation Order becomes a Final
Order.

     

    “Estate”
means the Debtor’s estate in the Chapter 11 Case created pursuant to Section 541
of the Bankruptcy Code.

     

    “Executory
Contract and Unexpired Lease” or “Executory Contract
or Unexpired Lease” means a contract or lease to which the Debtor is a party
that is subject to assumption or rejection pursuant to Section 365 of the
Bankruptcy Code, which, in the case of Executory Contracts and Unexpired Leases
of real property, include Executory Contracts and Unexpired Leases granting
rights or interests related to or appurtenant to the applicable real property,
including all easements, leaseholds, licenses, permits, rights, privileges,
immunities, options, rights of first refusal, powers, uses, reciprocal
easements, operating agreements, franchises, development rights and any other
interests in real estate or rights in rem related to the applicable real
property.

     

    Gwenco
Third Amended Plan of Reorganization – Page 8

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Exculpated
Party” means each of: (a) the Debtor, the Reorganized Debtor, and any of their
subsidiaries or affiliates; (b) Interstellar in its capacity as lender under the
DIP Facility and as the entity providing the Exit Loan required by the Plan; (c)
with respect to each of the foregoing Entities in clauses (a) and (b), such
Entities’ successors and assigns; and (d) with respect to each of the foregoing
Entities in clauses (a) through (d), such Entities’ subsidiaries, affiliates,
officers, directors, principals, employees, agents, financial advisors,
attorneys, accountants, investment bankers, consultants, representatives, and
other professionals, in each case in their capacity as such; provided, however,
that clause (d) shall not include officers, directors, or employees of the
Debtor who were no longer acting in that capacity on or after February 20,
2008.

     

    “Exit
Loan” means the credit facility provided by Interstellar to the Reorganized
Debtor upon the Effective Date of the Plan.

     

    “Exit
Loan Documents” means the Loan and Security Agreement and Convertible Promissory
Note between Interstellar and the Reorganized Debtor in order to effectuate the
Exit Loan, which are attached as an exhibit hereto.

     

    “Face
Amount” means (a) when used in reference to a Disputed Claim, the full stated
amount claimed by the Holder of the Claim in a timely filed proof of Claim; (b)
when used in reference to an unliquidated Claim, the amount of the Claim as
estimated by the Bankruptcy Court pursuant to Section 502(c) of the Bankruptcy
Code; and (c) when used in reference to an Allowed Claim, the Allowed amount of
the Claim.

     

    “File,”
“Filed” or “Filing” means file, filed or filing with the Bankruptcy Court or its
authorized designee in the Chapter 11 Case.

     

    “Final
Decree” means an order entered by the Bankruptcy Court closing the Debtor’s case
after satisfaction of all obligations and duties of the Reorganized Debtor under
the Plan.

     

    “Final
Order” means (a) an order as to which the time to appeal, petition for
certiorari, or move for reargument, rehearing, reconsideration, new trial, or to
alter or amend findings or judgment has expired and as to which no appeal,
petition for certiorari or other proceedings for reargument, rehearing,
reconsideration, new trial, or to alter or amend findings or judgment shall then
be pending or (b) in the event that an appeal, writ of certiorari, reargument,
rehearing, reconsideration, new trial, or motion to alter or amend findings or
judgment thereof has been sought, such order shall not be expressly stayed or
otherwise superseded.

    

    Gwenco
Third Amended Plan of Reorganization – Page 9

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Former
Officers and Directors” means those individuals who served as directors or
officers of the Debtor at any time before the Petition Date and who were no
longer so serving on the Petition Date.

     

    “General
Unsecured Claim” means any Claim that is not an Administrative Claim,
Professional Fee Claim, Priority Tax Claim, DIP Facility Claim, Secured Tax
Claim, Other Secured Claim, Other Priority Claim, or an Interest.

     

    “Gwenco”,
“Debtor”, and “Debtor-in-Possession” are used interchangeably to mean the
Debtor, Gwenco, Inc.

     

    “Holder”
means a Person who is the beneficial owner of a Claim or
Interest.  For purposes of voting to accept or reject the Plan, a
Person must be a Holder as of the Voting Record Date.

     

    “Impaired”
means, when used with references to a Claim or Interest, a Claim or Interest
that is impaired within the meaning of Section 1124 of the Bankruptcy
Code.

     

    “Indemnification
Obligations” means all indemnification obligations currently in place, whether
in the bylaws, certificates of incorporation, board resolutions or employment
contracts for the current directors and officers of the Debtor.

     

     “Initial
Distribution Date” means, when used with respect to a particular Claim, (a) the
Effective Date if the Plan specifies that payment will be made on the Effective
Date, or the later of (b) 90 days after the Effective Date, or (c) the first
Distribution Date after a Claim becomes an Allowed Claim.

     

    “Interest”
means the interest of any Holder of equity securities of any nature in the
Debtor whether or not transferable, including all Claims arising in connection
therewith, including but not limited to, Claims arising from the rescission of a
purchase or sale of a security of the Debtor, for damages arising from the
purchase or sale of such security, or for reimbursement or contribution under
Section 502 of the Bankruptcy Code on account of such Claim and attorney’s fees
associated therewith, except where, in context, “interest” is used to mean a fee
paid on borrowed capital.

     

    “Interstellar”
means Interstellar Holdings, LLC.

     

    Gwenco
Third Amended Plan of Reorganization – Page 10

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Interstellar-Duke
Claim” means and includes all loans, advances, interest, indebtedness,
liabilities, and obligations owing by the Debtor to Interstellar, together with
all interest accruing thereon and any and all costs of collection, late fees,
charges, expenses, and attorney’s fees, as a result of Interstellar’s ownership
of all right, title, and interest in and to a judgment dated May 20, 2005
entered in favor of Duke Energy Merchants, LLC against the Debtor and Albert
Anderson by the Circuit Court of Boyd County, Kentucky in Case No. 04-CI-00369,
and such other obligations provided for in the agreements, documents, and
judgments relating thereto.  The judgment arose from the Debtor’s
default under a secured promissory note dated February 11, 2000 on the principal
amount of $200,000, payable by the Debtor to Duke Energy Merchants, LLC, which
note was amended on December 7, 2000 to increase the principal amount on the
note from $200,000 to $500,000.

     

     “Interstellar
Royalty Agreement” means that Royalty Agreement dated as of August 24, 2006 by
and between the Debtor and Interstellar, as successor-in-interest.

     

     “Millard
Lease Cure Claims” means the Cure Claims of (a) the Ben Millard Heirs pursuant
to a Lease Agreement amended and restated as of July 17, 2007 by and among the
Ben Millard Heirs (as defined in the Lease Agreement) and the Debtor, and (b)
Gerald Millard and George Millard pursuant to a Lease Agreement amended and
restated as of July 17, 2007 by and among Gerald Millard and George Millard (as
defined in the Lease Agreement) and the Debtor.

     

    “Mine
Premises” means properties currently under lease to the Debtor at Slater’s
Branch, Pike County, Kentucky, which are identified by reference to the
following leases and/or property descriptions, all appearing of record in the
Pike County Clerk’s Office, Pikeville, Kentucky:

     

    Deed Book
288, Page 193  (Nola Deskins)

    Deed Book
640, Page 189  (Hugh Bert Slater)

    Deed Book
124, Page 548  (Edward & Bethel Slater)

    Deed Book
640, Page 247  (Allen Slater heirs)

    Deed Book
641, Page 308  (Ida Slater)

    Deed Book
640, Page 261  (Robert Stepp heirs)

    Deed Book
641, Page 326  (George & Mary Fields)

    Deed Book
641, Page 292  (Nina Blackburn)

    Deed Book
610, Page 228  (John & Stephanie Evans)

    Deed Book
740, Page 66  (Muriel Millard)

    

    Gwenco
Third Amended Plan of Reorganization – Page 11

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Deed Book
640, Page 235  (W.F. Alley, Jr.)

    Lease
dated 11/3/87 (Jean Tucker - assigned to Paul Neil Slater)

    No
recording information; property

    description
at Misc. Book 52, Page 269

    Deed Book
6, Page 52 -  4 acres  (Lassie Adair heirs)

    Deed Book
640, Page 295  (Ann & Elmer Smith)

    Deed Book
640, Page 228, 230  (Mary Gill - assigned to Paul Neil
Slater

    Deed Book
652, Page 588  (Hilbert Phillips)

    Deed Book
640, Page 183  (Charles D. Robinson)

    Deed Book
623, Page 244  (Tracts 1 & 2)  (Charles D.
Robinson)

    Deed Book
640, Page 271  (James W. Robinson)

    Deed Book
643, Page 327  (Rebecca & Charles Baer - 4 parcels)

    Deed Book
640, Page 274  (George D. Robinson)

     

       
and any and all other interests granted by lease contract to the Debtor at
Slater’s Branch, Pike County, Kentucky in which Gwenco is a lessee or has the
equivalent rights of a lessee. 

     

    “Operating
Assets” means all of the assets of the Debtor, including without
limitation:  (i) the Debtor’s books and records; (ii) all furniture,
fixtures and equipment used in the Debtor’s ordinary course of business and
described in the Schedules or on hand as of the Effective Date; (iii) all
interests in Real Property described in the Schedules and the Plan; (iv) all the
Debtor’s inventory and supplies as of the Effective Date; (v) all the Debtor’s
Cash on hand on the Effective Date; (vi) all trademarks identified in the
Schedules; (vii) all executory contracts and unexpired leases assumed by the
Debtor pursuant to the Plan; (viii) all rights to the Debtor’s list of customers
and sales associates; (ix) the right to use the name Gwenco, Inc.; and (x) all
other property of the Debtor, tangible or intangible, but excluding the Debtor’s
rights and interest in any direct or indirect subsidiary or affiliate of the
Debtor.

     

    “Other
Priority Claim” means any Claim that, if Allowed, would be entitled to priority
under Section 507(a) of the Bankruptcy Code, other than an Administrative Claim,
Professional Fee Claim or Priority Tax Claim.

     

    “Other
Secured Claim” means, collectively, all Secured Claims against the Debtor other
than the DIP Facility Claim and any Secured Tax Claim.

     

    Gwenco
Third Amended Plan of Reorganization – Page 12

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Participants”
means the Debtor, Quest –NV, and Quest.

     

    “Per
Share Market Value” means on any particular date (a) the closing bid price per
share of Quest Common Stock on such date on the OTC Bulletin Board or on such
Subsequent Market on which the shares of Quest Common Stock are then listed or
quoted, or if there is no such price on such date, then the closing bid price on
the OTC Bulletin Board or on such Subsequent Market on the date nearest
preceding such date, or (b) if the shares of Quest Common Stock are not then
listed or quoted on the OTC Bulletin Board or a Subsequent Market, the closing
bid price for a share of Quest Common Stock in the over-the-counter market, as
reported by the National Quotation Bureau Incorporated or similar organization
or agency succeeding to its functions of reporting prices) at the close of
business on such date, or (c) if the shares of Quest Common Stock are not then
reported by the National Quotation Bureau Incorporated (or similar organization
or agency succeeding to its functions of reporting prices), then the average of
the “Pink Sheet” quotes for the relevant conversion period, as determined in
good faith by the Payee.

     

    “Person”
means any natural person, corporation, limited partnership, general partnership,
joint venture, trust, land trust, business trust, unincorporated organization,
or other organization, irrespective of whether it is a legal entity, government
and agency and political subdivision thereof or other entity.

     

    “Petition
Date” means February 28, 2007, the date on which the Debtor filed its petition
for relief, commencing the Chapter 11 Case.

     

    “Plan” or
“Plan of Reorganization” means this Chapter 11 plan of reorganization for the
Debtor, in which the Debtor and Affiliates Quest-NV and Quest are participating
as joint Participants, either in its present form or as it may hereafter be
altered, amended or modified from time to time, and all exhibits annexed hereto
or referenced herein.

     

    “Plan
Documents” means the documents that aid in effectuating the Plan as specifically
identified as such herein, including the Exit Loan Documents and the Plan
Supplement, if any, which will be filed with the Bankruptcy Court prior to the
Confirmation Hearing.

     

    “Plan
Supplement” means the compilation of documents and forms of documents specified
in the Plan, if any, which will be filed with the Bankruptcy Court prior to the
Confirmation Hearing.

     

    “Preece”
means Sharon Preece.

     

    Gwenco
Third Amended Plan of Reorganization – Page 13

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Preece
Claim” means and includes all obligations owed by the Debtor to Preece as a
result of a judgment in favor of Preece by the Circuit Court for Pike County,
Kentucky in Case No. 04-CI-1174, and such other obligations provided for in the
1990 Stock Purchase Agreement.

     

    “Priority
Tax Claim” means any Claim against the Debtor that, if Allowed, would be
entitled to priority in payment under Section 507(a)(8) of the Bankruptcy
Code.

     

    “Professional”
means any Person defined as a professional person in Sections 327, 328, 330,
331, or 1103 of the Bankruptcy Code who have been employed pursuant to an order
of the Bankruptcy Court in this Chapter 11 Case.

     

    “Professional
Fee Claim” means an Allowed Claim by a Professional for compensation or
reimbursement of costs and expenses relating to services incurred after the
Petition Date and prior to and including the Effective Date, in the actual
amounts as approved by the Bankruptcy Court.

     

    “Pro Rata
Share” means the proportion that the Face Amount of a Claim in a particular
Class bears to the aggregate Face Amount of all Claims in such Class, and
includes Disputed Claims and Interests in such Class, unless the Plan provides
otherwise.

     

    “Quest”
means Quest Minerals & Mining Corp., a Utah corporation and the parent
corporation of Quest-NV, which in turn is the parent corporation of the
Debtor.

     

     “Quest
Common Stock” means the common stock of Quest Minerals & Mining
Corp.

     

    “Quest-NV”
means Quest Minerals & Mining, LTD., a Nevada corporation and the parent
corporation of the Debtor.

     

    “Rejection
Damage Claim” means a Claim by a party to a prepetition executory contract or an
unexpired lease of non-residential real property with the Debtor that has not
been assumed by the Debtor pursuant to the Plan or a prior Final Order of the
Bankruptcy Court entered in the Chapter 11 Case.

     

    “Rejection
Damages Bar Date” means the date that is thirty (30) days after the Effective
Date of the Plan.

     

    Gwenco
Third Amended Plan of Reorganization – Page 14

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Released
Claim” means any claim related to any act or omission in connection with,
relating to, or arising out of the Debtor’s in or out of court restructuring,
the Debtor’s Chapter 11 Case, formulation, preparation, dissemination,
negotiation, or filing of the Disclosure Statement or Plan or any Contract,
instrument, release, or other agreement or document created or entered into in
connection with the Disclosure Statement or Plan, the filing of the Chapter 11
Case, the pursuit of Confirmation, the pursuit of consummation, the
administration and implementation of the Plan, or the distribution of property
under the Plan or any other agreement.

    

    “Released
Party” means each of: (a) Interstellar in its capacity as the Debtor’s
prepetition lender, the lender under the DIP Facility and the lender under the
Exit Loan; (b) Interstellar’ successors, assigns and designees; and (c)
Interstellar’ affiliates, subsidiaries, officers, directors, principals,
employees, agents, financial advisors, attorneys, accountants, investment
bankers, consultants, representatives, and other professionals, in each case in
their capacity as such, and only if serving in such capacity; and (d) the
Debtor’s and Reorganized Debtor’s current officers, current directors,
principals, employees, agents, financial advisors, attorneys, accountants,
investment bankers, consultants, representatives, and other professionals, in
each case in their capacity as such, and only if serving in such
capacity.  “Released Party” specifically excludes any and all
officers, directors or principals of Gwenco, Inc., and all officers and
directors of the Debtor who resigned or were terminated prior to the Petition
Date.

     

    “Reorganized
Debtor” means the Debtor as reorganized pursuant to the Plan from and after the
Effective Date.

     

    “Sally
Slater Lease Cure Claims” means the Cure Claims of the Sally Slater Heirs
pursuant to a Lease Agreement amended and restated as of July 30, 2008 by and
among the Sally Slater Heirs (as defined in the Lease Agreement) and the
Debtor.

     

    “Schedules”
means the schedules of assets and liabilities and the statement of financial
affairs filed by the Debtor as required by Section 521 of the Bankruptcy Code
and Bankruptcy Rule 1007, as such schedules and statements have been or may be
supplemented or amended.

     

    “SEC”
means the Securities and Exchange Commission of the United States of
America.

     

    “Secured
Claim” means a Claim that is secured by a Lien on property of the Estate to the
extent of the value, as of the Effective Date or such other date established by
the Bankruptcy Court, of such Claim Holder’s interest in the Estate’s interest
in such property as determined by a Final Order of the Bankruptcy Court pursuant
to Section 506 of the Bankruptcy Code or as otherwise agreed upon in writing by
the Debtor and the Claim Holder.  Secured Claims shall include Claims
secured by Liens junior in priority to existing security interests or Liens,
whether by operation of law, contract, or otherwise, but solely to the extent of
the value, as of the Effective Date or such other date established by the
Bankruptcy Court, of such Claim Holder’s interest in the Estate’s interest in
such property after giving effect to all security interests or Liens senior in
priority.

    

    Gwenco
Third Amended Plan of Reorganization – Page 15

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Secured
Tax Claim” means any Claim that is based on or assessed against any real or
personal property of the Debtor and is secured as of the Petition Date by a Lien
against such property, which Lien is valid, perfected and enforceable under
applicable law and is not subject to avoidance under the Bankruptcy Code or
applicable non-bankruptcy law, but only to the extent of the value of the assets
or property securing such Claim.

     

    “Securities
Act” means the Securities Act of 1933, as amended.

     

    “Setoff
Claim” means a Claim against the Debtor by a Creditor that has a valid right of
setoff with respect to such Claim, which right is enforceable under Section 553
of the Bankruptcy Code as determined by a Final Order or as otherwise agreed to
in writing by the Debtor to the extent of the amount subject to such right of
setoff.

     

    “Stepp
Lease Cure Claims” means the Cure Claims of the Stepp Heirs pursuant to a Lease
Agreement amended and restated as of May 12, 2008 by and among the Stepp Heirs
(as defined in the Lease Agreement) and the Debtor.

     

    “Tax
Lien” means any statutory Lien securing an Allowed Secured Claim of any taxing
authority.

     

     “Unsecured
Deficiency Claim” means any portion of an Other Secured Claim to the extent that
the value of the Collateral securing the Other Secured Claim is less than the
amount of such Other Secured Claim, or to the extent that the amount of any such
Other Secured Claim subject to a setoff is less than the amount of such Other
Secured Claim, as determined pursuant to Section 506(a) of the Bankruptcy
Code.

     

    “Whitson”
means William S. Whitson.

     

    “Whitson
Claim 8” means the Claim asserted by Whitson for royalties under a Second
Amendment to Stock Purchase Agreement dated as of August 24, 2006 by and
Whitson, the Debtor, Quest, Quest-NV, and Albert Anderson.

     

    Gwenco
Third Amended Plan of Reorganization – Page 16

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Whitson
Claim 9” means the Claim asserted by Whitson based on two promissory notes
issued by Albert Anderson and guaranteed by the Debtor, Quest, and Quest-NV, one
in the principal amount of $180,883 and a second in the amount of
$545,473.

     

    “Whitson
Conversion Price” means 85% of the average of the five Per Share Market Values
immediately preceding a Conversion Date.

     

    “Younger”
means C. Christopher Younger.

     

    “Younger
Claim” means and includes all obligations owing by the Debtor to Younger as a
result of a judgment in favor of Younger by the Circuit Court for Pike County,
Kentucky in Case No. 04-CI-1174, and such other obligations provided for in the
1990 Stock Purchase Agreement.

     

    For
purposes of the Plan (i) any reference in the Plan to a contract, instrument,
release, or other agreement or document being in a particular form or on
particular terms and conditions means that such document shall be substantially
in such form or substantially on such terms and conditions, (ii) any reference
in the Plan to an existing document or exhibit filed or to be filed means such
document or exhibit as it may have been or may be amended, modified or
supplemented, (iii) unless otherwise specified, all references in the Plan to
Sections, Articles, Schedules and Exhibits are references to Sections, Articles,
Schedules and Exhibits of or to the Plan, (iv) the words “herein” and “hereto”
refer to the Plan in its entirety rather than to a particular portion of the
Plan, (v) the term “including” means including, but without limitation (vi)
captions and headings to Articles and Sections are inserted for convenience of
reference only and are not intended to be a part of or to affect the
interpretation of the Plan, and (vii) the rules of construction set forth in
Section 102 of the Bankruptcy Code and in the Bankruptcy Rules shall
apply.

     

    II.           INTRODUCTION

     

    2.1    The
Debtor filed a Petition for Relief under Chapter 11 of the Bankruptcy Code on
February 28, 2007.  This plan of reorganization is the Debtor’s
proposal to creditors to resolve the debts owed on the date of filing of the
Petition.  The Plan undertakes to pay all creditors with Allowed
Claims in full.  The Debtor believes the Plan will produce more for
the creditors and holders of interests than they would receive if the case were
to go into Chapter 7 and the assets of the Debtor liquidated.

     

    Gwenco
Third Amended Plan of Reorganization – Page 17

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.2   
The Plan must receive creditor approval, and the Bankruptcy Court must find that
it meets the requirements of the law.  If this Plan is not accepted
and approved, then the law may allow:

     

    
      	
            	
              (1)

            	
              the case to be dismissed out of the bankruptcy
      court;

            

    

    

    
      	
            	
              (2) 

            	
              the
      Debtor to attempt to draft another
plan;

            

    

     

    
      	  	
              
                (3)

              

            	
              a Creditor to
      propose a plan;

            

    

     

    
      	
            	
              (4) 

            	
              the
      case to be converted to a liquidation case under Title 11 Chapter 7 with
      the assets of the Debtor being sold in liquidation and the proceeds
      distributed according to law.

            

    

     

    2.3   
All Claims and Interests, except Administrative Claims, Professional Fee Claims
and Priority Tax Claims, are placed in the Classes set forth below.

     

    2.4   
A Claim or Interest is placed in a particular Class only to the extent that the
Claim or Interest falls within the description of that Class, and is classified
in other Classes to the extent that any portion of the Claim or Interest falls
within the description of such other Classes.  A Claim is also placed
in a particular Class for the purpose of receiving distributions pursuant to the
Plan only to the extent that such Claim is an Allowed Claim in that Class and
such Claim has not been paid, released or otherwise settled prior to the
Effective Date.

     

    III.
ADMINISTRATIVE AND PRIORITY TAX CLAIMS

    
 

    3.1   
Except as otherwise provided for herein or as previously ordered by the Court,
each Person who asserts an Administrative Claim, other than (a) a Professional
Fee Claim, (b) an Allowed Administrative Claim, (c) the DIP Facility Claim, or
(d) a liability incurred and paid in the ordinary course of business by the
Debtor, must file with the Bankruptcy Court, and serve on all parties required
to receive notice thereof, an application for the allowance of such
Administrative Claim no later than the Administrative Claims Bar
Date.  Failure to timely file and serve the application required under
this section shall result in the asserted Administrative Claim being forever
barred and discharged.  State and local tax authorities holding
secured post-petition claims for taxes pursuant to Kentucky law will be paid in
the ordinary course of business without the filing of an Administrative
Claim.

     

    3.2   
Each Professional who asserts an Administrative Claim that is a Professional Fee
Claim shall be required to file with the Bankruptcy Court, and shall serve on
all parties required to receive notice, a final fee application within thirty
(30) days after the Effective Date.  Objections to fee applications
must be filed within twenty (20) days after the filing and service of the fee
application.  Failure to timely file a Professional fee application as
required under this section of the Plan shall result in the asserted
Professional Fee Claim being forever barred and discharged.

     

    Gwenco
Third Amended Plan of Reorganization – Page 18

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.3   
Any filed application for allowance of an Administrative Claim, other than a
Professional Fee Claim, with respect to which notice has been timely and
properly filed pursuant to the Plan shall become an Allowed Administrative Claim
if no objection is filed within twenty (20) days after its filing and
service.  If an objection is filed within such twenty (20) day period,
the Administrative Claim shall become an Allowed Administrative Claim only to
the extent Allowed by a Final Order.

     

    3.4   
An Administrative Claim that is a Professional Fee Claim, and with respect to
which a Fee Application has been timely and properly filed pursuant to the Plan,
shall become an Allowed Administrative Claim only to the extent allowed by a
Final Order.

     

    3.5   
An Administrative Claim that has been incurred in the ordinary course of
business after the Petition Date shall be paid in the ordinary course of
business.

     

    3.6   
If an Administrative Claim becomes an Allowed Administrative Claim on or after
the Effective Date, each Holder of the Allowed Administrative Claim shall
receive, in full satisfaction, settlement, release and discharge of, and in
exchange for, such Allowed Administrative Claim on, or as soon as reasonably
practicable after, the date on which an Administrative Claim becomes an Allowed
Administrative Claim: (i) Cash equal to the unpaid portion of such Allowed
Administrative Claim, or (ii) such other treatment as to which such Holder shall
have agreed upon in writing.

     

    3.7   
On or before the Effective Date, the Debtor shall pay or have paid in Cash in
full all Allowed Administrative Claims for fees payable pursuant to 28 U.S.C. §
1930 and fees payable to the Bankruptcy Court, which are due and payable on or
before the Effective Date.  After the Effective Date, the Reorganized
Debtor shall pay United States Trustee quarterly fees as provided for in Article
15.9 of the Plan as they accrue until the Chapter 11 Case is closed by the
Bankruptcy Court.  The Reorganized Debtor shall file with the
Bankruptcy Court and serve on the United States Trustee a quarterly financial
report for each quarter (or portion thereof) that the Chapter 11 Case remains
open in a format prescribed by the United States Trustee.

     

    Gwenco Third Amended Plan of Reorganization – Page 19

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.8   
With respect to a Claim of a kind specified under Section 507(a)(8) of the
Bankruptcy Code, each Holder of an Allowed Priority Tax Claim shall receive, in
full Gwenco Third Amended Plan of Reorganization – Page
19  satisfaction, settlement, release, and discharge of, and in
exchange for, such Allowed Priority Tax Claim, one of the following: (a)
pursuant to the provisions of Section 1129(a)(9)(C) of the Bankruptcy Code
regular installment payments in cash (i) of a total value, as of the Effective
Date, equal to the Allowed Amount of such claim, (ii) over a period ending not
later than 5 years after the Petition Date, and (iii) in a manner not less
favorable than the most favored non-priority unsecured claim provided for by the
Plan (other than cash payments made to a class of creditors under section
1122(b)), or (b) such other terms as the Holder of such Claim and the Debtor may
agree; provided, however, that the Debtor shall have the right to pay any
Allowed Priority Tax Claim, or any unpaid balance of such Claim, in full, at any
time after the Effective Date, without premium or penalty.

     

    3.9    On
the Effective Date, the Reorganized Debtor shall pay the DIP Facility Claim in
full.

     

    IV.
DIVISION OF CREDITORS AND EQUITY HOLDERS - CLASSIFIED CLAIMS

     

    Claims
against and Interests in the Debtor are classified as follows in accordance with
Section 1122(a) of the Bankruptcy Code.  A Claim or Interest is
classified in a particular class only to the extent that the Claim or Interest
qualifies within the description of the class and is classified in a different
class to the extent the Claim or Interest qualifies within the description of
that different class.  If a Claim is acquired or transferred, the
Claim shall be placed in the class in which it would have been placed if it were
owned by the original Holder of such Claim.

    

    Class
1:          The Interstellar-Duke
Claim.  The current balance on the Interstellar-Duke Claim is
approximately $998,470 as of November 1, 2008, and accrues interest at a per
diem rate of $220.59.

     

    Class
2:          Priority
Claims.  This Class includes the Claim of the Internal Revenue
Service in the approximate amount of $20,000, pursuant to Section 507(a)(8) of
the Bankruptcy Code.

     

    Gwenco
Third Amended Plan of Reorganization – Page 20

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Class
3:          General Unsecured
Claims.  This Class includes General Unsecured Claims, to the
extent that, upon valuation, their Claims are unsecured in whole or in part, and
unliquidated and contingent Claims for injury or other damages.  The
Debtor asserts the following Claims belong in this class:

     

    
      
        
          	
                  Claimant

                	 	
                  Claim No.

                	 	 	
                  Claimed Amount

                	 	
                  Allowed Claim Amount

                	 
	
                  Pike
      County Solid Waste

                	 	 	1	 	 	$	425	 	 	$	425	 
	
                  Sharon
      Preece (1)

                	 	 	2	 	 	$	458,261	 	 	$	150,000	 
	
                  William
      S. Whitson (2)

                	 	 	8	 	 	$	60,000	 	 	$	0	 
	
                  William
      S. Whitson (3)

                	 	 	9	 	 	$	746,256	 	 	$	700,213	 
	
                  Albert
      Anderson (4)

                	 	 	16	 	 	
                  Unknown

                	 	 	$	0	 
	
                  Gwendolyn
      Slater (5)

                	 	 	17	 	 	$	538,277	 	 	$	150,000	 
	
                  Christopher
      Younger (6)

                	 	 	N/A	 	 	$	229,031	 	 	$	92,238	 
	
                  Daniel
      & Pamela Hicks (7)

                	 	 	18	 	 	
                  Unknown

                	 	
                  Unliquidated

                	 
	
                  Interstellar

                	 	 	 	 	 	$	628,746	 	 	$	628,746	 
	
                  First
      Sentry Bank

                	 	 	N/A	 	 	
                  Unknown

                	 	 	$	262,000	 
	
                  United
      National Bank

                	 	 	N/A	 	 	
                  Unknown

                	 	 	$	40,000	 

        

      

    

    

    
      	
              (1)(5)(6)

            	
              1990 Stock Purchase
      Agreement.  These Claims derive from the 1990 Stock Purchase
      Agreement, and with respect to Preece and Younger, the default judgment
      underlying the Preece Claim and the Younger Claim.  The Debtor
      disputes the validity of the default judgment and had, prior to the
      commencement of this case, filed an appeal with respect to the default
      judgment.  The Debtor disputes and objects to the amounts of
      these Claims.   The Debtor states that the balances due
      under the 1990 Stock Purchase Agreement to Ms. Preece, Ms. Slater, and Mr.
      Younger are as set forth above, which are the amounts of the Allowed
      Claims for Ms. Preece, Ms. Slater, and Mr. Younger.  The
      balances which Ms. Preece, Ms. Slater, and Mr. Younger contend are due
      under the Claims are deemed to be Disputed Claims. The Debtor further
      states that the Preece Claim and the Younger Claim should be should be
      treated and paid as General Unsecured
      Claims.  

            

    

     

    Gwenco Third Amended Plan of Reorganization –
Page 21

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              (2)(3)

            	
              Whitson Stock Purchase
      Agreement.  These Claims arise from a Stock Purchase
      Agreement, as amended, by and between William S. Whitson and Albert
      Anderson.  The Debtor, Quest-NV, and Quest have guaranteed
      performance under Whitson Claim 8 and Whitson Claim 9.  The
      Debtor and Whitson have agreed that Whitson Claim 8 is an executory
      contract that is to be accepted by the Debtor under the
      Plan.  The Debtor and Whitson have also agreed that the
      outstanding principal balance of the $180,883 note underlying Whitson
      Claim 9 is $94,369 as of September 30, 2008, while the principal balance
      of the $545,473 note underlying Whitson Claim 9 remains the same and
      carries accrued interest of $60,371 as of September 30,
    2008.

            

    

     

    
      	
              (4)

            	
              Anderson Royalty
      Agreement.  This Claim is based on an executory contract
      that is to be accepted by the Debtor under the
  Plan.

            

    

     

    
      	
              (7)

            	
              Daniel & Pamela
      Hicks.  This Claim is an unliquidated claim for damages
      based on an action for personal injury.  The Court granted Hicks
      relief from stay to pursue the action, which seeks unspecified
      damages.  The Debtor denies that it has any liability to the
      Hicks and intends to defend the
action.

            

    

     

    Class
4:          Subordinated
Claims.  This class
includes the Claims of certain creditors who are affiliates of the Debtor and
whose Claims are to be subordinated to other creditors under the Plan, as
follows:

     

    
      
        
          
            
              
                	
                        Quest
      Energy Ltd

                      	
                        Claim
      10

                      	 	$	1,250,000	 
	
                        Quest
      Minerals & Mining Ltd

                      	
                        Claim
      12

                      	 	$	1,500,000	 

              

            

          

        

      

    

    

    Class
5:          Equity
Interest Holders.  This Class
consists of the Holders of Interests whose claims arise from current equity
ownership in the Debtor.  The Debtor asserts that Quest-NV is the only
member of this Class.

    

    V.       PROVISIONS
FOR CREDITORS AND EQUITY HOLDERS

    All
Claims and Interests, except Administrative Claims and Priority Tax Claims, are
placed in the following Classes of Claims and Interests, pursuant to Bankruptcy
Code section 1123(a)(1), which section specifies the treatment of such Classes
of Claims and Interests and of their impaired or unimpaired status, pursuant to
Bankruptcy Code sections 1123(a)(2) and (3).  A Claim or Interest is
classified in a particular Class only to the extent that the Claim or Interest
qualifies within the description of the Class and is classified in a different
Class to the extent that the Claim or Interest qualifies within the description
of that different Class.  A Claim or Interest is in a particular Class
only to the extent that the Claim or Interest is an Allowed Claim or Interest in
that Class and has not been paid, released, withdrawn, waived, settled, or
otherwise satisfied under the Plan.

     

    
      Gwenco
Third Amended Plan of Reorganization – Page 22

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Subject
to all other applicable provisions of the Plan (including its distribution
provisions), classified Claims and Interests shall receive the treatment set
forth below.  The Plan will not provide any distributions on account
of a Claim or Interest to the extent that such Claim or Interest has been
disallowed, released, withdrawn, waived, settled, or otherwise satisfied or paid
as of the Effective Date, including, without limitation, payments by third party
guarantors, sureties, or insurers, whether governmental or
nongovernmental.   Except as specifically provided in the Plan,
the Plan will not provide any distributions on account of a Claim or Interest,
the payment of which has been assumed by a third party.  Except as
otherwise specifically provided in the Plan or by further order of the
Bankruptcy Court, all treatment, allowances, or payments of Claims which have
been specified or otherwise fixed or required by order of the Bankruptcy Court
shall not be impaired by the Plan, the rights of the Holders of such Claims as
provided in such orders shall not be altered by the Plan, and the Holders of
such Claims and the parties to such contracts shall retain such rights and shall
receive such treatment as provided in such orders in lieu of any other treatment
provided in the Plan, including, without limitation, the following: pre-petition
Claims that have been paid or settled post-petition with Bankruptcy Court
authorization, post-petition claims that have been paid or settled with
Bankruptcy Court authorization, provided that, in either case, the Plan may
discontinue such payments, and settlements or compromises of Claims and
Interests.  Any Holder of any Claim in any Class may agree, pursuant
to Bankruptcy Code section 1123(a)(4), to a treatment of such Claim that is less
favorable than any other Claim in such Class.  A Holder, other than a
governmental entity, not filing an objection to Confirmation of the Plan is
conclusively deemed to have agreed, pursuant to Section 1123(a)(4), to the
treatment it receives under the Plan.

     

    Class
1:          The
Interstellar-Duke Claim.  This Class is
impaired and Interstellar is entitled to vote on the
Plan.    The Interstellar-Duke Claim shall be an Allowed
Claim in the amount of $924,482 and shall be treated as follows:

     

    The
Interstellar-Duke Claim shall be satisfied by the issuance of a secured
convertible note by the Debtor to Interstellar, the form of which is attached as
an exhibit hereto, on the following terms:

     

    
      Gwenco
Third Amended Plan of Reorganization – Page 23

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Amount
      of claim:

                                    	 
      	
                                      $992,482
      (plus a per diem of $220.59)

                                    
	 	 	 
	
                                      Interest:

                                    	 
      	
                                      12%
      per annum, to be accrued and paid upon maturity; provided, however, the
      Holder shall have the right to convert accrued interest into shares of
      Quest Common Stock, on the terms set forth below, in lieu of receiving
      cash.

                                    
	 	 	 
	
                                      Priority
      security interest:

                                    	 
      	
                                      First
      on all assets, including leasehold interests (subject to the Exit
      Loan)

                                    
	 	 	 
	
                                      Term:

                                    	 
      	
                                      Due
      in 5 years from Effective Date

                                    
	 	 	 
	
                                      Guaranteed
      by:

                                    	 
      	
                                      Quest
      and Quest-NV

                                    
	 	 	 
	
                                      Conversion
      Rights:

                                    	 
      	
                                      Upon
      the Effective Date, the Holder will have the right to convert principal
      and interest due under the note into shares of Quest Common
      Stock.  The conversion price (the “Conversion Price”) shall be
      the lesser of (a) $0.01 per Share (which shall not be subject to
      adjustment as a result of a split or reverse split), and (b) 40% of the
      average of the three lowest Per Share Market Values during the ten (10)
      Trading Days immediately preceding a Conversion Date; provided, however,
      that the Conversion Price shall not be lower than the par value per Share
      of Quest Common Stock in effect at the time of conversion.  The
      Holder will be prohibited from converting any portion of the Note if, as a
      result of such conversion, the Holder would hold more than 4.99% of the
      issued and outstanding shares of Quest Common Stock.

                                    
	 	 	 
	
                                      Right
      of Prepayment:

                                    	 
      	
                                      Debtor
      (or guarantor) has a right to repay without penalty

                                    
	 	 	 
	
                                      Events
      of Default:

                                    	 
      	
                                      Non-payment
      of note

                                    
	 	 	 
	 
      	 
      	
                                      Non-payment
      of any other claim (other than to a Quest Affiliate)

                                    
	 	 	 
	 
      	 
      	
                                      Failure
      of Quest to honor conversion

                                    
	 	 	 
	 
      	 
      	
                                      Default
      under Interstellar Royalty Agreement

                                    
	 	 	 
	 
      	 
      	
                                      Default
      under any other Executory
Contract

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      Gwenco
Third Amended Plan of Reorganization – Page 24

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Class
2:          Priority
Claims.  Except to the
extent that a Holder of as Allowed Priority Claim has agreed to a different
treatment of such Claim, with respect to such Claim of a kind specified in
Section 507(a)(2) or 507 (a)(3) of the Bankruptcy Code, on the Effective Date,
the Holder of such Claim shall receive on account of such Claim cash equal to
the Allowed amount of such Claim.  With respect to such Claim of a
kind specified under Sections 507(a)(1), 507(a)(4), 507(a)(5), 507(a)(6) or
507(a)(7) of the Bankruptcy Code, each Holder of such Claim shall receive (i) if
such Class has accepted the Plan, deferred cash payments of a value, as of the
Effective Date, equal to the Allowed amount of such Claim, or (ii) if such Class
has not accepted the Plan, cash on the Effective Date of the Plan equal to the
Allowed amount of such Claim.

     

    Class
3.          General
Unsecured Claims.  Unless otherwise
agreed by the Holders of the Allowed General Unsecured Claims, each Holder of an
Allowed General Unsecured Claim in this Class (unless the Debtor and such Holder
shall have negotiated different treatment as set forth below) shall receive cash
payments totaling at least the Allowed amount of its Claim, possessing a value,
as of the Effective Date, equal to the full value of the Allowed Claim, on the
earlier of: (a) the sixtieth month after the Effective Date, or (b) the date on
which, in the Debtor’s sole discretion, sufficient proceeds from the Exit Loan
become available to repay such Claims.

     

    Furthermore,
beginning on the twenty-fifth (25th) day of
the month following the Effective Date and ending on the earlier of (a) the date
on which the entire amount of the Allowed General Unsecured Claims in this Class
(unless the Debtor and such Holder shall have negotiated different treatment as
set forth below) have been paid in full, or (b) the sixtieth month after the
Effective Date, on the twenty-fifth (25th) day of
each month following the Effective Date, each Holder of an Allowed General
Unsecured Claim in this Class (unless the Debtor and such Holder shall have
negotiated different treatment as set forth below) shall receive minimum cash
payments equal to their Pro-Rata Share of the Allowed Unsecured Claim
Royalty.  These cash payments shall be applied to and shall reduce the
amount of the Holders’ Allowed General Unsecured Claim.  In the event
that these cash payments are insufficient to pay the Allowed General Unsecured
Claims in their entirety prior to the sixtieth month after the Effective Date,
the unpaid balance of the Allowed General Unsecured Claims shall be paid on the
sixtieth month after the Effective Date.

     

    On or
before April 15, July 15, October 15, and January 15 of each year during the
term of this Agreement, the Debtor shall provide the holders of the Allowed
General Unsecured Claims with a progress report regarding any mining operations
on the Mine Premises during the three (3) month period.  Each progress
report shall include such information, statistics, maps and plats as may from
time to time be specified by the holders of the Allowed General Unsecured
Claims.

     

    
      Gwenco
Third Amended Plan of Reorganization – Page 25

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Other
than as provided in the Plain, all claims of Preece and Younger under any
judgment or other pre-petition document, legal proceeding, or instrument are
void and without legal effect, and all pre-petition liens in favor of Preece and
Younger are released on the Effective Date of the Plan.

     

    Nothwithstanding
the foregoing, the Debtor has negotiated treatment of certain Claims in this
Class as follows:

     

    
      	
               
      

            	
              (1)

            	
              Sharon Preece (Claim
      2).On or about June 20, 2007, the Debtor entered into a settlement
      agreement with Preece, which agreement was approved by the Bankruptcy
      Court on July 25, 2007.  Pursuant to the settlement agreement,
      the Debtor paid $150,000 to Preece in exchange for a release of all claims
      against the Debtor.  In addition, the Debtor agreed to make
      royalty payments to Preece in accordance with the 1990 Stock Purchase
      Agreement.  The Debtor also agreed to purchase certain equipment
      located on the Debtor’s premises from an affiliate of Preece for
      $40,000.  Accordingly, the amount of the Allowed Preece Claim
      shall not
      be included in the calculation of the aggregate Face Amount of all Allowed
      General Unsecured Claims.

            

    

     

    
      	
               
      

            	
              (2)

            	
              William S. Whitson
      (Claim 8).  The Debtor and Whitson have agreed that this
      is an executory contract that is to be accepted by the Debtor under the
      Plan and shall receive the treatment accorded to assumed Executory
      Contracts and Unexpired Leases under Article VI of the
    Plan.

            

    

     

    
      	
            	
               
      

            	
              Notwithstanding
      any portion of this Plan to the contrary, payment of the Whitson Claim 8
      under the Plan shall be guaranteed by Quest and
      Quest-NV.  Whitson shall have the right to enforce said
      guarantee against Quest and/or Quest-NV to recover amounts resulting from
      defaults in distributions to Whitson under Claim 8, but shall not be
      entitled to enforce said guarantee to the extent that Whitson receives
      timely distributions in correct amounts under Claim
  8.

            

    

     

    Gwenco Third Amended Plan of Reorganization –
Page 26

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (3)

            	
              William S. Whitson
      (Claim 9).  In addition to Whitson Claim 9 being be
      treated as a Class 3 Allowed General Unsecured Claim as set forth above,
      Whitson, at his sole option, on the first day of any calendar month, may
      convert any or all of up to $15,000 of the outstanding unpaid balance of
      the Allowed Whitson Claim 9 for a number of shares of Quest Common Stock
      equal to the quotient obtained by dividing such amount being converted by
      the Whitson Conversion Price.  Conversions hereunder shall have
      the effect of lowering the unpaid balance of the Allowed Whitson Claim 9
      in an amount equal to the applicable conversion based upon the Whitson
      Conversion Price.  Further, notwithstanding any portion of this
      Plan to the contrary, payment of the Whitson Claim 9 shall be guaranteed
      by Quest and Quest-NV.  Whitson shall have the right to enforce
      said guarantees against Quest and/or Quest-NV to recover amounts resulting
      from a default in distributions to Whitson under Whitson Claim 9, but
      shall not be entitled to enforce said guarantees to the extent that
      Whitson receives timely distributions in correct amounts under Whitson
      Claim 9.

            

    

     

    
      	
               
      

            	
              (4)

            	
              Albert
      Anderson.  This Claim is based on an executory contract
      that is to be accepted by the Debtor under the Plan and shall receive the
      treatment accorded to assumed Executory Contracts and Unexpired Leases
      under Article VI of the Plan.

            

    

     

    Class
4:          Subordinated
Claims.  Claims in this
Class are hereby subordinated and junior in right of payment to the Holders of
all other Allowed Claims and will be paid after Claims are paid in all other
classes.  This Class is impaired, and, as the Holders of Claims in
this Class are Affiliates, they are not entitled to vote on the
Plan.

     

    Class
5:          Equity
Interest Holders.
This Class is not impaired and is conclusively deemed to have accepted the
Plan.  In consideration of Quest and Quest-NV providing the guarantees
of the DIP Financing, the Duke-Interstellar note, and the Exit Facility, and
other undertakings of Quest and Quest-NV in connection with the Plan and
contributing the Quest Company Stock upon conversion of the Duke-Interstellar
note, the Exit Facility, and Whitson Claim 9, Quest-NV shall be deemed to have
retained its Interests in the Reorganized Debtor, free and clear of any
impairment by reason of the Debtor having filed bankruptcy.

     

    Gwenco Third
Amended Plan of Reorganization – Page 27

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    VI.     TREATMENT
OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES

    On the
Effective Date, all Executory Contracts and Unexpired Leases that exist between
the Debtor and any entity shall be deemed rejected as of the Confirmation Date,
except for any Executory Contract or Unexpired Lease (a) that has been assumed
pursuant to an order of the Bankruptcy Court entered prior to the Effective
Date, (b) as to which a motion for approval of the assumption or rejection of
such contract or lease has been filed or an Order of assumption entered
regarding such contract or lease prior to the Confirmation Hearing, (c) which is
set forth on Exhibit A hereto and hereby expressly assumed by the Debtor
pursuant to this Plan, or (d) listed on a Plan supplement and expressly assumed
by the Debtor pursuant to this Plan.  All modified, amended, and new
leases and contracts entered into by the Debtor in the ordinary course of its
business after the Petition Date shall, unless terminated under their terms
prior to the Effective Date, be valid and enforceable according to their terms
and assumed under the Plan.  Entry of the Confirmation Order by the
Bankruptcy Court shall constitute approval of such modified, amended, and new
leases and contracts, and assumptions pursuant to Sections 363(c)(1), 365, and
1123 of the Bankruptcy Code.  Each Executory Contract and Unexpired
Lease approved or assumed pursuant to this Section shall vest in and be fully
enforceable by the Reorganized Debtor in accordance with its terms, except as
modified by the provisions of this Plan, or any order of the Bankruptcy Court
authorizing or providing for its assumption or applicable federal
law.  The Debtor reserves the right to file a motion on or before the
Confirmation Date to assume or reject any Executory Contract and Unexpired Lease
not previously rejected under Section 365.

     

    A
facsimile or imaged signature on any copy of any lease or executor contract that
is assumed and not rejected, or that was modified, amended, or renegotiated by
execution of a new lease or contract after the filing date, shall be deemed to
be an original signature for all purposes and shall suffice in any legal
proceeding or action to enforce the terms thereof.

     

    The
Debtor asserts that, unless previously reduced or modified by agreement of the
lessor/lessees, there are cures due for the following Executory Contracts and/or
Unexpired Leases which are due on the Effective Date in the following
approximate amounts (as of September 15, 2008), which will be adjusted to
include additional amounts due prior to the Effective Date, the intent being to
cure all pre-petition and post-petition defaults under the Executory Contracts
and Unexpired Leases and provide adequate assurance of future performance by
payment of the amount due on the Effective Date:

     

    Gwenco Third
Amended Plan of Reorganization – Page 28

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                	
                        Lessor/Royalty
      Holder

                      	 	
                        Amount

                      	 
	
                        Albert
      Anderson

                      	 	$	3,437	 
	
                        Scott
      Whitson

                      	 	$	1,782	 
	
                        Anthony
      Intrieri

                      	 	$	347	 
	
                        Professional
      Offshore Opp.

                      	 	$	1,286	 
	
                        Allen
      Slater Heirs (3/yrs)

                      	 	$	-	 
	
                        Interstellar
      Holdings (3/yrs)

                      	 	$	4,000	 
	
                        Interstellar
      Holdings (3/yrs)

                      	 	$	15,000	 
	
                        Becky
      Baer

                      	 	$	4,000	 
	
                        Becky
      Baer

                      	 	$	17,200	 
	
                        Ben
      Millard Heirs (1/yr)

                      	 	$	7,833	 
	
                        Muriel
      Millard (1/yr)

                      	 	$	2,833	 
	
                        Edward
      Slater (3/yrs)

                      	 	$	-	 
	
                        Sallie
      Slater Heirs

                      	 	$	10,000	 
	
                        George
      Fields (3/yrs)

                      	 	$	3,000	 
	
                        George
      Robinson

                      	 	$	4,000	 
	
                        George
      Robinson (3/yrs)

                      	 	$	2,500	 
	
                        George
      Robinson (3/yrs)

                      	 	$	1,000	 
	
                        Hilbert
      Phillips

                      	 	$	20,000	 
	
                        Hugh
      Bert Slater (5/yrs)

                      	 	$	2,500	 
	
                        Ida
      Slater (3/yrs)

                      	 	$	4,000	 
	
                        James
      Robinson

                      	 	$	200	 
	
                        James
      Robinson

                      	 	$	(166	)
	
                        Jean
      Tucker (3/yrs)

                      	 	$	-	 
	
                        John
      Evans

                      	 	$	200	 
	
                        Lassie
      Adair Heirs

                      	 	$	-	 
	
                        Mary
      Gill (3/yrs)

                      	 	$	2,183	 
	
                        Nina
      Blackburn (3/yrs)

                      	 	$	3,000	 
	
                        Deskins
      - Sanders (5/yrs)

                      	 	$	8,978	 
	
                        Robert
      Stepp Heirs (1/yr)

                      	 	$	12,500	 
	
                        WF
      Alley (3/yrs)

                      	 	$	-	 
	
                        TOTAL

                      	 	$   	131,612	 

              

            

          

        

      

    

    

    Additional
Persons holding a Cure Claim may be identified and will receive the same or
similar treatment for their Allowed Cure Claim.

     

    Executory
Contracts and Unexpired Leases to be assumed under the Plan which are or may be
in default shall be satisfied solely by cure.  All Allowed Cure Claims
(other than the Millard Lease Cure Claim, the Stepp Lease Cure Claim, and the
Sally Slater Lease Cure Claim) which have not been satisfied as of the Effective
Date, shall receive cash payments totaling the Allowed Amount of its Claim, on
the earlier of the following: (a) the thirty-sixth month after the Effective
Date, or (b) the date on which, in the Debtor’s sole discretion, sufficient
proceeds from the Exit Loan become available to repay such
Claims.  The Millard Lease Cure Claim, the Stepp Lease Cure Claim, and
the Sally Slater Lease Cure Claim shall receive cash payments totaling the
Allowed amount of each Claim, on or before the Effective Date.

     

    To the
extent that a party to an assumed executory contract or unexpired lease disputes
the amount of any Allowed Cure Claim relating to assumption of executory
contracts and unexpired leases, the cure of any other defaults, the promptness
of the Allowed Cure Claim payments, or the provisions of adequate assurance of
future performance, such party must file an appropriate pleading with the
Bankruptcy Court on or before the Confirmation Hearing regarding such disputes
or such party shall be deemed to have waived its right to dispute such
matters.

     

    Gwenco Third Amended Plan of Reorganization – Page 29

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If there
is a dispute regarding (i) the nature or amount of any Allowed Cure Claim, (ii)
the ability of the Debtor to provide “adequate assurance of future performance”
(within the meaning of Section 365 of the Bankruptcy Code) under the contract or
lease to be assumed, or (iii) any other matter pertaining to assumption, the
Allowed Cure Claim shall be paid within sixty (60) days following the entry of a
Final Order resolving the dispute and approving the assumption or assumption and
assignment, as the case may be, or as Ordered by the Court.

     

    If the
rejection of an executory contract or an unexpired lease by the Debtor results
in damages to the other party or parties to such contract or lease, a Claim for
such damages shall be forever barred and shall not be enforceable against the
Debtor, the Reorganized Debtor or its properties or agents, successors, or
assigns, unless a proof of Claim is filed with the Bankruptcy Court and served
upon the Reorganized Debtor by the later of: (i) the Rejection Damages Bar Date,
or (ii) such later deadline as the Bankruptcy Court may Order for asserting a
Claim for such damages, or if no Bankruptcy Court Order establishing a deadline
is entered before Confirmation of the Plan, then such date as is set in the
Confirmation Order.

    

    VII.  
CLASSES IMPAIRED BY THE PLAN

    All
Classes of Claims and Interests, other than Class 5, are impaired (Claims that
are not going to be paid completely or in which some legal, equitable, or
contractual right is altered) by the Plan.

    

    VIII.  
MEANS FOR PERFORMING THE PLAN

    8.1           The
Reorganized Debtor shall have full authority, without further hearing or order,
to carry on day to day operations in the normal course of business, and to
perform its obligations under this Plan out of income generated by said
operations.

     

    8.2           The
Reorganized Debtor will continue to operate the business and will mine coal on
leaseholds through the services of a Contract Miner or Operator. Debtor will use
current and future income from the operation of the business to meet current and
future expenses, and to make payments called for under the plan.

     

    Gwenco Third
Amended Plan of Reorganization – Page 30

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.3           Interstellar
will provide exit financing to Gwenco in consideration of Gwenco issuing debt
instruments to Interstellar pursuant to the terms of the Exit Loan
Documents.

    

    IX.    CONTEMPLATED
COMPENSATION FOR SERVICES, COSTS, AND EXPENSES

    No
compensation has been paid or promised by the Debtor or to the Debtor’s
knowledge by any other entity for services, costs, or expenses except the
following:

     

    9.1           The
Debtor has paid $22,500 to Paul Stewart Snyder, Attorney, for services, costs,
and expenses in these proceedings and has agreed to pay such additional sum as
the court has and may allow upon application. It is estimated that approximately
$16,500 in additional compensation may be requested by said
attorney.

     

    9.2           The
Debtor and Reorganized Debtor will pay operating expenses and salaries in the
normal course of business, and, until this Plan is completed, shall allow any
creditor, making a good faith request, the right to inspect its books and
records during regular business hours.

    

    X.    PROVISIONS
FOR MODIFICATION OF DEBTOR’S CORPORATE CHARTER

    10.1           Section
1123(a)(6) requires that if the Debtor is a corporation, the Debtor must provide
for inclusion in the charter of the debtor of a provision prohibiting the
issuance of nonvoting equity securities, and providing, as to the several
classes of securities possessing voting power, an appropriate distribution of
such power among such classes, including, in the case of any class of equity
securities having a preference over another class of equity securities with
respect to dividends, adequate provisions for the election of directors
representing such preferred class in the event of default in the payment of such
dividends.

     

    10.2           The
Debtor is a wholly owned subsidiary of Quest-NV, which in turn is a wholly-owned
subsidiary of Quest, and as such is not authorized by the parent to issue equity
securities of any kind to any entity other than Quest-NV.

     

    10.3           On
or before confirmation, the Debtor will amend its charter to include the
following language, or its equivalent, pursuant to §1123(a)(6):

     

    No
nonvoting equity securities shall be issued.

     

    To the
extent that there is more than one class of securities, any class of equity
securities having a preference over another class of equity securities with
respect to dividends shall, upon the occurrence of default in the payment of
such dividends, have the right to call for a prompt election of new directors,
and holders of securities in the preferred class shall have the right to vote,
without participation of other classes, to elect a director to represent the
class.

     

    Gwenco Third
Amended Plan of Reorganization – Page 31

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    XI.     BAR
DATE

    11.1           Except
as otherwise agreed or provided for in the Plan, any and all proofs of Claim not
filed in accordance with the Bar Date shall be deemed disallowed and expunged
without any further notice to or action, order, or approval of the Bankruptcy
Court, and Holders of such filed Claims shall not receive any distributions on
account of such Claims, unless on or before the date of the Confirmation
Hearing, whether or not such Claim is a late Claim under Rule 3003(c)(3), a
Claim filed after the Bar Date has been deemed timely filed by a Bankruptcy
Court Order.

     

    11.2           The
Debtor or a party-in-interest may file an objection to any timely filed Claim no
later than the Claim Objection Bar Date.

    

    XII.   
ALLOWED CLAIMS

    12.1           Notwithstanding
any other provisions of the Plan, no payments or distributions will be made on
account of a Disputed Claim, but only as to the disputed portion, unless and
until such Claim becomes an Allowed Claim.  Payments or distributions
will be made on the respective Initial Distribution Date or subsequent
Distribution Dates with respect to any undisputed portion of such
Claim.

     

    12.2           If,
on or after the Initial Distribution Date, any Disputed General Unsecured Claim
becomes an Allowed Claim, the Debtor shall on the next Distribution Date
distribute from the Disputed Claims Reserve to the Holder of such Allowed
General Unsecured Claim the amount of Cash from the Cash Distribution Amount
that such Holder would have been entitled to receive under the Plan if such
Claim had been an Allowed Claim on the Initial Distribution Date.

     

    12.3           If,
on or after the Initial Distribution Date, any Disputed Claim which is not a
General Unsecured Claim becomes an Allowed Claim, the Reorganized Debtor shall
pay any outstanding Allowed amount of the Allowed Claim on the date such Claim
becomes an Allowed Claim or as soon as reasonably practicable
thereafter.

     

    Gwenco Third Amended Plan of Reorganization – Page 32

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      XIII.
POSTPETITION INTEREST

      In
accordance with Section 502(b)(2) of the Bankruptcy Code, the amount of all
Allowed Claims against the Debtor shall be calculated as of the Petition
Date.  Except as otherwise explicitly provided herein or in a final
Order of the Bankruptcy Court, no Holder of an Allowed Claim shall be entitled
to or receive post-petition or post-Confirmation interest with respect to any
portion of an Allowed Claim.

       

      XIV.
ALTERNATIVE TREATMENT

      Notwithstanding
any provision herein to the contrary, any Holder of an Allowed Claim may
receive, instead of the Distribution or treatment to which it is entitled
hereunder, any other Distribution or treatment to which it and, prior to the
Effective Date, the Debtor (with the written consent of Interstellar, which
consent shall not be unreasonably withheld) or, on or after the Effective Date,
the Reorganized Debtor, may agree in writing, so long as such alternative
treatment is substantially the same as or less favorable than the treatment
otherwise prescribed for such Holder by the Plan. Payment to a Creditor of an
amount less than the Creditor would receive under the Plan shall be conclusively
deemed to be less favorable than the treatment otherwise prescribed for such
Holder by the Plan.

       

      XV.
OTHER PROVISIONS

      15.1
Binding
Effect.         The Plan shall be
binding upon and inure to the benefit of the Debtor, all present and former
Holders of Claims and Interests, and their respective successors and assigns,
including, but not limited to the Reorganized Debtor and all other parties in
interest in this Chapter 11 Case.

       

      15.2
Discharge of the
Reorganized
Debtor.         On the
Effective Date (or within any extension allowed by the Court), and without
further order of the Court, the rights accorded pursuant to and in accordance
with the applicable terms and conditions of the Plan are in full and final
satisfaction, settlement, release and discharge as against the Debtor and
Reorganized Debtor, and any of their non-debtor Affiliates, their assets and
liabilities of all Claims and Equity Interests and any debt that arose before
the Effective Date, and any debt of a kind specified in Section 502(g), 502(h)
or 502(i) of the Bankruptcy Code, and all Claims and Equity Interests of any
nature, including, without limitation, any interest, fees or penalties accrued
thereon from and after the Petition Date, whether or not: (i) a proof of claim
or proof of interest based on such Claim, debt, obligation or Equity Interest is
filed or deemed filed under Section 501 of the Bankruptcy Code; (ii) such Claim
or Equity Interest is Allowed under Section 502 of the Bankruptcy Code; or (iii)
the Holder of such Claim or Equity Interest has accepted this Plan, provided
however, that nothing herein shall prohibit the exercise of police or regulatory
powers by a state or federal governmental agency.   This
provision does not affect the guarantees by Quest and Quest-NV of payment of the
Whitson Claim 9 pursuant to the Plan or with respect to any other obligations
guaranteed by such guarantees.

      

      Gwenco
Third Amended Plan of Reorganization – Page 33

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      15.3
Releases by the
Debtor.         Pursuant to
section 1123(b) of the Bankruptcy Code, and except as otherwise specifically
provided in the Plan or any Plan Supplement, for good and valuable
consideration, on and after the Effective Date, the Released Parties are deemed
released and discharged by the Debtor, the Reorganized Debtor, and the Estate
from any and all claims, obligations, rights, suits, damages, causes of action,
remedies, and liabilities whatsoever, including any derivative Claims asserted
on behalf of the Debtor, whether known or unknown, foreseen or unforeseen,
existing or hereinafter arising, in law, equity, or otherwise that the Debtor,
the Reorganized Debtor, the Estate, or their Affiliates, and any party who has
standing to assert claims on behalf of the foregoing parties, would have been
legally entitled to assert in their own right (whether individually or
collectively), based on or relating to, or in any manner arising from, in whole
or in part, the Debtor, the Chapter 11 Case, the purchase, sale, or rescission
of the purchase or sale of any security of the Debtor, the subject matter of, or
the transactions or events giving rise to, any Claim or Interest that is treated
in the Plan, the business or contractual arrangements between the Debtor and any
Released Party, the restructuring of Claims and Interests prior to or in the
Chapter 11 Case, the negotiation, formulation or preparation of the Plan and
Disclosure Statement, or related agreements, instruments, or other documents,
upon any other act or omission, transaction, agreement, event, or other
occurrence taking place on or before the Effective Date.  This
provision does not affect the guarantees by Quest and Quest-NV of payment of the
Whitson Claim 9 pursuant to the Plan or with respect to any other obligations
guaranteed by such guarantees.

       

      Gwenco
Third Amended Plan of Reorganization – Page 34

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      15.4
Exculpation.         Except
as otherwise specifically provided in the Plan or any Plan Supplement, no
Exculpated Party shall have or incur, and each Exculpated Party is hereby
released and exculpated from any claim, obligation, cause of action, or
liability for any Released Claim, but in all respects such Entities shall be
entitled to reasonably rely upon the advice of counsel with respect to their
duties and responsibilities pursuant to the Plan.  The Debtor and the
Reorganized Debtor (and each of their respective affiliates, agents, directors,
officers, employees, advisors, and attorneys) have, and upon Confirmation of the
Plan shall be deemed to have, participated in good faith and in compliance with
the applicable provisions of the Bankruptcy Code with regard to the
distributions of the securities pursuant to the Plan, and therefore are not, and
on account of such distributions shall not be, liable at any time for the
violation of any applicable law, rule or regulation governing the solicitation
of acceptances or rejections of the Plan or such distributions made pursuant to
the Plan.  Unless specifically provided otherwise, exculpation is not
intended to release claims against, or change the terms of payments which are to
be made by or to, the Parent Corporation and/or Gwenco.  This
provision does not affect the guarantees by Quest and Quest-NV of payment of the
Whitson Claim 9 pursuant to the Plan or with respect to any other obligations
guaranteed by such guarantees.

       

      15.5
Releases by Holders of
Claims and
Interests.         Except as
otherwise specifically provided in the Plan or any Plan Supplement, on and after
the Effective Date, Holders of Claims and Interests (a) voting to accept the
Plan or (b) abstaining from voting on the Plan and electing not to opt out of
the release contained in this paragraph (which by definition, does not include
Holders of Claims and Interests who are not entitled to vote in favor of or
against the Plan), shall be deemed to have conclusively, absolutely,
unconditionally, irrevocably, and forever, released and discharged the Debtor,
the Reorganized Debtor and the Released Parties from any and all Claims,
Interests, obligations, rights, suits, damages, causes of action, remedies, and
liabilities whatsoever, including any derivative Claims asserted on behalf of
the Debtor, whether known or unknown, foreseen or unforeseen, existing or
hereafter arising, in law, equity or otherwise, that such Entity would have been
legally entitled to assert (whether individually or collectively), based on or
relating to, or in any manner arising from, in whole or in part, the Debtor, the
Debtor’s restructuring, the Debtor’s Chapter 11 Case, the purchase, sale, or
rescission of the purchase or sale of any security of the Debtor, the subject
matter of, or the transactions or events giving rise to, any Claim or Interest
that is treated in the Plan, the business or contractual arrangements between
the Debtor and any Released Party, the restructuring of Claims and Interests
prior to or in the Chapter 11 Case, the negotiation, formulation, or preparation
of the Plan and Disclosure, or related agreements, instruments, or other
documents, upon any other act or omission transaction, agreement, event or other
occurrence taking place on or before the Effective Date, other than Claims or
liabilities arising out of or relating to any act or omission of the Debtor, the
Reorganized Debtor or a Released Party that constitutes a failure to perform the
duty to act in good faith, with the care of an ordinarily prudent person and in
a manner the debtor, the Reorganized Debtor, or the Released Party reasonably
believed to be in the best interests of the Debtor (to the extent such duty is
imposed by applicable non-bankruptcy law) where such failure to perform
constitutes willful misconduct or gross negligence.  This provision
does not affect the guarantees by Quest and Quest-NV of payment of the Whitson
Claim 9 pursuant to the Plan or with respect to any other obligations guaranteed
by such guarantees.

       

      Gwenco
Third Amended Plan of Reorganization – Page 35

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      15.6
Injunction.         In
accordance with the Plan and Section 524 of the Bankruptcy Code, the discharge
provided by Section 1141 of the Bankruptcy Code shall act as an injunction
against the commencement or continuation of any action, employment of process,
or act to collect, offset, or recover the Claims or Interests discharged
hereby.  Except as otherwise expressly provided in the Plan or the
Confirmation Order, all Persons who have held, hold, or may hold Claims against
the Debtor, the Reorganized Debtor, or Interests in the Debtor, or the
Reorganized Debtor or Interests in the Reorganized Debtor, will be permanently
enjoined and precluded permanently, on and after the Effective Date, from (i)
commencing or continuing in any manner any action or other proceeding of any
kind with respect to any such Claim or Interest against the Debtor or the
Reorganized Debtor, or any of its respective successors and Affiliates, (ii) the
enforcement, attachment, collection or recovery by any manner or means of any
judgment, award, decree or order against the Debtor or the Reorganized Debtor or
any of its respective successors and Affiliates on account of any such Claim or
Interest, (iii) creating, perfecting or enforcing any encumbrance of any kind
against the Debtor or the Reorganized Debtor and Affiliates or against its
respective property or interests in property, or a Disbursing Agent, on account
of any such Claim or Interest, and (iv) asserting any right of setoff,
subrogation or recoupment of any kind against any obligation due to the Debtor
or the Reorganized Debtor, and Affiliates, or against its property or interests
in property, or a Disbursing Agent, on account of any such Claim or
Interest.  The foregoing injunction will extend to successors of the
Debtor, the Reorganized Debtor, and Affiliates and their respective properties
and interests in property.  This provision does not affect the
guarantees by Quest and Quest-NV of payment of the Whitson Claim 9 pursuant to
the Plan or with respect to any other obligations guaranteed by such
guarantees.

       

      15.7
ERISA.         The
injunction provided in this section of the Plan shall not release or enjoin any
claims against any of the individuals or entities enumerated therein with
respect to (a) fiduciary obligations under ERISA or any controlled group
liabilities under Title IV of ERISA or (b) police or regulatory activities of
governmental regulatory agencies.  This provision does not affect the
guarantees by Quest and Quest-NV of payment of the Whitson Claim 9 pursuant to
the Plan or with respect to any other obligations guaranteed by such
guarantees.

       

      Gwenco
Third Amended Plan of Reorganization – Page 36

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      15.8
Issuance of
Securities.         Securities,
including stock, notes, debentures, options, warrants, and other instruments
issued pursuant to this Plan in exchange for Claims or Interests shall be exempt
from laws requiring registration for the offer or sale of such securities or
registration or licensing of an issuer of, underwriter of or broker or dealer in
such securities to the fullest extent as provided of Section 1145 of the
Bankruptcy Code.

       

      15.9
Distributions Under
the Plan.         The
Reorganized Debtor shall make all distributions required under the Plan to
Administrative Claims, Professional Fee Claims, Priority Claims, and other
Classes subject to the provisions of the Plan.

       

      15.10   Cash
Payments.         Cash
payments made pursuant to the Plan or the Plan Trust Agreement will be in the
currency of the United States, by the means agreed to by the payor and the
payee, including by check or wire transfer, or, in the absence of an agreement,
by checks drawn on a domestic bank or, at the option of the aforementioned
parties, by wire transfer from a domestic bank.

      

      15.11
Holding of
Undeliverable
Distributions.         If
any distribution to a Holder of an Allowed Claim is returned to Debtor, as the
case may be, as undeliverable, no further distributions will be made to such
Holder unless and until the Debtor is notified by written certification of such
Holder’s then-current address.

      

      15.12   Failure to Claim
Undeliverable
Distributions.         Any
Holder of an Allowed General Unsecured Claim or a Claim resulting from
assumption of a Contract, including an unexpired Lease, that does not assert a
Claim pursuant to the Plan for an undeliverable distribution to be made within
six (6) months after the later of (i) the Effective Date and (ii) the last date
on which a distribution was deliverable to such Holder will have its Claim for
such undeliverable distribution discharged and will be forever barred from
asserting any such Claim under the Plan or its respective property against the
Debtor. Any undeliverable distribution to Allowed Claims that remains unclaimed
will, to the greatest extent allowed by law, re-vest in the
Debtor.  Nothing contained in the Plan will require the Debtor or the
Reorganized Debtor to locate any Holder of an Allowed General Unsecured
Claim.

      

      Gwenco
Third Amended Plan of Reorganization – Page 37

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      15.13
Compliance with Tax
Requirements.         In
connection with the Plan, to the extent applicable, the Reorganized Debtor will
comply with all tax withholding and reporting requirements imposed on it by any
governmental unit, and all distributions pursuant to the Plan will be subject to
such withholding and reporting requirements. Notwithstanding any other provision
of the Plan, each entity receiving a distribution of Cash pursuant to the Plan
will have sole and exclusive responsibility for the satisfaction and payment of
any tax obligations imposed on it by any governmental unit on account of such
distribution, including income, withholding and other Tax
obligations.

      

      15.14
Integration.         The
Plan is a complete, whole, and integrated statement of the binding agreement
between the Debtor, its creditors, their Interest Holders and other
parties-in-interest upon the matters herein.  Parole evidence shall
not be admissible in an action regarding the Plan or any of its
provisions.

      

      15.15
Severability.         If
any term or provision of the Plan is held by the Bankruptcy Court to be invalid,
void, or unenforceable before the Confirmation Date, the Bankruptcy Court, at
the request of the Debtor, will have the power to alter and interpret the term
or provision to make it valid or enforceable to the maximum extent practicable,
consistent with the original purpose of the term or provision held to be
invalid, void, or unenforceable, and the term or provision will then be
applicable as altered or interpreted.  Notwithstanding any such
holding, alteration, or interpretation, the remainder of the terms and
provisions of the Plan will remain in full force and effect and will in no way
be affected, impaired, or invalidated by the holding, alteration, or
interpretation.  The Confirmation Order will constitute a judicial
determination and will provide that each term and provision of the Plan, as it
may have been altered or interpreted in accordance with the foregoing, is valid
and enforceable pursuant to its terms.

      

      15.16
Construction.         Unless
a rule of law or procedure is supplied by federal law (including the Bankruptcy
Code and the Bankruptcy Rules), the laws of (i) the Commonwealth of Kentucky
shall govern the construction and implementation of the Plan and any agreements,
documents, and instruments executed in connection with the Plan unless otherwise
expressly provided for in such agreement, document or instrument and (ii) the
laws of the Commonwealth of Kentucky shall govern any causes of action arising
under state law with respect to such Debtor and the Plan, in either case without
giving effect to the principles of conflicts of law thereto.

      

      Gwenco
Third Amended Plan of Reorganization – Page 38

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      XVI.
ACCEPTANCE OR REJECTION OF PLAN

      16.1  After
approval of a Disclosure Statement, the Holders of Allowed Claims or Interests
will, under the provisions of Title 11 Section 1126, be given a ballot to vote
on acceptance or rejection of the Plan.  If the United States is a
creditor or equity security holder, the Secretary of the Treasury may accept or
reject the Plan on behalf of the United States.  You are urged to
consult independent counsel with regard to your voting rights as a Holder of an
Allowed Claim or Interest.

       

      16.2   Under
Title 11 (“Bankruptcy Code”), Section 1126(c), an entire class of Claims is
deemed to accept the Plan if the Plan is accepted by creditors that hold at
least two-thirds in amount and more than one-half in number of the Allowed
Claims in the Class.  Under section 1129(a)(10), if there are impaired
classes of claims, the Court cannot confirm the Plan unless it has been accepted
by at least one class of non-insiders who hold impaired Claims (claims that are
not going to be paid completely or in which some legal, equitable, or
contractual right is altered).  Moreover, under section 1126(f),
Holders of unimpaired Claims are deemed to have accepted the Plan.

       

      16.3
Under section 1127(a) of the Bankruptcy Code, the Plan proponent may modify the
Plan at any time before confirmation, but the Plan, as modified, must meet all
the requirements of chapter 11.  When there is a proposed modification
after balloting has been conducted, and the Court finds, after a hearing, that
the proposed modification does not adversely affect the treatment of any
creditor who has not accepted the modification in writing, the modification is
deemed to have been accepted by all creditors who previously accepted the
Plan.  (Rule 3019).  If it is determined that the proposed
modification does have an adverse effect on the claims of non-consenting
creditors, then another balloting must take place.

       

      16.4 Any
party in interest may file an objection to confirmation of the
Plan.  The Bankruptcy Code requires the Court, after notice, to hold a
hearing on confirmation of the Plan.  If no objection to confirmation
has been timely filed, the Bankruptcy Code allows the Court to determine whether
the Plan has been proposed in good faith and according to law.  (Rule
3020(b)(2)).  Before confirmation can be granted, the Court must be
satisfied that there has been compliance with all the other requirements of
confirmation set forth in section 1129 of the Bankruptcy Code, even in the
absence of any objections.

       

      16.5   In
order to confirm the Plan, the Court must find, among other things, that: (1)
the Plan is feasible; (2) it is proposed in good faith; and (3) the Plan and the
proponents of the Plan are in compliance with the Bankruptcy Code.  In
order to satisfy the feasibility requirement, the Court must find that
confirmation of the Plan is not likely to be followed by insolvency or
liquidation.

       

      Gwenco
Third Amended Plan of Reorganization – Page 39

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      XVII.
RETENTION OF JURISDICTION

      17.1
Following the Confirmation Date, the Bankruptcy Court will retain jurisdiction
to decide disputes concerning the classification and allowance of any Claim or
Interest and the reexamination of Claims that have been allowed for the purposes
of voting, and the determination of any objections that may be filed to Claims
or Interests.  The failure by the Debtor to object to, or to examine,
any Claim or Interest for the purposes of voting will not be deemed a waiver of
its right to object to, or to re-examine, the Claim or Interest in whole or in
part.

       

      17.2 The
Bankruptcy Court will retain jurisdiction after the Confirmation Date to
determine all questions and disputes regarding title to the assets of the
Estate, disputes concerning the allowance of Claims and determination of all
Causes of Action, controversies, disputes, or conflicts, whether or not subject
to any pending action, as of the Confirmation Date, for the Debtor to recover
assets pursuant to the provisions of the Bankruptcy Code. 

       

      17.3
Under Sections 105(a) and 1142 of the Bankruptcy Code, and notwithstanding entry
of the Confirmation Order and occurrence of the Effective Date, the Bankruptcy
Court shall retain exclusive jurisdiction over all matters arising out of, and
related to, the Chapter 11 Case and the Plan to the fullest extent permitted by
law.

       

      XVIII. ASSERTING
AND CURING DEFAULT UNDER THE PLAN

      If the
Debtor or the Reorganized Debtor defaults under the provisions of the Plan (as
opposed to default under the documentation executed in implementing the terms of
the Plan, which documents may provide independent bases for relief concerning
the assertion and cure of defaults), any creditor or party in interest desiring
to assert a default will provide the Debtor or the Reorganized Debtor with
written notice of the alleged default.  The Debtor or the Reorganized
Debtor will have thirty (30) days from receipt of written notice to cure the
alleged default.  If the default is not cured, any creditor or party
in interest may then file with the Bankruptcy Court and serve on counsel for the
Debtor or the Reorganized Debtor a motion to compel compliance with the
applicable provision of the Plan.  The Bankruptcy Court, on finding a
material default, will issue orders compelling compliance with the pertinent
provisions of the Plan.

       

      Gwenco
Third Amended Plan of Reorganization – Page 40

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Submitted
this the 2nd day of
November, 2008.

      

      
        
          	
                    /s/ Eugene Chiaramonte,
      Jr.

                
	
                  Eugene
      Chiaramonte, Jr., President

                
	
                  of
      the Debtor, Gwenco, Inc

                
	 
      
	
                    /s/ Paul Stewart
    Snyder

                
	
                  Paul
      Stewart Snyder

                
	
                  Attorney
      For The Debtor

                
	
                  P.O.Box
      1067

                
	
                  Ashland,
      Ky 41105-1067

                
	
                  (606)
      325-5555 fax (606) 324-1665

                
	
                  email:
      ps@ws5.com

                
	 
      
	
                    /s/ Eugene Chiaramonte,
      Jr.

                
	
                  Eugene
      Chiaramonte, Jr., President

                
	
                  of
      Quest Minerals & Mining Corp.

                
	 
      
	
                    /s/ Eugene Chiaramonte,
      Jr.

                
	
                  Eugene
      Chiaramonte, Jr., President

                
	
                  of
      Quest Minerals & Mining,
Ltd.

                

        

      

      

      Gwenco
Third Amended Plan of Reorganization – Page 41

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      PRE-PETITION
EXECUTORY CONTRACTS AND LEASES SPECIFICALLY

        

      ASSUMED
AND POST-PETITION ORDINARY COURSE OF BUSINESS CONTRACTS

       

      AND
LEASES SPECIFICALLY APPROVED AND ASSUMED

       

      
        	
                 
      

              	
                1.

              	
                Interstellar
      Royalty Agreement

              

      

       

      
        	
                 
      

              	
                2.

              	
                Royalty
      Agreement by and between Gwenco, Inc. and Albert
  Anderson

              

      

       

      
        	
                 
      

              	
                3.

              	
                Stock
      Purchase Agreement by and between William S. Whitson, Albert Anderson, and
      Gwenco, Inc. dated December 23, 2003, as amended on August 11, 2004, as
      amended on August 24, 2006, and as amended in or about November,
      2008

              

      

       

      
        	
                 
      

              	
                4.

              	
                Each
      leases assumed pursuant to Orders of the Bankruptcy
  Court

              

      

       

      
        	
                 
      

              	
                5.

              	
                Lease
      Agreement amended and restated as of July 17, 2007 by and among the Ben
      Millard Heirs (as defined in the Lease Agreement) and the
      Debtor

              

      

       

      
        	
                 
      

              	
                6.

              	
                Lease
      Agreement amended and restated as of July 17, 2007 by and among Gerald
      Millard and George Millard (as defined in the Lease Agreement) and the
      Debtor

              

      

       

      
        	
                 
      

              	
                7.

              	
                Lease
      Agreement amended and restated as of July 30, 2008 by and among the Sally
      Slater Heirs (as defined in the Lease Agreement) and the
      Debtor

              

      

       

      
        	
                 
      

              	
                8.

              	
                Lease
      Agreement amended and restated as of May 12, 2008 by and among the Stepp
      Heirs (as defined in the Lease Agreement) and the
  Debtor

              

      

      

      
        	
                 
      

              	
                Gwenco
      Plan of Reorganization – Exhibit
AEXHIBIT
10.1

    

    28
September 2009

    

    Apollo
Gold Corporation

    5655 S.
Yosemite Street, Suite 200

    Greenwood
Village

    Colorado
80111- 3220

    UNITED
STATES OF AMERICA

    

    Attention:             R.
David Russell

    

    Dear
Sirs

    

    Deferral
of Scheduled Repayment due 30 Sept 2009, funding of the Debt Service Reserve
Account and date for Project Completion - Consent

    

    We refer
to your letter dated 9 September 2009 and recent discussions with APG management
as well as an onsite review of the Project and updated projected cash flows.
Unless otherwise defined in this letter, capitalized terms used but not defined
herein shall have the meanings assigned to them in the Project Facility
Agreement dated 20 February 2009 between Apollo Gold Corporation (“APG”), RMB
Australia Holdings Limited, Macquarie Bank Limited (“Financiers”)
and RMB Resources Inc (“Agent”),
as amended, modified or restated (“Project Facility
Agreement”).

    

    On the
condition that a new resource model and life-of-mine-plan is provided by APG to
the Financiers prior to 15 November, 2009, the Financiers and APG agree
to:

    

    
      	
               
      

            	
              (i)

            	
              Conduct
      a technical review process to the Financiers satisfaction (“Technical
      Review”);

            

    

    
      	
               
      

            	
              (ii)

            	
              Defer
      the 30 September 2009 Repayment Date and the requirement to fund the Debt
      Service Reserve Account until the earlier of (i) the completion of the
      Technical Review and (ii) 31 December 2009;
and

            

    

    
      	
               
      

            	
              (iii)

            	
              Amend
      the date by which Project Completion must occur under clause 9.2(f) of the
      Project Facility Agreement to 31 March
2010.

            

    

    

    This
letter is a Transaction Document for the purpose of the Project Facility
Agreement. The terms of the consent can be accepted on or before 5pm (Sydney
time) 29 September 2009 by APG returning a signed copy of this letter to the
Agent.  Except as expressly set out in this letter, nothing in this
letter otherwise constitutes a waiver of the Financiers’ rights under the terms
of the Transaction Documents and the Financiers’ otherwise reserve all of their
rights under the Transaction Documents.

    

    Yours
faithfully

    RMB
Resources Inc.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Signed
for

    RMB
Resources Inc.

    by its
authorized officer

    

    
      
        
          	
                  sign
      here

                	
                  /s/ Richard A. Winters

                
	 
      	
                  Authorized
      Officer

                
	 
      	 
      
	
                  Print
      name

                	
                  Richard
      A. Winters

                
	 
      	 
      
	
                  Print
      title

                	
                  President

                

        

      

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Consent
and instruction by the Financiers

    

    Each of
the Financiers, being RMB Australia Holdings Limited and Macquarie Bank Limited,
gives its consent to, and instructs, RMB Resources Inc. (as Agent) to execute
this letter.

    

    
      
        	
                Signed
      by

              
	
                RMB
      Australia Holdings Limited

              
	
                by:

              	 
      
	 
      	 
      
	
                sign
      here

              	
                /s/ Gregory Gay

              
	 
      	
                Authorized
      Officer

              
	 
      	 
      
	
                Print
      name

              	
                Gregory
      Gay

              
	 
      	 
      
	
                Print
      title

              	
                Finance
      Officer

              

      

    

    

    Signed
for

    Macquarie
Bank Limited

    By its
Attorneys

    

    
      
        
          
            
              
                
                  	
                          sign
      here

                        	 
      	
                          /s/
      John Braham

                        	 
      	
                          sign
      here

                        	 
      	
                          /s/
      Margot Branson

                        
	
                           

                        	 
      	
                          

                            Executive
      Director

                          

                        	 
      	 
      	 
      	

                          Associate
      Director

                        
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                          print
      name

                        	 
      	
                          John
      Braham

                        	 
      	
                          print
      name

                        	 
      	
                          Margot
      Branson

                        
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                           

                        	 
      	
                                
                            In
      the presence of

                          

                        	  
      	  
      	 
      	      
                          In
      the presence of

                        
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                          sign
      here

                        	 
      	
                          /s/
      James K.C. Leung

                        	 
      	
                          sign
      here

                        	 
      	
                          /s/
      James K.C. Leung

                        
	
                           

                        	 
      	
                          Witness

                        	 
      	 
      	 
      	

                          Witness

                        
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                          print
      name

                        	
                            

                        	
                          James
      K.C. Leung

                        	
                            

                        	
                          print
      name

                        	
                            

                        	
                          James
      K.C.
Leung

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Acceptance
by the Borrower

    

    The
Borrower accepts the Agent’s consent for a deferral of the date for Project
Completion and the 30 September 2009 Repayment Date on the terms and conditions
specified in this letter and acknowledges that each of the Agent and Financiers
has executed this letter in reliance on the Borrower agreeing the
above.

     

    
      
        	
                Signed
      for

                Apollo
      Gold Corporation

                by
      its Authorized Signatory:

              
	 
      	 
      
	
                sign
      here

              	
                /s/ Melvyn Williams

              
	 
      	
                Authorized
      Signatory

              
	 
      	 
      
	
                Print
      name

              	
                Melvyn
      Williams

              
	 
      	 
      
	
                Print
      title

              	
                CFO

              

      

    

     

    
      
         

      

      
        4

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